Generic placeholder image

Overview

Mizrahi-Tefahot is Israel's third largest bank based on value of assets and offers a complete range of international, commercial, domestic and personal banking services

Mizrahi Tefahot Bank Ltd., ("Mizrahi Tefahot") is incorporated and existing under the laws of the State of Israel and was established as a public company limited by shares on June 6, 1923. In 1963, Mizrahi Tefahot's shares were first listed for trading on the Tel-Aviv Stock Exchange.


Mizrahi Tefahot is Israel's third largest bank based on value of assets and offers a complete range of international, commercial, domestic and personal banking services. Its total assets as of March 31, 2022 amounted to USD 124.07 billion, and for the 3 months ended March 31, 2022, Mizrahi Tefahot reported USD 549.75 million of operating profit before taxes, USD 363.35 million of net profit, and a return on equity of 21.9%.


Mizrahi Tefahot's controlling shareholders, the Ofer and Wertheim groups, currently hold about 41.69% of its shares, with the remaining outstanding shares owned by the public who hold shares on the Tel-Aviv Stock Exchange. As of December 31, 2021, Mizrahi Tefahot Group operates through 225 branches and business centres in Israel (including 52 branches of its subsidiary, Bank Yahav for Government Employees Ltd, and 29 branches of its subsidiary, Union Bank of Israel Ltd), and its affiliates in Israel and abroad, with two branches in London and Los Angeles respectively.


On January 23, 2022, S&P GLOBAL RATINGS MAALOT LTD (hereinafter: "Ma'alot") confirmed the Bank's issuer rating of ilAAA with a Stable rating outlook. The Bank's contingent subordinated notes with contractual loss absorption provisions (CoCo), which qualify as Tier II equity in conformity with provisions of Basel III, are rated ilAA- by Maalot.


On August 22, 2021, Midroog Ltd. (created in partnership with Moody's International, which owns a 51% equity stake) (hereinafter: "Midroog") left the Bank's ratings un-changed. Long-term deposits and senior debt of the Bank are rated Aaa.il / Stable outlook. Contingent subordinated notes with contractual loss-absorption provisions (CoCo), which qualify as Tier II equity in conformity with provisions of Basel III, are rated Aa3.il / Stable outlook.


On September 30, 2020, Moody's Investors Services rating agency confirmed the Bank's long-term deposit rating at A2 with Stable outlook.
On January 20, 2022, rating agency S&P Global Ratings (hereinafter: "S&P") confirmed the long-term issuer credit rating of A- and the short-term issuer credit rating of A-2. The rating outlook is Positive. Moreover, the agency confirmed the BBB- rating of contingent subordinated notes with loss-absorption provisions which qualify as Tier II equity, issued by the Bank on April 7, 2021 by international private placement to institutional investors.


On January 12, 2022, rating agency Fitch Ratings (hereinafter: "Fitch") confirmed the Bank's long-term IDR rating of A with Stable outlook, and the Bank's short-term rating of F1+, and also confirmed the BBB rating of subordinated notes with loss-absorption provisions.