Financial Reports 2nd Quarter 2025
Net profit in the second quarter of 2025: NIS 1,453 million
Compared to NIS 1,452 million in the corresponding quarter last year
Return on equity in the second quarter: 17.8%
Cost-Income Ratio in the second quarter: 34.9%
Net profit in the first half of 2025: NIS 2,743 million
Compared to NIS 2,724 million in the corresponding period last year
Return on equity in the first half: 17.0%
Credit to the public: As of June 30, 2025: NIS 376.7 billion
Compared to NIS 337.7 billion in the corresponding period last year
An increase of 11.5%
Deposits from the public: As of June 30, 2025: NIS 417.4 billion
Compared to NIS 373.6 billion in the corresponding period last year
An increase of 11.7%
Dividend distribution of NIS 726.5 million - 50% of the second quarter's profit
Support to reservists and benefits outline for households and businesses
Support to reservists - Since the beginning of the Iron Swords War, Mizrahi Tefahot implemented many initiatives and measures in order to support its customers in general and specific populations in particular.
The ongoing war effort places an exeptional burden on reservists. In order to convey our appreciation for this population, the Bank has decided to grant a special benefit to all those who served or will serve as reservists at least 90 days between October 2024 and the end of 2025: A NIS 100 thousand interest and linkage-free mortgage. The benefit can be utilized by those who take a mortgage with Tefahot when buying their first house.
Benefits to households and small businesses - Further to the Bank of Israel’s voluntary outline, at the beginning of the second quarter the Bank launched a dedicated plan for households and small businesses, which includes a number of substantial current account and mortgage benefits. Among other things, Mizrahi Tefahot’s package includes the following benefits:
Annual interest of 2% on credit balances of up to NIS 30,000 in current accounts; a NIS 500 quarterly grant to mortgage holders, who took a mortgage with Tefahot to acquire a single property (not for investment purposes), which meets certain criteria in terms of the property’s value, LTV ratio and repayment ratio; customers, with both a mortgage and a current account overdraft facility with Mizrahi-Tefahot are exempt from paying interest on their overdraft up to the lower of the monthly mortgage repayment amount or NIS 6,000 per month; private customers and small businesses benefit from a 3% reduction in the interest payable on debit balances in their credit facilities and current loan accounts; ‘no interest overdraft’ benefit - for private customers, which includes a monthly offsetting mechanism between the credit and debit balances in the account up to a maximum offset amount of NIS 10,000 per day.
A strategic plan for 2025-2027 was launced
Having met most of the targets of its latest strategic plan, at the beginning of June the Bank launched a strategic plan for 2025-2027. The new plan will enable the Bank to make another leap forward and expand the scope of its operations, based on its impressive achievements in recent years in terms of credit portfolio, profit and profitability growth, cost-income ratio, leading the mortgages market and its distinctl leadership in service standards in general and in customer satisfaction in particular.
Alongside qualitative objectives - such as maintaining the Bank’s leadership position in the mortgages market and enhancing its personal-human service strategy as a growth and differentiation driver, the plan also includes quantitative objectives, which set a clear course for growth and expansion for the Bank, mainly in the business credit activity. Thus, for example, the Bank intends to increase its market share in credit to the public from 21.5% at the end of 2024 to 23%-24% at the end of 2027, and its business credit market share in particular from 11.7% at the end of 2024 to 15%-16% by the end of the plan period. At the same time, the Bank plans to achieve growth in its deposits from the public, so that its market share will increase from 18.4% at the end of 2024 to 20%-21% at the end of 2027. Regarding profitability, the Bank has set itself an average return on equity target of 17%-18% in each of the plan’s years, and an average cost-income ratio of no more than 35% in the strategic plan period.
Moshe Lari: The second quarter results reflect the Bank’s success in continuing to grow even in a challenging security and economic climate
"The results we present in the second quarter of 2025, and first and foremost - the NIS 1,453 million net profit and a 17.8% return on equity should not be taken for granted; they are a remarkable achievement of our thousands of excellent employees and executives. Thanks to their professionalism, determination and dedication, the Bank is able to maintain its growth trend even in such a challenging security and economic climate, and for that they deserve our appreciation and gratitude.
"The expansion of the Bank’s operations are evident from the comparison of its results in the second quarter of the year to those of the corresponding quarter last year, and even more so compared to the results in the first quarter of 2025. As of June 30, 2025, loans to the public amounted to NIS 376.7 billion - an increase of 11.5% compared to the corresponding period last year, and a 3.4% increase compared to the first quarter of the year - reflecting an annual growth rate of 13.5%; as of June 30, 2025, deposits from the public amounted to NIS 417.4 billion - an increase of 11.7% compared to the corresponding period in 2024 and a 4.5% increase since March 31, 2025 - reflecting an annual growth rate of 18.2%.
"An analysis of the increase in the Bank’s credit portfolio indicates accelerated growth in the various segments of its business credit activity. As of June 30, 2025, the Bank’s business credit portfolio amounted NIS 105 billion - a 19.5% increase compared to the corresponding period last year, and a 7.8% increase compared to March 31, 2025 - reflecting an annual growth rate of 31.1%. These impressive results are consistent with the objectives of the new strategic plan for 2025-2027, one of the key objectives of which is positioning Mizrahi Tefahot as a key player in business banking in Israel, and increasing its market share in credit to the public and in business credit in particular.
"The Bank continues to maintain remarkable operational efficiency, which is an integral part of its organizational culture; in the second quarter it achieved an outstanding cost-income ratio, bellow 35%.
"In view of the Bank’s financial results in the second quarter and having assessed its capital ratios under the different scenarios, its Board of Directors resolved to approve the distribution of a NIS 726.5 million dividend - 50% of the second quarter profit. The total amount of the dividend to shareholders for the first half of 2025 is NIS 1,242.5 million.
"The Mizrahi-Tefahot family hopes for the imminent release of all hostages, which are still being held in Gaza; for the safe return in good health of our brave soldiers, and for the full recovery of the thousands of wounded men and women - civilians and soldiers. We all pray for an end to the war, for the removal of threats on all fronts, and for the resumption of normal routine in our lives". says the Bank's CEO, Moshe Lari.
