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BanksFalling rates2026-09-05·6 min read

First International Bank of Israel FIBI

FIBI's profit fell 8.5%. It paid out 96% of it. The buffer dropped to 10.87%. 

Net interest income fell 7.6% on a loan book that grew 20.1% gross, the efficiency ratio worsened from 43.1 to 46.1, and the capital ratio fell from 11.54% to 10.87%, toward a 9.50% target.

ID card · First International Bank of Israel
Closing price
24,260agorot-0.53%
Market cap
Quarterly net profit · Q2 2026
Return on equity
CET1 ratio
P/E
P/B

The quarter: net interest income of and net profit of . Both from the filing itself, page 68.

The payout and the buffer

Net profit attributable to shareholders was ₪583M for the quarter, versus ₪637M a year earlier. On it the bank declared a ₪558M dividend: 96% of the quarter's profit, made of two parts: a regular 50% payout, plus ₪266M from a ₪1.1B excess-capital distribution in four tranches.

On the other side sits the CET1 ratio: 10.87% versus 11.54% a year ago. The board's target is 9.50%. The gap, 1.37 points, is a computation.

The main engine is shrinking

Net interest income fell to ₪1,192M from ₪1,290M, down 7.6%. In the same year the loan book grew 20.1% gross. The Bank of Israel rate fell from 4.5% to 3.5%, and on 01.09.2026 again, to 3.25%.

By the bank's own sensitivity tables, as quoted by Calcalist, a 1% cut removes about ₪453M of financing income.

The datum that disagrees

Credit quality is improving. Non-accruing loans fell to 0.40% from 0.46%. The credit-loss line is an income of ₪38M for the quarter. The bank returning capital is also the bank whose loan book is cleaner than a year ago.

For

  • Problem loans shrinking: NPL 0.40% vs 0.46%
  • The second engine works: fees ₪473M, +9.0%
  • Deposits fund the growth: 95% of loan growth

Against

  • Main engine shrinking: NII −7.6% on a +20.1% book
  • Efficiency worsened three points: 46.1 vs 43.1
  • Payout funded from the buffer: ₪266M returned capital

Sources

  1. 1Quarterly report to the public as of 30.06.2026, Maya 17628312026-08-12 · 191 עמודים
  2. 2Bizportal quote page, close of 04.09.20262026-09-04
  3. 3Globes, "FIBI profit fell, but it will pay out 96% as dividend"2026-08-12
  4. 4Calcalist, "Changing engines: the rate party is over"2026-08-15

Disclosure. Fundamental research on companies listed on the Tel Aviv Stock Exchange. The AI rating is a number computed from public data and is not investment advice tailored to any person.

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