Results Reflect continued growth and strong profitability while maintaining financial stability

TEL AVIV, Israel, May 14, 2025 /PRNewswire/ -- First International Bank of Israel(TASE: FIBI) one of Israel's major banking groups, today announced its results for the first quarter of the year.

Financial Highlights

Net income of NIS 530 million in the first quarter of 2025 return on equity of  15.7% Pre-tax income grew by 4.1%, compared with the same quarter in the previous year and amounted to NIS 887 million Credit to the public, net, increased by 14.6% compared with the same period in the previous year and by 2% in the first quarter of the year Deposits by the public, net, increased by 12.4% compared with the same period in the previous year and by 2.9% in the first quarter of the year Customer's assets grew by 30% compared with the same period in the previous year and by 11.7% in the first quarter of the current year, reaching NIS 937 billion Equity attributed to shareholders in the Bank amounted to NIS 13,773 million, an increase of 2.6% compared to the end of 2024. The tier-1  shareholders' equity stood at  11.31% The Bank's Board of Directors decided to distribute a dividend for the first quarter of the year of NIS 212 million, representing a rate of 40% of the net income

Financial Results of the First Quarter of 2025

The First International Bank Group's net income  amounted to NIS 530 million in the first quarter of 2025, a decrease of 6.9% compared with the same quarter last year. Return on equity reached 15.7%.

Pre-tax income grew by 4.1% compared with the same quarter last year and amounted to NIS 887 million. The increase in the effective tax rate compared with the same quarter last year, was primarily as a result of income recorded from prior years reported in the comparable period last year, amounting to NIS 49 million,  and due to an increase in the special tax that is imposed on banks in Israel.

Credit to the public, net amounted to NIS 132 billion, an increase of 14.6% compared with last year and an increase of 2% in the first quarter of the year.

Deposits by the public amounted to approximately NIS 221 billion, an increase of 12.4% compared with last year and an increase of 2.9% in the first quarter.

The total customer assets portfolio increased by 30% compared with last year and by 11.7% in the first quarter of the year and  amounted to NIS 937 billion.

Equity attributed to the shareholders of the Bank increased to NIS 13.8 billion, an increase of 2.6% compared to the end of 2024. The tier 1 shareholders' equity ratio stood at 11.31% - approximately 2.1% above the equity that is required by regulation,  allowing for continued growth in the Group's activity.

Story Continues

Income on credit losses amounted to NIS 11 million in the first quarter of 2025, as compared with income of NIS 2 million in the same period in the previous year.

The quality of the credit portfolio  - the NPL ratio (the balance of non-accruing debts or debts that are in arrears of 90 days or more to the balance of the credit to the public) improved and reached 0.46% at the end of the first quarter, compared to 0.6%  in the same period in the previous year.

Operating and other expenses amounted to NIS 792 million, an increase of 8.3% compared with the same period in the previous year. The increase was primarily due to an increase in other expenses: capital market commisions, advertising and expenses relating to the departure of employees. The efficiency (cost income) ratio stood at 47.5%.

In light of the Supervisor of the Bank's guidance regarding "Capital planning and profits distribution policies", the Bank's Board of Directors decided to approve the distribution of a cash dividend in an amount of NIS 212 million to the shareholders, representing 40% of the net income. The Bank's Board of Directors will continue to discuss the implementation of the Bank's dividend distribution policy, pursuant to which the Bank will distribute up to 50% of the annual net income each year, in light of developments and their impact on the economy and on the Bank.

Management Comment

Eli Cohen, First International Bank's CEO commented: "We concluded a positive first quarter, continuing the growth trend that we have experienced in recent years.  The results reflect our deepening activity in the capital markets and in credit, they reflect our focus on the unique needs of our customers, and our ability to provide excellent levels of service, even during uncertain times. This was achieved while maintaining the high quality of our credit portfolio, and a strong capital base and high liquidity.

"We have continued to expand our offerings of advanced products for both private and business customers during the quarter, and we have also strengthened our innovation and digital infrastructure.

"Since April, the Bank has been offering a new package of benefits and financial relief for customers, focused on evacuees and active duty/reserve soldiers, in which the Bank is granting significant benefits, amounting to approximately NIS 130 million a year.

"I am proud of our employees, who have shown commitment, professionalism and determination in order to deliver real value to our customers. I hope for the safe return of the hostages,  the safety of the IDF soldiers and that the State of Israel will return to a path of peace and stability."

CONDENSED PRINCIPAL FINANCIAL INFORMATION AND PRINCIPAL

EXECUTION INDICES  Principal financial ratios  For the three months 
ended March 31,  For the year

ended

December 31, 2025  2024  2024 Percent Principal execution indices  Return on equity attributed to shareholders of the Bank(1) 15.7 18.7 19.0 Return on average assets(1) 0.84 1.03 1.02 Ratio of equity capital tier 1 11.31 11.78 11.31 Leverage ratio 5.22 5.27 5.18 Liquidity coverage ratio(3) 146 161 165 Net stable funding ratio 131 150 140 Ratio of total income to average assets(1) 2.6 2.9 2.9 Ratio of interest income, net to average assets (1) 1.8 2.0 2.0 Ratio of fees to average assets (1) 0.7 0.7 0.7 Efficiency ratio 47.5 46.2 44.1 Credit quality indices  Ratio of provision for credit losses to credit to the public 1.22 1.38 1.25 Ratio of total provision for credit losses (2) to credit to the public 1.36 1.53 1.38 Ratio of non-accruing debts or in arrears of 90 days or more to credit to the public 0.46 0.60 0.53 Ratio of provision for credit losses to total non-accruing credit to the public 275.1 236.1 244.6 Ratio of net write-offs to average total credit to the public (1) (0.05) (0.02) (0.04) Ratio of income from credit losses to average total credit to the public (1) (0.03) (0.01) (0.01)  Principal data from the statement of income  For the three months 
ended March 31, 2025  2024 NIS million Net profit attributed to shareholders of the Bank    530  569 Interest Income, net  1,154  1,115 Income from credit losses  (11)  (2) Total non-Interest income  514  466 Of which: Fees  425  365 Total operating and other expenses  792  731 Of which: Salaries and related expenses  453  *447 Primary and diluted net profit per share of NIS 0.05 par value (NIS)  5.28  5.67  Principal data from the balance sheet  31.3.25  31.3.24  31.12.24 NIS million Total assets  253,748  225,941  248,563 of which: Cash and deposits with banks 77,342 76,731 77,175 Securities 35,946 26,375 34,396 Credit to the public, net 132,026 115,199 129,416 Total liabilities 239,296 212,989 234,479 of which: Deposits from the public 221,051 196,615 214,755 Deposits from banks  1,637 3,586 2,508 Bonds and subordinated capital notes 4,458 4,736 4,479 Capital attributed to the shareholders of the Bank 13,773 12,355 13,430  Additional data  31.3.25  31.3.24  31.12.24 Share price (0.01 NIS)  18,720  15,440  17,940 Dividend per share (0.01 NIS) 227 268 986

*      Reclassified.
(1)   Annualized.
(2)   Including provision in respect of off-balance sheet credit instruments.
(3)   The ratio is computed in respect of the three months ended at the end of the reporting period.

CONSOLIDATED STATEMENT OF INCOME  (NIS million)  For the three months
ended March 31  For the year Ended 
December 31 2025  2024  2024 (unaudited) (unaudited)  (audited) Interest Income    2,803  2,576  11,097 Interest Expenses  1,649 1,461 6,357 Interest Income, net  1,154 1,115 4,740 Income from credit losses  (11) (2) (16) Net Interest Income after Income from credit losses  1,165 1,117 4,756 Non- Interest Income  Non-Interest financing income   88 100 432 Fees  425 365 1,553 Other income  1 1 21 Total non- Interest income  514 466 2,006 Operating and other expenses  Salaries and related expenses  453 *447 1,739 Maintenance and depreciation of premises and equipment  84 *82 359 Amortizations and impairment of intangible assets  35 31 134 Other expenses  220 171 745 Total operating and other expenses  792 731 2,977 Profit before taxes  887 852 3,785 Provision for taxes on profit  354 279 1,383 Profit after taxes  533 573 2,402 The bank's share in profit of equity-basis investee, after taxes  22 18 74 Net profit:  Before attribution to non–controlling interests  555 591 2,476 Attributed to non–controlling interests  (25) (22) (105) Attributed to shareholders of the Bank  530 569 2,371  NIS Primary profit per share attributed to the shareholders 
of the Bank  Net profit per share of NIS 0.05 par value  5.28 5.67 23.63  Diluted profit per share attributed to the shareholders 
of the Bank  Net profit per share of NIS 0.05 par value  5.28 5.67 23.63

*       Reclassified.

The notes to the financial statements are an integral part thereof.

STATEMENT OF COMPREHENSIVE INCOME  (NIS million)  For the three months
ended March 31  For the year

Ended 
December 31 2025  2024  2024 (unaudited)  (unaudited)  (audited) Net profit before attribution to non–controlling interests  555  591  2,476 Net profit attributed to non–controlling interests (25) (22) (105) Net profit attributed to the shareholders of the Bank 530 569 2,371 Other comprehensive income (loss) before taxes:  Adjustments of available for sale bonds to fair value, net 38 (44) 31 Adjustments of liabilities in respect of employee benefits(1) 26 11 (60) Other comprehensive income (loss) before taxes 64 (33) (29) Related tax effect (24) 17 9 Other comprehensive income (loss) before attribution to non–controlling interests, after taxes 40 (16) (20) Less other comprehensive income attributed to non–controlling interests - - 3 Other comprehensive income (loss) attributed to the shareholders of the Bank, after taxes 40 (16) (23) Comprehensive income before attribution to non–controlling interests 595 575 2,456 Comprehensive income attributed to non–controlling interests (25) (22) (108) Comprehensive income attributed to the shareholders of the Bank 570 553 2,348

(1)   Mostly reflects adjustments in respect of actuarial assessments as of the end of the period regarding defined benefits pension plans, of amounts recorded in the past in other comprehensive income.

CONSOLIDATED BALANCE SHEET  (NIS million)  March 31,  December 31, 2025  2024  2024 (unaudited) (unaudited) (audited) Assets  Cash and deposits with banks 77,342 76,731 77,175 Securities 35,946 26,375 34,396 Securities which were borrowed 71 2 70 Credit to the public 133,660 116,816 131,050 Provision for Credit losses (1,634) (1,617) (1,634) Credit to the public, net 132,026 115,199 129,416 Credit to the government 1,504 965 1,496 Investment in investee company 866 800 842 Premises and equipment 858 867 867 Intangible assets 356 325 363 Assets in respect of derivative instruments 3,376 3,324 2,565 Other assets(2) 1,403 1,353 1,373 Total assets 253,748 225,941 248,563 Liabilities and Shareholders' Equity  Deposits from the public 221,051 196,615 214,755 Deposits from banks 1,637 3,586 2,508 Deposits from the Government  483 710 2,540 Securities lent or sold under agreements to repurchase 3,813 - 2,304 Bonds and subordinated capital notes 4,458 4,736 4,479 Liabilities in respect of derivative instruments 3,158 3,085 2,729 Other liabilities(1)(3) 4,696 4,257 5,164 Total liabilities 239,296 212,989 234,479 Capital attributed to the shareholders of the Bank 13,773 12,355 13,430 Non-controlling interests 679 597 654 Total equity 14,452 12,952 14,084 Total liabilities and shareholders' equity 253,748 225,941 248,563

(1)   Of which: provision for credit losses in respect of off-balance sheet credit instruments in the amount of NIS 184 million and NIS 170 million and NIS 177 million as of 31.3.25, 31.3.24 and 31.12.24, respectively.
(2)   Of which: other assets measured at fair value in the amount of NIS 21 million and NIS 5 million and NIS 1 million as of 31.3.25, 31.3.24 and 31.12.24, respectively.
(3)   Of which: other liabilities measured at fair value in the amount of NIS 21 million and NIS 5 million and NIS 11 million as of 31.3.25, 31.3.24 and 31.12.24, respectively.

STATEMENT OF CHANGES IN EQUITY  (NIS million)  For the three months ended March 31, 2025 (unaudited) Share

capital and

premium

(1)  Capital

reserves from

benefit due to

share-based

payment

transactions  Total

capital and

capital reserves  Accumulated

other

comprehensive

income (loss)  Retained

earnings

(2)  Total

share-

holders'

equity  Non-

controlling

interests  Total

equity Balance as of December 31, 2024 (audited) 927  -  927 (178) 12,681 13,430 654 14,084 Net profit for the period -  -  - - 530 530 25 555 Dividend -  -  - - (228) (228) - (228) Benefit due to share-based payment transactions -  1  1 - - 1 - 1 Other comprehensive income, after tax effect -  -  - 40 - 40 - 40 Balance as of March 31, 2025 927  1  928 (138) 12,983 13,773 679 14,452  For the three months ended March 31, 2024 (unaudited) Share

capital and

premium

(1)  Accumulated

other

comprehensive

loss  Retained

earnings

(2)  Total

share-

holders'

equity  Non-

controlling

interests  Total

equity Balance as of December 31, 2023 (audited)     927 (155) 11,299 12,071 575 12,646 Net profit for the period     - - 569 569 22 591 Dividend     - - (269) (269) - (269) Other comprehensive loss, after tax effect     - (16) - (16) - (16) Balance as of March 31, 2024     927 (171) 11,599 12,355 597 12,952  For year ended December 31, 2024 (audited) Share

capital and premium

(1)  Accumulated

other comprehensive

loss  Retained earnings

(2)  Total

share-holders' equity  Non-

controlling interests  Total equity Balance as of December 31, 2023      927 (155) 11,299 12,071 575 12,646 Net profit for the year      - - 2,371 2,371 105 2,476 Dividend      - - (989) (989) (29) (1,018) Other comprehensive income (loss), after tax effect      - (23) - (23) 3 (20) Balance as of December 31, 2024      927 (178) 12,681 13,430 654 14,084

(1)   Including share premium of NIS 313 million (as from 1992 onwards).
(2)   Including an amount of NIS 2,391 million which cannot be distributed as dividend.

Contact: Dafna Zucker
First International Bank of Israel
[email protected]
+972-3-519-6224Cision

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SOURCE First International Bank of Israel

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