Leumi posts largest ever bank profit

The Levi Bank, headed by Hanan Friedman, recorded the largest net profit in its history, with a group of 9.8 billion New, in 2024, a 40 % sharp leap compared to the previous year. As the competing banquoalim did on Monday, the Bank Leumi also presented its goals for the next two years this morning. The bank estimates that it will record a net profit between 9 and 11 billion Nathea every year in 2025 and 2026. The return on shares is expected to be 15-16 %.

Over the course of 2024, the bank recorded a 16.9 % return on property rights, which is a significant improvement in the return of 13.7 % in 2023, which was affected by the provisions requested by the Bank of Israel after the outbreak of the war.

The bank's goals also include the distribution of 50 % of its profits for shareholders in the next two years, which is a higher rate than what the bank supervisor Daniel Hehshevili (40 %) has now allowed. The bank estimates that its credit portfolio will grow by 8-10 % in the next two years.

Benefits entered 16.5 billion

The interest revenues in the Bank Leumi amounted to 16.5 billion NIS last year, which represents an increase of 3.2 % compared to the previous year. The bank recorded a 70 % decrease in credit losses last year – this reached 713 million NIS. It must be emphasized that the losses recorded a year ago, in 2023, were high due to collective rulings that the Bank of Israel ordered banks to investigate, after the outbreak of the war. This is also a net profit erosion in 2023.

One of the encouraging numbers arising from the reports is that, last year, the provisions of credit losses reached 0.16 % of the average credit balance of the public, a decrease from 0.58 % in 2023 (which was high due to the war). Behind this number, there is another important sign for the economy: providing credit losses last year was a fully collective ruling, that is, not for specific companies in difficulties, but it is a governor designed to protect the bank from future shocks. The bank explained that its ruling “still reflects a conservative approach in light of security uncertainty and economic certainty.”

Leumi plans to distribute profits of 980 million NIS with regard to its fourth profits. This will be in the form of a direct transfer to shareholders of 706 million NIS, with the remaining amount applied to the shares reset program. The profit profit number is 40 % of the net profit for the country's largest bank. The overall profits on the 2024 day are 4 billion NIS.

The credit for the audience (network) reached 455.5 billion New at the end of last year, which represents an increase of 8.6 % throughout the year. The sector, which grew the fastest household loans (mortgages), which reached 146.6 billion NIS, represented a sharp increase of 11 % in one year.

It was published by Globes, Israel Business News – En.globes.co.il – on March 4, 2025.

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