Q3 2025 Bank Leumi Le Israel BM Earnings Call Transcript
Key Points
- Bank Leumi Le-Israel BM (BLMIF) reported a strong ROE of 16.3% for Q3 2025, with net profit reaching ILS2.7 billion.
- The bank announced a combined dividend and buyback of ILS2 billion following approval to increase the payout ratio up to 75% of net profit.
- The cost-to-income ratio improved significantly to 27%, down from 31.1% in Q3 2024, supported by higher income and lower costs.
- Credit quality metrics improved, with troubled debt declining to 1.34% of gross loans and NPL at a low level of 0.41%.
- The bank's core Tier 1 ratio increased to 12.33%, with a capital buffer of more than 2% or ILS11 billion, well above regulatory requirements.
- Net interest income decreased by 1.6% year on year, mainly due to a lower CPI compared with Q3 2024.
- The bank's net interest margin was affected by a higher share of institutional deposits, which carry lower margins.
- There is uncertainty regarding potential regulatory risks, including increased tax rates on banks and mortgage subsidies.
- The geopolitical situation, although improved, remains a factor that could impact future credit loss provisions.
- Fee income was partly affected by benefits granted to customers under the Bank of Israel program, impacting overall fee growth.
Ladies and gentlemen, thank you for standing by. Welcome to Leumi's third quarter 2025 results conference call. (Operator Instructions) As a reminder, this conference is being recorded, November 18, 2025. The presentation that we will be using is available on the IR section of the bank's website.
I would like to remind everyone that forward-looking statements for respective company's business, financial condition and results of its operations are subject to risks and uncertainties that could cause actual results to differ materially from those contemplated. Such forward-looking statements include, but are not limited to, product demand, pricing, market acceptance, changing economic conditions, risks in product and technology development and the effect of the company's accounting policies as well as certain other risk factors, which are detailed from time to time in the company's filing with the various securities authorities.
I would now like to turn the call over to Ms. Hagit Argov, CFO and Head of Finance Division. Please go ahead.
| Access to All Earning Calls and Stock Analysis | |
| 30-Year Financial on one screen | |
| All-in-one Stock Screener with unlimited filters | |
| Customizable Stock Dashboard | |
| Real Time Insider Trading Transactions | |
| 8,000+ Institutional investors’ 13F holdings | |
| Powerful Excel Add-in and Google sheets Add-on | |
| All data downloadable | |
| Quick customer support | |
| And much more... |
Trustpilot
We'd love to learn more about your experiences on GuruFocus.com and how we can improve!
Take Survey
