Latest news with #Leumi
Reuters
20-05-2025
- Business
- Reuters
Israel's Bank Leumi's quarterly profit rises, to pay shareholders 40% of income
TEL AVIV, May 20 (Reuters) - Leumi ( opens new tab, one of Israel's two largest banks, reported a rise in quarterly profit on Tuesday, boosted by an increase in financing income and a drop in provisions for bad debts. Leumi earned 2.4 billion shekels ($682 million) excluding one-time items in the first quarter of 2025, up from 2.1 billion a year earlier. Its return on equity was broadly steady at 15.4%. The bank's credit portfolio grew an annual 8%, while its loan loss expense slid 75% to 55 million shekels. Net interest income rose 6.6% to 4.02 billion shekels. Its Tier 1 capital ratio rose to 12.15% in the quarter from 11.98% a year ago. Leumi said it would distribute 40% of its quarterly net profit, or 961 million shekels, to shareholders - 721 million shekels as a cash dividend and the rest as a share buyback. Banks have pushed to raise payouts to 50% of net profit but Israel's banking regulator on Monday said was still too early to do so due to ongoing economic uncertainty stemming from the war in Gaza. Leumi's main rival Hapoalim ( opens new tab on Monday also reported higher profit of 2.4 billion shekels amid double-digit credit growth. ($1 = 3.5179 shekels)
Reuters
04-03-2025
- Business
- Reuters
Israel's finance committee chief faults government over soaring bank profits
JERUSALEM, March 4 (Reuters) - The head of Israel's powerful parliamentary finance committee criticised the government and central bank on Tuesday for allowing commercial banks to post huge profits and said he would consider taking unspecified steps to rein in the lenders. "The state and the Bank of Israel have failed in their supervision of banks," said committee chairman Moshe Gafni. He spoke hours after Leumi ( opens new tab, one of Israel's two largest banks, said it earned nearly 10 billion shekels ($2.75 billion) in net profit in 2024, up 40% from 2023. On Monday, rival Hapoalim ( opens new tab said it made 7.6 billion shekels last year, with bank profits boosted by high interest rates. "There is an economic need to allow banks to operate independently, but this recklessness ... exceeds the boundaries of reasonable and normative management in banks in Israel," Gafni said. "At a time when the cost of living is soaring and many families are barely making ends meet, the banks are operating as if there are no price increases. The Finance Committee will reconsider its position on this important matter." He did not elaborate, and the Bank of Israel did not immediately respond to a request for comment. Gafni has been a frequent critic of the Bank of Israel for raising its benchmark interest rate sharply - to 4.75% from 0.1% in April 2022 - to battle inflation, although the rate has lately eased to 4.5%. He also believes the central bank did not push banks enough to pass on rate hikes to customers' savings and checking accounts as quickly as to mortgages and other loans. Public anger over a spike in borrowing rates has also mounted, especially as banks have been paying out 40% of net profit each quarter in dividends and share buybacks. Hapoalim and Leumi are seeking to distribute at least 50% of profit in 2025, a move banks see as helping the public since most Israelis benefit through their pension and other funds held at institutions. Under a tax amendment passed a year ago, banks in 2024 and 2025 must pay an additional 6% of profit generated from activities in Israel, a move promoted by Gafni. ($1 = 3.6375 shekels)
