Mizrahi Tefahot Bank (TASE: MZTF) became the last of the major banks to report its first quarter results this morning. The bank’s net interest income totaled NIS 2.8 billion, 4.2% more than in the corresponding quarter of 2024. Net profit was up 1% in comparison with the corresponding quarter, at NIS 1.3 billion.
The bank, headed by Moshe Lary, reports a 10% year-on-year increase in credit to the public to NIS 363 billion. Financing income from regular activity rose by 2% to NIS 2.84 billion.
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Mizrahi Tefahot’s housing loans portfolio grew by 9.2% in the year to the end of March. “Alongside maintenance of our leadership in the mortgages market, and even widening of the gap from our competitors, developments in credit to other segments stand out favorably.” The bank’s corporate credit portfolio grew by 13.4% year-on-year. Credit to large businesses shot up by 18.4%, while credit to mid-size businesses grew by 12.3%.
The bank’s return on capital was an annualized 16.2% in the first quarter, down from 18.2% in the corresponding quarter. This is the lowest quarterly return on equity recorded by the bank in the past year. In the second quarter of 2024, its annualized return on equity reached 19.9%.
The credit loss expense was 40% lower in the first quarter of 2025 than in the corresponding quarter, at NIS 103 million. As a proportion of total net credit to the public, the provision for credit losses was 0.11% at the end of the first quarter, half what it was at the end of the first quarter of 2024. At any rate, this is a low proportion.
Published by Globes, Israel business news – en.globes.co.il – on May 21, 2025.
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