The Bank of Israel Supervisor of Banks Daniel Hahiashvili is allowing banks to distribute a dividend of 50% of their net profit for the second quarter of 2025. At present this looks like a one-off decision, which may not necessarily apply to subsequent quarters.
Israel’s banks will publish their second quarter results over the next week and will be able to increase the dividend distributed from net profit as they requested from the Supervisor of Banks. In the wake of the announcement, the TASE bank index is up over 3%, contributing to sharp gains on the TASE, with the Tel Aviv 35 index up over 1%.
RELATED ARTICLES
Israeli banks unveil NIS 3b customer benefits package
Profits peak, but reckoning awaits
Banks’ controlling shareholders will receive over NIS 340 million
Three of Israel’s five biggest banks, Leumi, Hapoalim and Discount, have not had a controlling core for years. However, in two of the banks, Mizrahi Tefahot and First international Bank, there is a controlling core. In Mizrahi Tefahot, Eyal Ofer and David and Drorit Wertheim hold 41% of the shares. In First International Bank, the Zadik Bino and family hold 13.8% of shares. The owners of these banks will receive NIS 68 million more, due to the higher profit distribution.
With a profit distribution of 40%, they were supposed to receive a dividend of NIS 274 million, in the second quarter. Now, with the expected increase in the distribution to 50%, they will receive an additional NIS 68 million – that is, a cumulative dividend of NIS 343 million – a check of NIS 300 million to Eyal Ofer and the Wertheim brothers, and a more modest check of NIS 43 million to Zadik Bino and family.
Published by Globes, Israel business news – en.globes.co.il – on August 10, 2025.
© Copyright of Globes Publisher Itonut (1983) Ltd., 2025.
