Mizrahi Tefahot Bank to distribute 50% of NIS 1.5b Q3 profit

Mizrahi Tefahot Bank (TASE: MZTF), headed by Moshe Lari, posted a net profit of NIS 1.5 billion for the third quarter of 2025, 4% higher than in the corresponding quarter of 2024. The bank’s return on equity in the third quarter was high, at an annualized 17.6%. Year-on-year, credit to the public rose by 12.5% to NIS 392 billion. Unlike Bank Leumi and First International Bank, which have declared dividends amounting to 75% of their third quarter profits, Mizrahi Tefahot, like Israel Discount Bank, has chosen to distribute 50% of its profit (NIS 741.5 million).

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The bank says that after the peak years of 2021 and 2022, in each of which the mortgage market amounted to nearly NIS 120 billion, and the steep decline in 2023 to NIS 71 billion, housing loans have recovered, despite the war. In 2024, the market reached NIS 94 billion, and it looks as though 2025 will end on over NIS 100 billion. Bank Mizrahi adds that despite fierce competition it continues “to maintain its leading status in the mortgages sector, with a constantly growing market share.”

Double-digit growth in credit to public

Deposits from the public totaled NIS 421 billion at the end of the third quarter, 9.4% more than at the end of the corresponding quarter. Credit to the public grew by 12.5% year-on-year to NIS 392 billion. The bank reports rapid growth in credit to businesses, which totaled NIS 112.5 billion at the end of the third quarter, representing a 23% rise within a year.

The bank points out that the figures are in line with one of the goals in the strategic plan for 2025-2027 set out last June, to become a main player in credit to businesses in Israel.

Third quarter net interest income was NIS 3.15 billion, which is similar to the figure in the corresponding quarter. The credit loss expense fell sharply to NIS 44 million, 66% less than in the corresponding quarter, and representing 0.04% of the credit portfolio. Nevertheless, the bank states that the credit loss provision balance remains large in the light of the continuing high level of uncertainty in the economy.

Published by Globes, Israel business news – en.globes.co.il – on November 18, 2025.

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