As with the other banks, Mizrahi Tefahot’s profit was hit by the special bank surtax.
Mizrahi Tefahot Bank, headed by Moshe Lari, posted a net profit of NIS 1.24 billion for the first quarter. As with the other four major banks, Mizrahi Tefahot’s profit was adversely impacted by the surtax imposed on the banks by the Ministry of Finance. The quarterly net profit was 4% less than in the corresponding quarter of 2025. Excluding the tax and excluding the Bank of Israel’s assistance program for individuals and businesses affected by the war with Iran, net profit was NIS 1.44 billion, 16% higher than in the corresponding quarter.
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The bank said that it had reduced its credit loss provision in comparison with the first quarter of 2025, but that in the light of continued uncertainties it remained high.
Mizrahi Tefahot’s net interest income in the first quarter fell by 3.8% in comparison with the first quarter of 2025 to NIS 2.7 billion. The decline was partly because of lower interest rates, and partly because of a fall in the CPI, which eroded index-linked loans. In the corresponding quarter, the CPI rose.
The bank’s annualized return on equity in the first quarter was 14.1%. Excluding the surtax and the assistance scheme, it was 16.1%, the highest among the major banks.
Published by Globes, Israel business news – en.globes.co.il – on May 19, 2026.
© Copyright of Globes Publisher Itonut (1983) Ltd., 2026.
Mizrahi Tefahot CEO Moshe Lari credit: Mizrahi Tefahot
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