Mizrahi Tefahot Bank (TASE: MZTF), headed by Moshe Lari, posted net profits 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 rate of 17.6%. On an annual basis, credit to the public increased by 12.5%, reaching NIS 392 billion. Unlike Bank Leumi and First International, which announced dividends of up to 75% of third-quarter profits, Mizrahi Tefahot, like Israel’s Discount Bank, chose to distribute 50% of its profits (NIS 741.5 million).
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The bank says that after peak years in 2021 and 2022, in each of which the mortgage market reached nearly NIS 120 billion, and a sharp decline in 2023 to NIS 71 billion, housing loans have recovered, despite the war. In 2024, the market reached NIS 94 billion, and it seems that 2025 will end with more than NIS 100 billion. Mizrahi Bank adds that despite the fierce competition, it continues to “maintain its leading position in the real estate loan sector, with a continuous increase in its market share.”
Double-digit growth in credit to the public
Total deposits from the public amounted to 421 billion shekels at the end of the third quarter, an increase of 9.4% compared to the end of the corresponding quarter. Credit to the public increased by 12.5% year-on-year to NIS 392 billion. The bank reported rapid growth in credit to businesses, which reached NIS 112.5 billion at the end of the third quarter, representing a 23% rise in a year.
The bank notes that the numbers are in line with one of the goals of the strategic plan for the years 2025-2027, which was established last June, to become a major player in corporate credit in Israel.
Net interest income in the third quarter was NIS 3.15 billion, a figure similar to the corresponding quarter. Credit loss expenses decreased sharply to NIS 44 million, 66% lower than in the corresponding quarter, and representing 0.04% of the credit portfolio. However, the bank notes that the balance of provisions for credit losses remains large in light of the continued high level of uncertainty in the economy.
Published by Globes, Israel Business News – en.globes.co.il – on November 18, 2025.
© Copyright Globes Publisher Itonut (1983) Ltd., 2025.
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