Mizrahi Tefahot 2025 profit up 3.2%

Mizrahi Tefahot Bank, managed by CEO Moshe Larry, reported NIS 5.6 billion net profit in 2025, up 3.2% from 2024. The policies of Minister of Finance Minister Bezalel Smotrich and the Supervisor of Banks, which imposed a special tax on bank profits and the adoption of a voluntary benefits framework, “cost” the bank’s net profit NIS 400 million. If it were not for those directives and regulations, the banks’ net profit would have amounted to NIS 6 billion.

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

In the fourth quarter itself, Mizrahi Tefahot showed stronger growth in net profit of 7.5%, which amounted to NIS 1.4 billion. At the end of 2025, Mizrahi Tefahot had a return on equity of 17%, down from 18.5% in 2024. In the fourth quarter, return on equity was 16.3%, weaker than 16.9% in the last quarter of 2024. The bank increased credit to the public by 12% to NIS 400.5 billion. The increase in credit to the public was in part due to a sharp 20.4% growth in credit to the business sector. The bank also reported a 9% increase in its housing loan portfolio.

Deposits from the public amounted to NIS 448.4 billion, up 14% from the corresponding quarter. Mizrahi Tefahot will distribute a dividend of NIS 702 million to shareholders, half of its net profit in the fourth quarter.

In full year 2025, the bank will have distributed dividends to shareholders (excluding the dividend in February last year for 2024) amounting to NIS 2.6 billion, close to 50% of net profit in 2025.

Mizrahi Tefahot’s share price rose 44% over the past year, and currently has a market cap of NIS 64 billion, making it the third most valuable of Israel’s banks after Bank Leumi (TASE: LUMI) and Bank Hapoalim (TASE: POLI)

Larry said, “The bank’s results in 2025, which was the first year of the new strategic plan, are in line with our multi-year goals, and prove, once again, the unique ability of Mizrahi Tefahot, with its dedicated and committed employees and managers, to set challenging goals for themselves and meet them.”

Published by Globes, Israel business news – en.globes.co.il – on February 26, 2026.

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