Bank Leumi: Fees and cost discipline offset NIM pressure; strong growth continues

Research evidence excerpt

Bank Leumi: Fees and cost discipline offset NIM pressure; strong growth continues

iQprofile SM Bank Leumi

Key Income Statement Data (Dec) 2024A 2025A 2026E 2027E 2028E Company Sector

(ILS Millions) IFRS IFRS IFRS IFRS IFRS Banks-Multinational/Universal

Net Interest Income 16,509 16,852 16,893 17,437 18,844

Net Fee Income 3,823 4,084 4,350 4,711 4,956

Securities Gains / (Losses) 0 0 0 0 0 Company Description Other Income 2,776 1,744 1,848 1,940 2,006

Total Non-Interest Income 6,599 5,828 6,198 6,652 6,962 Bank Leumi is a universal bank operating in Israel. It

Total Operating Income 23,108 22,680 23,091 24,088 25,807 provides services across retail, corporate, mortgage, and

Operating Expenses (6,904) (6,648) (6,526) (6,566) (6,610) capital markets, with leading positions in household

Pre-Provision Profit 16,204 16,032 16,565 17,523 19,196 banking, SME financing, and large corporate lending. The

Provisions Expense (713) (450) (672) (800) (1,240)

bank also offers investment and trading services through

Operating Profit 15,491 15,582 15,893 16,722 17,956

Non-Operating Items (271) 350 518 408 421 its capital markets and financial management divisions.

Pre-Tax Income 15,220 15,932 16,411 17,130 18,377 Internationally, Leumi maintains a focused presence via

Net Income to sh/holders 9,798 10,262 9,912 11,267 12,146 Leumi UK, which specializes in real estate and commercial

Adjusted Cash Earnings 9,798 10,262 9,912 11,267 12,146 lending across the UK and Europe.

Key Balance Sheet Data

Total Assets 785,551 872,971 958,272 1,038,280 1,113,980

Average Interest Earning Assets 751,202 822,077 908,723 991,532 1,069,386 Investment Rationale

Risk Weighted Assets 503,279 561,093 615,496 666,885 715,507 Leumi's transformation over the past five years has been