First International Bank of Israel

First International Bank of Israel, commonly known as FIBI, is an Israeli universal banking group that provides household, business, private-banking, capital-market and institutional financial services. It is one of Israel’s five major banking groups, operates under Bank of Israel supervision, and is listed on the Tel Aviv Stock Exchange.^[1][2]

Overview

The First International Bank of Israel Ltd. is part of the core Israeli banking system, alongside Bank Leumi, Bank Hapoalim, Mizrahi-Tefahot Bank and Israel Discount Bank. In the Bank of Israel’s description of the system, these five groups dominate commercial banking in Israel and collectively account for about 99% of banking-system assets, making FIBI a systemically important domestic banking group even though it is smaller than the two largest groups.^[1]

FIBI is organized as a universal bank. Its own investor-relations profile describes the bank as offering a full range of banking services, with emphasis on corporate banking, capital-market activity, investment consulting and private banking.^[2] The group also serves retail households and small businesses, and its public financial reporting divides activity into supervisory segments that include large business, medium business, small and minute business, households, private banking, institutional entities and financial management.^[3]

As of December 31, 2024, FIBI reported consolidated total assets of NIS 248.563 billion, deposits from the public of NIS 214.755 billion, credit to the public before provision for credit losses of NIS 131.050 billion, and total equity of NIS 14.084 billion.^[3] For 2024, it reported net profit attributable to shareholders of NIS 2.371 billion, compared with NIS 2.172 billion in 2023.^[3] These figures place FIBI among the country’s major banking institutions while distinguishing it from Israel’s two largest banking groups, which have substantially larger asset bases.

Position in Israel’s banking system

Israel’s banking market is concentrated. The Bank of Israel Banking Supervision Department reported that the system is mainly controlled by five large banking groups: Leumi, Hapoalim, Mizrahi-Tefahot, Discount and First International. It also identified independent banks, foreign-bank branches and credit-card companies as additional parts of the system.^[1] This structure is relevant to FIBI because the bank competes in a market where scale, deposit gathering, credit underwriting, payment infrastructure and regulatory capital are central to competitive position.

In the Bank of Israel’s 2023 banking-system survey, the First International group accounted for 9% of total system assets in the figure showing the structure of the Israeli banking system as of December 2022.^[1] That share made it one of the medium-sized major banking groups, larger than the independent banks but smaller than Leumi, Hapoalim and Mizrahi-Tefahot. The same Bank of Israel source indicated that the two largest banking groups together accounted for about 55% of system assets, while the three largest accounted for 73%.^[1]

FIBI’s role in the system therefore combines two features. It is part of the concentrated group of major banks through which most Israeli banking intermediation occurs, yet it also functions as a comparatively smaller competitor within that group. Its areas of emphasis—capital-market services, investment advice, private banking and corporate banking—are important because Israeli households and institutions often use banks as distribution channels for deposits, securities services and investment products.

Business model and services

FIBI’s business model is based on conventional banking intermediation—taking deposits, extending credit and managing liquidity—combined with fee-generating activities in securities, capital markets and advisory services. In 2024, the bank reported net interest income of NIS 4.740 billion, commission income of NIS 1.553 billion and total non-interest income of NIS 2.006 billion.^[3] This composition reflects the dual nature of its business: interest income from loans and financial assets, and non-interest income from commissions, financing activity and other banking services.

The bank’s supervisory segment data show that households are the largest income segment. In 2024, the household segment generated NIS 3.292 billion of total income, or 48.8% of total income. Small and minute businesses generated NIS 1.401 billion, or 20.8%, while large businesses generated NIS 856 million, or 12.7%.^[3] Private banking, institutional entities and financial management were smaller income categories, but they are important to the bank’s capital-market and wealth-management profile.^[3]

FIBI’s own profile states that the group consists of the parent bank and its Israeli banking subsidiary, Bank Massad, and that together they operate approximately 125 branches.^[2] Bank Massad is treated in FIBI’s annual report as a significant subsidiary for capital-adequacy purposes; at December 31, 2024, Massad had a Tier 1 capital-to-risk-assets ratio of 18.03% and a comprehensive capital ratio of 19.12%.^[3]

The bank also handles customer securities portfolios. At the end of 2024, securities portfolios belonging to customers of the group amounted to NIS 624 billion, compared with NIS 481 billion at the end of 2023.^[3] This measure is not the same as assets on FIBI’s own balance sheet, but it illustrates the scale of custody, trading and investment-service relationships in the group’s capital-market business.

Balance sheet and financial profile

FIBI’s consolidated balance sheet expanded in 2024. Total assets rose to NIS 248.563 billion from NIS 221.593 billion in 2023, while deposits from the public increased to NIS 214.755 billion from NIS 191.125 billion.^[3] Credit to the public before provision rose to NIS 131.050 billion from NIS 119.240 billion, and credit to the public net of provision was NIS 129.416 billion.^[3]

The funding structure is dominated by public deposits, a standard feature of Israeli commercial banks. FIBI reported that deposits from the public increased by 12.4% during 2024. By linkage segment, NIS 173.406 billion of deposits were in non-linked local currency, NIS 4.784 billion were CPI-linked, NIS 35.809 billion were foreign-currency denominated or linked, and NIS 756 million were non-monetary items.^[3] By activity segment, household deposits were NIS 72.216 billion and institutional-entity deposits were NIS 72.957 billion, together forming a large share of group deposits.^[3]

The bank’s securities portfolio and cash balances are also material. At year-end 2024, cash and deposits with banks totaled NIS 77.175 billion, and securities totaled NIS 34.396 billion.^[3] FIBI disclosed that cash and deposits at banks increased 12.1% from the end of 2023, while customer deposits increased 12.4%.^[3] These balance-sheet categories are important for liquidity management, regulatory liquidity ratios and the bank’s sensitivity to interest-rate changes.

FIBI reported total operating and other expenses of NIS 2.977 billion in 2024, compared with NIS 2.877 billion in 2023.^[3] Profit before taxes was NIS 3.785 billion, and provision for taxes on profit was NIS 1.383 billion.^[3] The reported 2024 net profit before attribution to non-controlling interests was NIS 2.476 billion, of which NIS 2.371 billion was attributable to shareholders of the bank.^[3]

Capital adequacy, leverage and dividends

FIBI is subject to the capital requirements and supervisory reporting framework applied by the Bank of Israel Banking Supervision Department. The bank reported that, as of December 31, 2024, its minimum required Tier 1 equity capital ratio was 9.23% and its minimum required comprehensive capital ratio was 12.50%.^[3] Against those requirements, it reported a Tier 1 equity capital ratio of 11.31% and a comprehensive capital ratio of 13.55%.^[3]

The bank’s total risk-weighted assets were NIS 120.843 billion at year-end 2024, compared with NIS 108.299 billion at year-end 2023.^[3] Credit risk accounted for most of the risk-weighted balance, at NIS 107.387 billion. Market risk was NIS 979 million, and operational risk was NIS 12.477 billion.^[3] FIBI stated that the increase in risk assets was mainly derived from growth in credit to the public and the effect of the downgrade of Israel’s sovereign rating on certain local exposures.^[3]

FIBI also reports a leverage ratio under Bank of Israel directives. At December 31, 2024, the bank’s leverage ratio was 5.18%, compared with 5.26% at December 31, 2023.^[3] The bank disclosed that the applicable leverage framework includes a minimum ratio for banking corporations of its size, with temporary regulatory relief affecting the precise requirement through the end of 2025.^[3]

FIBI’s dividend policy, as disclosed in its annual report, permits annual dividends of up to 50% of distributable net earnings, subject to regulatory targets, internal capital targets, legal restrictions and the board’s specific approval.^[3] For 2024, the board approved a cash dividend in March 2025 that, together with previous quarterly dividends, represented approximately 40% of net earnings for the year.^[3] Dividend policy is therefore linked to profitability but constrained by supervisory expectations and capital planning.

Regulation and supervision

FIBI operates as a licensed Israeli banking institution. A Bank of Israel licensing confirmation states that The First International Bank of Israel Ltd. is licensed by the Bank of Israel to operate as a banking institution under the Banking (Licensing) Law, 5741-1981, and is supervised by the Bank of Israel.^[4] This places FIBI within the same supervisory architecture as Israel’s other domestic banks.

The Bank of Israel is responsible for supervising and regulating the banking system, conducting monetary policy, managing foreign-exchange reserves, regulating payment systems and issuing currency.^[5] For FIBI, the most relevant of these functions is banking supervision, which affects capital, liquidity, risk management, consumer conduct, reporting, anti-money-laundering compliance and operational resilience.

FIBI’s annual report describes the bank’s capital planning under the Basel framework as implemented through Bank of Israel Proper Conduct of Banking Business Directives. The bank applies the standardized approach under Pillar I for credit, market and operational risks, and it is required under Pillar II to conduct an Internal Capital Adequacy Assessment Process, or ICAAP.^[3] The annual report also states that FIBI’s stress-testing framework covers credit, financial, operational, cyber, anti-money-laundering, compliance, strategy and reputation risks, and takes account of potential war-related effects.^[3]

The bank is also part of Israel’s payments and clearing ecosystem. Its annual report describes collateral and pledges connected to activity in the Tel Aviv Stock Exchange clearing house, MAOF clearing house, CLS-related activity and Bank of Israel credit arrangements.^[3] These disclosures reflect the operational role of large banks in clearing, securities settlement and liquidity management, beyond their customer-facing deposit and lending businesses.

Capital-market role and listing

FIBI is publicly traded on the Tel Aviv Stock Exchange under the ticker FIBI.^[6] Its public listing requires periodic reporting through Israel’s securities-reporting infrastructure, and its investor-relations site provides annual reports, quarterly financial statements, presentations, press releases and immediate reports.^[7]

The bank’s public status also connects it to the broader Israeli capital market overseen by the Israel Securities Authority and the stock exchange. FIBI’s own investor-relations materials note that immediate reports are filed in Hebrew on the Israel Securities Authority and Tel Aviv Stock Exchange websites, with English translations provided at the bank’s discretion for convenience.^[7]

FIBI’s capital-market franchise is significant in customer securities administration and investment services. Customer securities portfolios of NIS 624 billion at year-end 2024 indicate that the bank handles large volumes of customer investment assets, although these are not reported as the bank’s own assets.^[3] The bank’s segment reporting also identifies private banking and institutional entities as separate supervisory segments, reflecting its services to higher-asset individuals and institutional clients.^[3]

Risk environment

Like other Israeli banks, FIBI is exposed to macroeconomic, credit, market, operational, legal, cyber and geopolitical risks. Its 2024 annual report was prepared in an environment shaped by the “Swords of Iron” war, sovereign-rating downgrades, high interest rates and regulatory measures affecting borrowers. The report states that the Bank of Israel lowered its policy rate by 0.25 percentage points to 4.5% at the beginning of 2024 and that the rate remained unchanged through the period described in the report.^[3]

The war-related environment affected the banking sector through credit risk, capital planning and borrower-relief programs. FIBI’s annual report describes repeated Bank of Israel extensions of an outline for deferral of loan repayments and other concessions, including relief for defined groups such as certain residents, businesses and reservists.^[3] The bank also reported that, beyond the Bank of Israel outline, it offered additional relief to customers affected by the war, including additional credit and loans from customer assistance funds.^[3]

Credit quality is central to FIBI’s risk profile. In 2024, FIBI reported income from credit losses of NIS 16 million, compared with expenses from credit losses of NIS 502 million in 2023.^[3] This line item can fluctuate with borrower performance, collateral values, macroeconomic assumptions and expected-credit-loss models. The bank’s capital disclosures identify credit risk as the dominant component of risk-weighted assets.^[3]

Operational and cyber risk are also explicit concerns. FIBI’s annual report states that cyberattacks target financial institutions in Israel and globally, including supply chains, and that such attacks could affect data credibility, propriety and confidentiality.^[3] The inclusion of cyber and information-technology risk in stress-testing and capital-planning descriptions shows how digital banking and national-security conditions intersect in the Israeli banking sector.

Significance

FIBI is significant because it is one of the five banking groups through which most Israeli banking activity is conducted. Its balance sheet is smaller than those of the largest Israeli banks, but its systemic relevance derives from its deposit base, household and business lending, capital-market services, securities operations and participation in national payment and clearing systems.

The bank is also important to the competitive structure of Israeli banking. In a market where the five largest groups hold nearly all banking-system assets, a medium-sized major bank such as FIBI can affect competition in deposits, small-business banking, investment services, private banking and corporate credit. Its emphasis on capital markets and advisory services gives it a profile that is not limited to conventional lending.

From a financial-encyclopedia perspective, FIBI is best understood as both a commercial bank and a capital-market intermediary. It takes deposits, extends credit, manages liquidity and holds regulatory capital, but it also administers large customer securities portfolios and provides investment and trading-related services. Its activities are shaped by Bank of Israel supervision, Israeli securities-market infrastructure and the macroeconomic conditions of the Israeli economy.