Jerusalem Bank of Israel Ltd.

Jerusalem Bank of Israel Ltd. usually refers to Bank of Jerusalem Ltd., an Israeli commercial bank that operates in mortgages, deposits, consumer credit, business credit, residential construction finance and capital-market services. The bank is supervised by the Bank of Israel and its ordinary shares trade on the Tel Aviv Stock Exchange.^[1][2]

Name and legal identity

The institution’s official English reporting name is Bank of Jerusalem Ltd. In Hebrew and English market contexts it is commonly referred to as Bank of Jerusalem. The wording “Jerusalem Bank of Israel Ltd.” can be a confusing informal or translated form, because Israel also has a central bank, the Bank of Israel, which is a separate public authority and regulator. Bank of Jerusalem is a commercial banking corporation; the Bank of Israel is the country’s central bank and banking supervisor.^[1][3]

The Bank of Israel’s list of supervised banking corporations identifies “Bank of Jerusalem” as a bank with reporting symbol 54001. The same official list places it alongside other Israeli banks such as Bank Hapoalim, Bank Leumi, Israel Discount Bank and Mizrahi-Tefahot Bank, confirming that Bank of Jerusalem is part of the supervised domestic banking system rather than a foreign-bank branch or non-bank financial institution.^[3]

For securities-market purposes, the bank is a public company whose ordinary shares are listed on the Tel Aviv Stock Exchange under the symbol JBNK. TASE describes the issuer as “Jerusalem Bank” and classifies it in the Finance sector, Banks subsector.^[2]

History

Bank of Jerusalem Ltd. was founded in 1963 as a public company under the name Bank of Jerusalem for Development and Mortgages Ltd. The bank’s original name reflected a focus on development and mortgage banking, a segment that has remained central to the institution’s identity. In 1992, the bank carried out an initial public offering and became a company traded on the Tel Aviv Stock Exchange. In 1996, its name was changed to the current Bank of Jerusalem Ltd.^[1]

The bank reports that it has operated as a commercial bank since 1998 and holds a banking license under Israel’s Banking Law (Licensing), 5741-1981. This development marked its transition from a more specialized development-and-mortgage institution into a broader banking corporation providing commercial banking services to households, businesses and other customers.^[1]

Business model and operating segments

Bank of Jerusalem’s activities are organized around retail banking, business banking and financial management. Its customer base includes households, Israeli residents and foreign residents, and its reported activity areas include mortgages, consumer credit, savings and deposits, residential construction finance, business credit and capital-market activities.^[1]

The retail division provides services to individual customers through branches, call centers and digital channels. Its product range includes mortgages, consumer credit, deposits and private-banking services. The bank also emphasizes supplementary banking services, meaning that customers may use specific Bank of Jerusalem products without necessarily moving their main current account from another bank.^[1]

The business division focuses on business customers, especially the financing of residential construction projects. The bank reports specialization in urban-renewal finance, including National Outline Plan 38 projects, financing of purchasing groups, lending to small and medium-sized businesses, credit through state-backed fund channels, and banking-as-a-service arrangements for financial entities.^[1]

The strategy and financial management division manages the bank’s strategic plan, financial exposures and funding sources. This includes asset-liability management, management of deposits raised from the public and oversight of financial exposures. The bank also reports that it routinely sells mortgage portfolios to institutional entities as part of its business activities, which can affect the composition of its balance sheet and credit exposures.^[1]

Branches and distribution

As of the publication date of its 2024 annual report, Bank of Jerusalem operated through 19 branches distributed across Israel. Its head office was located in Airport City, near Lod.^[1]

Although the bank has a physical branch network, its strategy includes remote and digital distribution. In its 2024 annual report, the bank described online lending for customers of all banks, digital deposit processes, a mortgage pre-approval platform known as “Go Mortgage,” a customer app, and “Jerusalem Trade,” a trading app that allows customers of all banks to trade independently.^[1]

This distribution model positions the bank partly as a product specialist within the Israeli banking market. Instead of relying only on full-service household relationships, it can offer deposits, mortgages, credit and capital-market access to customers whose primary banking relationship may be with another Israeli bank.^[1][1]

Financial position and scale

Bank of Jerusalem is smaller than Israel’s largest banking groups, but it is a regulated commercial bank with a public listing and published financial statements. In its 2024 annual report, the bank reported consolidated total assets of NIS 22.389 billion at December 31, 2024, compared with NIS 21.826 billion at December 31, 2023. Public deposits were NIS 17.786 billion at the end of 2024, compared with NIS 16.479 billion at the end of 2023.^[1]

For the year ended December 31, 2024, the bank reported net profit of NIS 154.7 million, compared with NIS 134.6 million in 2023 and NIS 163.9 million in 2022. Its reported equity attributable to the consolidated balance sheet was approximately NIS 1.496 billion at December 31, 2024.^[1][1]

The bank’s balance sheet is closely tied to credit activity, including mortgages and other loans to the public. The annual report’s multi-year data show net credit to the public as a major asset category, while public deposits and bonds are major funding sources. This structure is typical of a deposit-funded commercial bank, although the bank’s business mix has a particular emphasis on mortgage and residential real-estate related credit.^[1][1]

Listing and securities market information

Bank of Jerusalem’s ordinary shares are listed on the Tel Aviv Stock Exchange under the symbol JBNK and security number 726018. TASE’s security page describes the company as a provider of a variety of banking and financial services and classifies it under Finance - Banks - Banks.^[2]

The bank’s 2024 annual report states that its issued and paid-up capital at December 31, 2024 consisted of 70,517,741 ordinary shares listed for trading on the Tel Aviv Stock Exchange, out of registered share capital of 100,250,000 ordinary shares with par value of NIS 1 each.^[1]

The bank’s listing subjects it to securities disclosure requirements in addition to banking supervision. Its 2024 annual report states that the consolidated financial statements were approved by the board on March 18, 2025 and prepared in accordance with public reporting regulations issued by the Commissioner of Banks. The report also refers to details being available through the MAGNA disclosure system of the Israel Securities Authority.^[1]

Regulation and supervision

Bank of Jerusalem is supervised as an Israeli banking corporation by the Bank of Israel. The Bank of Israel’s public list of supervised banking corporations includes Bank of Jerusalem among domestic banks, using reporting symbol 54001.^[3]

The bank reports that it holds a banking license under the Banking Law (Licensing), 5741-1981. Its annual financial statements are prepared under public reporting regulations issued by the Commissioner of Banks, indicating the importance of prudential and financial-reporting rules in its operations.^[1]

As a listed company, the bank also interacts with Israel’s capital-market disclosure framework. Its annual report refers to the Securities Law, 5728-1968 in relation to forward-looking information and to the MAGNA website operated for securities disclosures. This creates a dual reporting environment: banking supervision through the Bank of Israel and public-company disclosure through securities-market rules.^[1]

Credit ratings and capital instruments

Bank of Jerusalem issues bonds and other capital instruments in the Israeli market. Its 2024 annual report summarized ratings at December 31, 2024 from S&P Maalot and Midroog. S&P Maalot rated the bank’s senior debt, including long-term deposits and bonds, ilAA- with a negative outlook, while Midroog rated long-term deposits and senior debt Aa2.il with a stable outlook. The report also listed ratings for the bank’s contingent convertible bonds, or CoCo Series 17.^[1]

Such ratings are relevant to the bank’s wholesale funding and capital-market liabilities, but they are not investment recommendations. They represent the rating agencies’ views at the reporting date and can change as the bank’s credit profile, the Israeli economy, regulation or market conditions change.^[1]

Dividend policy and equity

The bank’s 2024 annual report describes a dividend policy under which at least 30% of net profit may be distributed, subject to conditions including compliance with applicable regulatory capital adequacy targets after distribution. The bank’s board approved an updated dividend policy on December 26, 2024, described in the report as not essentially different from the previous 2021 policy and aligned with the bank’s updated multi-year strategy.^[1]

Dividend distributions by banks are influenced by profitability, capital adequacy, regulatory expectations and macroeconomic uncertainty. The report noted that the Commissioner of Banks issued guidance on capital planning and profit distribution following uncertainty created by the Swords of Iron War, requiring banks to re-evaluate dividend policy in light of the war’s consequences and uncertainty over its continuation and economic impact.^[1]

War-related disclosures and risk management context

The bank’s 2024 annual report repeatedly discusses the effects of the Swords of Iron War on the Israeli economy, borrowers and banking activity. It states that the bank increased its collective provision for credit losses related to the war’s impact by approximately NIS 49.6 million from the beginning of the war through December 31, 2024. It also reported that the total scope of credit for which payments were deferred as of December 31, 2024 was approximately NIS 257 million, about 1.6% of total credit.^[1]

These disclosures illustrate the connection between Israeli banks and the broader macroeconomic and security environment. Banks’ credit losses, customer relief programs, mortgage payment behavior and business-borrower repayment capacity can be affected by unemployment, interest rates, housing prices and security developments.^[1]

The 2024 annual report states that Bank of Jerusalem management monitors the war’s development and evaluates its financial and business implications, including through scenarios addressing risks and activities. The report also refers to Bank of Israel programs agreed with the banking system to freeze or defer payments for affected customers and to supervisory guidance on the treatment of such restructured debts.^[1]

Role in the Israeli banking system

Bank of Jerusalem is not one of Israel’s largest universal banking groups, but it occupies a defined place in the country’s banking landscape as a listed, supervised bank with specialization in mortgages, deposits, consumer credit, construction finance and selected capital-market services. Its strategy of providing supplementary products to customers of all banks distinguishes it from institutions whose business model is primarily based on main-account relationships.^[1]

Within Financepedia’s Israel coverage, Bank of Jerusalem is best understood alongside larger Israeli banking entries such as Bank Hapoalim, Bank Leumi, Israel Discount Bank and Mizrahi-Tefahot Bank, as well as market and regulatory entries such as the Bank of Israel, the Tel Aviv Stock Exchange, the Israel Securities Authority and the Ministry of Finance (Israel). Together, these institutions define the regulatory, funding, disclosure and competitive setting in which Bank of Jerusalem operates.