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Top Banks Notch Record Profits from Credit and Fee Growth During Wartime

Israel’s three biggest lenders—Leumi, Hapoalim, and Discount—reported another quarter of record profits, driven by high net interest income, robust credit growth, and rising fees. 

Leumi’s Q2 profit climbed to roughly NIS 2.6 billion with net interest income around NIS 4.54 billion; Hapoalim posted NIS 2.5 billion, citing double-digit gains in financing income and fee revenue; and Discount reported NIS 1.12 billion, attributing results to credit expansion and higher commissions.

The earnings, announced August 15, arrived as households and small businesses continued to face elevated borrowing costs and war-related pressures. While the Bank of Israel cut rates once in January 2024, the benchmark has remained at 4.5%, leaving mortgage and loan holders under strain even as banks’ bottom lines swell. The widening gap between lender gains and the public’s financial reality has sharpened scrutiny of pricing and fees during the prolonged conflict.

(TOI/VFI News)