Bank Yahav reveals financial results: Unexpected profit recorded
Despite the impact of interest rates and a special bank tax, the bank concludes the first half of 2026 with a net profit of 218.3 million shekels and a surge in public credit.
Bank Yahav has released its results for the second quarter and the first half of 2026, showing continued growth in credit volume and equity, while navigating the challenging interest rate environment and the special tax imposed on the banking sector. Financial reports indicate stable activity, with net profit for the first half of the year totaling 218.3 million shekels.
In the second quarter, net profit stood at 110.1 million shekels, nearly unchanged from the 110 million shekels recorded in the same period of 2025. The bank noted that the rise in pre-tax profit was largely offset by the increased burden of the special banking tax.
Return on equity for the first half of 2026 was 13.1%. Excluding the impact of the special tax, the return on equity would have reached 14.6%.
A notable highlight in the report is the continued growth in credit to the public. As of June 30, 2026, credit to the public reached 12.718 billion shekels, an increase of approximately 7%. The bank's total balance sheet grew by about 1% to 38.328 billion shekels, while public deposits remained stable at 33.316 billion shekels.
Equity also strengthened during the reporting period, rising by about 12% to 3.443 billion shekels. Consequently, the total capital ratio to risk-weighted assets rose to 17%.
Net interest income for the second quarter saw a slight decline of 1%, totaling 321.6 million shekels, primarily due to the reduction in the Bank of Israel interest rate. Conversely, non-interest income improved significantly, rising by 20% to 64.3 million shekels, driven by bond sales and increased capital market commissions.
Credit loss expenses also improved, falling to 6.3 million shekels from 12.5 million shekels in the same period last year, reflecting a reduction in provisions previously made against the backdrop of the war and macroeconomic conditions.
"These reports reflect the continued implementation of our strategic plan, focusing on expanding our customer base, including households and small-to-medium businesses, alongside ongoing technological advancements," said Bank Yahav CEO Avshalom Buskila.
Bank Yahav has been operating in Israel for 71 years and is jointly owned by Mizrahi-Tefahot Bank (50%) and the Company for Economic and Cultural Enterprises for State Employees Ltd. (50%).
