Israel Discount Bank Q1 Net Income ILS330M, Operating Costs Down 16.7%
Israel Discount Bank posted Q1 2026 net income of ILS330 million delivering ROE of 10.9% while trimming operating expenses by 16.7% q/q and achieving a 48.3% cost-income ratio. Total credit grew 2.2% q/q and 8.4% y/y as tier-1 capital ratio stood at 10.24% and LCR at 128%.
1. Profitability Highlights
In Q1 2026, Israel Discount Bank reported net income of ILS330 million and return on equity of 10.9%, or ILS1,040 million net income and 12.2% ROE excluding one-off items. Net income was reduced by ILS107 million due to the special bank tax.
2. Cost Reductions and Efficiency
Operating expenses fell 16.7% quarter-on-quarter, driven by headcount reductions and cost-cutting initiatives, resulting in a 48.3% cost-income ratio. The bank expects further savings as approximately 600 employees exit by year-end.
3. Credit Growth and Asset Quality
The credit portfolio expanded 2.2% q/q and 8.4% y/y, while loan loss expenses remained low at 0.25% of total loans. Net interest margins faced pressure from shekel depreciation and tighter lending and deposit spreads.
4. Capital Ratios, Liquidity and Dividends
Tier-1 capital ratio stood at 10.24%, liquidity coverage ratio at 128% and net stable funding ratio at 170%. The bank declared dividends equal to 50% of Q1 net income (ILS465 million) and anticipates a one-time ILS307 million gain from the pending CAL sale.