Bank Leumi has one of the lowest cost-to-income ratios in the world, now at 27%, demonstrating operational excellence. The bank has consistently delivered strong ROE of 15%-16%, even in years of war. Recent focus includes international capital markets expansion and diversified funding sources.
Cyborg Score Rationale
Bank Leumi achieved 18% net income growth in Q3 2025 to NIS 2.7 billion with ROE of 16.2%, demonstrating strong profitability and shareholder returns. The bank's market leadership, efficiency ratios, and successful international debt issuance signal solid competitive positioning. However, geopolitical exposure in Israel adds moderate volatility.
Top Insights
Bank Leumi successfully led Israel into the covered bond market with a €750m five-year debut attracting €4.6bn orders, opening up a EUR3bn structured covered bond programme.
The bank issued covered bonds 20bp inside the sovereign spread, demonstrating investor confidence.
Market capitalization stands at ILS 118.41 billion as of February 2026.
LUMI stock has risen 6.50% over the past month, outperforming amid post-war recovery momentum.
Named Competitors
Bank Hapoalim — Israel's second-largest bank with retail and corporate services
Mizrahi Tefahot Bank — Israeli bank providing retail, corporate and investment services
Recent Developments
(January 2026) First Israeli bank to issue covered bonds to foreign investors, raising €750 million with record €4.6 billion demand
(November 2025) Q3 2025 net income of NIS 2.7 billion, up 18% YoY, with ROE of 16.3% and NIS 2 billion dividend payout
(January 2026) Bank of America initiated 'buy' coverage on Bank Leumi alongside other Israeli banks
Open the full interactive Bank Leumi le-Israel B.M. report
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