Bank Leumi Le-Israel (IL:LUMI)
TASE:LUMI
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Leumi
(TASE:LUMI)
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Rating:70Outperform
Price Target:
8,206.00
▲(7.97% Upside)
Action:Reiterated
Date:05/23/26
The score is driven primarily by strong underlying profitability/ROE and a constructive earnings outlook with improved capital returns. Valuation is also supportive (low P/E with a solid dividend yield). These positives are tempered by unstable cash flow trends and only neutral-to-weak technical momentum (negative MACD, price slightly below the 20-day average).
Positive Factors
High & Consistent ROE
Sustained mid‑teens ROE and record net income indicate durable profitability and internal capital generation. High ROE supports organic equity growth, funds disciplined loan expansion and dividends, and strengthens resilience to cyclical earnings shocks over the medium term.
Negative Factors
Uneven Cash Generation
Volatile operating and free cash flow—including a negative year in 2023 and a recent TTM step‑down—reduces predictability of internal funding for dividends and buybacks. Year‑to‑year swings raise execution risk for a high payout policy and capital planning.
Read all positive and negative factors
Positive Factors
Negative Factors
High & Consistent ROE
Sustained mid‑teens ROE and record net income indicate durable profitability and internal capital generation. High ROE supports organic equity growth, funds disciplined loan expansion and dividends, and strengthens resilience to cyclical earnings shocks over the medium term.
Read all positive factors
Leumi (LUMI) vs. iShares MSCI Israel ETF (EIS)
Market Cap
₪110.13B
Dividend Yield3.7%
Average Volume (3M)3.41M
Price to Earnings (P/E)10.9
Beta (1Y)0.98
Revenue Growth17.99%
EPS Growth9.86%
CountryIL
Employees7,833
SectorFinancial
Sector Strength70
IndustryBanks - Regional
Share Statistics
EPS (TTM)6.84
Shares Outstanding1,476,325,700
10 Day Avg. Volume3,842,144
30 Day Avg. Volume3,405,959
Financial Highlights & Ratios
PEG Ratio1.65
Price to Book (P/B)1.54
Price to Sales (P/S)2.34
P/FCF Ratio19.90
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
₪8,200.00Price Target Upside7.89% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)7.45
Revenue Forecast (FY)₪23.90B
Leumi Business Overview & Revenue Model
Company Description
Bank Leumi le-Israel B.M., together with its subsidiaries, provides banking and financial services in Israel, the United States, the United Kingdom, and internationally. It operates through Households, Private Banking, Micro Businesses, Small Busi...
How the Company Makes Money
Bank Leumi primarily earns revenue from the spread between interest income and interest expense (net interest income). Interest income is generated from loans and credit extended to customers (e.g., mortgages, consumer loans, and commercial/corpor...
Leumi Earnings Call Summary
Earnings Call Date:Mar 04, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Aug 18, 2026
Earnings Call Sentiment Positive
The call presents a strongly positive operating and financial performance: record net income, robust loan growth, improved asset quality, excellent efficiency, strong liquidity and investor confidence (EUR 750m covered bond, market cap milestone). Management is aggressively pursuing AI and digital initiatives to further lower costs and accelerate product delivery. Key risks include geopolitical uncertainty, downward pressure on NIM from CPI and rate declines, accounting-driven weakness in noninterest income, and the presence of a large excess capital buffer that requires regulatory engagement to fully unlock shareholder distributions. On balance, the highlights substantially outweigh the lowlights, though the business remains exposed to macro/regulatory uncertainties.Positive Updates
Record Net Profit and Strong ROE
Net income of ILS 10.3 billion in 2025 (all-time high), inside the ILS 9–11 billion target range; ROE of 15.8% (in line with 15%–16% target).
Negative Updates
Geopolitical Uncertainty
Recent coordinated military operation involving the region (US and Israel vs. Iran) creates short‑ and long‑term economic uncertainty; management states no material impact so far but continues close monitoring.
Read all updates
Q4-2025 Updates
Positive
Negative
Record Net Profit and Strong ROE
Net income of ILS 10.3 billion in 2025 (all-time high), inside the ILS 9–11 billion target range; ROE of 15.8% (in line with 15%–16% target).
Read all positive updates
Company Guidance
Leumi’s forward guidance for 2026–2027 calls for net profit of ILS 10–12 billion per year, ROE of 14.5%–16%, and annual credit growth of 8%–10% (with a meaningful portion from infrastructure/project finance); a revised capital-return policy targets 50%–65% of net income (up to 50% in cash) after 2025 payouts of ILS 5.9 billion (≈58% of net income) and a Q4 2025 distribution of ILS 1.7 billion (65% of the quarter), while retaining a large capital buffer (excess capital ≈ ILS 10 billion, Q4 CET1 12.05%, total capital 14.08%), strong liquidity (LCR 127%, loan-to-deposit 75.7%) and asset quality (NPL 0.4%, credit-loss expense 0.09%); management assumes average policy rates roughly 3.2%–3.7% and expects to maintain or improve NIM and high profitability (2025: net income ILS 10.3bn, ROE 15.8%, efficiency ratio 29.3%) through AI-driven efficiency and continued disciplined growth.Leumi Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
74
Positive
Cash Flow
56
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 45.11B | 44.77B | 43.02B | 38.66B | 22.80B | 16.82B |
| Gross Profit | 22.11B | 22.08B | 22.07B | 21.00B | 17.21B | 15.49B |
| EBITDA | 16.23B | 16.13B | 16.10B | 12.58B | 11.49B | 9.94B |
| Net Income | 10.21B | 10.26B | 9.80B | 7.03B | 7.71B | 6.03B |
Balance Sheet | ||||||
| Total Assets | 903.89B | 872.97B | 785.55B | 731.50B | 699.17B | 656.45B |
| Cash, Cash Equivalents and Short-Term Investments | 148.23B | 147.62B | 155.83B | 102.47B | 180.64B | 194.22B |
| Total Debt | 52.44B | 79.73B | 62.27B | 32.76B | 28.37B | 16.23B |
| Total Liabilities | 835.01B | 804.84B | 723.89B | 677.00B | 649.72B | 614.40B |
| Stockholders Equity | 68.87B | 68.13B | 61.66B | 54.50B | 49.44B | 41.61B |
Cash Flow | ||||||
| Free Cash Flow | 1.08B | 5.27B | 14.30B | -966.00M | 5.33B | 4.66B |
| Operating Cash Flow | 1.99B | 6.18B | 15.04B | -133.00M | 6.09B | 5.20B |
| Investing Cash Flow | -125.08B | -84.28B | -8.32B | -98.23B | -72.89B | -43.27B |
| Financing Cash Flow | 125.08B | 81.22B | 42.07B | 20.03B | 52.47B | 100.24B |
Leumi Technical Analysis
Positive
7600.00
Price Trends
7420.57
Positive
7436.96
Positive
6904.43
Positive
Market Momentum
-37.69
Positive
50.24
Neutral
33.09
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IL:LUMI, the sentiment is Positive. The current price of 7600 is above the 20-day moving average (MA) of 7513.85, above the 50-day MA of 7420.57, and above the 200-day MA of 6904.43, indicating a neutral trend. The MACD of -37.69 indicates Positive momentum. The RSI at 50.24 is Neutral, neither overbought nor oversold. The STOCH value of 33.09 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IL:LUMI.
Leumi Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
71 Outperform | ₪59.38B | 10.63 | 16.87% | 4.11% | 12.78% | 1.42% | |
70 Outperform | ₪110.13B | 10.89 | 15.67% | 3.70% | 17.99% | 9.86% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
66 Neutral | ₪101.07B | 10.78 | 15.13% | 3.54% | 20.24% | 17.76% | |
64 Neutral | ₪39.74B | 9.91 | 13.10% | 3.69% | 22.83% | -5.05% | |
58 Neutral | ₪24.69B | 11.18 | 15.81% | 4.57% | 21.26% | -5.22% |
* Financial Sector Average
IL:LUMI
Leumi
7,460.00
2,142.00
40.28%
IL:FIBI
Fibi Bank
24,620.00
3,806.12
18.29%
IL:DSCT
Discount
3,248.00
423.46
14.99%
IL:MZTF
Mizrahi Tefahot
22,830.00
4,041.82
21.51%
IL:POLI
Poalim
7,717.00
2,269.47
41.66%
IL:JBNK
Jerusalem
2,147.00
421.04
24.39%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.