8 billion shekels in a quarter: What is expected in the banks' earnings season?

The third-quarter earnings season for banks opened with Bank Leumi, which reported a decline in profit. According to a forecast by Leader Capital Markets, the combined profit of the five largest banks is expected to reach about 8 billion shekels, an 8% decrease from last year. Leumi is expected to lead with a profit of 2.6 billion shekels.

The third-quarter 2026 earnings season for banks opened with the release of results from Bank Leumi, which showed a decline in profit against the backdrop of interest rate cuts and moderate inflation. According to the research department of Leader Capital Markets, the aggregate net profit of the five largest banks is expected to total about 8 billion shekels, a decrease of about 8% compared to the same quarter last year. Leumi is expected to lead with a profit of about 2.6 billion shekels, a decline of only 3%, while Hapoalim is expected to see the sharpest decline of about 12% to 2.4 billion shekels. Mizrahi Tefahot is expected to post a profit of 1.34 billion shekels, down 10%, and Discount is expected to post a profit of 1.05 billion shekels, down 8%. Weakening inflation and falling interest rates continue to weigh on results, but credit growth and low provisions for credit losses are softening the decline. Bank Leumi surprised positively with income of 9 million shekels from credit provisions, instead of an expense.