First International Bank Of Israel, IL0005930388

First International Bank of Israel stock faces ESG scrutiny

Published on 11/03/2026 at 11:11 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWS

First International Bank of Israel stock faces fresh ESG scrutiny after Norway's fund exited five Israeli banks. FIBI still reported solid second-quarter earnings.

ESG scrutiny meets strong bank results

Norway's Government Pension Fund Global withdrew investments from five Israeli banks after an ethical review.
FIBI reported second-quarter net income of NIS 583 million and first-half net income of NIS 1.063 billion.
The bank said public-sector credit grew 20.1 percent year over year while its non-performing loan ratio improved to 0.40 percent.

First International Bank Of Israel, IL0005930388, Illustration mit AI erstellt.

Norway's Government Pension Fund Global withdrew its investments from First International Bank of Israel and four other Israeli banks in a decision announced on October 12, 2026. Arab News reported that the combined holdings were valued at 661 million US dollars at the end of June.

The affected institutions are First International Bank of Israel, FIBI Holdings, Bank Leumi, Mizrahi Tefahot Bank and Bank Hapoalim. The fund said the exclusions followed an ethical review and cited an unacceptable risk that the companies could contribute to serious violations of individual rights in situations of war or conflict.

Ethical screening reshapes investor focus

For investors, the decision puts institutional ownership and ESG screening alongside the bank's operating performance. The divestment does not establish a direct effect on First International Bank of Israel's operations or share price, but it can remain relevant to the composition of the shareholder base and the willingness of international institutions to hold the stock.

FIBI's own investor-relations statement, published on October 23, said second-quarter net income reached NIS 583 million, compared with NIS 480 million in the first quarter. First-half net income was NIS 1.063 billion, down 8.9 percent from the prior-year period. Return on equity was 16.0 percent in the quarter and 14.5 percent in the first half.

Credit growth supports the operating picture

Credit to the public rose 20.1 percent year over year to NIS 164.2 billion, while deposits from the public increased 11.7 percent to approximately NIS 251.4 billion. The bank said its non-performing loan ratio improved to 0.40 percent from 0.46 percent at the end of 2025.

The board approved a dividend distribution of approximately NIS 558 million, equal to about 96 percent of second-quarter net income. FIBI also reported that first-half net revenues declined 2.5 percent to NIS 3.449 billion, while fee and commission income increased 9.1 percent to NIS 937 million.

Israel's equity market remains an important backdrop for local bank investors; current TA-35 market coverage tracks the wider Israeli market.

Further ESG-related decisions by large institutions and the bank's next financial updates are likely to remain key reference points for investors. More news and analyses on First International Bank of Israel stock.