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Mizrahi Tefahot: Profit Jumps 25%; ROE Reaches 16.9%

Mizrahi Tefahot Bank wraps up a strong quarter, with revenues climbing 13% to approximately NIS 3.5 billion and net profit rising to NIS 1.3 billion. The bank ends 2024 with record annual profits nearing NIS 5.5 billion.

נושאים בכתבה Mizrahi Tefahot Moshe Larry

Mizrahi Tefahot -1.12% closed the fourth quarter with a 13% increase in revenues and a 20% surge in net profit, which reached NIS 1.3 billion. Return on equity also improved during the quarter, rising to 16.9%.


Fourth-quarter revenues totaled approximately NIS 3.49 billion, reflecting a 13% increase from NIS 3.09 billion in the same period last year.


At the bottom line, the bank reported a net profit of NIS 1.3 billion, marking a 25% increase compared to NIS 1.05 billion in the fourth quarter of the previous year.



Record Annual Performance


For the full year 2024, Mizrahi Tefahot posted revenues of approximately NIS 14.7 billion alongside a net profit of NIS 5.45 billion. The bank’s return on equity for the year stood at 18.5%.


Total public credit at the end of 2024 reached NIS 358 billion, up 10% from NIS 325.3 billion at the end of 2023. The growth in credit included a 14.2% increase in business sector lending across various segments and a 9.1% rise in the residential mortgage portfolio. Public deposits also expanded, reaching NIS 393.4 billion by year-end, a 10% increase compared to NIS 358.6 billion at the end of 2023.


The bank’s equity capital also climbed, standing at NIS 31.3 billion by year-end—up 14% from NIS 27.5 billion at the end of 2023.


Commenting on the results, Mizrahi Tefahot CEO Moshe Larry stated: "The financial reports for 2024 leave no room for doubt: despite numerous challenges, we successfully met all our goals—both social and business-related—fully and wholeheartedly. The thousands of outstanding employees at Mizrahi Tefahot have given real meaning to our slogan, 'People First,' through their daily dedication and commitment. They listened attentively to every issue and challenge, responding with sensitivity to provide tailored solutions for every customer. Additionally, our employees actively participated in a variety of volunteer and community initiatives, demonstrating the unique Israeli spirit of mutual responsibility and solidarity."


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Israel Consumer Price Index (CPI) in January rose by 0.6%, hitting the upper end of economists' forecasts

With inflation still high, a budget that remains loose and far from approval, and rising inflation in the U.S. that could spill over into the local market, the chances of an early interest rate cut are fading. While most economists still anticipate a rate cut in the second quarter, the immediate prospects for monetary easing are diminishing.

Eitan Gerstenfeld |
נושאים בכתבה CPI Central Bureau of Statistics

Housing prices continued to rise, with November-December data showing a 0.4% increase, reflecting an annual surge of nearly 8% in 2024. The Consumer Price Index for January was calculated using an updated methodology, incorporating a new weighting system and a revised base period (2024 average = 100 points). Over the past twelve months (January 2025 vs. January 2024), the CPI increased by 3.8%.


Significant price increases were recorded in fresh fruit (up 2.5%), miscellaneous expenses (up 3.3%), home maintenance (up 2.1%), food (up 1.0%), and rent (up 0.4%). Conversely, clothing and footwear saw a notable drop of 4.2%, fresh vegetables declined by 2.0%, and housing services for owner-occupiers fell by 0.7%.


Rent prices showed a 2.6% increase for tenants renewing contracts, while new tenants (in units where there was a tenant turnover) saw a 3.3% rise.


Construction Input Index Surges by 2.6% in One Month—A Statistical Distortion?

The Construction Input Price Index for residential buildings rose by 2.6% in January 2025, reaching 137.1 points compared to 133.6 points the previous month. This sharp increase includes both price changes occurring in January and an adjustment for wage costs in the construction sector, covering the period from October 2023 to December 2024. Essentially, for an extended period, labor costs were not properly accounted for in the index, despite contractors' repeated complaints—this time, justifiably so. As a result, these costs were suddenly reflected in the January index, creating a data distortion that misrepresents the real cost trends in the construction sector.


Excluding labor costs, the Construction Input Price Index still rose by 1.0%. Over the past year, it has increased by 5.3%, largely driven by a 9.2% rise in labor costs and a 3.2% increase in equipment and vehicle rentals. The price index for materials and products climbed by 1.3% in January, with sharp increases in ready-mix concrete (up 5.2%), mortar (up 4.0%), wall and floor tiles (up 1.8%), and marble (up 1.1%). On the other hand, prices for glass (-5.5%), construction iron (-2.3%), and iron mesh (-1.3%) declined. The wage index for construction workers jumped by 4.5% in January 2025.


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