Congratulations to Bank Leumi and also Bank Hapaolim. Both major Israeli banks, which dominate the Israeli market, were able to post record profits in their respective quarterly reports, while Israel is groaning under the burden of high interest rates and high living costs. The banks are contributing to this.
The high, astronomical profit growth shows one thing clearly: yes, there is a lot of room for real market liberalization, i.e. a free market and competition. This would also be good for customer service. What’s more, through market liberalization, Israel would experience for the first time what customer service actually means.
Now, back to the impressive figures from a highly regulated market. Bank Leumi knows to report in its most recent press release:
“Bank Leumi (TASE: LUMI) published today its financial statements for Q3 2024:
Net income in the third quarter of 2024 amounted to NIS 2.3 billion ($620 million), compared to NIS 1.8 billion ($485 million) in the corresponding period last year – a 29.8% increase. Net income in the first nine months of 2024 amounted to NIS 7.3 billion ($2.0 billion), compared to NIS 5.2 billion ($1.4 billion) in the corresponding period last year – a 41.2% increase.
Return on equity in the third quarter of 2024 was 15.5%, compared with 13.6% in the corresponding period last year. ROE in the first nine months of 2024 was 17.1%, compared with 13.6% in the corresponding period last year.” Nothing to add. There is room for free market and market liberalisation.