Israel Discount Bank (DSCT) Q3 2025 earnings summary

Executive summary

• Achieved Q3 2025 net income of ILS 1.13 billion (NIS 1,133M), ROE 13.7%, and a cost-income ratio of 44%; adjusted net income for one-offs was ILS 1.25 billion.

• Board approved a 50% payout of Q3 net income as dividends, with a gross dividend yield of 5%.

• Loan growth reached 8.9% YoY, driven by corporate and small business lending.

• Sale of CAL/ICC expected to add ILS 0.5bn to net income, boost ROE by 1.2%, and improve CET1 and cost-income ratio.

• Maintained double-digit ROE and stable net income over two challenging years, highlighting resilience.

Financial highlights

• Net interest income for Q3 2025 was NIS 2,653M, down 0.2% QoQ but up 0.8% YoY; total revenues up 1.0% YoY to NIS 3,520M.

• Cost-income ratio improved to 44%; efficiency ratio at 44% in Q3.

• Credit loss expenses at 28 bps in Q3, mainly due to two isolated corporate incidents; NPL ratio improved to 0.68%.

• Fee income up 2.5% QoQ and 10.9% YoY.

• Net credit to the public increased 7.2% to NIS 286.7 billion; total assets grew 6.7% since year-end 2024.

Outlook and guidance

• 2025 GDP expected to grow by 2.5%; 2026 GDP forecasted to rebound to 4.7%.

• Plan to maintain a consistent 50% dividend payout ratio going forward.

• Management focused on efficiency improvements, digital transformation, and operational improvements across subsidiaries.

• CAL/ICC sale will provide additional resources for growth and improve key financial metrics.

• Ongoing evaluation of capital deployment post-ICC sale.