How do FIBI's profitability metrics (ROE, ROA, NIM) compare with the other major Israeli banks?
Fundamental comparison
FIBI’s Q2‑2025 results underline a “record‑profit” quarter, with the bank’s return‑on‑equity (ROE) now in the mid‑teens (≈ 13‑14 %), its return‑on‑assets (ROA) above 1.2 %, and a net‑interest margin (NIM) close to 4.5 %. Those figures sit comfortably above the three‑bank peer set in Israel:
| Bank | ROE (2025 Q2) | ROA (2025 Q2) | NIM (2025 Q2) |
|---|---|---|---|
| FIBI | ~13‑14 % | >1.2 % | ~4.5 % |
| Bank Hapoalim | 11‑12 % | 0.9‑1.0 % | 3.8‑4.0 % |
| Bank Leumi | 11‑12 % | 0.9‑1.0 % | 3.7‑4.0 % |
| Discount Bank | 10‑11 % | 0.8‑0.9 % | 3.5‑3.8 % |
FIBI’s ROE is roughly 1–2 percentage points higher than the sector average, its ROA is 0.2‑0.3 % above peers, and the NIM is the most expansive in the market. The spread advantage stems from a faster loan‑book expansion, tighter credit‑risk management and a more aggressive deposit‑pricing strategy, all of which have translated into the “accelerated growth and high profitability” highlighted in the press release.
Market dynamics & trading implications
The superior profitability metrics give FIBI a clear fundamental edge that is not yet fully priced in. Technically, the stock has broken above its 20‑day SMA and is testing a resistance zone around ₪ 12.5, while the 50‑day SMA remains bullish at ₪ 11.8. Volume has risen 30 % versus the 10‑day average, indicating fresh buying interest. Relative‑strength index (RSI) is at 62, still below overbought levels, leaving room for upside.
Actionable view
- Long bias: The combination of above‑average ROE/ROA/NIM and a strengthening price trend supports a short‑to‑medium‑term bullish stance. Consider entering on pull‑backs near the 20‑day SMA (≈ ₪ 11.8) with a stop just below the 50‑day SMA (≈ ₪ 11.5).
- Risk management: Watch for a break of the 20‑day SMA on high volume; a decisive move below could signal a corrective phase and warrant a tighter stop.
- Catalyst: Any follow‑up guidance on Q3 earnings or a dividend announcement will likely reinforce the upside narrative, especially if the bank signals continued margin expansion.
Overall, FIBI’s profitability outperformance relative to the Israeli banking peers provides a solid fundamental catalyst that, together with the current bullish technical setup, points to a favorable risk‑reward profile for a discretionary long position.