Five banks control ~98% of Israeli banking assets. Combined FY2025 net profit: NIS 32 billion (record, up from NIS 29.5B in 2024). On May 6 2026, the Competition Authority declared them a concentration group — opposed by the Bank of Israel.
Five banks control approximately 98% of Israeli banking sector assets. The top two — Hapoalim and Leumi — hold roughly 48% of all assets and just over 50% of public deposits. The five together generated NIS 32 billion (~$10 billion) in combined net profit in 2025 — a second consecutive record year, up from NIS 29.5 billion in 2024. On May 6, 2026, the Israel Competition Authority formally declared the top five banks a concentration group. The Bank of Israel publicly opposed the move as "extreme and disproportionate" — the defining Israeli financial-regulation conflict of 2026.
The FY2025 Record — NIS 32 Billion
The five banks posted combined FY2025 net profit of approximately NIS 32 billion — the most profitable year in Israeli banking history, following the NIS 29.5 billion record in 2024. Individual results:
- Bank Leumi: NIS 10.3 billion — the single most profitable year of any Israeli bank ever. ROE 15.8%. Efficiency ratio 29.3%.
- Bank Hapoalim: NIS 9.8 billion (+30%). ROE 15.9%.
- Mizrahi Tefahot: NIS 5.63 billion. ROE 17.0%. Cost-income ratio 35.9%.
- Israel Discount Bank: NIS 4.14 billion. ROE 12.6%. Discount 2030 targets NIS 5.2B+.
- FIBI: NIS 2.26 billion. ROE 16.2% (adjusted 19.1%). Customer assets NIS 1.16 trillion.
The Concentration
The five banks — Hapoalim, Leumi, Discount, Mizrahi Tefahot, and FIBI — control approximately 98% of Israel's banking sector assets. The US top five hold roughly 45% of US banking assets. The UK top five roughly 70%. Israel is among the most concentrated banking markets among developed economies. In the mortgage market, three banks issue roughly 81% of all Israeli mortgages. See: The Five-Bank Market After Strum.
The May 6, 2026 Declaration
Israel Competition Authority Director-General Michal Cohen formally declared the top five banks a concentration group. Directives take effect May 6, 2027. Three conditions: deposit price discrimination is prohibited; customer-switching friction must be eliminated (banks must proactively contact customers near deposit renewal, enable online transfers); standalone product access must be offered without forcing customers to maintain a current account.
The Bank of Israel Dissent
The Bank of Israel described the declaration as extreme and disproportionate and argued its own prudential reforms already addressed the competitive concerns. The split — both regulators agree on the diagnosis, disagree on the tool — is the most visible Israeli inter-regulator conflict in recent memory.
The Neema Fine — April 2025
Hapoalim and Discount were each fined NIS 40 million for minority holdings in fintech startup Neema — a marker that incumbent bank equity in fintech startups would be treated as competition-restricting going forward. See: Bit, PayBox and the Battle for Israeli Consumer Payments.
The Norway Divestment — August 2025
Norges Bank Investment Management — operator of the world's largest sovereign wealth fund — divested stakes in Hapoalim, Leumi, Mizrahi Tefahot, FIBI, and FIBI Holdings worth approximately $661 million combined, citing concerns about financing settlement activity in the West Bank. Discount was not included in the divestment.
Related — Israeli Finance & Capital Architecture
- Israeli Finance Beyond the Banks
- Israeli Banking in 2026: The Olam Guide
- The Five-Bank Market After Strum
- The Strum Reform, Eight Years On
- Israeli Capital Ownership Maps
- Bit, PayBox and the Battle for Israeli Consumer Payments
- Shari Arison
Updated August 2026. FY2025 data from individual bank annual reports.