Question 1

What is Bank Mizrahi-Tefahot?

Accepted Answer

Bank Mizrahi-Tefahot is Israel's third-largest bank by total assets, offering a comprehensive range of domestic, international, commercial, and personal banking services. As of September 2025, the bank holds approximately USD 158.9 billion in total assets and maintains a dominant position in Israel's mortgage lending market with around 36% market share.

The bank is publicly traded on the Tel Aviv Stock Exchange and is part of the TA-35 Index. Its controlling shareholders, the Ofer and Wertheim groups, currently hold about 41.25% of the bank's shares, with the remaining shares publicly traded.

Question 2

When was Bank Mizrahi-Tefahot founded?

Accepted Answer

The original Mizrahi Bank was founded on June 6, 1923, by the World Mizrahi Movement) during the British Mandate era. The bank was established to provide financial assistance and serve as a financial instrument for enterprises of individuals and institutions belonging to the Mizrahi Organization, with a broader mission of serving as a national public bank for the entire Jewish community in the Yishuv.

In 1969, Mizrahi Bank merged with Hapoel HaMizrahi Bank to form Bank Mizrahi HaMeuhad (United Mizrahi Bank). The bank's shares were first listed for trading on the Tel Aviv Stock Exchange in 1963.

The modern entity, Bank Mizrahi-Tefahot, was created in 2005 through a landmark merger between United Mizrahi Bank Ltd. and Tefahot Israel Mortgage Bank Ltd., representing the largest merger in Israeli banking history at the time. This strategic combination united a leading commercial-retail bank with Israel's largest mortgage bank.

Question 3

Where is Bank Mizrahi-Tefahot headquartered?

Accepted Answer

Bank Mizrahi-Tefahot is headquartered in Ramat Gan, Israel, at 7 Jabotinsky Street. Ramat Gan is a major business and financial hub located in the Tel Aviv District, adjacent to Tel Aviv and part of the greater Tel Aviv metropolitan area.

The bank also maintains international branches in London, United Kingdom, and Los Angeles, United States, to support its international banking operations.

Question 4

Where does Bank Mizrahi-Tefahot operate?

Accepted Answer

Bank Mizrahi-Tefahot operates extensively throughout Israel. As of December 31, 2024, the bank maintains 205 branches and business centers across the country, including 55 branches of its subsidiary, Bank Yahav for Government Employees Ltd.

This nationwide network provides comprehensive coverage from northern Israel to the southern regions, ensuring accessibility for both retail and commercial banking customers throughout the country. The bank's extensive branch presence supports its position as one of Israel's major retail banking providers.

Question 5

What services does Bank Mizrahi-Tefahot offer?

Accepted Answer

Bank Mizrahi-Tefahot provides a complete range of banking and financial services:

Retail Banking: Checking and savings accounts for employees, self-employed individuals, business owners, students, soldiers, and young people, along with personal loans and credit facilities.

Mortgage Lending: The bank is Israel's market leader in residential mortgages, having helped over 900,000 families with housing finance since its founding. As of 2024, the outstanding mortgage portfolio reached NIS 225 billion.

Commercial and Business Banking: Corporate banking services, business credit, and financing solutions for small, medium, and large enterprises. As of Q1 2025, the bank's total credit to the public reached NIS 364,384 million.

Investment Services: Investment advisory services, portfolio management through its subsidiary Etgar (operating since 1987), and wealth management solutions.

Trust Services: Comprehensive trust services provided through the wholly-owned Mizrahi-Tefahot Trust Company.

Insurance Services: Mortgage insurance (life and structure insurance) offered through Tafachot Insurance Agency.

Pension Counseling: Following regulatory reforms, the bank became the first in Israel to hold a pension counseling license for both salaried employees and the self-employed.

Digital Banking: Online banking services available 24/7, 365 days a year, providing customers with comprehensive access to banking services from anywhere in the world.

Question 6

What makes Bank Mizrahi-Tefahot unique?

Accepted Answer

Hybrid Banking Model: Bank Mizrahi-Tefahot distinguishes itself through its innovative "Hybrid Banking" approach, which combines personalized service with advanced digital channels. This model allows customers to maintain relationships with dedicated personal bankers while accessing services through convenient digital platforms, ensuring both human touch and technological convenience.

Mortgage Market Leadership: The bank holds the largest market share in Israel's competitive mortgage market at approximately 36%, significantly ahead of competitors. This leadership position has been maintained consistently since the 2005 merger with Tefahot Mortgage Bank.

Strong Financial Performance: For the nine months ended September 30, 2025, the bank reported USD 2,114.94 million in operating profit before taxes, USD 1,278.28 million in net profit, and a return on equity of 17.2%, demonstrating robust profitability and operational efficiency.

Strategic Acquisitions: The bank has strengthened its market position through strategic acquisitions, including the 2008 purchase of 50% of Bank Yahav, the 2009 merger with Adanim Mortgage Bank, and the 2020 acquisition of Union Bank of Israel (completed for USD 400 million in 2017), which was fully merged into the bank by the end of 2022.

Question 7

What type of financial institution is Bank Mizrahi-Tefahot?

Accepted Answer

Bank Mizrahi-Tefahot is a universal bank (בנק מסחרי in Hebrew), which is the standard classification for major commercial banks in Israel. As a universal bank, it provides the full spectrum of banking services including retail banking, commercial banking, mortgage lending, investment services, and international banking operations.

The bank operates under Israeli banking law and is supervised by the Banking Supervision Department of the Bank of Israel. It is licensed to provide all core banking services to individuals, businesses, and institutional clients.

As one of Israel's five major banking groups, Mizrahi-Tefahot holds approximately 21.1% of the total Israeli banking system's assets, making it a systemically important financial institution in the Israeli economy.

Question 8

What are Bank Mizrahi-Tefahot's credit ratings?

Accepted Answer

Bank Mizrahi-Tefahot maintains strong credit ratings from major international and domestic rating agencies, reflecting its financial stability and market position:

S&P Global Ratings: Long-term issuer credit rating of BBB+ with a stable outlook (upgraded from negative in May 2025). Short-term rating of A-2.

Fitch Ratings: Long-Term Issuer Default Rating (IDR) of A- and Short-Term IDR of F1, with a stable outlook (upgraded from negative in October 2025).

Moody's: Long-term deposit rating of Baa1 with negative outlook. Short-term deposit rating of P-2.

S&P Maalot (Israeli rating company): ilAAA issuer rating with stable outlook.

Midroog (Israeli rating agency): Long-term deposits and senior debt rated Aaa.il with stable outlook.

These ratings demonstrate the bank's resilience, particularly following the challenges posed by regional security situations and their impact on Israel's sovereign credit ratings.

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