Net profits of Israeli banks jump 30% in 2022
According to the banking regulator, this increase is mainly due to a rise in interest rates generated by the rise in the consumer price index
The Bank of Israel revealed that the general net profit of banks in Israel in 2022 amounts to about $6.4 billion, according to the analysis of the Israeli banking system published on Wednesday.
This represents a 30 percent increase over the previous year. According to the banking regulator, this increase is mainly due to a rise in interest rates generated by the rise in the consumer price index.
The Israeli banks’ 2022 income from interest rates amounted to $19.2 billion, while interest charges amounted to $5.8 billion. Thus, the banks' income from interest reached nearly $13.4 billion, an increase of 33 percent between 2021 and 2022.
The increase in interest income was offset by interest expense, which almost tripled compared to the corresponding period of the previous year. But the increase in interest costs is less than the resulting increase in income.
In addition, the banking regulator found that banks' revenue from fees increased by 6.1 percent in 2022, with the main source being increased credit card activity.