Key Takeaways
- • Norway's Government Pension Fund Global withdrew investments from five Israeli banks, including Bank Leumi, after an ethical review announced October 12, 2026, according to Arab News.
- • The affected holdings were worth a combined 661 million US dollars as of June; the figure covers all five banks collectively and is not a withdrawal from Bank Leumi alone.
- • The fund cited an unacceptable risk that the banks could contribute to serious violations of individual rights in situations of war or conflict.
- • Bank Leumi reported second-quarter 2026 net income of NIS 2.83 billion and a return on equity of 16.3 percent, with a 24.7 percent cost-income ratio.
- • The reported withdrawal does not establish a separate operating charge or direct share-price effect for Bank Leumi; the next company results event is November 17, 2026.
Summary
Norway's sovereign wealth fund, the Government Pension Fund Global, has withdrawn investments from five Israeli banks, including Bank Leumi Le-Israel B.M. The decision was announced on October 12, 2026, and followed an ethical review of the fund's Israeli banking exposure, according to Arab News. The other banks named were Bank Hapoalim, Mizrahi Tefahot Bank, First International Bank of Israel and FIBI Holdings.
Arab News reported that the affected holdings were worth a combined 661 million US dollars as of June. This figure covers the group of banks collectively and does not represent a separate withdrawal from Bank Leumi alone. According to Arab News, the fund cited an unacceptable risk that the entities could contribute to serious violations of individual rights in situations of war or conflict, and linked the move to its ethical investment framework.
For Bank Leumi shareholders, the decision adds an institutional ownership and reputational consideration to the assessment of the bank. The reported withdrawal does not establish a separate operating charge or a direct share-price effect, based on the available reporting.
Bank Leumi's investor-relations materials show second-quarter 2026 net income of NIS 2.83 billion and a return on equity of 16.3 percent. The bank also reported a 24.7 percent cost-income ratio and said its credit portfolio grew 3.4 percent during the quarter. Management is scheduled to discuss these results with analysts and investors in a webcast on November 17, which will provide the next company-specific opportunity to assess earnings, capital and asset-quality trends.
Arab News reported that the affected holdings were worth a combined 661 million US dollars as of June. This figure covers the group of banks collectively and does not represent a separate withdrawal from Bank Leumi alone. According to Arab News, the fund cited an unacceptable risk that the entities could contribute to serious violations of individual rights in situations of war or conflict, and linked the move to its ethical investment framework.
For Bank Leumi shareholders, the decision adds an institutional ownership and reputational consideration to the assessment of the bank. The reported withdrawal does not establish a separate operating charge or a direct share-price effect, based on the available reporting.
Bank Leumi's investor-relations materials show second-quarter 2026 net income of NIS 2.83 billion and a return on equity of 16.3 percent. The bank also reported a 24.7 percent cost-income ratio and said its credit portfolio grew 3.4 percent during the quarter. Management is scheduled to discuss these results with analysts and investors in a webcast on November 17, which will provide the next company-specific opportunity to assess earnings, capital and asset-quality trends.
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