Israel's leading banks have reported significant profit increases for the second quarter, driven by high interest rates and fees paid by mortgage and loan holders during a prolonged period of conflict. Discount Bank, the country's third-largest lender, posted a record profit of NIS 1.12 billion, marking a 7% rise from the same period last year, with net interest and fee income both showing notable growth.

Bank Leumi and Bank Hapoalim, Israel's two largest banks, also reported substantial year-on-year profit surges. Bank Leumi's profit rose 15% to NIS 2.6 billion, while Bank Hapoalim's profit increased 14% to NIS 2.5 billion, both benefiting from growth in credit and financing income. These results come despite ongoing economic challenges faced by local businesses and households, who continue to struggle with elevated lending rates amid the ongoing war.