Business brief
Israeli Lenders Eye Wall Street as Bezeq Distributes Capital
Central bank rules pave the way for bank dual-listings on US exchanges while Bezeq buffers profits with shareholder payouts.
Business
Regulators are dismantling local accounting barriers to link Israeli banking equity directly to Wall Street — opening a direct conduit for global institutional capital.
BackgroundIsraeli commercial lenders currently adhere to local accounting standards, which restricts direct listing on major American stock exchanges like the NYSE. Major institutions like Bank Leumi, Hapoalim, and Discount have sought international liquidity following strong domestic earnings.
- A draft regulation issued by the central bank allows commercial banks to adopt US accounting principles for public financial reporting, simplifying cross-border compliance.
- Dual-listing on American stock exchanges is expected to eliminate historical valuation discounts relative to global banking peers by expanding the pool of institutional buyers.
- Shares of major Tel Aviv-listed lenders rallied over 10% in July as investors positioned ahead of the anticipated accounting overhaul.
Business
Bezeq is prioritizing aggressive capital returns to protect equity valuations — relying on steady fiber growth to bridge high borrowing costs.
BackgroundBezeq dominates Israel's fixed-line and fiber-optic telecommunications infrastructure while expanding its mobile network footprint across the country. Operating margins have faced temporary pressure from elevated interest rates and ongoing fiber network investments.
- The approved capital distribution includes a ₪415 million cash dividend alongside a new ₪100 million share repurchase program, demonstrating management's focus on shareholder payouts.
- Consolidated revenue reached ₪2.17 billion for the quarter, bolstered by steady subscriber adoption in high-speed fiber-optic network services.
- Net profit fell 28% year-over-year to ₪308 million as elevated interest rates drove up corporate debt financing expenses.
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