Leumi overtakes NICE as Israel's most valuable company

Bank Leumi Photo: Eyal Izhar
Bank Leumi Photo: Eyal Izhar

Israel's booming economy and rising bank profits have pushed Bank Leumi's market cap past tech company NICE Systems.

Bank Leumi (TASE:LUMI) has become Israel's most valuable publicly traded company on the Tel Aviv Stock Exchange (TASE) after overtaking NICE-Systems Ltd. (Nasdaq: NICE; TASE:NICE). Since December 26, NICE Systems share price has lost 15% while Leumi has gained 9%. Leumi's market cap is now NIS 52.26 billion, after the share price rose 85% in 2021, and a further 8% since the start of 2022. Tech company NICE Systems, which was Israel's most valuable company for most of 2021, has seen its market cap fall to NIS 52.09 billion.

Israel's economy has been booming over the past year and this is reflected in the rising profits of the banks and the performance of their shares. There are currently four banks in the top ten most valuable stocks on the TASE. After Leumi and NICE Systems in third place on the TASE is Bank Hapoalim (TASE: POLI), which has a market cap of NIS 48 billion. Hapoalim's share price rose 52% in 2021 and a further 12% since the start of 2022.

Also in the top ten are Israel Discount Bank (TASE: DSCT) with a market cap of NIS 33.5 billion and Mizrahi Tefahot Bank (TASE:MZTF) with a market cap of NIS 27 billion. The TASE Banking Index rose 70% in 2021 and is up a further 10% in 2022, so far.

Israel's banks are benefitting from the country's strong macroeconomic performance in 2021 as the economy rebounded from the Covid crisis and a record NIS 116 billion in mortgages were taken last year.

Published by Globes, Israel business news - en.globes.co.il - on January 16, 2022.

© Copyright of Globes Publisher Itonut (1983) Ltd., 2022.

Bank Leumi Photo: Eyal Izhar
Bank Leumi Photo: Eyal Izhar
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