Bank Mizrahi Tefahot Ltd.
Corporate brand
UnclaimedOne of Israel's largest banks and its leading residential mortgage lender, with a broad retail, commercial, corporate, and investment banking business. An Israeli commercial bank known especially for its large mortgage-lending business.
Last updated October 14, 2026
Overview
Mizrahi Tefahot Bank is one of Israel's principal banking groups and the country's leading specialist in residential mortgage finance. Its modern identity emerged from the combination of two banking traditions: Bank Mizrahi, established in 1923 and historically associated with religious-Zionist and Jewish community banking, and Tefahot Bank, a major Israeli mortgage lender established in the 1950s. The two institutions were brought together through a merger completed in 2004, creating a group able to combine mortgage expertise with a wider commercial and retail banking platform. The bank serves households, small and medium-sized businesses, large corporations, institutional customers, and private-banking clients. Its principal activities include home loans and refinancing, current accounts, deposits, consumer credit, payment cards, foreign-currency services, securities and investment services, business lending, trade finance, cash management, and corporate credit. Mortgage lending remains the institution's defining competitive capability: the bank has long maintained a particularly strong position in origination, underwriting, servicing, and distribution of housing loans in Israel. Its branch network and digital channels support customers across the country, while dedicated relationship-management businesses serve commercial and corporate clients. Mizrahi Tefahot operates primarily in Israel and is regulated as part of the Israeli banking system. The bank is listed on the Tel Aviv Stock Exchange under the ticker MZTF. It is the central operating company of the Mizrahi Tefahot Group, whose activities include banking and related financial services. Unlike a global universal bank, it is chiefly a domestic institution, with its strategy shaped by the Israeli economy, household housing demand, interest-rate conditions, credit regulation, and the country's concentrated banking market. The group's history includes periods of structural change. Bank Mizrahi expanded from its original community-banking roots into a full-service commercial bank, while Tefahot developed a substantial mortgage franchise. Their merger gave the combined institution greater scale and a diversified balance sheet. In the late 2000s, the group also absorbed Union Bank of Israel, strengthening its customer base and banking operations. Since then, the bank has invested in digital banking, data-supported customer service, operational efficiency, and broader distribution while retaining mortgage banking as a central pillar. Mizrahi Tefahot's public positioning emphasizes personal service, professional banking advice, accessibility, and expertise in housing finance. Its performance is closely linked to Israeli residential real estate and household borrowing, although its retail, business, and corporate divisions provide meaningful diversification. The bank has also been affected by the wider policy and economic environment, including changes in Bank of Israel interest rates, mortgage-market rules, inflation, geopolitical risk, and periodic stress in the construction and property sectors. It remains an active, operating Israeli bank and a significant participant in the country's financial system.
History
Mizrahi Tefahot's institutional history combines the development of Bank Mizrahi with that of Tefahot Bank. Bank Mizrahi was established in 1923 in the context of Jewish and religious-Zionist financial activity in Mandatory Palestine. It gradually developed from a community-oriented institution into a full-service Israeli commercial bank serving households, businesses, and organizations. Tefahot followed a different path. Established in the 1950s, it became closely associated with housing finance and the provision of mortgages to Israeli households. Its specialization gave it an important role in the expansion of home ownership and residential construction finance. Over time, Tefahot also developed wider banking capabilities, but mortgage lending remained central to its public identity and competitive position. The two banking businesses were combined in a merger completed in 2004. The resulting Mizrahi Tefahot Bank integrated Bank Mizrahi's broader banking platform with Tefahot's housing-finance expertise. The merger created a larger institution with a diversified customer base and a particularly strong position in Israel's mortgage market. The combined bank subsequently operated through branches, relationship managers, call-center services, and increasingly digital channels. During the 2000s, ownership and control arrangements changed as the bank developed within Israel's concentrated financial sector. In 2005, the bank acquired control of Union Bank of Israel, adding another Israeli banking franchise to the group. The Union Bank business was eventually absorbed into Mizrahi Tefahot after regulatory and corporate processes, with the merger completed in 2020. This strengthened the group's scale and helped consolidate its position among Israel's principal banks. The bank's later strategy has combined mortgage leadership with growth in retail, small-business, commercial, and corporate banking. It has invested in digital tools and remote services while maintaining a physical branch presence and emphasizing personal advice. Its lending and risk-management decisions have been shaped by Israeli housing-market conditions, Bank of Israel monetary policy, prudential requirements, employment and income trends, and geopolitical developments. Mizrahi Tefahot is now a publicly traded Israeli banking group headquartered in the Tel Aviv metropolitan area. Its core business remains domestic, and its most distinctive franchise is residential mortgage banking. At the same time, it is a universal-style commercial bank offering deposits, payments, consumer credit, business finance, corporate services, foreign-currency banking, and investment-related products. The bank's continuing challenge is to balance growth in housing finance with portfolio diversification, digital transformation, regulatory compliance, and resilience through changes in interest rates and the Israeli economy.
- 2024
Avraham Zeldman becomes chairman
[5]Avraham (Avi) Zeldman succeeds Moshe Vidman as chairman in June.
- 2021
KLP divestment
[5]Norwegian pension fund KLP announces that it will divest from Mizrahi Tefahot over the settlement-related allegations associated with the UN-linked database.
- 2020
Union Bank is merged into Mizrahi Tefahot
[2]The acquisition and merger of Union Bank are completed, increasing the group's scale and customer reach and reinforcing its position as Israel's third-largest bank.
- 2020
Moshe Larry becomes CEO
[5]Moshe Larry succeeds Eldad Persher as chief executive officer in September.
- 2020
UN-linked database listing
[5]The bank is included in a database concerning companies alleged to be involved in settlement-related business activity in the West Bank and Golan Heights.
- 2017
Union Bank acquisition agreement
[5]Mizrahi-Tefahot agrees in November to acquire Union Bank of Israel for approximately US$400 million, strengthening its position in Israel's concentrated banking market.
- 2005
Union Bank becomes part of the group
[2]Mizrahi Tefahot acquires control of Union Bank of Israel as part of its expansion in the domestic banking market.
- 2005
Mizrahi-Tefahot is formed
[5]The merger of United Bank Mizrahi and Tefahot Mortgage Bank is completed, and the combined institution adopts the Mizrahi-Tefahot name, combining full-service banking with a leading mortgage franchise.
- 2004
Bank Mizrahi and Tefahot merge
[2]The merger creates Mizrahi Tefahot Bank, combining full-service banking with a leading mortgage franchise.
- 2004
Board approves merger with Tefahot Mortgage Bank
[5]The bank's board decides in June to pursue the combination of Bank Mizrahi and Tefahot Mortgage Bank amid structural changes in Israeli banking, including the integration of mortgage banks with commercial banks.
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Products and positioning
A major Israeli universal bank differentiated by its strong mortgage-lending franchise and long-standing combination of retail, commercial and housing-finance services. A leading Israeli universal bank with a particularly strong position in residential mortgages, supported by retail, commercial, investment, trust, and related insurance services.
Mortgage banking
Residential mortgages
Mizrahi Tefahot's signature business is residential mortgage finance. It provides loans for home purchases, construction, refinancing, and related housing needs, with products structured around borrower income, property value, loan duration, and interest-rate type. Mortgage expertise has been central to the bank's identity since the integration of Tefahot and remains a major source of customer relationships and balance-sheet exposure. Residential mortgage lending is the bank’s defining business line and its strongest market association. The offering serves home buyers and borrowers seeking housing finance, supported by related account, payment, and insurance arrangements. The bank is described as Israel’s largest mortgage lender, making home loans central to its positioning and customer acquisition strategy. Residential mortgage lending is the bank's defining business line and its strongest market association. It provides loans for home purchases, construction, refinancing, and related housing needs, with products structured around borrower income, property value, loan duration, and interest-rate type. The offering serves home buyers and borrowers seeking housing finance, supported by related account, payment, and insurance arrangements. The bank is described as Israel's largest mortgage lender, making home loans central to its positioning and customer acquisition strategy. Residential mortgage lending is the bank’s defining business area and a central reason for its prominent position in Israel’s banking market. The bank serves customers financing home purchases and related housing needs, and it also provides mortgage-linked insurance through Tafachot Insurance Agency.
Personal banking
Retail banking
Retail banking services include current accounts, deposits, consumer credit, payment cards, foreign currency, savings, and day-to-day payment facilities. Customers can access services through branches, advisers, telephone channels, websites, and mobile applications. The retail franchise complements mortgage lending by allowing the bank to serve households across multiple financial needs. The retail banking franchise provides everyday financial services to households, including banking accounts, deposits, credit, savings products, and access to mortgage finance. Services are delivered through the bank’s Israeli branch network and other banking channels. The supplied references do not specify individual product names or current pricing. The retail banking business serves individuals through current accounts, deposits, credit, personal lending and related financial services. These products are delivered through the bank’s Israeli branch network and other banking channels.
Commercial banking
Business and commercial banking
The bank provides financing and banking services to self-employed customers, small and medium-sized enterprises, and larger commercial organizations. Offerings include credit facilities, deposits, payments, working-capital finance, guarantees, trade-related services, and relationship management. This division helps diversify the group beyond household mortgages and supports businesses operating in Israel's domestic economy. Mizrahi-Tefahot serves business and corporate customers with commercial banking relationships, lending, deposits, and related financial services. This line complements the bank’s large mortgage franchise and supports its role as a full-service domestic bank. Detailed segmentation by business size or sector is not provided in the supplied reference material. Mizrahi Tefahot provides banking and credit services to businesses and institutions in Israel. The commercial offering complements the bank’s household and mortgage activities and forms part of its broader universal-banking model.
Corporate banking
Corporate and institutional banking
Corporate and institutional clients receive structured lending, cash management, deposits, payment services, foreign-currency capabilities, and other financial solutions. The bank serves larger companies, public-sector-related entities, and institutional customers through specialized teams and relationship managers.
Digital financial services
Digital banking
Digital banking channels enable customers to manage accounts, payments, transfers, cards, deposits, and selected lending processes remotely. Mizrahi Tefahot has developed digital services as a complement to its branch and adviser model rather than as a replacement for personal banking relationships.
Investment services · 1987
Etgar investment portfolio management
Etgar is an investment portfolio management subsidiary associated with the group. It has managed investment portfolios since 1987, extending the bank's services beyond deposits and lending into professionally managed investment activity.
Trust services
Mizrahi-Tefahot Trust Company
The Mizrahi-Tefahot Trust Company is wholly owned and controlled by the bank. It provides trust services that can be integrated with the group's wider banking relationships, adding a specialized fiduciary capability to the financial-services offering.
Insurance brokerage
Tafachot Insurance Agency
Tafachot Insurance Agency provides mortgage-related insurance services for customers taking loans through the bank. Its stated scope includes life insurance and structural or property insurance connected with mortgage obligations.
Trust and fiduciary services
Trust services
Mizrahi-Tefahot Trust Company is wholly owned and controlled by the bank. It provides trust-related services that can be integrated with the group’s wider banking relationships.
Insurance services
Mortgage-related insurance
Tafachot Insurance Agency provides life and structural insurance for customers taking mortgages through the bank. The service supports the risk-management and protection requirements associated with residential lending.
Controversies
2021
KLP divestment
In July 2021, KLP, Norway's largest pension fund, announced divestment from Mizrahi-Tefahot alongside other companies identified in connection with the United Nations-related report, citing alleged financial links to settlement activity.
2021
KLP divestment over settlement-related concerns
KLP, Norway’s largest pension fund, announced that it would divest from Mizrahi Tefahot after considering the bank among entities identified in the UN-linked settlement-activity report.
2020
UN-related scrutiny over alleged settlement-linked banking activity
Bank Mizrahi-Tefahot was included in a database associated with United Nations reporting on companies alleged to have assisted Israeli settlement activity in the West Bank and Golan Heights. The issue created reputational and responsible-investment scrutiny for the bank. On 12 February 2020, Bank Mizrahi-Tefahot was included in a database associated with United Nations reporting on companies alleged to have assisted Israeli settlement activity in the West Bank and Golan Heights. The allegations concerned banking and financial operations rather than a finding of criminal liability in the supplied material, and the issue created reputational and responsible-investment scrutiny for the bank.
2020
Settlement-activity allegations and UN-linked database
Mizrahi Tefahot was included in a United Nations-linked database concerning companies alleged to have assisted Israeli settlement activity in the West Bank and Golan Heights. The listing prompted criticism from organizations and responsible-investment stakeholders, although the underlying issue concerns disputed political, legal and human-rights claims.
Brand decisions
2020
Complete the Union Bank mergerM&ABackground
Mizrahi Tefahot had acquired control of Union Bank and pursued the integration of the smaller Israeli bank into its own operations.
Action taken
The acquisition and merger of Union Bank of Israel were completed.
Aftermath
The transaction increased the group's domestic scale and consolidated another banking franchise within Mizrahi Tefahot.
2017
Agreement to acquire Union Bank of IsraelM&ABackground
The acquisition was intended to strengthen Mizrahi-Tefahot’s position in Israel’s concentrated banking market. The acquisition was intended to strengthen Mizrahi-Tefahot's position in Israel's concentrated banking market. Mizrahi Tefahot had acquired control of Union Bank and pursued the integration of the smaller Israeli bank into its own operations. Mizrahi Tefahot sought to expand its scale in an increasingly consolidated Israeli banking market.
Action taken
Mizrahi-Tefahot agreed in November 2017 to purchase Union Bank of Israel for approximately US$400 million. The bank agreed to acquire Union Bank of Israel, which later became a wholly owned subsidiary.
Aftermath
Union Bank became a fully owned subsidiary, reinforcing Mizrahi-Tefahot's position as Israel's third-largest bank. The transaction increased the group's domestic scale and consolidated another banking franchise within Mizrahi Tefahot.
Acquisition price. Approximately US$400 million agreed purchase price (2017)
2004
Combine Bank Mizrahi and TefahotM&ABackground
Changes in Israel's banking structure, including the combination of mortgage banks with commercial banks, made an internal group merger more practical. The two institutions brought complementary capabilities: Bank Mizrahi had a broad commercial and retail banking platform, while Tefahot was strongly identified with housing finance. Changes in Israel’s banking structure, including the combination of mortgage banks with commercial banks, made an internal group merger more practical. Israeli banking-sector consolidation was making combinations between commercial banks and mortgage institutions more practical.
Action taken
The businesses were merged to form Mizrahi Tefahot Bank. The board of Bank Mizrahi decided to take steps to merge Bank Tefahot Mortgage Bank into Bank Mizrahi.
Aftermath
The merger was completed in 2005 and created the Mizrahi-Tefahot banking identity. The combined group became one of Israel's major banks and retained a leading position in residential mortgages while expanding its full-service banking operations. The merger was completed in 2005 and produced the Mizrahi-Tefahot Bank identity, strengthening the group’s mortgage and commercial-banking profile.
Recent events
- 2024
Avraham Zeldman becomes chairman[5]
Leadership change
Avraham (Avi) Zeldman replaced Moshe Vidman as chairman of Mizrahi Tefahot in June 2024.
- 2020
Mizrahi Tefahot completes acquisition of Union Bank of Israel[2]
M&A
The bank completed the acquisition and merger of Union Bank of Israel, expanding its scale and customer base in the Israeli banking market.
- 2020
Moshe Larry becomes chief executive[5]
Leadership change
Moshe Larry became chief executive officer in September 2020, succeeding Eldad Persher, who had led the bank since 2014.
- 2017
Mizrahi Tefahot agrees to acquire Union Bank of Israel[5]
M&A
Mizrahi Tefahot agreed to purchase Union Bank of Israel in a transaction reported at approximately US$400 million. The acquisition supported further consolidation in Israel’s banking sector and reinforced Mizrahi Tefahot’s position as the country’s third-largest bank.
The bank expands digital banking and remote-service capabilities[4]
Other
Mizrahi Tefahot has continued developing online and mobile banking, digital customer service, and remote mortgage-related processes alongside its branch network.
Sources5 sources
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