Concept
Leumi Private Banking is the affluent-client segment within the Retail Banking Division of Bank Leumi le-Israel B.M., Israel's largest bank by total assets (NIS 873bn at end-2025, ~US$274bn; Hapoalim: NIS 766.7bn) and by market capitalisation (Mar 2026). Group President & CEO is Hanan Friedman (since 1 Nov 2019); Chairman is Uri Alon (since 18 Dec 2024); no separately named head of private banking is disclosed, and the retail division is led by First EVP Eyal Efrat.
Service is delivered through 5 dedicated Private Banking centres (two in Tel Aviv, Jerusalem, Haifa, Herzliya Pituach) plus 3 designated branches for portfolios of NIS 4m–10m. Segment client assets (securities plus mutual, provident and study funds, average balance): NIS 75.6bn in 2025 (~US$23.7bn), NIS 61.7bn in 2024, NIS 49.4bn in 2023; deposits NIS 37.0bn; segment net income NIS 239m (2025).
History and evolution
- 27 Feb 1902 — founded in Jaffa as the Anglo-Palestine Company (of the Jewish Colonial Trust, London).
- 1950 — renamed Bank Leumi le-Israel; 1954–1955 — de facto central bank until the Bank of Israel was established.
- 1983 — nationalised in the bank-share crisis; 5 Sep 2018 — privatisation completed.
- 2002 — global private-banking unit formed (~US$30bn AUM).
- 2011–2012 — Swiss expansion attempt (Banque Safdie → Leumi Private Bank).
- 22 Dec 2014 — DOJ deferred prosecution agreement → exit from Swiss and Luxembourg private banking (assets to Julius Baer, 2014–15; Banque J. Safra Sarasin, closed Q1 2016).
- 2019 — sales of Leumi Romania and Leumi Card.
- 1 Apr 2022 — Bank Leumi USA merged into Valley National Bancorp (~US$1.2bn deal; Leumi retains ~13% of Valley).
- 2022–2023 — Bank Leumi (UK) plc wound down (members' voluntary liquidation 13 Dec 2022); PRA/FCA authorisation ended 11 May 2023.
- 2023–2024 — HQ moved to Leumi Campus, Lod.
Regulation
Bank Leumi le-Israel B.M. is supervised by the Bank of Israel. Per the FY2024 report, foreign-office activity is carried out only through the UK office; no offshore private-banking booking centres remain.
Compliance context: 22 Dec 2014 — DOJ DPA (C.D. Cal.): the bank admitted conspiracy to aid US taxpayers filing false returns via undeclared accounts (Israel, Switzerland, Luxembourg, US; 2000–2011); payments of US$270m to the US plus a US$130m NYDFS consent order — US$400m total; 1,500+ US account holders disclosed; a monitor was appointed; the first Israeli bank to admit such conduct. In 2023 a US Senate Finance Committee report raised concern that Leumi may have breached its DPA; no new DOJ action has been reported. Bank of Israel fines: Jun 2015 — NIS 4.2m (AML reporting); Feb 2023 — NIS 1.88m (Pepper app onboarding, self-reported); Feb 2024 — NIS 1m (debt-collection reporting); Oct 2024 — NIS 3.3m (unreported inbound foreign transfers); Sep 2025 — NIS 2.1m (unreported structured deposits and KYC deficiencies, classified by the bank as a local violation of minor severity).
Source of wealth
Typical wealth origins: tech entrepreneurs and executives (start-up nation exits), business owners, professionals, real-estate wealth, new immigrants and foreign residents served in Israel, multi-generational families. On documenting source of funds, see the dedicated wiki article.
Who it serves
Affluent Israelis and foreign residents who want the country's largest bank with a full investment and trust offering; clients with portfolios of NIS 4m–10m are served at designated branches.
Services
- dedicated relationship manager;
- investment advisory by capital-markets specialists (the Odyssey advisory/analysis system);
- securities trading, execution and custody;
- advanced digital private banking;
- credit including mortgages (segment loan book modest at ~NIS 0.58bn end-2025);
- trust and estate services via Bank Leumi le-Israel Trust Company Ltd — described by the DOJ as Israel's oldest and largest bank trust company.
Under the Israeli model, banks provide advice; discretionary management sits with separately licensed portfolio managers.
Entities
| Jurisdiction | Legal entity | Form and supervision | Role |
|---|---|---|---|
| Israel | Bank Leumi le-Israel B.M. | Bank supervised by the Bank of Israel | Core entity: 5 Private Banking centres and 3 designated branches |
| United Kingdom | Leumi UK Group Ltd | Non-bank commercial lender; takes no deposits | Real estate and hotel finance, Leumi ABL; loan book over £3bn |
Strengths
- Israel's largest bank by assets and market cap; record 2025 net income of NIS 10.3bn, ROE 15.8%;
- fast-growing segment: AUM up from NIS 49.4bn (2023) to NIS 75.6bn (2025);
- low entry threshold for foreign residents (US$50,000);
- in-house trust company.
Where it falls short
- no offshore booking: international private banking was wound down in 2014–2023;
- no deposit insurance in Israel;
- small segment loan book (~NIS 0.58bn);
- no discretionary management.
For clients whose lives and capital are tied to Israel, Leumi Private Banking is a natural first port of call. Those needing offshore booking, discretionary management or insured deposits will need additional jurisdictions.
Q/A
What is the official entry threshold?
Net worth over NIS 1.5m (~US$470k) for private customers; holdings over US$50,000 for foreign residents. Under Bank of Israel directives the segment covers clients with a financial portfolio at the bank exceeding NIS 3m.
Are deposits insured in Israel?
No: Israel has no deposit-insurance scheme, only implicit government support. Introducing insurance was examined by the Bank of Israel (Mar 2023) but is not in force as of 2026.
Can I bank with Leumi outside Israel?
No offshore private-banking centres remain: the only foreign presence is Leumi UK, a non-bank commercial lender that takes no deposits.
Does the bank offer discretionary management?
No. Under the Israeli model banks provide investment advice, while discretionary management sits with separately licensed portfolio managers.
How large is the segment?
Client assets of NIS 75.6bn (~US$23.7bn) in 2025, deposits of NIS 37.0bn and segment net income of NIS 239m.