Strong market position and franchise as one of the two largest banking groups in Israel with a strong presence in all key business lines and digital banking. Improving efficiency ratios. Conservative approach to provisioning. Large domestic customer deposit base that underpins good funding and liquidity metrics. Moderately high likelihood of extraordinary government support, if required, due to high systemic importance for Israel. Regulatory attempts to limit market share, primarily by forcing divestment of credit card subsidiary. High concentration in real estate sector. Limited ability to diversify fee income or raise fees. S&P Global Ratings' positive outlook on Bank Leumi le-Israel B.M. indicates the possibility of an upgrade over the next 12-24 months if Israel's economic and operating environment becomes more
