Strong market position and franchise as one of the two largest banking groups in Israel. Superior domestic diversification that enables it to cope better with industry challenges than peer average. Sound liquidity, supported by a deep domestic funding base. Moderately high likelihood of extraordinary government support, if required, due to high systemic importance for Israel. Concentrations in the corporate book have decreased materially, but continue to present risk, reflecting the structure of the Israeli economy. High exposure to the local real estate sector and sensitivity to a potential correction in residential real estate. Low short-term growth prospects in line with the local economy and pressure on margins reflecting strong competition and the low interest rate environment. S&P Global Ratings' outlook
