Israel Discount Bank
Corporate brand
UnclaimedAn Israeli banking group providing retail, commercial, private, corporate and financial-market services through branch and digital channels.
Last updated November 4, 2026
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Overview
Israel Discount Bank is one of Israel’s established banking groups. It was founded in Tel Aviv on 5 April 1935, during the period of the British Mandate for Palestine, as Eretz Yisrael Discount Bank Ltd. The founding group consisted of Leon Recanati, Yosef Albo and Moshe Carasso. The name refers to the traditional banking practice of discounting bills, rather than to a low-price retail proposition. The bank began in modest premises in a Tel Aviv hotel and later moved to Yehuda Halevi Street. Its early development coincided with the arrival of foreign capital associated with the Fifth Aliyah. Although economic conditions deteriorated during the Arab Revolt and the Second World War, the bank expanded by extending credit on comparatively favorable terms and by building a growing deposit and branch network. It also supported community initiatives, including scholarship and assistance activities and efforts connected with agricultural settlement. After the establishment of Israel, Discount Bank broadened its geographic and business reach. It acquired or absorbed several banking operations, including Haifa-based Mercantile Bank and local activities associated with Ottoman Bank, Barclays Bank and Hollandsche Bank-Unie. During the 1950s and 1960s it opened overseas branches, invested in Israeli companies, created investment-related businesses and expanded its domestic branch network. The bank became an early participant in credit cards, computerized banking and automated banking services. In 1970 it acquired Barclays Bank and operated for a period under the Barclays-Discount name before ultimately consolidating the business under the Discount identity. The group has repeatedly positioned technology and convenience as competitive differentiators. Discountomat, introduced in 1974, was described by the bank as Israel’s first automated teller machine. Discount Telebank, established in 1981, created an early telephone-banking and call-center model. Later initiatives included mobile banking, independent banking terminals, fintech partnerships and artificial-intelligence tools. The Didi digital assistant was developed with Personetics Technologies, while the Business+ mobile application was designed for business customers. The bank was nationalized after the 1983 Israeli bank stock crisis, alongside other major Israeli banks. A long privatization process began in 2004 and was completed in 2006 when the Bronfman-Sharan Group acquired a significant stake; Deutsche Bank also purchased shares during that period. The Israeli government disposed of its remaining holding in 2010. Discount Bank remains a public company traded on the Tel Aviv Stock Exchange under the symbol DSCT and is included in the TA-35 index. Its present scope includes personal and retail banking, mortgages, consumer credit, corporate and commercial lending, private banking, wealth and asset management, securities, investment banking, insurance-related financial services and credit cards. The group’s principal businesses include Israel Discount Bank, Mercantile Discount Bank, Israel Credit Cards (CAL), Discount Capital and Tafnit Discount Asset Management, as well as its American banking operation, IDB Bank. Customers are served through branches, websites, mobile applications, telephone services and other digital channels. The bank reported 112 branches in Israel in the cited reference material. For 2025, the referenced Wikipedia material reported net income of ILS 4.14 billion and return on equity of 12.6%; these figures should be checked against the bank’s official financial disclosures before being used for investment analysis. Israel Discount Bank Ltd., generally known as Discount Bank, is one of Israel's principal banking groups. It was established in 1935 during the British Mandate for Palestine as Palestine Discount Bank and later adopted its present name after the establishment of the State of Israel. The institution began as a bank serving Jewish commercial and private customers and expanded alongside the country's economic development, becoming a full-service bank with activities spanning households, small and medium-sized businesses, large corporations, financial institutions and capital-markets clients. The bank's core business is domestic banking. Its retail franchise offers current accounts, deposits, credit cards, mortgages, consumer credit, payment services, foreign-exchange services and digital banking. Through its business and corporate divisions, Discount provides working-capital facilities, trade finance, cash management, credit, project and acquisition finance, investment banking and other financial services. The group also operates through specialist subsidiaries and affiliated businesses, including activities associated with credit cards, trust and custody services, investment management and U.S. banking. Its American operations are conducted principally through Israel Discount Bank of New York, a separately organized banking subsidiary serving commercial, private and international clients. Discount has historically competed with Israel's largest banking groups, including Bank Hapoalim, Bank Leumi and Mizrahi-Tefahot. Its positioning combines the breadth of a universal bank with a strong emphasis on customer service, business banking and digital distribution. Like other Israeli banks, it has invested in mobile applications, online account management, automated service channels, data-driven credit processes and payment capabilities. The group has also maintained physical branches and relationship-management teams for customers whose needs involve complex credit, wealth or business services. Ownership and governance have changed over time. The bank was nationalized during Israel's early state-building period and was later privatized. A controlling stake was acquired by the Bronfman group in the 1990s and subsequently transferred through several ownership arrangements. The state ultimately sold its remaining holding in 2006, completing the bank's privatization. In later years, the bank's shares became broadly held in the public market rather than being identified with a single controlling industrial owner. Discount's history includes periods of restructuring, modernization and strategic repositioning. It has sought to improve operating efficiency, strengthen capital and risk management, increase digital adoption and grow fee-generating businesses while remaining a regulated deposit-taking institution. The bank's performance is therefore influenced by Israeli interest rates, housing and mortgage conditions, economic growth, credit quality, regulation, cybersecurity requirements and geopolitical developments. It remains an active Israeli banking brand with a nationwide customer base and international capabilities, but it is not generally treated as a globally famous consumer brand.
History
Israel Discount Bank was established in Tel Aviv on 5 April 1935 by Leon Recanati, Yosef Albo and Moshe Carasso. Initially named Eretz Yisrael Discount Bank, it operated from a small hotel before moving to Yehuda Halevi Street. The bank expanded during the later Mandate period despite the economic disruption caused by the Arab Revolt and the Second World War. Its early activities included deposit-taking and lending, while associated charitable initiatives supported scholarships, relief work and settlement-related projects. Following the death of Leon Recanati in 1945, management passed to his sons. In the 1940s the bank acquired Haifa-based Mercantile Bank and later took over local operations connected with Ottoman Bank, Barclays Bank and Hollandsche Bank-Unie. In the 1950s it opened branches in Europe and invested in Israeli companies through an investment and finance vehicle. Domestic branch growth and extended afternoon opening hours helped it become Israel’s second-largest bank during that period. The 1960s brought further diversification. Discount Investments was founded in 1961, the bank obtained rights to issue Diners Club cards and it became the first Israeli bank to offer shares publicly. In 1964 it received the Kaplan Prize in recognition of its early computerization. In 1970 Discount acquired Barclays Bank and temporarily adopted the Barclays-Discount name. It later obtained full ownership and transferred Mercantile Bank to the Barclays-Discount structure. Technology became a recurring feature of the bank’s development. Discountomat was launched in 1974 as an early Israeli ATM service. Visa Cal was established with Bank Leumi in 1979. In 1981 Discount created Discount Telebank, described as Israel’s first banking call center, and also operated a mobile bank known as Bankonit. In 1983 it introduced independently usable banking “satellites.” That year’s Israeli bank stock crisis resulted in the nationalization of Discount Bank and other major banks. The group continued to develop investment and financial-product activities. Tachlit Investment House was established in 1987 and provided products and portfolio-management services. During the 2000s, the central strategic issue was privatization. The government began selling its holdings in 2004; in 2006 the Bronfman-Sharan Group bought 26% of the shares and Deutsche Bank also acquired a stake. The government sold its remaining interest in 2010. In 2012, following an instruction from the banking supervisor, Discount sold its 20% holding in Tachlit exchange-traded notes to Dash Investment House. In the digital era the group pursued fintech and mobile initiatives. It entered partnerships with companies including ICount and PayBox in 2017 and worked with Personetics Technologies on Didi, an artificial-intelligence-based digital assistant. Business+, a mobile application for business customers, was launched in 2019 and received industry awards cited by the bank. The modern group combines retail, commercial, corporate, private and investment banking with credit cards, asset management and overseas banking. Its principal Israeli headquarters are in the Discount Bank Tower in Tel Aviv. Israel Discount Bank was founded in 1935 as Palestine Discount Bank by Moshe Meir and other Jewish business interests in the Yishuv. Its early role was connected to the development of commercial and financial activity in Mandatory Palestine. Following the creation of Israel in 1948, the bank operated within the rapidly expanding Israeli economy and changed its name to Israel Discount Bank in 1951. During the first decades of the state, Discount developed from a relatively specialized institution into a broad banking organization. It expanded its branch network, served households and enterprises, and built capabilities in deposits, credit, foreign exchange and securities. The bank also developed relationships with Jewish communities and businesses outside Israel, contributing to its later international orientation. The bank was nationalized in the 1980s as part of the wider restructuring of Israel's banking system after the 1983 Israeli bank stock crisis. State ownership placed Discount under public control while the institution underwent financial and managerial changes. The privatization process began in the 1990s, when a controlling interest was sold to the Bronfman group in partnership with other investors. Discount subsequently operated as a privately controlled commercial bank while continuing to be listed on the Tel Aviv Stock Exchange. In 2006, the Israeli government sold its remaining shares, completing the privatization of the bank. The post-privatization period brought renewed attention to capital strength, efficiency, governance, technology and competitive positioning. Ownership arrangements evolved over time, and the bank became increasingly characterized by dispersed public ownership rather than a single long-term controlling shareholder. Discount's modern business is organized around retail, business and corporate banking, with additional services delivered through group companies and subsidiaries. It serves individual customers with accounts, deposits, mortgages, loans, cards and digital channels. Small and medium-sized enterprises receive credit, payments, cash-management and advisory services, while larger companies and institutions use corporate finance, trade finance, treasury, investment banking and capital-markets products. The group has also maintained a meaningful overseas presence, especially through Israel Discount Bank of New York. The bank has pursued digital transformation through mobile and online banking, automation, electronic payments and redesigned customer journeys. At the same time, its physical branch and relationship-manager network remains relevant for mortgages, complex financial products, business banking and customers requiring personal assistance. Strategic priorities have generally included sustainable growth, improved efficiency, stronger risk management, customer retention and expansion of fee-based services. As an Israeli bank, Discount operates under the supervision of the Bank of Israel and is exposed to the country's economic and regulatory environment. Interest-rate movements affect lending margins and deposit pricing; housing-market conditions influence mortgage and real-estate credit; and changes in consumer protection, capital, liquidity, anti-money-laundering, privacy and cybersecurity rules shape operations. Geopolitical events can affect credit quality, customer activity and business confidence. Despite these constraints, Israel Discount Bank remains an active, listed national banking group and one of the established competitors in Israel's financial-services market.
- 2019
Business+ launched
[1]The bank introduced a mobile banking application for business customers.
- 2017
Fintech partnerships expanded
[1]Discount entered agreements with fintech companies including ICount and PayBox to improve payment and open-banking capabilities.
- 2010
Government exits ownership
[1]The Israeli government sold its remaining holding in the bank.
- 2010
International banking operations continue through New York
[3]The group's United States banking platform continues to provide commercial, private and international banking services through Israel Discount Bank of New York.
- 2006
Privatization completed
[1]The Bronfman-Sharan Group acquired a major stake and the government's privatization process was completed.
- 2006
The bank is fully privatized
[1]The state sells its remaining stake, ending direct government ownership of Israel Discount Bank.
- 1993
Privatization begins
[1]The Israeli government sells a controlling interest in Discount Bank to a private investor group led by the Bronfman family.
- 1987
Tachlit Investment House established
[1]The Discount Group created Tachlit to distribute financial products and manage investment portfolios.
- 1983
Nationalization after bank stock crisis
[1]The Israeli government took ownership of Discount Bank following the national bank stock crisis.
- 1983
Bank-stock crisis and subsequent state control
[6]The Israeli bank-stock crisis contributes to the restructuring and nationalization of major banks, including Discount Bank.
Products and positioning
A major full-service Israeli bank with a broad retail and business franchise, complemented by corporate, capital-markets and international banking capabilities.
Personal banking
Retail banking
The retail business serves individuals through accounts, deposits, consumer lending, mortgages, payment services, cards and everyday banking. Distribution combines Israeli branches with online, mobile and telephone channels.
Business banking
Corporate and commercial banking
Corporate and commercial services include business accounts, credit facilities, working-capital finance, investment and lending products, and relationship banking for companies and institutions.
Payments · 1979
Israel Credit Cards (CAL)
CAL is the group's credit-card business and issues Visa and Mastercard products. The reference material identifies Discount Bank as holding a 72% stake in the company.
Wealth services
Private banking and wealth management
The group provides private banking, portfolio management, asset management and wealth services for private clients, companies, nonprofit organizations and public-sector entities.
Investment banking
Discount Capital
Discount Capital is the group's investment-banking and alternative-investment arm, investing directly in companies and ventures and participating in funds and mezzanine transactions.
Digital banking · 2019
Business+
Business+ is a mobile banking application designed for business customers. It supports digital interaction with the bank and was recognized in the industry awards cited in the reference material.
Artificial intelligence banking
Didi
Didi is an artificial-intelligence-driven digital assistant developed with Personetics Technologies. It was presented as an early Israeli banking application of this type.
Commercial banking subsidiary
Mercantile Discount Bank
Mercantile Discount Bank is a wholly owned group bank serving commercial and retail customers through a network concentrated in Israel's peripheral regions. The reference material reports approximately 80 branches.
Retail banking
Personal banking
The personal-banking franchise provides current accounts, savings and term deposits, payment services, debit and credit cards, consumer loans, foreign exchange and access to branch, telephone, web and mobile channels. It is designed for everyday transactions as well as household borrowing and savings needs.
Retail lending
Mortgages
Discount offers residential mortgage financing and related services to homebuyers and property owners. Mortgage activity is supported by specialist advice, affordability assessment, collateral processes and ongoing account servicing, making housing finance an important part of the bank's consumer-credit business.
Commercial banking
Business banking
Business banking serves small and medium-sized enterprises with operating accounts, overdrafts, loans, guarantees, payment acceptance, cash management, trade-related services and advisory support. Relationship managers and digital tools are used together to support working capital and business expansion.
Corporate banking
Corporate and investment banking
Corporate services include structured credit, acquisition and project finance, treasury, foreign exchange, trade finance, cash management, securities and capital-markets support. The division serves large companies, institutional customers and financial institutions with more complex financing and risk-management requirements.
Financial technology and channels
Digital banking
The bank's digital offering includes online and mobile account access, payments, transfers, service requests, alerts and selected lending or onboarding journeys. Digital channels are intended to reduce routine branch dependence while preserving assisted service for complex customer needs.
International banking
Israel Discount Bank of New York
Israel Discount Bank of New York is the group's U.S. banking platform. It provides commercial, private, correspondent and international banking services and connects the group to customers and financial activity in the United States.
Controversies
2021
Australian tax arrangement settlement
Israel Discount Bank and Mercantile Discount Bank reached a reported ILS 343 million settlement with the Australian Taxation Office over alleged tax-fraud arrangements involving the Binetter family and back-to-back loans. The banks reportedly made no admission of culpability and committed to an independent inquiry.
Marketing campaigns
- 2010Mafteach Discount
Israel
Mafteach Discount offered benefits and discounts to eligible cardholders while linking purchases with opportunities to make small recurring deposits into a savings account.
Outcome. Customer loyalty and savings proposition; no later outcome is specified in the reference material.
Brand decisions
2019
Business+ mobile banking applicationProduct launchBackground
Business customers increasingly expected mobile access to banking services.
Action taken
Discount launched Business+, an application for business banking customers.
Aftermath
The application received the industry recognitions cited in the reference material.
2017
Fintech partnership programStrategyBackground
Payments and open-banking technology were becoming important areas of competition in financial services.
Action taken
Discount entered partnerships with fintech companies including ICount and PayBox.
Aftermath
The partnerships supported the group’s digital-payment and customer-service strategy.
2012
Sale of Tachlit ETN holdingsM&ABackground
The banking supervisor required Discount to dispose of its 20% interest in Tachlit exchange-traded notes.
Action taken
The holding was sold to Dash Investment House.
Aftermath
Discount exited that investment while retaining its broader banking and financial-services operations.
2006
Completion of privatizationStrategyBackground
The Israeli government retained a stake in the bank after the earlier sale of a controlling interest, leaving a further disposal as the final stage of privatization.
Action taken
The state sold its remaining shares in Israel Discount Bank, ending direct government ownership.
Aftermath
The bank continued as a publicly listed private-sector institution, with ownership subsequently represented through market investors and evolving shareholder arrangements.
2004
Privatization process beginsStrategyBackground
The Israeli government sought to reduce its ownership of the bank after two decades of state control.
Action taken
The government initiated the sale of its holdings, leading to the Bronfman-Sharan acquisition in 2006 and the eventual sale of the remaining stake in 2010.
Aftermath
Discount returned to private ownership and continued as a publicly traded banking group.
1983
Government ownership after the bank stock crisisStrategyBackground
The Israeli bank stock crisis led the government to intervene in the ownership of major banks.
Action taken
Discount Bank was nationalized and transferred into government ownership.
Aftermath
The bank remained state-owned until its privatization process began in 2004.
1974
Launch of DiscountomatProduct launchBackground
Banking customers were increasingly seeking access outside traditional branch transactions.
Action taken
Discount introduced an ATM service known as Discountomat.
Aftermath
The move reinforced the bank’s reputation for adopting self-service banking technology.
Sources6 sources
- 1Israel Discount Banken.wikipedia.org
- 2Israel Discount Bank official websitediscountbank.co.il
- 3Israel Discount Bank of New Yorkidbny.com
- 4Tel Aviv Stock Exchange company informationtase.co.il
- 5https://www.discountbank.co.il/discountbank.co.il
- 6Bank-stock crisis and subsequent state controlen.wikipedia.org
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