Tel Aviv — Bank Leumi and the Azrieli Group have reached an agreement to sell their joint credit card company, Leumi Card, to U.S. private equity firm Warburg Pincus for an estimated $700 million. The deal marks one of the largest financial transactions in Israel’s banking sector in recent years and represents a significant step toward greater competition in the country’s credit market.
The sale follows regulatory reforms introduced by the Bank of Israel that require major banks to divest their credit card operations in an effort to increase consumer choice and reduce concentration in the financial sector. Leumi Card, one of Israel’s leading credit card issuers, serves more than 2.5 million customers and processes billions of shekels in annual transactions.
Bank Leumi confirmed that the transaction aligns with its long-term strategy of focusing on core banking services while meeting new regulatory standards. “This agreement is an important milestone for the Israeli financial market,” said Leumi CEO Rakefet Russak-Aminoach. “It supports the government’s vision of creating a more open and competitive environment for consumers.”
Warburg Pincus, which has a strong track record of investments in financial services worldwide, said it plans to leverage Leumi Card’s established market presence to expand digital offerings and improve customer experience. The firm also signaled its confidence in Israel’s economy, describing the country as an “innovation hub with strong growth potential.”
The Azrieli Group, which held a minority stake in the credit card company, will also divest its shares as part of the deal. The transaction is subject to final regulatory approval and is expected to close later this year.
Analysts say the sale reflects a broader trend of foreign investors showing increased interest in Israel’s financial and technology sectors. Once completed, the acquisition will mark Warburg Pincus’s first major entry into Israel’s banking industry — and a defining test of how private equity can reshape the country’s consumer credit landscape.
