One Zero cuts losses 27% as digital bank closes in on profitability
The Israeli digital bank lost NIS 84 million in the first half, but revenue rose 33% and expenses fell 10%. One Zero expects to become profitable on an annual basis in 2027.
One Zero Bank reported on Thursday its financial results for the first half of 2026, with losses falling 27% to NIS 84 million ($28.2 million). The digital bank, founded by Mobileye co-founder Amnon Shashua, is moving to semiannual reporting after previously benefiting from regulatory relief that allowed it to report its performance annually. From 2028, it will begin reporting quarterly, in line with other banks.
The latest results show continued progress toward profitability. One Zero expects to end 2026 with a loss of approximately NIS 130 million ($43.6 million), compared with NIS 214 million ($71.8 million) in 2025, NIS 268 million ($89.9 million) in 2024 and NIS 357 million ($119.8 million) in 2023, its first full year of operations. The bank estimates that 2027 will be the turning point, when it expects to become profitable on an annual basis.
CEO Eyal Gafni said the bank is approaching break-even and expects to record its first profitable month within the coming months.
“The bank is at a significant turning point. The growth in revenue and the volume of activity, alongside the continued decline in expenses, is bringing it closer to the goal of breaking even and its first profitable month within a few months,” he said.
One Zero received its banking license in 2019 and opened to the general public in late 2022. Its cumulative losses over the past four years have reached approximately NIS 1.2 billion ($402.7 million).
The bank's optimism about reaching profitability is based on continued growth in activity and the expansion of its revenue sources. Revenue in the first half of 2026 jumped 33% from the corresponding period last year to NIS 66 million ($22.1 million).
Securities trading was the main growth engine. Revenue from securities activity increased 55% in the first half, accounting for approximately 30% of the bank's total revenue in the second quarter, compared with 23% in the corresponding quarter last year.
The number of customers holding securities doubled, while the value of customers' trading portfolios jumped 151%. One Zero does not disclose the exact number of customers who trade securities, but says the figure is in the tens of thousands.
Overall, the bank had 193,000 customers at the end of the first half and 200,000 when the results were published, compared with 180,000 at the end of 2025 and 100,000 in March 2024.
Approximately 77% of One Zero's customers are classified as active, meaning they perform at least one transaction or other activity each month. Around half are enrolled in premium plans, in which they either pay management fees or transfer a salary or monthly deposit of at least NIS 5,000 ($1,678).
Credit card spending by One Zero customers also increased, with purchase volumes up 36% from the corresponding period.
At the same time, the bank is attempting to expand its business without a corresponding increase in operating costs. Despite the growth in activity, expenses fell 10% in the first half to NIS 149 million ($50.0 million).
One Zero attributed the decline to technological efficiencies, increased use of artificial intelligence tools and reduced reliance on outsourcing.
The bank also continued to expand its asset base. Total assets under management reached NIS 6.5 billion ($2.18 billion), while deposits increased 20% from the end of 2025 to NIS 3.8 billion ($1.28 billion).
Credit remains a relatively small part of the bank's balance sheet, however. The loan portfolio increased 26% but stood at just NIS 500 million ($167.8 million), equivalent to about 13% of total deposits.
One Zero continues to maintain a highly conservative approach to credit and liquidity, with roughly 85% of customer deposits held in liquid deposits with the Bank of Israel, earning the central bank's risk-free interest rate.
The strategy limits the bank's exposure to credit risk, but also means that most of its deposits are not currently being deployed as loans. The bank's ability to turn its growing customer base and deposits into sustainable revenue while keeping costs under control will therefore be central to its goal of reaching profitability in 2027.
