Israel’s three credit card companies, Isracard Ltd., Leumi Card Ltd. and Israel Credit Cards-Cal Ltd. (ICC-Cal) (Visa) today published their financial reports for 2006, which show continued double-digit revenue and profit growth. These are the companies’ first reports published under the new Bank of Israel full disclosure guidelines.
The three companies’ aggregate profit rose 25% to NIS 348 million in 2006 from NIS 278 million in 2005.
Isracard posted NIS 1.07 billion revenue in 2006, 17.6% more than the NIS 958 million revenue posted in 2005. Revenue from businesses rose 10.6% to NIS 833 million, and revenue from card holders rose 14.5% to NIS 174 million. On the other hand, the company’s expenses also rose, reaching NIS 901 million in 2006, up 12.6% on 2005. Provision for doubtful debts was NIS 4 million. Net profit rose to NIS 140 million from NIS 118 million. The company also posted a capital gain of NIS 28 million on the sale of shares in Mastercard Inc. (NYSE:MA).
Isracard chairman Dan Dankner said, “We will continue to pursue our strategy in 2007, in order to preserve and strengthen our position as Israeli’s leading credit card company.”
Leumi Card posted NIS 585 million revenue in 2006, up 20% on 2005, and a net profit of NIS 82 million, up 58%. Leumi Card CEO Arie Heliweil attributed most of the increase in revenue to greater issuing, clearing and credit activity.
Leumi Card said that it planned to expand its non-bank customer base to at least 20% of its total customers during 2007. “Leumi Card will expand and deepen competition for customers from all banks and will approach a range of target audiences and customize credit solutions and card type to their needs.”
ICC-Cal posted a net profit of NIS 126 million for 2006, up 16.7% on 2005. The company is planning an IPO on the Tel Aviv Stock Exchange (TASE) at a company value of NIS 1.8-2 billion.
Published by Globes [online], Israel business news - www.globes.co.il - on March 14, 2007
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