IBI Investment House Ltd. (TASE:IBI) today published its consolidated financial report for the second quarter of 2007. The company posted a net profit of NIS of NIS 24.1 million, up 113% on the corresponding quarter of 2006. Financing expenses rose 365% to NIS 1.77 million.
The company posted NIS 63.6 million revenue, up 70% on the corresponding quarter, thanks to a four-fold increase in management fees and capital market services to NIS 16.3 million. Revenue from subsidiaries, including Poalim IBI Underwriting and Investments Ltd. (TASE:PIU, totaled NIS 11.8 million for the second quarter, up 139% on the corresponding quarter. Only the “other income” item in the financial report was less than for the corresponding quarter.
IBI Investment House concludes its financial report with clarifications regarding the severe market fluctuations during the past month. “Since the date of the balance sheet, capital markets in Israel and internationally have undergone and are still undergoing shocks, which have caused an international liquidity crisis, severely harmed some international financial institutions, drops - some of them severe - in stock prices, and halted the raising of capital in its various forms,” says the company.
IBI Investment House estimates its post-tax financial losses from securities since the end of June at NIS 7.9 million.
Africa-Israel Investments Ltd. (TASE:AFIL; Pink Sheets:AFIVY.PK) subsidiary Africa-Israel Finances Ltd. is in advanced negotiations to acquire a controlling interest IBI Investment House at an estimated company value of NIS 800 million.
Published by Globes [online], Israel business news - www.globes.co.il - on August 23, 2007
© Copyright of Globes Publisher Itonut (1983) Ltd. 2007