IDB Holding Corp. Ltd. (TASE:IDBH) holding subsidiary Discount Investment Corporation (TASE: DISI) today published its consolidated financial report for the second quarter of 2009. The company posted a 12-fold jump in net profit thanks in part to trades in Credit Suisse Group AG (NYSE: CS; SWX: CSGN; XETRA: CSGZ) through Koor Industries Ltd. (TASE:KOR).
Discount Investment posted a net profit of NIS 838 million (NIS 9.30 per share) for the second quarter, compared with NIS 65 million for the corresponding quarter. Koor contributed NIS 900 million of the second quarter profit, Cellcom Israel Ltd. (NYSE:CEL; TASE:CEL) contributed NIS 131 million, Shufersal Ltd. (TASE:SAE;Pink Sheets: SSLTF) contributed NIS 38 million, and Given Imaging Ltd. (Nasdaq: GIVN; TASE: GIVN) contributed NIS 3 million. However, Property and Building Ltd. (TASE: PTBL) caused a loss of NIS 41 million and venture capital arm Elron Electronic Industries Ltd. (Nasdaq: ELRN; TASE: ELRN) caused a loss of NIS 14 million. Discount Investment's total net share in the profits of its subsidiaries was NIS 939 million for the second quarter, more than nine times the NIS 111 million for the corresponding quarter.
Discount Investment will distribute a dividend of NIS 450 million, more than half of its second quarter profit. The company assets totaled NIS 34.41 billion at the end of June, up 6.3% from NIS 32.38 billion at the end of 2008, while shareholders' equity rose 21% over the same period to NIS 6.2 billion.
Discount Investments president Ami Erel said, "The second quarter results were primarily due to the record gains recorded by Koor on its investment in Credit Suisse."
Discount Investments, one of Israel's largest holding companies, mostly invests in export-oriented companies. It has made a strategic decision to expand its activity internationally, investing in Credit Suisse and Carrefour SA (Euronext: CA) through Koor.
Published by Globes [online], Israel business news - www.globes-online.com - on August 24, 2009
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