ICC-Cal: Revenue up, profit down in Q3

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Cal is considering cooperation with payment terminals company Verifone.

Cal Israel Credit Cards, owned by Israel Discount Bank (TASE: DSCT) (72%) and First International Bank of Israel (TASE: FTIN) (28%), today reported its financial results for the third quarter of 2018. Cal's net profit in the third quarter was NIS 43 million, 24% less than its NIS 57 million net profit in the third quarter of 2017. Cal's net profit in the first nine months of 2018 totaled NIS 121 million, 25% less than its NIS 162 million net profit in the corresponding period last year. The company attributed the rise in its expenses to the launching of the Shufersal Ltd. (TASE:SAE) credit card club.

Cal said that its return on equity was 10.1% in the third quarter, compared with 15.1% in the third quarter of last year, and 9.4% in the first nine months of the year, compared with 14.2% in the corresponding period in 2017.

Cal's revenue totaled NIS 443 million in the third quarter, up 14%, compared with NIS 388 million in the third quarter of 2017, and NIS 1.25 billion, up 12%, compared with NIS 1.12 billion in the corresponding period last year.

Credit card transactions turnover amounted to NIS 24.6 billion in the third quarter, 17.3% more than the NIS 21 billion in the third quarter of 2017, and NIS 68.7 billion in the first nine months of the year, 16% more than the NIS 59.3 billion in the first nine months of last year.

Cal's balance sheet total was NIS 15.5 billion as of September 30.2018, compared with NIS 13.3 billion as of September 30, 2017, a 16.5% increase. The company's capital adequacy ratio as of the end of September this year was 16.2%.

Cal CEO Levy Halevy said, "We continued growing in our core business activity in the third quarter of the year, as reflected in the increased number of credit cards, larger transaction turnovers, growth in revenue from credit card transactions, and a larger balance of consumer and business credit. We are continuing implementation of the company's strategic plan."

As reported last week in "Globes," Cal is currently considering cooperation with Verifone, a leading international company in business payment terminals.

Published by Globes, Israel business news - en.globes.co.il - on November 12, 2018

© Copyright of Globes Publisher Itonut (1983) Ltd. 2018

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