The Isracard group, controlled by Bank Hapoalim (TASE: POLI), finished 2015 with a net profit of NIS 291 million a 14% drop from the NIS 337 million it earned in 2014 though the profit level only dropped by 10% to NIS 277 million when one-time expenses were excluded.
“2015 was characterized by our coping with complex challenges in a competitive environment, with increasing regulatory influence and a continuing profit erosion for the sector,” said new Isracard CEO Ron Wexler. “As part of its implementation of a strategic plan, the Isracard group presented significant growth in its consumer and business credit portfolio during 2015.”
Isracard reported a 71% jump in its non-bank credit up to NIS 1.5 billion in 2015. Revenue rose by 3% to NIS 1.9 billion, of which NIS 1.7 billion was generated from credit card transactions. Its operating expenses rose 12% to NIS 649 million while its marketing and sales expenses increased by 9% to NIS 311 million.
In the fourth quarter, Isracard revenue increased by 3% to NIS 497 million while its net profit fell 28% to NIS 59 million. Isracard equity totaled NIS 2.45 billion at the end of 2015, compared to NIS 2.2 billion at the end of 2014.
Published by Globes [online], Israel business news - www.globes-online.com - on February 26, 2016
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