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Max concludes an excellent year with a net profit of a quarter of a billion shekels - voila! Of money

2023-02-27T07:27:50.995Z


The annual net profit increased by 110% and amounted to NIS 248 million, the net profit for the last quarter was NIS 65 million. The company's revenues grew by about 30% and amounted to about NIS 1.82 billion


Max cards.

The credit group's excellent year (photo: Public Relations)

Max publishes its results for 2022 and provides reason for a broad smile among the owners and management: the annual net profit increased by 110% and amounted to NIS 248 million, the net profit for the last quarter was NIS 65 million.

The company's revenues grew by about 30% and amounted to about NIS 1.82 billion, of which NIS 489 million in the last quarter.



In addition, the credit company shows continued annual growth in all the key parameters:



24% growth in the number of active Max cards


34% growth in transaction turnover with Max cards


34% growth in the credit portfolio


Return on equity stood at 16.2%



The reports published by the company continue to reflect strong performance and continued business growth in all parameters.

The growth is evident both in the credit card turnovers which increased in 2022 by 18.3% compared to the corresponding period last year and in the balance of the credit portfolio which increased by 37% compared to the balance of the portfolio at the end of 2021.



The company's revenues in the fourth quarter increased by about 30% compared to the corresponding quarter last year, mainly due to the increase in credit card transactions, and amounted to about NIS 489 million.

The company's net profit for the fourth quarter of 2022 was NIS 65 million, compared to a loss of NIS 17 million in the corresponding period last year, due to the increase in activity and use of credit cards in Israel and abroad. Max's total credit portfolio was approximately NIS 9.3 billion and grew this



year At a rate of about 37%



, the consumer credit portfolio, the largest among the credit card companies, stood at about NIS 8.5 billion at the end of 2022, an increase of 34% in the last year. This is, among other things, due to the growth in loans for financing new and second-hand vehicles that the company provides At the same time, the credit portfolio for small businesses grew, which at the end of the year stood at approximately NIS 0.8 billion, an increase of 68% compared to the end of 2021.

Max's profits in a multi-year comparison (photo: Max)

CEO of Max, Ron Fainero:

"The results we are publishing today represent the hard work of the last few years, in which we acted consistently in accordance with a clear strategic plan that supported the expansion of our customer base and the construction of the largest credit portfolio in the industry in order to promote competition.

In the last three years, we managed to triple the net profit, double the number of Max customers and increase the total credit portfolio by 55%, from 6 to 9.3 billion shekels!



We have turned from a bank credit card company into a leading and growing finance company that offers the best credit cards in Israel, competitive credit for banks and insurance and savings products.

In 2022, we grew by approximately 24% in the volume of active Max cards and by approximately 34% in the volume of their cycles.

Our consumer and business credit portfolios grew by about 37% respectively to make us a significant and competitive player for the banks."



Fainro emphasized that "this year Max expanded the range of innovative services and products offered to its customers on the credit card, from refunds on purchases in Bitcoin, the option to save directly from the card, to fast foreign exchange transfers abroad. In addition, we entered the State Guarantee Fund as a body that provides credit to small businesses the new and we made available to businesses an independent guarantee on better terms than the bank."



He further added, "I am happy about the re-election of the Ministry of Defense and the Histadrut Workers' Union at Max, to renew the agreements with us for the major club cards "Bahzadeh" and "Together for You", and even to launch a new and unique airline ticket for Histadrut employees, following the success of our airline ticket. SKYMAX."



He also noted that "we analyze the effects of the macroeconomic changes in the economy, especially the effects of the Bank of Israel interest rate increase on households and businesses, and make adjustments for the benefit of our customers. In 2022, the write-off rate for credit losses remains stable and lower than the rate in recent years, thanks to the advanced credit underwriting models ours and the responsible risk management policy we adhere to."



Chairman of Max and representative of the Warburg Pincus investment fund, Yaron Bloch

: "The last few years at Max have been characterized by the implementation of an ambitious and targeted growth strategy in which the company cultivates the direct relationship with a variety of its customers through leading value propositions and an advanced digital, service and support system, all while emphasizing on diversifying its sources of income.



"These days, Warburg Pincus and its partners are working to complete the particularly complex process of selling the Max group to all holdings, one of the leading financial groups in Israel. The apparent merger will allow Max to strengthen its competitive position in the Israeli financial market, and offer its customers a wider variety of competitive value propositions."





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CEO of Max, Ron Fainero (Photo: Hadar Dolan)

The main results in 2022 and in the fourth quarter, compared to 2021:

The net annual profit was NIS 248 million, compared to NIS 118 million in 2021, while the profit in the fourth quarter was NIS 65 million compared to a loss of NIS 17 million in 2021 that resulted from a one-time provision.

The profit reflects a return on capital of 16.2%, compared to a return of 8.3% in the corresponding period last year.



The company's revenues in 2022 amounted to approximately NIS 1,820 million, a growth of approximately 29%, while revenues in the fourth quarter grew by approximately 30% and amounted to approximately NIS 489 million.



The company's expenses in 2022 amounted to approximately NIS 1,491 million, an increase of approximately 19%, while expenses in the fourth quarter of 2022 amounted to NIS 403 million compared to NIS 398 million in the corresponding period last year.

The increase is mainly due to the increase in direct expenses related to the increase in business activity.

The total expenses for 2022 include an increase in the provision for VAT assessment, regarding overseas activity.

The scope of expenses for credit losses in the portfolio remains low despite the dramatic increase in the portfolio.



The number of active credit cards at the end of 2022 stood at approximately 2.7 million, an 11% growth compared to the end of 2021, when the number of active Max (non-bank) cards grew by approximately 24% and reached 1.14 million.



The company's issuance turnover amounted to approximately NIS 113.3 billion, a growth of over 18%, while the issuance turnover of Max cards grew by approximately 34%.

In the fourth quarter, the issuance turnover increased by about 10% compared to the turnover in the corresponding quarter last year, of which about 26% in Max cards.



Consumer credit - The balance of the consumer credit portfolio (private customers) amounted to approximately NIS 8.5 billion on December 31, 2022, a growth of approximately 34% compared to the balance at the end of 2021.



The prime interest rate, set by the Bank of Israel, directly affects the interest rate on the loans the company makes and the cost of its financing sources.

In light of the increase in the prime interest rate of 3.15% during the year 2022, the company chose to reduce the average interest margin above the prime, in which it placed its loans to households as of December 31, 2022, from the margin last year which was 5.60% to 5.45%.



Business credit - The balance of the business credit portfolio on December 31, 2022 amounted to approximately NIS 0.8 billion, a growth of approximately 68% compared to the balance at the end of 2021. In light of the increase in the prime



interest rate by 3.15% during the year 2022, the company chose to reduce the interest margin The average above the prime, in which it placed its small business loans for December 31, 2022, from last year's spread of 3.60% to 3.25%.



The company's equity amounted to approximately NIS 1.7 billion, compared to approximately NIS 1.47 billion at the end of 2021.



Capital adequacy - the total capital ratio was 12.5%, compared to 13.6% at the end of 2021. And the Tier 1 equity ratio was 10.4%, compared to 11.2% at the end of 2021.

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Source: walla

All business articles on 2023-02-27

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