Yahel Ben Sira, CEO of Valio Capital: “From the beginning of 2021, we have made a series of significant moves that constitute a leap forward for Valio Capital, led by the deal to acquire part of Psagot Investment House’s operations, which is already showing profitability and this is the starting point for us.
The third quarter reports for 2021 that we present today only reflect the Psagot transaction, as the transaction was completed towards the end of August, and is included in the reports only from that date. Business and strategic moves, in order to significantly increase the profitability of Psagot and return the investment house, benefited from a brand that led the Israeli capital market for many years, to its natural status as a market leader.
During the period of the report, the increase in the volume of credit provided by the company continued, a trend that we estimate will continue in the foreseeable future, when alongside the credit activity of Applichek, which the company will complete subject to approval by the Capital Market Insurance and Savings Commissioner. Recently also on entering the field of digital guarantees after we signed the memorandum of understanding for investment in OBLI.
In 2021 we worked to build the foundation and infrastructure for the long-term development and growth of the various activities of Valio Capital, and we estimate that already in 2022 we will reap the first fruits of these moves. We will continue to work hard to make Valio Capital a leading player in the finance, investment and credit market in Israel. “
Company Valio Capital This morning, Rani Zim published its financial results for the third quarter and the first nine months of 2021. On August 26, the company completed the transaction to acquire Psagot Investment House, in which it acquired the activities of mutual funds, the stock exchange member, portfolio management and the activities of Psagot hedge funds. Accordingly, the Company today publishes pro forma reports to reflect the consolidation of these acquired activities in the Company’s reports as of the beginning of 2020.
According to the pro forma reports, Valio Capital presents revenues of NIS 228 million in the first nine months of 2021. The net profit in the first nine months of 2021, net of transaction expenses resulting from the acquisition of Psagot activities, amounted to NIS 7 million.
It should be noted that the data of the acquired activities include significant, non-cash expenses, amounting to approximately NIS 22 million in respect of reductions in intangible assets created by the acquisition of Psagot.
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