The business credit company, Michman, published today (Sunday) its financial results for the third quarter of the year, from which it appears that the company showed an increase in most parameters and record results.
Michman’s hydrogen revenues amounted to NIS 22.9 million in the third quarter – a 160% increase compared to NIS 8.8 million in the corresponding quarter last year. The increase is attributed to the diversification of credit sources and the improvement of the company’s cost of borrowing. In the first nine months of 2022, financing revenues amounted to NIS 54.6 million – a 174% increase compared to the same period last year.
The provision for bad debts increased from NIS 561,000 in the third quarter of 2021, to NIS 1.72 million in the third quarter of this year. The company explains that the increase in the provision for doubtful debts is in accordance with the growth of the company’s credit portfolio and changes in management’s assessments regarding the ability to collect certain debts. The provision for doubtful debts of the total credit decreased to 0.71% in the third quarter compared to 1.04% in the second quarter and 0.87% in the first quarter of the year.
The size of the company’s credit portfolio (net) increased to NIS 670 million in the third quarter – a 96% increase compared to the corresponding quarter last year. In the first nine months of this year, the credit portfolio amounted to NIS 710 million, which is an increase of 180% compared to the corresponding period in 2021.
In the bottom line, the net profit rose to NIS 11.7 million in the third quarter of this year, compared to a net profit of NIS 7.1 million in the corresponding period last year. In the first nine months of the year, the net profit amounted to NIS 16.5 million, compared to a net profit of NIS 24.4 million in the corresponding period last year.
Michman owns 4.4% of the share capital of the insurance company Libra. Excluding the holding in Libra, Michman’s operating profit amounted to NIS 12.5 million in the third quarter of this year, compared to an operating profit of NIS 2.5 million in the third quarter of 2021.
In the first nine months of this year, Libra recorded an operating profit of NIS 26.4 million, compared to an operating profit of NIS 6.1 million in the corresponding period last year.
The company also updated that as of the end of October the amount of credit it manages amounts to NIS 710 million.
Doron Sapir, the company’s chairman and Viniv Biton, the CEO of Michman Credit for Business said: “We conclude the third quarter with a sharp increase in revenues and net profit, which reflects a record level in the company’s activity as a result of the strategic moves we led and the demand for credit from businesses in the economy. We continue to be focused on diversifying and improving funding sources. Looking ahead, in accordance with the goals we have set, we are on a growth path in the coming years while adjusting to changes in the market, including the rise in interest rates – we entered this year with excellent momentum, we stabilized the position of the employees in the company which is an infrastructure for increasing activity, we established a risk management system Professionally, we expanded the field of direct loans and we will continue to promote growth and development of new products and expand the portfolio of solutions for our customers. As of today, the credit portfolio amounts to approximately NIS 710 million, while the company maintains a high net credit margin in the first nine months of the year of approximately 14.38 %. The demand trend, which doubled the company’s revenues in the first nine months of 2022, continues even these days and places Michman in a leapfrog position while maintaining the quality of the underwriting and careful risk management.”