Ron Wexler, CEO of Isracard (Photo by Sivan Farage)
The third quarter of the year was the last quarter of Isracard’s longtime CEO, Ron Wexler. The largest bank in Israel.
Wexler has shown that this includes reducing the workforce, managing a complex relationship between management and the board and shareholders and just before the big bang in the financial field (with the launch of the digital bank) it leaves a company in good shape and able to cope with the industry’s challenges.
It should be remembered that Ron Wexler is a banker, a forehead was taken out at Bank Hapoalim, so it was natural to see him lead Isracard in the core areas. That is, more credit and more interest and less risk. Isracard’s incoming CEO, Ran Oz, will take office next week and he will have to take Isracard one step further and actually turn it into a technology company with broader core activities, in short: he is getting into big shoes and the burden of proof is shifting to him.
Ron Wexler, the outgoing CEO of Isracard, said with the publication of the company’s financial reports that he is ending the position with a record quarter in all parameters, which is “the result of a series of actions we took, including: reducing costs, improving the credit portfolio and improving the mix in all sectors.”
“As part of the successful response to the disease, we are witnessing a continuous improvement in the economy and business environment that has been characterized by growth and increase in consumption and demand. I am sure through Continue to new heights, as a leading and influential player in the worlds of credit and advanced payments. ”
Eran Vaknin, Deputy CEO and CFO of Isracard, said: The increase in profit is a result of an increase of about 15% in turnover, with the increase in the volume of the company’s active credit cards continuing. This month we reported Isracard’s entry into the active Monte fund In addition, we leverage our business relationship with businesses and establish a consumer credit venture in the BNPL field, which will allow private customers to receive loans outside the credit line. Next. ”
Isracard’s numbers: Revenues in the third quarter increased by 9% to NIS 585 million, compared with NIS 537 million in the corresponding quarter last year, and growth of 4% compared to NIS 565 million in the previous quarter of the year.
The growth in revenues, compared to the corresponding quarter last year, is mainly attributed to high double-digit growth in revenues from credit card operations and an increase in the volume of outbound tourism turnover, although still at a significantly lower level than pre-Corona outbound tourism turnover. Revenue from credit card operations in the third quarter of 2021 grew by 16% to NIS 485 million, compared with NIS 419 million in the corresponding quarter last year.
The growth was mainly due to a 14.7% increase in the turnover of credit card transactions, and an increase in revenues attributed to outbound and inbound tourism that led to an increase in commissions from foreign exchange transactions, despite a decrease in the cross-commission from 0.575% to 0.55% from the beginning of the year. Clearing fees from businesses.
Net interest income in the third quarter of the year amounted to NIS 109 million, compared with NIS 110 million in the corresponding quarter last year, partly as a result of the decrease in the credit balance for private individuals that began during 2020 following the Corona plague crisis. At the same time, there was an increase of about 2% in net interest income compared to the previous quarter, as a result of the increase in the balance of credit to private individuals during the third quarter of the year.
In the bottom line, Isracard ended the third quarter with a 62% increase in net profit, which amounted to NIS 99 million, compared with NIS 61 million in the corresponding quarter last year. The sharp increase in profit, compared with the corresponding quarter last year, was mainly due to the growth in credit card operating income due to the double-digit increase in transaction turnover, a decrease in expenses for credit losses as a result of the improvement in macroeconomic estimates and a decrease in net write-offs.
The net profit in the third quarter of 2021 reflects a return on average capital (annual calculation) of about 15.6% and compared to about 10.3% in the corresponding quarter last year and about 7.4% (excluding one-time events) compared to the end of 2020.
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