The growth in the non-bank credit business in the economy is well reflected in the reports published today by the company SR Accord Of Adi Zim. The company closed the third quarter with a growth of about 14% in financing revenues, which reached NIS 33.7 million, compared with NIS 29 million in the corresponding quarter last year, against the background of the increase in the company’s activity while examining customer quality.
Financing expenses and the cost of income amounted to NIS 6 million, compared with NIS 6.4 million in the corresponding quarter last year, against the background of a decrease in interest rates on loans that the company takes from banks. On the bottom line, the company recorded a 3% increase in net profit to NIS 17.6 million (in the corresponding quarter in 2020, a one-time profit of NIS 3.4 million was recorded).
The company ended the third quarter with a customer portfolio of approximately NIS 995 million, an annual growth rate in the credit portfolio of 44%, compared to the corresponding period last year.
Financing income in the first nine months of 2021 increased by 10.9% compared to the corresponding period and amounted to NIS 97 million, while financing expenses and the cost of income in this period decreased by 10% to NIS 17 million. This is against the background of an improvement in the financing agreements with the banking corporations – lowering the interest rates on loans from banking corporations and reducing the amount of guarantees that the controlling shareholder Adi Zim is required to provide.
Expenditure on credit losses in the first nine months of 2021 decreased by 72% to only NIS 2.2 million, compared with NIS 8 million in the corresponding period last year. This is mainly due to high provisions for credit losses recognized in the corresponding period last year due to changes in the company’s management’s assessments of the ability to collect customers’ debts due to the corona plague.
On the bottom line, the company recorded a net profit of NIS 50.6 million, an increase of about 20% compared to the corresponding period last year. Simultaneously with the publication of the reports, SR Accord announced that it will distribute a dividend of NIS 10 million to its shareholders (will be distributed during December), so that from the beginning of the year, the company will return NIS 36 million in cash to its shareholders.
Zim currently holds about 62% of the capital, after increasing its holdings during August, when it purchased shares for about NIS 2.2 million. Today, the stock recorded a decline of about 2% in response to reports. However, in the last 3 years, the share has risen by 245% and the value of the company on the stock exchange has reached NIS 790 million.
The case was closed and the assets were released
Last week, after more than 6 years of investigation, the prosecution decided to close the investigation file against SR Accord, Adi Zim, and companies under its control. In addition, the State Attorney’s Office decided to release Zim’s seized assets and a deposit of the company deposited in the investigation file (two private assets of Zim and another deposit of approximately NIS 1.5 million of the company).
Zim was suspected of assisting, through SR Accord under its control, in building a fraudulent infrastructure against the tax authorities, Social Security and the Ministry of Economy, which included falsifying reports to the state, inflating transactions and producing false invoices. This, according to the suspicion, in order to receive benefits and refunds that do not go to companies and suspects involved in fraud. As mentioned, the case is now finally closed.
“All along I believed in my righteousness and innocence, as well as that the prosecution, after examining all the evidence, would decide to close the case. The cloud that had been lying on us for so long was removed. I thank the prosecution and the Israel Police for their integrity and decision to close the case. “SR Accord,” Zim said today.