The revenues of Meitav Investment House last year amounted to NIS 1.1 billion, an increase of 12% compared to NIS 995 million last year. EBITDA in 2021 amounted to NIS 401 million, an increase of 8%, compared with NIS 371 million last year. The net profit, attributed to the company’s shareholders, net of the effect of the lawsuits, amounted to NIS 129 million, compared with NIS 180 million in the corresponding period last year. The 2020 reports included a capital gain of NIS 76 million. In light of a decrease in liquidity control, neutralizing the capital gain, there was an improvement between the years – a 24% increase in the profit attributed to the company’s shareholders. The volume of assets under management reached a peak of NIS 221 billion as of the end of 2021.
But these handsome numbers are spoiled by a huge provision of NIS 400 million for a lawsuit to reimburse management fees. The court ruled that Meitav charged funds that purchased excess management fees. Although this is not a clear issue and best appeals the decision, but in the books she set aside the amount and it also expresses the legal counsel’s assessments that despite the appeal, there is a good chance that even in the upper court, it will be determined that more management fees were taken.
The volume of assets under management is on the rise
The performance of the investment house in the various instruments, is good in recent years and it of course helps to raise funds. In 2021, the group raised about NIS 5 billion, while today the quarterly fundraising rate is about NIS 4 billion. In addition, in the area of pensions, the monthly deposits of the company’s customers are approaching NIS 400 million.
Ilan Raviv, CEO of Meitav Dash Investments, said against the background of the results: “The group continues its strong business momentum – although the group’s results were affected by expenses recorded following lawsuits, the annual neutralized EBITDA crossed a record high of NIS 400 million. Along with outstanding returns, over time, and in all areas of investment management – provident and pension, mutual funds and portfolio management, we are seeing accelerated growth in both the stock exchange and non-bank credit. This is reflected in a significant increase in the volume of assets under management and a record income of more than NIS 1 billion, which contributes to the continued momentum going forward. In recent months, we have been raising more than NIS 1.5 billion a month in provident funds, and the monthly deposits in pension funds are approaching NIS 400 million. We estimate that the trend will continue in the coming quarters. The strong growth of the investment house allows us to continue to invest in recruiting professionals, upgrading and strengthening infrastructure and technology, which support the continued growth. ”
The volume of provident and pension fund assets managed by the company as of December 31, 2020 increased by approximately 42% to approximately NIS 84.9 billion, compared with approximately NIS 59.7 billion on December 31, 2121. Even after the date of the reports and despite the declines in the markets at the beginning of 2022, the growth in assets under management continued and as of March 8, 2022, the volume of assets amounted to approximately NIS 85.5 billion.
Revenues in 2021 in the long-term savings segment amounted to NIS 339 million, compared with NIS 302 million last year. The increase in the reporting period is mainly due to an increase in the average volume of assets resulting from both a return on assets, an increased inflow of funds, an increase in current deposits in pension funds and the purchase of new pension funds by Hellman Aldubi.
Revenues in 2021 in the current savings segment amounted to NIS 371 million, compared with NIS 323 million last year. The increase in the reporting period is mainly due to an increase in the average volume of assets and is raised in traditional funds and imitation funds with high average management fees, compared with redemptions in monetary funds and mutual funds with significantly lower management fees.
Revenues in 2021 in the brokerage activity for private clients (Meitav Dash Trade) amounted to NIS 115 million, compared to NIS 99 million last year. Meitav Dash Trade continues to attract thousands of customers every quarter, mainly customers who are looking for a better solution from the banking system for buying and selling securities. The company continues to invest in marketing and technology investments in order to increase its revenues from this area of activity.
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