The credit card company Isracard presented good reports: profit of NIS 64 million

The credit card company Isracard presented good reports in relation to estimates that spoke of the "black second quarter". Despite the corona, the company reports revenues of NIS 477 million and a profit of NIS 64 million. Nevertheless, the negative effect was partially offset by an increase in interest income and a reduction in operating expenses. At this rate of profits, the company trades at a multiplier lower than 8.
The company's revenues in the quarter amounted to NIS 477 million, a decrease of 13.9% compared to revenues of NIS 554 million in the corresponding quarter last year. The decrease in revenues is mainly attributed to the effect of the corona virus, which led to a decrease in the turnover of transactions in the economy. According to the company, with the gradual removal of the closure restrictions, a certain recovery was recorded in some of the industries, which had a positive effect on the results.
In the net profit line, the company recorded a net profit of NIS 64 million, a decrease of 17.9% compared to a net profit of NIS 78 million (excluding the severance grant for employees) in the corresponding quarter last year.
The turnover of credit card issued by the company in the second quarter of 2020 was about NIS 35.3 billion, a decrease of about 14.5% compared to the corresponding quarter last year.
In light of the deterioration in macroeconomic conditions in the economy in the second quarter of 2020 and the uncertainty following the corona plague, the company increased its expenses for credit losses in the second quarter of the year as well. In the second quarter of 2020, these expenses amounted to NIS 66 million, compared with NIS 39 million in the second quarter last year.
Along with the decrease in the volume of activity, there was a significant decrease in the volume of operating expenses, salary and other expenses, total expenses (excluding expenses for credit losses) amounted to NIS 323 million in the second quarter compared to NIS 406 million (excluding employee separation grant) in the corresponding quarter last year.