Isracard net profit for 2020 amounted to NIS 93 million - sharp decrease compared to NIS 244 million in 2019

The credit company Isracard published the financial statements for 2020. The report shows that the turnover of credit card transactions for 2020 amounted to NIS 158.6 billion, a slight decrease compared to NIS 167 billion in 2019. The net profit for 2020 amounted to NIS 93 million, apparently a sharp decrease compared to NIS 244 million in 2019 (a decrease of about 61.9%), but in fact, when examining the net profit after neutralizing the one-time effects, it is found that it amounted to 2020 by about NIS 181 million, compared to about NIS 296 million in 2019, that is, a decrease of only about 39%.
The results of operations in 2020 were mainly affected by the spread of the corona plague, which caused, among other things, a sharp contraction in local and global economic activity, a significant decrease in credit card activity in various areas and a deterioration in the economy and borrowers. In addition, the company had two one-time events: an efficiency plan that includes the voluntary retirement of the company's employees, in the amount of NIS 45 million, and a one-time expense for terminating a technological project - a customer management and credit system - in the amount of NIS 69 million.