Credit card company Isracard sums up 2019 with a net profit of NIS 296 million

Credit card company Isracard sums up 2019 with a net profit (excluding a separation grant) of NIS 296 million - a decrease of 7% compared to 2018. Net profit in the fourth quarter of 2019 amounted to NIS 61 million, compared with NIS 68 million in the corresponding quarter. The decrease was due to a decrease in the cross-commission rate in early 2019 and the effects of separating the Isracard Group from the Bank of Hapoalim, which was offset, among other things, by an increase in Isracard's turnover and growth in the credit operations segment. Credit card transactions turnover in NIS 167 billion in 2019, an increase of 7.7% compared to 2018. Revenue grew by only 5% to NIS 2.26 billion, mainly due to growth of 35% in the consumer credit portfolio, which reached NIS 4 billion. In the line of revenue on the declines in cross-commissions that hit the clearing and issuance sector. In addition, there was also an increase in expenses for credit losses, which stood at NIS 168 million in 2019, an increase of 10.5% compared to 2018.
Isracard's board of directors, headed by Eyal Grass, decided to update the dividend distribution policy to 35% instead of 20%, of net income. The Board of Directors announced a 30% dividend distribution of the 2019 net profit, ie NIS 73.2 million.
Ishart is the largest player in the credit card market (around 50% of the total available in the market) with a number of cards totaling 5.2 million.
Ron Wexler, Isracard's CEO, said that "Isracard has shown significant growth in financing this year. Credit balances to private customers increased by more than NIS 1 billion, an increase of about 35% from the beginning of the year. The company works to promote additional growth engines while providing value to its private and business customers through advanced products and services.