Meitav Investment House (MTAV) Q1 2023 earnings summary

Executive summary

• Q1 revenue was NIS 319m, or NIS 323m including nostro activity; adjusted EBITDA was NIS 94m.

• Managed assets totaled NIS 229.4bn at March 31; provident and pension assets reached NIS 102.4bn by May 22.

Financial highlights

• Revenue was NIS 319m versus NIS 286m; operating income was NIS 75m versus NIS 71m. Revenue including nostro activity was NIS 323m.

• Adjusted EBITDA was NIS 94m; EBITDA was NIS 86m, expenses were NIS 244m, and reported net income was NIS 26m, including NIS 18m attributable to shareholders.

• Pro forma net income excluding legal-claim effects was NIS 36m; adjusted earnings excluding litigation provisions were NIS 34m, or NIS 22m excluding capital gains/losses as well.

• Operating cash flow was an outflow of NIS 55m versus an outflow of NIS 108m, mainly reflecting changes in assets and liabilities.

Outlook and guidance

• Long-term savings generated a Q1-based annualized revenue run rate above NIS 440m; pension fund monthly deposits were NIS 500m.

• Following April–May rate increases, the Bank of Israel policy rate reached 4.75%; further material inflation could significantly increase financing expenses.

• Completion of the Liquidity investment after quarter-end was expected to generate an estimated NIS 40–45m accounting gain in Q2 2023.