Meitav Investment House (MTAV) Q3 2023 earnings summary

Executive summary

• Q3 revenue was NIS336m including nostro (NIS334m in the financial statements) and adjusted EBITDA was NIS102m, each up 12% YoY; AUM reached NIS254b.

• 9M revenue rose to NIS975m from NIS873m, net income to NIS112m from NIS78m, and adjusted EBITDA to NIS298m from NIS245m.

• Growth in long-term savings, exchange-member services and non-bank credit was partly offset by lower mutual-fund and ETF management revenue.

Financial highlights

• Q3 operating profit was NIS84m versus NIS72m; 9M operating profit was NIS235m versus NIS203m.

• Q3 net income was NIS33m and profit attributable to shareholders was NIS27m; 9M attributable profit was NIS91m versus NIS64m.

• 9M profit before tax rose to NIS191m from NIS132m; income-tax expense increased to NIS79m from NIS54m.

• 9M basic and diluted EPS were NIS1.16 each, compared with NIS0.96.

• Pro forma 9M profit excluding cited legal-claim effects was NIS107m versus NIS71m; reported-period net gains and impairments totaled NIS30m versus NIS28m.

Segment performance

• Long-term savings AUM was NIS111b in Q3 materials and NIS113.8b for managed pension and provident assets at September 30; Q3 net inflows exceeded NIS3b and segment profit was NIS23m versus NIS12m.

• Long-term savings management revenue was NIS348m for 9M versus NIS301m; ongoing savings revenue from mutual funds, ETFs and index funds fell to NIS223m from NIS238m.

• Mutual funds and portfolio management reported Q3 revenue of NIS90m and segment profit of NIS37m; AUM included NIS71.2b in portfolios and NIS71.8b in mutual funds.

• Exchange-member revenue rose to NIS121m from NIS83m for 9M; retail brokerage Q3 revenue was NIS41m and profit NIS20m versus NIS30m and NIS9m, with customer assets of NIS24.2b.

• Non-bank credit revenue rose to NIS183m from NIS138m for 9M; Q3 revenue was NIS60m and profit NIS23m versus NIS50m and NIS21m.