Meitav Investment House (MTAV) Q2 2023 earnings summary

Executive summary

• AUM reached NIS 244.5bn at June 30, 2023, up 11% YoY; Q2 revenue was NIS 329m on the selected-metrics basis and adjusted EBITDA was NIS 102m.

• H1 revenue was ₪641m on the financial-statement basis, up 12% YoY; adjusted EBITDA was ₪196m. Q2 net income was NIS 53m, with ₪43m attributable to shareholders.

• Growth was supported by pension and long-term savings activity, higher exchange-member revenue and stronger non-bank credit results; traditional-fund fee revenue declined.

Financial highlights

• Q2 revenue was NIS 329m on the selected-financial-metrics basis, including nostro; H1 revenue on this basis was NIS 652m. Financial-statement revenue was ₪322m for Q2 and ₪641m for H1.

• Q2 adjusted EBITDA was NIS 102m versus NIS 73m a year earlier; reported EBITDA was NIS 131m. H1 adjusted and reported EBITDA were ₪196m and ₪217m, respectively.

• H1 operating profit excluding legal-claim effects was ₪151m versus ₪127m; Q2 was ₪76m versus ₪58m.

• H1 net income attributable to shareholders was ₪64m versus ₪43m; Q2 was ₪43m versus ₪17m.

Outlook and guidance

• Long-term savings reached an annualized revenue run rate above NIS 450m based on Q2 revenue; pension-fund monthly deposits exceeded NIS 500m, with assets above NIS 33bn.

• Review of corporate structure and value realization at subsidiaries continued; a potential Meitav Trade IPO remained under consideration, with no certainty it would proceed.

• Available near-term cash flow from wholly owned subsidiaries was assessed as sufficient to support obligations despite negative working capital.