Meitav Investment House (MTAV) Q2 2024 earnings summary

Executive summary

• Q2 revenue rose 23% YoY to ₪404m including nostro; AUM reached ₪296bn and adjusted EBITDA was ₪135m.

• Growth reflected higher managed assets, exchange-member activity and non-bank credit, including Lotus success fees.

Financial highlights

• Q2 revenue was NIS 405m vs NIS 322m YoY; H1 revenue was NIS 765m vs NIS 641m. Including nostro, Q2 revenue was ₪404m vs ₪329m and H1 revenue was ₪770m.

• Q2 net income was NIS 66m vs NIS 53m; income attributable to shareholders was ₪58m vs ₪50m.

• Q2 EBITDA was ₪137m and adjusted EBITDA ₪135m, vs ₪131m and ₪102m in Q2 2023; H1 adjusted EBITDA was NIS 251m vs NIS 196m.

• Q2 operating income was NIS 130m vs NIS 76m; profit before tax was NIS 90m vs NIS 83m.

• Adjusted profit excluding specified capital gains, associate losses and Lotus success fees was NIS 67m in Q2 and NIS 142m in H1; Q2 profit excluding legal-claim provisions was ₪81m.

Outlook and guidance

• No formal earnings guidance was stated; based on Q2 run rate, annualized long-term savings revenue exceeded ₪600m and annualized adjusted EBITDA exceeded ₪500m.

• Proposed transfers of Meitav Loans and Lotus to Peninsula remained conditional, with review advanced for Meitav Loans only; no binding agreement or assurance of completion.

• Continued war could increase loan rescheduling, lengthen Peninsula’s loan-book duration and raise credit-loss provisions; management expected obligations to be met despite negative working capital.