Meitav Investment House (MTAV) Q3 2022 earnings summary

Executive summary

• Q3 2022 revenue was ₪299m and adjusted EBITDA was ₪91m; AUM totaled ₪215.2bn at Sept. 30, 2022.

• Annualized revenue run-rate exceeded ₪1bn, with long-term savings income running at over ₪410m annually.

Financial highlights

• Q3 revenue was ₪299m vs ₪271m in Q3 2021; 9M revenue was ₪873m vs ₪827m, with investment-management income driving growth.

• Adjusted EBITDA was ₪91m for Q3 and ₪245m for 9M, compared with ₪92m and ₪318m in 2021, respectively.

• Reported Q3 net income was ₪25m vs a ₪430m loss in Q3 2021; reported 9M net loss was ₪392m vs ₪500m.

• Excluding legal-claim effects, Q3 net income was ₪32m vs ₪28m; 9M net income was ₪99m vs ₪141m.

• 9M revenue from management fees, commissions and other income was ₪924m vs ₪735m; non-bank credit-financing revenue was ₪138m vs ₪145m.

Outlook and guidance

• Annualized revenue pace exceeded ₪1bn and long-term savings revenue pace exceeded ₪410m; monthly pension-fund deposits reached a record above ₪400m.

• Bank deposit rates of 4% for a year and expected rate increases toward 3.5% were reducing demand for portfolio-management services.