Nawi Group (NAWI) Q1 2025 earnings summary

Executive summary

• Achieved record equity of ₪931M as of March 31, 2025, representing 21.5% of total assets, up 12% year-over-year.

• Net income for Q1 2025 rose 25% to ₪43M, with revenue up 23.7% to ₪105M.

• Dividend payout of ₪21.5M approved for Q1 2025; total dividends since IPO reached ₪495M.

• Maintained strong liquidity with ₪1.2–1.4B in unused credit lines and robust banking sector support.

• Approved share buyback program up to ₪15M for one year.

Financial highlights

• Total credit portfolio reached ₪4.02B, up 31.7% year-over-year, with 79% secured by collateral.

• Net financing income for Q1 2025 was ₪104.8M, up 23.7% from Q1 2024.

• Operating profit before tax rose 18.2% to ₪49.1M; net profit margin improved to 41.1%.

• Dividend yield over the past 12 months was 7.58%.

• Provision for doubtful debts in Q1 2025: ₪4.4M, annualized rate 0.44% of net credit.

Outlook and guidance

• Targeting credit portfolio of ₪4.3B by end of 2025 and ₪5B by end of 2026.

• Projected equity to reach ₪1,060M by end of 2026.

• Plans to expand project finance and consumer credit, leveraging institutional partnerships.

• Dividend and buyback policy capped at 60% of annual net profit, subject to board discretion and market conditions.

• Management expects continued focus on secured real estate lending with conservative risk management.