Nawi Group (NAWI) Q2 2024 earnings summary

Executive summary

• Reported strong H1 2024 growth in non-bank business credit, focusing on secured loans and residential real estate, with 81% of the portfolio backed by collateral and 71% in real estate financing.

• Maintains the highest equity in the sector, reaching ₪836 million as of June 30, 2024, and a high equity/assets ratio of 24%.

• Credit portfolio expanded to ₪3,345 million, with significant unused credit lines of ₪575 million supporting future growth.

• Dividend distributions for Q2 2024 totaled ₪21 million; H1 2024 dividends were ₪40 million, with cumulative dividends since IPO at ₪433 million.

• Led by experienced management and a robust board, emphasizing strong governance and risk management.

Financial highlights

• H1 2024 revenue was ₪176 million, nearly flat year-over-year; net profit reached ₪76.6 million, up 4% year-over-year.

• Q2 2024 revenue was ₪90.8 million, down 1% from Q2 2023; Q2 net profit was ₪42.1 million, up 8% from Q2 2023.

• Total assets as of June 30, 2024, were ₪3,345 million, up 1.7% from December 2023.

• H1 2024 provision for doubtful debts was ₪4.0 million (0.24% of net portfolio), down from ₪6.4 million in H1 2023.

• Equity as of June 30, 2024: ₪836.4 million, up from ₪810.7 million at year-end 2023.

Outlook and guidance

• Management remains cautious in new credit issuance due to ongoing war-related uncertainty and macroeconomic risks.

• Focus on secured real estate lending, prudent risk management, and leveraging strong capital and credit ratings.

• No quantitative forward guidance provided due to high uncertainty.