Isracard Ltd. · TASE:ISCD
Isracard — Q2 2024 Earnings Presentation
19 slides from Isracard's earnings presentation, Aug 15, 2024
Slide 1: Investor Presentation | Q2 2024
Investor Presentation | Q2 2024 This version is an translation of the official and original Hebrew version of the presentation filed the on Tel Aviv Stock Exchange on August 15 2024, and is to be used as a reference only. In case of any contradiction or incompatibility between the Hebrew and the Eng
Slide 2: Forward Looking Statements
Forward Looking Statements This presentation about Isracard Ltd. (hereinafter - the “Company”) and its developments in the payments and credit market in Israel or other countries, consolidated companies (hereinafter jointly - the “Group”) is made available changes in the Group’s work plan, changes i
Slide 3: Isracard is a Reflection of the Israeli Economy
Isracard is a Reflection of the Israeli Economy and is Affected by the Economic, Security, Political and Social Conditions in Israel Q2 2024 saw a continuation of gradual recovery in some economic sectors, which began early in the year; however, there is still uncertainty as to the rest of the year
Slide 4: The Gradual Recovery was Reflected in Credit Card Transactions Volume
The Gradual Recovery was Reflected in Credit Card Transactions Volume In the tourism sector, the number of outbound and inbound tourists continued to grow, albeit at a lower rate compared to the corresponding period last year Credit card transactions turnover in Israel(1) (NIS billion) 44.3 42.6 41.
Slide 5: The Credit Portfolio Rose to 9.4 Billion NIS
Q2 2024 - An Increase in the Credit Portfolio and Net Income Despite the Challenges of the Period; Updating The Dividend Distribution Rate The Credit Portfolio Rose to 9.4 Billion NIS 9.0 9.2 9.1 9.2 9.4 8.3 Commercial Credit 7.3 The consistent growth trend continued, leveraging Isracard’s relative
Slide 6: Q2 2024 - Gradual Recovery in Credit Card Transactions Turnover
Q2 2024 - The Gradual Recovery in Credit Card Transactions Turnover Contributed Most of the Increase in Revenues vs. the Previous Two Qs NIS million Income from credit cards Turnover of transactions related to credit cards Active credit cards (issuing and acquiring) issued by the Company (thousands
Slide 7: Commercial Credit - Leveraging Isracard's Relative Advantage in Activities Involving Merchants
Commercial Credit - Leveraging Isracard’s Relative Advantage in Activities Involving Merchants Sustained and consistent growth trend. Continued to expand the offering and make advanced products and services more accessible Commercial Credit(1) Development of the commercial credit portfolio over time
Slide 8: Consumer Credit - The Economic State Continued to Affect Demand
Consumer Credit - The Economic State Continued to Affect Demand Accordingly, Isracard implemented a more conservative underwriting policy Consumer Credit Development of the consumer credit portfolio over time Q2 2024 NIS million 7.2 NIS billion 7,206 7,285 Interest income 7,103 7,149 7,153 from cust
Slide 9: Credit Loss Expenses
Credit Loss Expenses An adjusted underwriting policy resulted in a decrease in the specific credit loss expense and net write-offs, since Q4 2023 Total credit loss expenses Rate of specific credit loss expense and write-offs, net, of the (NIS million) average of credit card receivables(1,2) 105 0.66
Slide 10: Availability and Diversity of Funding Sources Support Operating Activities
Availability and Diversity of Funding Sources Support Operating Activities and the Credit Portfolio’s Growth Potential Even in this Complex Period NIS billion Financing Sources The Group’s Credit Facilities(1) Bank and other loans and commercial funding as of the balance sheet date Maximum and avera
Slide 11: Increased the Semi-annual Dividend Rate to 40%
Increased the Semi-annual Dividend Rate to 40% Robust Capital and Capital Ratios Generating Shareholder Value Dividend Distribution Capital attributable to shareholders 3.1 NIS billion 53 NIS million 4.0% Dividend declared in respect Dividend yield(1) of H1 2024 net income Tier 1 capital ratio 4.0%
Slide 12: Isracard Ranked First Among Credit Card Companies
Isracard Ranked First Among Credit Card Companies Isracard rated Platinum+ A Isracard leads the credit cards sector in the 2024 Maala Index in the 2024 Brands Index Isracard was upgraded to Isracard was ranked first Platinum+ A in the 2024 index among the credit cards The only credit card company co
Slide 13: Unique Value Propositions for Private Customers
Unique Value Propositions for Private Customers Financing Cooperation Loans to finance 10% cashback Nit’anchik with Wolt summer for those top-up expenses traveling abroad payment card 13
Slide 14: Unique Value Propositions for Business Customers
Unique Value Propositions for Business Customers Concerts in Caesarea Payment Only for solutions Isracard customers Financing solutions 14
Slide 15: Q2 2024 in Summary
Q2 2024 in Summary The gradual recovery in some of the economic sectors was Economic market uncertainty reflected in an increase in the as to the rest of the year volume of credit card transactions, in revenue and net income Isracard’s credit portfolio has grown despite the challenging period, and i
Slide 16: Appendices
Appendices 29
Slide 17: Quarterly Statement of Profit and Loss
Quarterly Statement of Profit and Loss NIS million Q2/2024 Q1/2024 Q4/2023 Q3/2023 Q2/2023 Q1/2023 Income Income from merchants, net 335 327 296 340 326 326 Income from credit card holders 224 200 182 246 229 214 Interest income, net 237 231 236 244 233 219 Other income 6 7 17 12 12 18 Total income
Slide 18: Semi-annual Statement of Profit and Loss
Semi-annual Statement of Profit and Loss NIS million H1/2024 H1/2023 Income Income from merchants, net 662 652 Income from credit card holders 424 443 Interest income, net 468 452 Other income 13 30 Total income 1,567 1,577 Expenses Credit loss expenses 152 161 Operating expenses 562 577 Selling and
Slide 19: Balance Sheet
Balance Sheet NIS million June 30, 2024 December 31, 2023 Assets Cash and deposits with banks 872 902 Amounts receivable from banks for credit card transactions, net 6,694 6,271 Receivables for credit card transactions 15,369 14,468 Credit loss provision (509) (514) Receivables for credit card trans