Cal Posts 93 Million Shekel Q3 Profit as Discount Bank Prepares Share Sale
Credit card company Cal reported a net profit of 93 million shekels for the third quarter of 2026, rebounding from a loss last year. The results come as parent bank Discount prepares to sell its stake following the lapse of a previous acquisition agreement.
Cal, the credit card company controlled by Israel Discount Bank and led by CEO Yafit Griani, posted a net profit of 93 million shekels for the third quarter of 2026, rebounding from a net loss of 88 million shekels in the same period last year. Last year's loss stemmed primarily from a heavy provision related to a court ruling on value-added tax assessments that impacted the entire credit card sector. Excluding one-off effects, net profit in the comparable quarter stood at 90 million shekels, marking a 10% increase in adjusted terms. The company's return on equity reached 13.2% for the quarter.
Total revenues for the quarter rose by 2% year-on-year to 889 million shekels, or a 4% increase when adjusted for one-off impacts. Revenues from credit card transactions grew by 2% to 610 million shekels, while net interest income advanced by 5% to 266 million shekels, supported by continued expansion in the loan portfolio. Transaction turnover across Cal cards edged up by 2% to 57 billion shekels, a slower pace compared to the 11% growth recorded in the second quarter. Meanwhile, active card numbers expanded by roughly 7% to 4.2 million.
The consumer credit portfolio grew by 12% over the year to reach 9.6 billion shekels, driven largely by automotive financing, bringing total credit outstanding to 11.3 billion shekels. For the first time in the company's history, equity crossed the 3 billion shekels threshold. Total expenses declined to 750 million shekels from 980 million shekels in the corresponding quarter last year, which had absorbed the tax provision. Excluding that provision, operational expenses edged up by 2%. Provision for credit losses remained stable at 59 million shekels, while bank commissions totaled 120 million shekels.
During the first nine months of 2026, Cal registered a net profit of 281 million shekels, compared with 82 million shekels in the same period of 2025. However, excluding one-time items, net profit dipped by 2% from 287 million shekels a year earlier. Return on equity for the nine-month period stood at 12.9%. Revenues rose by 5% to 2.5 billion shekels, turnover increased by 7% to 165 billion shekels, and credit loss provisions climbed by 10% to 190 million shekels.
The release of the financial statements comes at a sensitive strategic juncture for Cal. In April, El Al Israel Airlines' Fly Card loyalty program transitioned from Cal to Isracard. In response, Cal partnered with Esta to launch a new loyalty program, Flyall, which CEO Yafit Griani noted has already attracted more than 200,000 customers. Concurrently, the agreement to sell Cal to the Union Group controlled by George Horesh and Harel Insurance—valued at up to 4 billion shekels—lapsed on November 1 after failing to secure regulatory completion. The Israel Competition Authority had conditioned its approval on Union divesting its holdings in Super-Pharm.
Israel Discount Bank holds approximately 72% of Cal, with the First International Bank of Israel holding the remaining 28%. Under regulatory mandates, Discount Bank is required to divest its stake in Cal by April 2027 unless granted an extension by the government. The bank is currently preparing a data room to facilitate the sale of its shares, with both previous bidders and new interested parties expected to participate.
