Record Equity of 455 Million: Michlal Mimun Financial Results

The company Michlal Mimun, operating in the non-bank credit sector, has published its financial statements for the second quarter of 2026, recording an increase in credit activity alongside relative stability in the bottom line. The company reported a net profit of 17.5 million shekels for the quarter, while adjusted net profit, excluding non-cash accounting expenses, amounted to 17.8 million shekels.

Revenues totaled 61 million shekels, a decrease of 3% compared to the previous quarter. The company attributes this decline to a reduction in the average credit portfolio across several sectors and the decrease in the Bank of Israel's interest rate. Conversely, there was an increase in commission income, primarily from real estate activity and portfolio management. The balance of deferred income grew to 62 million shekels.

The company's equity reached a record 455 million shekels, and the return on average equity, excluding non-cash expenses and in annual terms, rose to 16.6%. Management and general expenses totaled 9.5 million shekels, a slight decrease compared to the previous period.

A key metric in the report is the volume of the managed credit portfolio, which rose by 18% to a record 3.6 billion shekels. The credit portfolio on the company's balance sheet amounted to approximately 2.56 billion shekels, an increase of 25.7%.

Simultaneously, the company continues to increase the volume of credit managed off-balance sheet. Currently, about one-third of the credit portfolio, approximately 1 billion shekels, is managed through dedicated entities and third parties. During the quarter, a subsidiary's support portfolio was expanded by 104 million shekels, with plans for an additional 500 million shekels in the third quarter.

Michlal Mimun holds credit facilities, bonds, and commercial securities totaling approximately 2.865 billion shekels, allowing for a diversified financing structure and cost reduction.

The real estate sector remains the company's primary focus. The loan portfolio for residential construction developers rose by 19.2% to approximately 2.98 billion shekels, with sector revenues of 46.1 million shekels and a net profit of approximately 14.8 million shekels.

In the Michlal Tzmicha segment, revenues totaled 9.2 million shekels with a net profit of 1.3 million shekels. The decline is attributed to the repayment of three large loans totaling 110 million shekels in the previous quarter. The loan portfolio in this sector remained stable at 365 million shekels. Meanwhile, the Michlal Mezzanine loan portfolio rose to 47 million shekels as the company refocuses its growth on real estate.

Michlal Mashkantaot, which focuses on short-term bridge loans, became profitable for the first time in the second quarter, reporting a net profit of 1.4 million shekels on revenues of 5.6 million shekels. The sector's loan portfolio grew by 33% to approximately 212 million shekels.

The company is managed by former senior banking officials, including Zvi Ziv and Ori Paz.