Mor Investment House revenues surged, but agent commissions impacted profits
The investment house reported a 22% revenue growth compared to the same quarter last year, though net profit declined slightly due to higher commission payments to agents. Revenue gains were driven by expansion in provident and pension fund activities.
The Mor Investment House continued to expand its operations, reporting revenues of approximately 305 million shekels in the second quarter, a 22% increase compared to the same quarter last year. For the first half of the year, Mor recorded a 27% growth in revenues, reaching approximately 610 million shekels.
This growth was driven primarily by the provident fund and pension division, managed by Yossi and Eli Levi. The division benefited from strong capital market returns and significant inflows, bringing total assets under management in this sector to approximately 213 billion shekels by the end of the quarter.
Consequently, Mor raised its annual pre-tax profit forecast for long-term savings activities to 150–165 million shekels, up from the previous estimate of 140–160 million shekels.
In the mutual fund management sector, Mor recorded a 9% revenue increase during the quarter, totaling 99 million shekels. For the half-year, revenue growth reached 22%, totaling 193 million shekels. This was supported by an increase in assets under management, particularly in traditional mutual funds, which command relatively higher management fees.
A more significant jump was recorded in investment portfolio management, where revenues rose by 28% for the quarter to 6.7 million shekels. Half-year revenues for this division also grew by 28%, amounting to 13 million shekels.
Despite rising revenues, Mor reported a 2.5% decline in net profit to approximately 38 million shekels, largely due to increased commission payments to agents and other operational expenses. However, the company's half-year net profit stood at 88.2 million shekels, a 25% increase compared to the same period last year.
New revenue streams
Over the past year, Mor has entered new markets through acquisitions, including non-bank business lending, digital mortgage consulting, and market making for ETFs and corporate bonds. These new activities generated 13 million shekels in revenue during the first half of the year.
Mor remains one of Israel's largest investment houses, managing approximately 214 billion shekels in assets as of the end of the second quarter. The company's market capitalization is approximately 2.9 billion shekels. While the stock has declined by about 30% year-to-date, it has recorded a gain of over 510% over the past three years.
