Max closed the quarter with a net profit of 80 million shekels: success for its aviation program
Sharp recovery and expansion in tourism activity: Max moved from a loss to a net profit of 80 million shekels in the second quarter. The credit card company's revenues climbed to 621 million shekels, and the consumer credit portfolio grew by 13.7%. CEO Sagit Dotan stated that the SKYMAX aviation card has crossed the 100,000 customer threshold.
The credit company Max, owned by Clal Insurance and managed by Sagit Dotan, closed the second quarter with a net profit of 80 million shekels, compared to a loss of 60 million shekels in the same quarter last year. In the first half of the year, net profit totaled 160 million shekels, compared to only 19 million shekels in the same period. The improvement is attributed to a reduction in provisions, partly due to last year's VAT assessment ruling.
Max's revenues for the quarter totaled approximately 621 million shekels, an increase of 2.6% year-on-year. The company attributes this growth to an increase in issuance and clearing volumes. Business expanded in both the credit card sector and interest income from loans. Expenses for credit losses decreased by 7% to 40 million shekels, a result of significantly improved risk indicators during the first half of the year.
The company reports a 9% growth in issuance volume. In the second quarter, turnover on Max credit cards totaled about 40 billion shekels, compared to 36.7 billion shekels in the same quarter last year. The number of active Max credit cards reached approximately 2.3 million, a growth of about 10% compared to the end of the same quarter last year.
The consumer credit portfolio (private clients) grew by 13.7% to approximately 12.7 billion shekels. The company also expanded its business credit portfolio, which totaled about 1.25 billion shekels at the end of the quarter, a 12% increase year-on-year.
Sagit Dotan, CEO of Max, stated:
"The quarter's results testify to Max's ability to present consistent and high profitability, without one-time effects. We see growth that matches the recovery trend and a return to routine, as reflected in June by the activity in overseas turnovers and spending on flights and vacations."
"We crossed the 100,000 aviation cards threshold"
According to Dotan, industry changes regarding aviation clubs have led Israelis to research which card offers the best value. "We welcome this step and are happy about the increased competition for the benefit of consumers. As evidence, we see rising demand for SKYMAX, the best aviation card, which has crossed the 100,000 card threshold."
At the same time, Dotan noted an increase in demand for the Max Travel tourism platform. "Strengthening value propositions for customers in the aviation and tourism sector is here to stay. I believe that in a year, every Israeli will use their credit card company's app when planning a vacation in Israel or abroad."
