According to FUNDER website data,
92 mutual funds hold direct financing shares in the amount of NIS 36.65 million
Funds that hold significant holdings in the stock – for the full list of holdings
The following is a change in the holdings of mutual funds in direct financing shares according to FUNDER-MVF data
The main reasons for improving results: An increase in the volume of the credit portfolio held by the company, streamlining and reducing expenses and a sharp decrease in the rate of credit losses
Following an efficiency plan implemented in the company with the outbreak of the corona crisis, the amount of cost savings in the fourth quarter of 2020 amounted to NIS 12 million compared to the corresponding quarter last year. As of December 31, 2020, the balance of loan portfolio the company provided To about NIS 8.9 billion at the end of 2019
Eran Wolf, CEO of Direct Finance, told FUNDER: “We conclude a quarter with strong results despite the impact of the corona crisis and the closure imposed on the economy during the quarter. The sharp increase in net profit was achieved, among other things, following the efficiency measures we took with the outbreak of the crisis. Significant decrease in credit failures and an increase in the “recovery” rate on loans as a result of the actions we took to reduce the risk, as well as exogenous effects from the economy.
Following the significant improvement in the company’s results starting in the second quarter of the year, the company distributed a dividend and announced a further distribution so that the total distribution for 2020 profits is approximately NIS 25 million. Looking ahead, the growing demand for consumer credit, the efficient technological infrastructure developed by the company Credit data along with the growth engines: Real estate loans, start-up carveys, solo loans for shopping in businesses, are a key pillar for continued growth and the company’s leaders. “
In the fourth quarter of 2020, direct financing revenues amounted to approximately NIS 138.9 million, compared with approximately NIS 141 million in the corresponding quarter in 2019, a slight decrease of approximately 1.5%. In 2020, the company presented revenues in the amount of NIS 474.2 million, compared with NIS 602.8 million in 2019.
The decrease in revenues is due to the corona crisis which led to a significant decrease in the volume of loans made, the cessation of marketing of solo loans and a decrease in the fair value of loans to be realized (in the solo sector) mainly due to rising bond yields during March 2020. The loans provided at fair value accordingly.
Net income in the fourth quarter of 2020 amounted to approximately NIS 34.4 million, compared with approximately NIS 16.8 million in the corresponding quarter last year, an increase of approximately 105%.. The sharp increase in net profit is due to an increase in the credit portfolio held by the company by NIS 500 million compared to the end of 2019 and savings in expenses of NIS 12 million compared to the corresponding quarter last year, as a result of an efficiency plan implemented immediately after the Corona crisis.
In addition, there was a decrease in credit loss expenses during the fourth quarter. This decrease is due to a sharp decrease in the rate of customers who failed in the fourth quarter and also, above it in the recovery rate of loans that failed.
Net income in 2020 amounted to NIS 70.9 million, compared with NIS 115.9 million in 2019. This is due to the impact on the results of the first quarter of 2020, mainly due to the decrease in the value of the loan portfolio to be realized. Provision of loans, availability and cost of credit sources, among other things due to the company’s listing on the Tel Aviv Stock Exchange.
The Company’s net financing expenses in the fourth quarter increased by approximately 13% and amounted to approximately NIS 13.9 million, compared with approximately NIS 12.3 million compared with the corresponding quarter in 2019.
Credit loss expenses in the fourth quarter of 2020 amounted to approximately NIS 7.8 million (similar to the third quarter of 2020), compared with approximately NIS 24.7 million in the corresponding quarter last year. The decrease compared to the corresponding quarter last year was due to a significant improvement in collection rates from customers and a sharp decrease in cases transferred to legal treatment. During the fourth quarter collection rates were even better than in the pre-Corona crisis period.
The weighted credit damage in the fourth quarter of 2020 amounted to 0.88% and reflects a significant improvement compared to the corresponding quarter last year where the weighted credit damage amounted to 3.14%. The improvement is due to the quality credit model, the tightening of the underwriting during the Corona crisis, improved collection and reduced exposure to unsecured loans. In 2020, the weighted credit damage amounted to 2.20% compared to 2.80% in 2019.
As of December 31, 2020, the balance of the loan portfolio provided and marketed by the Company amounted to NIS 8.2 billion (including a loan portfolio that has been approved and / or marketed for third parties), compared with NIS 8.9 billion as of December 31, 2019. In 2020, transactions were made A check in the amount of NIS 2 billion. After the reporting period, in January and February 2021, the company made three transactions to check loan portfolios in the amount of NIS 634 million.
The direct portfolio of direct financing that was not transferred to third parties as of December 31, 2020 amounted to NIS 2.9 billion, compared with a total of NIS 2.4 billion at December 31, 2019, an increase of 20.8%.
On March 14, 2021, the Company’s Board of Directors announced a dividend of NIS 13.37 million, which is approximately NIS 5.28 per share. Although the dividend distribution policy has been adopted since 2021, the company has divided and announced on the basis of the results of 2020 a dividend of approximately NIS 25 million at a rate of approximately 35% of net profit.
The company’s capital as of December 31, 2020 amounted to approximately NIS 679.1 million, compared with approximately NIS 481.9 million on December 31, 2019. The increase is due to the issuance of shares to the public in exchange for approximately NIS 138 million (net) and a margin recorded during the reporting period in the amount of approximately NIS 70.9 million, offsetting the dividend distributed.
Below is the company announcement and a link to the financial report