Peninsula, a company that operates in the field of business credit, reports 100% increase Net profit for 2020: NIS 64 million, compared with NIS 32 million last year.
The company explains that the increase in net profit compared to last year is due to the completion of the transaction for the purchase of the diamond bank of Union Bank. This increase was partially offset as a result of adopting a strategy to deal with the corona crisis which included improved and controlled reduction of the customer credit portfolio temporarily during the second quarter of the year. The net and total profit in the fourth quarter of 2020 amounted to NIS 45.5 million, a sixfold increase compared to NIS 7.7 million in the corresponding quarter last year.
The average annual growth rate (CAGR) in net profit, between the years 2015-2020, stands at 49.8%.
The credit portfolio at the end of the reporting period returned to pre-Corona crisis levels and amounted to NIS 919 million. At the time of publication of the report, the credit portfolio was estimated at NIS 1,026 billion.
Revenue In 2020, they amounted to NIS 140.5 million, an increase of 73% compared to NIS 81.2 million last year. Revenues in the fourth quarter of 2020 amounted to NIS 83 million, an increase of almost four times compared to NIS 21.3 million last year.
Average net credit portfolio For customers in 2020 amounted to NIS 832 million compared to NIS 866 million in 2019, the decrease is due to a decrease in the volume of the average credit portfolio to customers in the period in accordance with the strategy of reducing and improving the company’s credit portfolio during the Corona crisis. The average net credit portfolio for customers in the fourth quarter amounted to NIS 896 million, similar to NIS 895.5 million in the corresponding quarter last year.
Interest income In 2020, they amounted to NIS 137.2 million, compared with NIS 78.9 million last year, an increase of 73.8%. Interest income in the fourth quarter of 2020 amounted to NIS 81.3 million, compared with NIS 20.7 million last year, an increase of almost 4 times. Most of the increase is due to the recognition of income from the discount at which the credit portfolio for diamond merchants was purchased.
Interest expenses Amounted to NIS 11.1 million in 2020, compared with NIS 11.7 million last year. In the fourth quarter of 2020, interest expenses amounted to NIS 2.7 million, compared with NIS 3.2 million in the corresponding quarter last year.
Net interest income (gross profit) grew by approximately 87.6% and in 2020 amounted to approximately NIS 126.1 million (approximately 91.8% of total financing income), compared with approximately NIS 67.2 million (approximately 85.2% of total income) last year. Net interest income (gross profit) in the fourth quarter of 2020 amounted to NIS 78.5 million (approximately 96.6% of total revenues), an increase of 4.5 times compared to NIS 17.5 million (approximately 84.7% of total revenues) in the corresponding quarter last year.
Revenues from management fees in 2020 amounted to NIS 2.2 million, compared with NIS 2.3 million last year. Revenues were received from an affiliated company – Peninsula Fund Management Ltd. Revenues from management fees in the fourth quarter of 2020 amounted to NIS 590 thousand, an increase of 4.6% compared to NIS 564 thousand in the corresponding quarter last year.
Expenditure on credit losses in 2020 amounted to approximately 1% of the average credit portfolio for the period, compared with approximately 0.65% of the total average credit portfolio last year, as a result of an increase in provisions for specific customers and the general provision due to the increase in the credit portfolio during the corona crisis. As a result of the purchase of the credit portfolio for diamond dealers from Union Bank. In September 2020, the company completed the transaction to purchase the credit portfolio for Union Bank’s diamonds. The size of the portfolio purchased was approximately NIS 192 million and the consideration paid for it was approximately NIS 76.5 million.
Following the reports, the company announced that Distribute a dividend In the quarter in the amount of NIS 35 million. The total cumulative dividend for 2020 is estimated at NIS 47 million, which represents an annual return of about 7.9%.
Equity Of the company about NIS 506 million and constitutes about 49% of the total balance sheet, compared to about NIS 202 million last year. The increase in the Company’s shareholders’ equity is due to the capital raised at the beginning of the year (NIS 252 million gross) and the Company’s profits during the reporting period, less dividends paid.
Further to the reports, he said Micha Avni, Founder and CEO of the Peninsula Group: “We are pleased to conclude the best year in our history – with record results and a jump in revenue and profit margins. It is no secret that 2020, the year of the corona, was one of the most complex and challenging years we have ever known. ”
In addition, Avni commented on the coming year, saying: “We anticipate that in light of the success of the vaccination campaign and the opening of the economy, in 2021 there will be an increase in demand for credit and we are working to realize the potential for increasing the credit portfolio through both organic and inorganic activities.” And even strategic expansion in Israel and abroad. The company’s possible credit portfolio based on existing equity and covenants is about NIS 2.5 billion.
Micha Avni Founder
Peninsula
-3.03%
Base:336.9
opening:340.3
High:342
low:325.6
change:446,123
Page Quote News Graphs Company Profile Recommendations
More articles on the subject:
Has succeeded in recent years in increasing the volume of activity and capital of the company mainly through the combination of Meitav Dash as a dominant partner (and later controls 9 in the company, along with capital issues and debt issues. banker.
And yet – Peninsula is one of the dominant companies in the market, with a very strong back – Meitav Dash. Avnei exercised NIS 7.2 million in shares on Thursday – 2.4 million shares at a price of NIS 3.12 per share. This is a not bad relative price, only 12% away from the stock’s peak. A price that expresses a company value of NIS 740 million. At the beginning – about five years ago – when Fininsola entered the stock exchange through a stock market skeleton, the market price was about NIS 1-1.2 per share.