Weak results for Mellern after the public offering – the capital market

The non-bank credit company








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Projects issued several months ago report weak results in the fourth quarter of 2020. Financing income amounted to NIS 12.5 million, compared with NIS 16 million in the corresponding quarter last year. Net financing income in the fourth quarter of 2020 amounted to NIS 8.7 million, compared with NIS 10.2 million in the corresponding quarter last year. The decrease is mainly due to a change made by the company in the mix of the credit portfolio and an increase in the component of loans backed by tangible collateral. These loans, the company’s management explains, are usually characterized by a longer maturity and a lower rate of return compared to the check discounting activity characterized by a short maturity and a high yield.

The net profit in the fourth quarter of 2020 amounted to NIS 2.5 million, compared with a profit of NIS 3.7 million in the corresponding quarter last year.

In the whole of 2020, net revenues grew by 28% in net financing revenues in 2020 to about NIS 39 million. Net profit increased by 57% to NIS 17.3 million. The company’s credit portfolio increased to NIS 327 million, and close to the date of publication of the report amounts to NIS 345 million.

Moand Ryan, CEO of MELRAN Projects, said in the light of the results: “MELRAN PROJECTS is currently in a great business boom, and we estimate that the company’s credit portfolio is expected to continue to grow, partly in light of the growing demand for non-bank credit in the Israeli market. Most of our activities ”

Financing income in 2020 (gross) amounted to NIS 54.1 million, compared with NIS 54.6 million in 2019. The slight decrease is due to a change in the credit portfolio mix following the implementation of a more stringent risk management strategy by the company during the Corona crisis.

Net financing income increased by 28% to a total of NIS 39 million, compared with NIS 30.4 million in 2019. The increase, according to the company’s management, is mainly due to the diversification and reduction of credit sources during the period, which led to a significant decrease in financing expenses. The company (from NIS 24.2 million in 2019 to NIS 15.1 million in 2020).

Provisions for doubtful debts amounted to NIS 2.4 million, compared with NIS 1.5 million in 2019. The rate of expenditure on credit losses in 2020 amounted to 0.8% and was lower than 1% in the last 4 years.

The company’s credit portfolio grew to NIS 327 million in 2020, an increase of 9% compared to NIS 301 million at the end of 2019 and compared to NIS 232 million at the end of 2018. As of February 21, 2021, the credit portfolio amounts to NIS 345 million. .

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