Cal Credit Card Company Reports 6.5% Revenue Growth and Receives 75 Million Shekel Compensation from El Al

Cal, Israel's credit card company led by CEO Yafit Geryani, reported second-quarter revenues of approximately 843 million shekels, marking a 6.5% increase compared to the same period last year. This growth was driven by higher credit card activity and loan issuance. The company’s net profit rose about 4% to 104 million shekels, or 11% excluding a one-time provision from the previous year. This improvement was partly due to a one-time payment from El Al Airlines related to transferring the FlyCard frequent flyer program to Isracard.

Cal is owned by Discount Bank (72%) and the International Bank (28%) and is currently undergoing a sale process to the Union Group of the Horesh family and Harel, pending approval from the Competition Authority. The company’s half-year revenues totaled 1.65 billion shekels, a 6.6% increase. Financial disclosures revealed Cal will receive two payments from El Al: a 23 million shekel reimbursement for early termination of marketing incentives and an additional 52 million shekels in royalties for continued operation of FlyCard credit cards through the end of the year, totaling 75 million shekels in compensation.

The consumer credit portfolio reached 9.3 billion shekels, growing 11.9% for the ninth consecutive quarter, with a 400 million shekel increase in the first half mainly from car loans surpassing one billion shekels. Total credit, including commercial loans, stands at 10.9 billion shekels. Credit loss expenses rose 21% to 60 million shekels this quarter, attributed to portfolio growth.

On the business front, Cal launched the FlyAll tourism club in partnership with Issta, aiming to compete with FlyCard after its transfer to Isracard. The new club attracted over 130,000 customers within two months. Cal also extended partnerships with Bank Hapoalim, Mizrahi Tefahot, and others, and announced new agreements with the "Tov" government employees club and Direct Insurance, plus cooperation with Eldan in car loans.

The company is experiencing executive changes amid internal tensions. Deputy CEO and head of business clients Odelia Moshe Ostrovski is leaving, following the earlier departure of Deputy CEO Lital Wexler. Their replacements are expected to be Zoharit Yogev, former deputy head of mortgages at Bank Leumi, and Tony Cohen, CEO of Maccabident. CEO Geryani described the results as "strong," highlighting the milestone of surpassing one billion shekels in car loans despite challenging macroeconomic conditions and the impact of Operation "Roaring Lion."