Mimun Yasir Reports Quadruple Profit Growth Driven by Mortgage and Auto Financing
Mimun Yasir, Israel's largest non-bank financing company controlled by the Shneidman family and managed by Eran Golan, reported a more than fourfold increase in net profit for the second quarter of 2024, reaching approximately 69 million shekels. Half of this profit growth is attributed to its expanding mortgage business, which the company launched at the end of 2021, while the other half comes from its traditional auto financing operations. For the first half of the year, net profit surged 230% to 117 million shekels, prompting the company to declare a dividend payout of 48 million shekels.
Mimun Yasir offers mortgage loans secured by the borrower's property at interest rates higher than those in the banking system, averaging a fixed and CPI-linked rate of 7.45% (nominally about 9%) in the first half of 2024. Mortgage loans totaled 1.3 billion shekels in the first half, with 61% at these fixed rates and the rest at prime rates. Mortgage revenues doubled year-over-year in Q2 to 137 million shekels, driven by credit income, loan portfolio revaluation, and fees. The mortgage loan portfolio grew 30% year-on-year to 3.1 billion shekels by the end of the quarter.
Auto financing revenues also rose by 10% in Q2 to 362 million shekels, benefiting from generous financing promotions by car importers amid a weakening dollar. The auto loan portfolio reached 7.5 billion shekels (excluding sold portfolios). Credit losses decreased by 8% in Q2 to 72 million shekels but increased 18% in the first half to 145 million shekels, mainly due to auto loans. Mortgage credit losses remained minimal.
Dori Navoi, owner of the competing Navoi Group, also profited from Mimun Yasir's success, holding about 10% of its shares valued at 194 million shekels, a 24% return on his 157 million shekel investment. Navoi previously earned an estimated 100 million shekels profit from selling his stake in Isracard. Navoi Group, which entered the mortgage market in December 2023, reported an 11% rise in financing revenues in Q2 to 121 million shekels and a 10% increase in net profit to 55 million shekels. Following strong results, Navoi's stock surged 10% in two days to a market value of 1.6 billion shekels.
Mimun Yasir's stock has risen 20% since the start of 2024, valuing the company at 2 billion shekels. The company continues to benefit from growth in both mortgage and auto financing sectors amid favorable market conditions and strategic expansions.
