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GlobesEconomy

Max Credit Card Company Reports 80 Million Shekel Profit in Q2 with Growing Customer Base

Translated & summarized from Globes by baba

Business

Hebrew · 2 newsrooms covering

Max credit card company reported a net profit of 80 million shekels in Q2 2024, reversing last year's losses, driven by increased transaction volumes and improved risk management. The company’s active credit cards grew to 2.3 million, with strong growth in consumer and business credit portfolios. CEO Shagit Dotan highlighted the success of Max’s airline rewards card and travel platform amid economic recovery.

The story in 6 lines · by baba

  • Max posted 80 million shekels net profit in Q2, reversing a 60 million shekel loss last year.
  • First half net profit reached 160 million shekels, up from 19 million shekels in 2023.
  • Revenues rose 2.6% to 621 million shekels due to higher transaction volumes and loan interest.
  • Active credit cards increased 10% to 2.3 million; consumer credit portfolio grew 13.7%.
  • SKYMAX airline rewards card surpassed 100,000 issued cards, boosting travel-related demand.
  • Max Travel platform sees rising popularity, supporting expansion in travel services.

Max, the credit card company owned by Clal Insurance and managed by Shagit Dotan, closed the second quarter with a net profit of 80 million shekels, reversing a 60 million shekel loss from the same quarter last year. For the first half of the year, net profit reached 160 million shekels compared to just 19 million shekels in the corresponding period of 2022. This improvement was partly due to reduced provisions following a VAT assessment ruling last year.

The company’s revenues for the quarter totaled approximately 621 million shekels, marking a 2.6% increase year-over-year. Max attributed this growth to higher issuance and transaction volumes, with both credit card business and interest income from loans expanding. Credit loss expenses decreased by 7% to 40 million shekels, reflecting improved risk metrics in the first half of the year.

Max’s credit card transaction volume grew by 9%, reaching about 40 billion shekels in Q2 compared to 36.7 billion shekels a year earlier. The number of active credit cards rose by roughly 10% to 2.3 million. The consumer credit portfolio increased by 13.7% to approximately 12.7 billion shekels, while the business credit portfolio grew 12% to about 1.25 billion shekels.

CEO Shagit Dotan highlighted the company’s consistent profitability and stable outlook, noting economic recovery trends reflected in increased travel-related spending in June. She also emphasized the rising popularity of Max’s airline rewards card, SKYMAX, which surpassed 100,000 issued cards. Additionally, Max Travel, the company’s tourism platform, is experiencing growing demand, reinforcing Max’s commitment to expanding travel and airline-related customer benefits.

Dotan expressed confidence that within a year, most Israelis will use their credit card app to plan domestic and international vacations, underscoring Max’s strategic focus on travel-related services.

GlobesOther · Rishon LeZion

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Full coverage · 2 outlets
First: Globes · Aug 17

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