Mor Investment House Reports Revenue Growth but Agent Fees Reduce Net Profit
Mor Investment House continued to grow its operations in the second quarter, reporting revenues of approximately 305 million shekels, a 22% increase compared to the same quarter last year. For the first half of the year, Mor recorded a 27% revenue growth, totaling around 610 million shekels. This growth was driven mainly by the expansion in its provident and pension fund activities, managed by Yossi and Eli Levy, supported by strong capital market returns and new asset inflows. By the end of the quarter, assets under management in this segment reached about 213 billion shekels, prompting Mor to raise its annual pre-tax profit forecast for long-term savings to between 150 and 165 million shekels, up from the previous 140 to 160 million shekels forecast.
In mutual fund management, Mor saw a 9% revenue increase in the quarter to roughly 99 million shekels, with a 22% rise for the half-year to 193 million shekels. This was largely due to growth in assets under management, especially in traditional mutual funds that yield higher management fees. Investment portfolio management revenues surged 28% in the quarter to 6.7 million shekels, with a similar 28% growth for the half-year totaling 13 million shekels.
Despite rising revenues, Mor reported a slight 2.5% decline in net profit to about 38 million shekels in the quarter, mainly due to increased commission payments to agents and other expenses. However, for the half-year, net profit rose 25% to 88.2 million shekels compared to the previous year. Mor also expanded into new sectors over the past year, acquiring companies in non-bank credit for businesses, digital mortgage consulting, and market-making in ETFs and corporate bonds, generating 13 million shekels in revenue during the first half.
Mor is among Israel's largest investment houses, managing total assets of approximately 214 billion shekels as of the end of Q2. Its market capitalization stands at about 2.9 billion shekels, down 30% since the start of the year but up over 510% in the past three years.
