credit cards 88.
(photo credit: )
Net profits at Leumi Card Ltd. rose by 6 percent to NIS 34 million in the first quarter of the year, as the country’s second-largest credit card company announced the distribution of its first dividend since it was founded a decade ago.
“The large rise in the number of newly issued credit cards, the growth in non-bank clients as well as growth in our credit card activity point to continued growth of the company and shows that we understand the needs of the market and are adapting our products to fit our customers,” said Dani Cohen, CEO of Leumi Card.
Under the terms of the dividend policy announced on Monday, Leumi Card will distribute over 30% of its net profit, subject to meeting a capital adequacy level of 12.5%. Next week, Leumi Card is expected to distribute the NIS 10 million dividend.
Financial results for the first quarter showed that Leumi Card’s revenue rose 6% to NIS 207m. from NIS 195m. in the same quarter of 2009, while net profit rose by 6% to NIS 34m. from NIS 32m. during the same period.
The credit card company issued more than 50,000 new credit cards in the
first quarter. Non-bank credit card business continues to represent the
main growth engine of the company driven by its three strategic
collaborations with Shufersal Ltd., Azrieli and New Hamashbir Lazarchan
365 Club. The number of non-bank credit cards increased by 6%, or 30,000
new cards, bringing the total to 554,000 in the first three months of
the year. In total, the number of active bank and non-bank credit cards
rose by 1.7% in the first quarter to 1.52 million compared with the same
quarter last year, and by 2% compared with the end of 2009.