Mimun Yashir Profit Jumps 4-Fold: Dori Nawi Sees 24% Return
Mimun Yashir's profits jumped more than 4-fold in the quarter, driven by strong performance in mortgage and auto finance. Competitor Nawi, holding about 10% of the shares, is reporting a paper profit of approximately 40 million shekels.
The pivot to the mortgage sector, alongside the traditional auto credit business, is proving highly profitable for Israel's largest non-bank financial company, Mimun Yashir.
The company, controlled by the Shnidman family (Tzur Shamir) and managed by Eran Golan, concluded the second quarter with a 4-fold jump in net profit to approximately 69 million shekels. Half of this profit is attributed to the growing mortgage activity initiated in late 2021, while the other half stems from auto finance. For the first half of the year, net profit surged by 230% to 117 million shekels, leading to a dividend distribution of 48 million shekels.
In the mortgage sector, Mimun Yashir offers loans backed by residential property at interest rates higher than standard banking rates. In the first half of this year, these mortgages carried an average fixed, index-linked interest rate of 7.45% (a nominal rate of about 9%).
These loans totaled 802 million shekels, accounting for 61% of the 1.3 billion shekels in total mortgages provided by the company during the half-year, with the remainder being prime-rate loans.
Growth in Mortgage and Auto Sectors
Mimun Yashir's mortgage revenue for the quarter reached 137 million shekels—double the figure from the same period last year. This included 82 million shekels from credit provision, 48 million shekels from portfolio revaluation, and 6 million shekels in commissions. Total mortgage revenue for the half-year rose by 108% to 247 million shekels.
Net profit from the mortgage sector more than tripled in the second quarter to 37 million shekels, with the total mortgage portfolio reaching 3.1 billion shekels, a 30% year-over-year increase.
Auto sector revenue grew by 10% to 362 million shekels, bolstered by generous financing campaigns from car importers. Half-year revenue for this sector totaled 639 million shekels (+11%). Auto activity profit for the second quarter rose more than 5-fold to 37 million shekels, with the loan portfolio standing at 7.5 billion shekels.
Mimun Yashir's credit losses decreased by 8% in the quarter to 72 million shekels, though they rose by 18% to 145 million shekels for the half-year, primarily due to the auto sector.
Dori Nawi's Strategic Investment
The Shnidman family is not the only beneficiary of these results. The non-bank financial firm Nawi Group, led by Dori Nawi, increased its stake in Mimun Yashir to approximately 10% during the second quarter, investing 157 million shekels. With a current market value of 194 million shekels, Nawi is seeing a paper profit of nearly 40 million shekels, representing a 24% return on investment.
Last July, Nawi realized its investment in Isracard, generating an estimated profit of 100 million shekels. Nawi notes that the Mimun Yashir acquisition aligns with its strategy of investing in sectors close to its core business. Nawi also competes in the mortgage space via "Nawi et Luzon," established in December 2024.
Nawi's quarterly net profit rose by 10% to 55 million shekels, and its half-year profit jumped 20% to 108 million shekels. Following these reports, Nawi's stock rose 10% in two days, reaching a market value of 1.6 billion shekels.
