Isracard Ltd.
Isracard Ltd. | TASE | Credit Cards · Acquiring · Consumer Credit
Data as of: April 2026 | Primary source: 2025 Annual Report + FY2025 Investor Presentation
ISCD
Research Depth · Standard
Credit Cards · Acquirer · Lender
Bakshi Finance — Family Office. The information presented in this document is provided for informational and educational purposes only. It does not constitute investment advice, investment marketing, or a substitute for personalised advice tailored to the client. The firm operates as a Family Office serving qualified investors only. The firm’s founder held a licensed investment-advisory practice from 2008 through 2023. The licence was suspended and not renewed; the firm currently does not hold an investment-advisory, investment-marketing or portfolio-management licence.
Nothing herein constitutes a recommendation to buy, sell or hold any security.
Past performance is not indicative of future results. This site does not participate in the investment decision. The decision rests with the client.
Isracard Ltd. | TASE | Credit Cards · Acquiring · Consumer Credit
Data as of: April 2026 | Primary source: 2025 Annual Report + FY2025 Investor Presentation
Isracard Ltd. is one of the three Israeli credit-card companies, alongside Cal and Max. The company trades on the Tel Aviv Stock Exchange (ticker: ISCD, security 1157403, ISIN: IL0011574030) and is a constituent of the TA-125 index. Isracard was separated from Bank Hapoalim in 2020 under the Strom Law (Law to Increase Competition and Reduce Concentration in the Banking Market, 2017). The business is divided into three core lines: Issuing, Acquiring of merchants, and Consumer Credit & Lending. Major event in October 2025: Harel Insurance & Finance acquired the controlling stake in Isracard from Mizrahi-Tefahot Bank — 37.05% of issued share capital for ~ILS 1,246.6M (608.65740 ILS per share). The transaction closed on 24 October 2025 and as of 17 February 2026 Harel is formally identified as the controlling shareholder. The company holds the exclusive American Express licence in Israel — a unique revenue stream not available to Cal or Max. As of year-end 2025: more than 3.7 million active cards, more than 100,000 active merchants, and an annual transaction volume of ~ILS 11.8B. Statutory auditor: KPMG (Somekh Chaikin) — auditor since 1999. CEO and Chairman namesrequires verification — RTL extraction issue from the Hebrew PDF; full names appear in the company’s constitutional pages and on the corporate website.
| Activity Line | Strategic Role | 2025 Performance |
|---|---|---|
| Card fees, net | Core revenue (~71%) | 2,497M ILS (+9.5% Y/Y) |
| Net interest income | Revolving credit & instalments | 1,461M ILS (+6% Y/Y) |
| Non-interest financing income | Additional financing fees | 1,036M ILS (+15% Y/Y) |
| Acquiring | ~100K active merchants | Volume ~11.8B ILS |
Source: 2025 Annual Report (P1728569), FY2025 Investor Presentation (P1728580). Subsidiaries (100%): EuropayIsrael, Future Automation, Payment Solutions.
This summary is not a recommendation. It is a factual list of key financial metrics drawn from the audited annual report.
| Metric | Reported | Adjusted |
|---|---|---|
| Net income (M ILS) | (40) | 305 |
| ROE | (1.3%) | 9.8% |
| ROE — credit-card activity | (0.3%) | 13.3% |
| Cost-to-Income | 93.8% | 81.7% |
| EPS (ILS) | (0.38) | 1.22 |
| Metric | 2025 | 2024 |
|---|---|---|
| Total assets | 27,883 | 25,596 |
| Credit to public | 8,583 | 7,253 |
| Shareholders’ equity | 3,202 | 3,174 |
| CET1 | 10.7% | 11.9% |
| Total capital ratio | 12.4% | 13.0% |
Factual explanation of the reported/adjusted gap: in 2025 the company recorded a one-time provision of ~ILS 345M for the separation of insurance activity (POSI / Run-Off), in addition to a tax adjustment of ~ILS 62M. This provision does not reflect ongoing operating activity but rather an accounting separation of a non-core line. Adjusted net income of ILS 305M and adjusted ROE of 9.8% are the figures that reflect continuing operations.
Credit ratings (17/02/2026): Moody’s Baa1 / S&P A / Fitch A / Midroog Aa2.il — stable outlook from all agencies.
Sector — credit cards and payments in Israel. Regulated by the Bank of Israel (Proper Conduct of Banking Business directives 201–211, Basel III for credit-card companies) and by the Israel Securities Authority as a public company. A concentrated market of three players: Isracard, Cal and Max — all undergoing a transition from bank ownership toward insurance / consortium ownership.
| Company | Current Owner (2025–2026) | Strategic Context |
|---|---|---|
| Isracard | Harel Insurance (37.05%) — since October 2025 | Separated from Bank Hapoalim (2020); transferred from Mizrahi-Tefahot to Harel |
| Cal | Bank Discount — sale process underway | Harel / FIBI / Igud consortium reportedly bidding ~3.75B ILS |
| Max | Clal Insurance | Acquisition completed in the prior cycle |
Global comparison: Visa and Mastercard are networks — they do not issue cards and do not bear credit risk. Isracard is an issuer + acquirer + lender. The closest global model is American Express — at a vastly different scale.
| Risk | Factual Context |
|---|---|
| Regulation — fee caps | Interchange-fee committees operate continuously in Israel. Reductions in interchange fees flow directly to operating margins. Structural pressure that is not expected to abate. |
| Credit quality — revolving book | An 8,583M ILS book composed mostly of higher-risk consumer credit. Provisioning ratio 2.61%, write-offs 0.76%. A weaker macro cycle would impact directly. |
| Interest-rate sensitivity | Net interest income of 1,461M ILS is sensitive to Bank of Israel policy. A sharp rate cut would compress the spread. BoI rate in 2025: 4.5%. |
| Integration risk — Harel | Control acquisition closed in October 2025. Strategic, organisational and systems integration take time. Poor execution can erode the value of expected synergies. |
| FinTech competition | Bit (Hapoalim), Pepper Pay (Leumi), Apple Pay, Google Pay offer alternatives that partly bypass the traditional card. |
| Operational / cyber risk | Credit-card companies are a target for cyber attacks. Fraud risk grows with digitalisation. IT spend reached 576M ILS in 2025. |
| CET1 decline | From 11.9% to 10.7% in one year. If the trend continues, action will be required (capital raise, growth deceleration, or distribution restraint). |
| Dependence on AmEx licence | A meaningful competitive advantage — but also a dependence on a single contract with an external partner. |
Interchange-fee caps are not further reduced in a material way, credit-book growth continues at a more moderate 8–12% (rather than the accelerated 18%), CET1 stabilises around 10.5–11%, the Harel integration succeeds in producing cross-distribution that broadens the customer base, and consumer-credit markets remain stable. Under such conditions, adjusted profit can continue to expand from the 305M ILS base. This is a strategic thesis — not a management commitment.
Interchange-fee caps are gradually reduced by 5–10%, credit-book growth moderates to 7–10%, CET1 stabilises around 10.5%, and the Harel integration progresses but is not transformative. Adjusted profit remains in the 280–330M ILS range, adjusted ROE in the 9–11% range. Dividend may resume from 2026 at ~50% of profit.
A new fee committee cuts the interchange fee by 15–25%, an adverse credit cycle pushes the provisioning ratio above 3.5% and write-offs above 1.2%, FinTech accelerates erosion of transaction volume, and CET1 continues to fall below 10%. Under such conditions, operating profit contracts materially and the dividend may remain suspended.
| # | Source | Identifier | Type |
|---|---|---|---|
| 1 | Isracard — 2025 Annual Report | P1728569-00.pdf (~300 pp.) | Official — KPMG audited |
| 2 | Annual Report Annex 2025 | P1728569-01.pdf | Official — audited |
| 3 | FY2025 Investor Presentation | P1728580-00.pdf | Official — company |
| 4 | 2023 Annual Report — comparison data | P1580620-00/01.pdf | Official — audited |
| 5 | Credit ratings | Moody’s, S&P, Fitch, Midroog (17/02/2026) | Rating agencies |
| 6 | maya.tase.co.il — security 1157403 | April 2026 | Official — Stock Exchange |
Missing data / limitations: CEO and Chairman names (Hebrew RTL extraction issue from PDF — requires source verification); precise headcount; market share as a single percentage; LCR (Liquidity Coverage Ratio); NPL as an explicit ratio (provisioning ratio used as proxy).
The full Isracard (ISCD) analysis is available to Premium members of Bakshi Finance — Family Office.
The analysis includes a professional review across 8 structured sections, 6 charts and a framework of scenarios.
Bakshi Finance | Family Office | All rights reserved 2026
Disclosure — Family Office. The information presented in this document is provided for informational and educational purposes only. It does not constitute investment advice, investment marketing, or a substitute for personalised advice tailored to the client. The firm operates as a Family Office serving qualified investors only. The firm’s founder held a licensed investment-advisory practice from 2008 through 2023. The licence was suspended and not renewed; the firm currently does not hold an investment-advisory, investment-marketing or portfolio-management licence.
Nothing herein constitutes a recommendation to buy, sell or hold any security.
Past performance is not indicative of future results. This site does not participate in the investment decision. The decision rests with the client. This framework is intended to structure analysis, not to produce an investment conclusion.
Four factual observations. Not an investment conclusion. There is no rating, recommendation, price target or probability assessment.
1. The reported loss of -40M ILS in 2025 is the result of a one-time provision of ~345M ILS for the separation of life-insurance activity (POSI Run-Off), not of operating deterioration. Adjusted net income was 305M ILS and adjusted ROE was 9.8%.
2. On 24 October 2025, Harel Insurance & Finance completed the acquisition of the controlling stake in Isracard (37.05%) from Mizrahi-Tefahot Bank for ~1,246.6M ILS. The transaction changes the nature of ownership — from a regulatorily-imposed bank holding (Strom Law) to a strategic insurance-group holding.
3. Credit to public grew +18.3% in 2025 (from 7,253 to 8,583M ILS), while CET1 declined from 11.9% to 10.7% and the total capital ratio from 13.0% to 12.4%. The company responded with material capital raises: CoCo ~192M ILS + senior bonds ~1.06B ILS + a 2.5B ILS Loan 4 facility from Bank Discount.
4. No dividend was paid in 2025 (versus 99M ILS in 2024 and 68M ILS in 2023), reflecting the reported loss. At the same time, share count rose from ~200M to ~258M (~29% dilution) following equity issuances. 2025 capital allocation was directed to growth and capital cushions, not to distribution.
Disclosure — Family Office
Bakshi Finance operates as a Family Office serving qualified investors only. Mr. Yaron Bakshi held a licensed investment-advisory practice from 2008 through 2023. As of the date of this publication, the firm does not hold an investment-advisory, investment-marketing or portfolio-management licence. This document is provided for research and professional education purposes only. Nothing herein constitutes a recommendation to buy, sell, hold or take any action with respect to any security. Nothing herein is a substitute for personalised advice based on an individual’s circumstances. All decisions remain the sole responsibility of the investor. Past performance is not indicative of future results.