Direct Finance’s Quarterly Profit Falls 26% as Mortgage Defaults More Than Double

Direct Finance’s net profit fell 26% to NIS 49.3 million in the third quarter of 2026, compared with NIS 66.7 million a year earlier, according to results disclosed on November 12. The Israeli vehicle-finance and mortgage lender, led by CEO Eran Golan, recorded financing revenue of NIS 442.5 million, down 9% from NIS 484.5 million. Mortgage and real-estate-backed lending expanded, with originations rising 43% to NIS 742 million. The mortgage portfolio reached about NIS 3.4 billion at the end of September, up 52% from a year earlier and 20.3% from the second quarter. Nevertheless, mortgage-segment net profit fell 64% to NIS 15.3 million, while revenue declined 23% to NIS 97.1 million. The comparable quarter included a securitization that contributed about NIS 34 million to revenue; there was no equivalent transaction this quarter. Mortgage loans in default reached NIS 186 million, compared with NIS 88 million a year earlier. The mortgage credit-loss rate rose to 0.34% from 0.14%. The financing spread narrowed to 3.99% in September, from 4.18% a year earlier, as competition reduced average mortgage pricing. Vehicle financing produced a different result: segment net profit rose 43% to NIS 34 million, although revenue fell 4% to NIS 345.4 million. Vehicle-loan originations were approximately NIS 2.55 billion, almost unchanged from a year earlier.