Meitav Investment House net profit down 2011

Meitav Investment House net profit down 2011 ; On the eve of the merger of with DS Apex Holdings Ltd. (TASE:DSAP), the net profit of Meitav Investment House Ltd. fell 44% to NIS 21.7 million in 2011 from NIS 38.6 million in 2010, according the financial report of shareholder Direct Insurance - Financial Investments Ltd. (TASE: DIFI), which owns 28.5% of the company. Meitav's revenue rose slightly to NIS 377.7 million in 2011 from NIS 368.1 million in 2010, but a 10% increase in operating and services expenses to NIS 333.6 million from NIS 305.5 million, cut into profits.

Kesselman and Kesselman pwc Israel estimates Meitav's value at NIS 607 million, in a valuation commissioned by Direct Insurance.

Meitav, like other investment houses, suffered from the difficult stock market climate in 2011, as the activity and profits of their mutual and provident funds shrank, along with underperformance of their nostro and customers' investment portfolios.

DS Apex, controlled by Eli Barkat's BRM Capital, will merge with Meitav, owned by Direct Insurance, the Stepak and Simanovski families (50.1%), and B. Gaon Holdings Ltd. (TASE: GAON) (21.4%), to create an investment house that manages more than NIS 100 billion and has a value of NIS 1.5 billion.

Direct Insurance's revenue was flat at NIS 1.5 billion in 2011. Profit from insurance operations fell to NIS 178.2 million in 2011 from NIS 238.2 million in 2010, and net profit attributable to majority shareholders was NIS 17.5 million in 2011.

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