Meitav Investment House delivered another record quarter in the second quarter of 2026, with higher assets under management, strong client inflows and rising profitability pushing its adjusted EBITDA margin above 43%. The Israeli investment house is also expanding beyond traditional asset management through non-bank credit, brokerage and AI-enabled client service, illustrating how wealth and fintech platforms are increasingly converging.

Meitav Investment House reported record financial results for the three months ended June 30, 2026, as strong asset inflows and growth across its savings, investment and brokerage businesses translated into significantly higher revenue and profitability.

Net profit attributable to shareholders rose 31% year over year to NIS 142 million, while total revenue increased 28% to NIS 614 million. Operating profit climbed 37% to NIS 224 million, and adjusted EBITDA reached NIS 280 million, lifting the adjusted EBITDA margin to a record 43.2%.

For a financial-services company increasingly operating across asset management, brokerage, savings and lending, the results highlight the economics of scale that can emerge when a digital investment platform gathers assets across multiple product categories.

Meitav’s total assets under management, including alternative investments, reached NIS 464.5 billion at the end of June, up about 13.6% from the end of 2025. Excluding alternative investments, AUM stood at NIS 463 billion.

The growth was not solely market-driven. Meitav reported more than NIS 14 billion in net inflows during the quarter, suggesting continued demand for its investment and long-term savings products.

Asset growth becomes the central fintech engine

For investment houses, AUM is more than a balance-sheet statistic. It is a key driver of recurring fee revenue.

Meitav’s revenue from AUM-based activities increased 37% year over year to NIS 414 million in the second quarter. Long-term savings revenue was particularly strong, reaching NIS 268 million, up 42% from the same period a year earlier.

The company said its market share in provident funds reached 14.3%, while actively managed mutual funds remained a major source of inflows.

That combination—asset gathering and recurring management revenue—is strategically important as wealth managers compete for customers across pensions, provident funds, mutual funds, ETFs and portfolio management.

Meitav’s AUM was distributed across several businesses at the end of June, including NIS 242.4 billion in provident and pension funds, NIS 118.9 billion in mutual funds and NIS 101.6 billion in portfolio management.

The diversification gives the company multiple routes to deepen relationships with investors. It also creates opportunities to use shared technology, customer data and distribution infrastructure across products.

AI is moving into everyday financial service

One of the more notable elements of Meitav’s results is the company’s disclosure about artificial intelligence.

Meitav said that 55% of written communications with clients in its provident and pension business are currently handled by AI tools. According to the company, these responses are personalized rather than generic and are available around the clock.

That puts Meitav’s AI deployment closer to an operational use case than a purely experimental initiative.

For financial institutions, customer-service automation is one of the more practical applications of generative AI. Pension and investment businesses handle large volumes of repetitive questions involving balances, contributions, products and account processes. AI systems can potentially reduce response times while allowing human service teams to focus on more complex cases.

The challenge is accuracy.

Financial services require a higher standard for automated communication because incorrect information can have direct financial consequences. Personalization must also operate within privacy, compliance and model-governance frameworks.

Meitav’s disclosure is therefore notable less because AI is being used for customer service—an increasingly common industry practice—and more because the company has provided a concrete adoption metric.

Non-bank lending adds another growth engine

Meitav is also broadening its fintech footprint through non-bank credit.

Revenue from its non-bank credit operations increased 7% year over year to NIS 105 million, while the credit portfolio expanded from NIS 3.67 billion at the end of March to NIS 4.02 billion by the end of June.

During the quarter, Meitav completed an exchange tender offer for the remaining shares of Peninsula Group, making the SME-focused non-bank financial company a wholly owned subsidiary.

Full ownership gives Meitav greater control over Peninsula’s operations and capital allocation. It also strengthens the company’s position in a market where alternative lenders can serve small and medium-sized businesses that may not fit conventional bank-credit models.

The move carries a different risk profile from asset management. Lending produces interest income but also exposes the business to credit losses and economic cycles.

Meitav’s challenge will be to grow the portfolio without allowing the pursuit of higher revenue to undermine underwriting discipline.

Brokerage and alternative investments broaden the platform

The company’s brokerage operation is expanding alongside its core savings businesses.

Meitav Trade generated NIS 75 million in second-quarter revenue, up 17% year over year. Its retail brokerage client base reached approximately 130,000, compared with about 123,500 at the end of March.

That growth suggests continued demand for self-directed investing and digital brokerage services in Israel.

At the same time, Meitav’s alternative-investment business remains smaller but strategically relevant. Alternative AUM reached approximately NIS 1.6 billion at the end of June, up from NIS 1.5 billion three months earlier, supported by the company’s Meitav Access platform.

Together, these businesses point to a broader wealth-tech strategy: capture assets, provide investment products, offer execution and advisory services, and increasingly use technology to connect the experience.

Strong results raise the next question

Meitav’s first-half performance was equally strong. Revenue increased 30% to NIS 1.21 billion, operating profit rose 45% to NIS 447 million and adjusted EBITDA increased 39% to NIS 518 million.

Net profit attributable to shareholders reached NIS 270 million, 32% above the first half of 2025.

Management now expects full-year 2026 profitability to increase by more than 25% from 2025, subject to market conditions.

The company also received a credit-rating upgrade from Midroog, Moody’s affiliate in Israel, with its issuer and Series D bond ratings moving from Aa3.il to Aa2.il with a Stable Outlook.

For investors and fintech competitors, the larger story is the combination of scale and technology. Meitav is using its growing asset base to support a wider financial-services platform while deploying AI in areas where automation can directly affect service economics.

The next test will be whether that model remains resilient when market conditions become less supportive. Strong markets can lift AUM and investment revenue; sustainable technology and distribution advantages must continue working when asset prices and investor sentiment move in the opposite direction.

Market Landscape

Meitav’s results arrive as wealth management increasingly shifts toward integrated digital platforms that combine investment products, brokerage, retirement savings, analytics and automated customer service.

Large global financial institutions such as BlackRock, JPMorgan Chase and Charles Schwab have invested heavily in technology, data and digital distribution, while fintech companies continue to compete on user experience and lower-friction investing.

The strategic advantage increasingly lies in combining scale with personalization. An investment platform with hundreds of billions in AUM has access to substantial operational and customer data, but extracting value from that data requires sophisticated analytics, automation and governance.

Meitav’s AI deployment provides an example of this transition. Rather than positioning AI solely as an investment-research tool, the company is applying it to a high-volume service workflow.

The broader market question is whether wealth managers can use AI to reduce operating costs without sacrificing trust, regulatory compliance or service quality.

Meitav’s record 43.2% adjusted EBITDA margin suggests the company is already benefiting from operating leverage. Its continued investment in AI, brokerage, credit and alternative investments indicates that management sees technology and product diversification as complementary ways to extend that leverage.

Top Insights

• Meitav’s Q2 profit attributable to shareholders rose 31%, while AUM reached NIS 464.5 billion, strengthening its position as a scaled Israeli wealth-tech platform.
• AUM-based revenue grew 37%, showing how sustained client inflows across savings and investment products are translating into recurring financial-services revenue.
• Meitav says AI now handles 55% of written client communications in its provident and pension business, making automation a measurable operational capability.
• The Peninsula acquisition expands Meitav’s non-bank SME lending platform, diversifying revenue while increasing exposure to credit risk and capital management.
• Brokerage, alternative investments and AI service tools show Meitav evolving from an investment house toward a broader digitally enabled financial-services ecosystem.

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