Phoenix Financial (PHOE) investor relations material

Executive summary

• Achieved comprehensive income of ILS/NIS 702 million in Q1 2026, reflecting 24% year-over-year growth and 24–24.1% ROE, with EPS of 2.8 NIS and AUM surpassing 623 billion.

• Core income rose 13% year-over-year, driven by strong asset management (23% YoY growth) and insurance segments.

• Strategic acquisitions of BuyMe and Fidelis Wealth Management, and digital platform expansion, enhanced capabilities and client acquisition.

• Distributed 57% of Q1 income via dividends and buybacks, maintaining a high payout policy.

• Maintained high liquidity, low leverage (LTV <1%), and a strong solvency ratio of 178% at the insurance company level.

Financial highlights

• Q1 2026 core income: ILS/NIS 709 million; core ROE: 24.4%.

• Asset management core income grew 23% YoY to ILS 251 million; adjusted EBITDA for asset management: 408 NISm.

• Dividend of ILS/NIS 1.3 per share (ILS/NIS 320 million total) and ILS/NIS 85 million in buybacks announced for Q1.

• Solvency ratio at 178%, above long-term targets.

• Dividend yield averaged 5–6% in recent years.

Outlook and guidance

• Targeting core income of ILS/NIS 3.3–3.5 billion by 2028, with 10% annual growth and >25% ROE.

• Asset management expected to grow at 20% annually, insurance at single digits.

• Payout guidance of at least 55% for 2026, with minimum 45% as dividends.

• Strategic focus on fee-based, capital-efficient activities, digital platforms, and M&A to drive growth.

• Continued investment in AI, digital platforms, and M&A to drive future value creation.