Phoenix Financial (PHOE) Q2 2024 earnings summary

Executive summary

• Achieved H1 2024 comprehensive income of ILS 667 million (net income: ILS 636 million), with 12.8% ROE and income per share of ILS 2.65, despite geopolitical and market volatility.

• Assets under management reached ILS 480 billion, up from ILS 433 billion at end-2023, with a 19% CAGR over five years and growth from both organic activity and Psagot fund acquisition.

• Announced ILS 270 million dividend (ILS 1.07/share) and executed ILS 116 million in buybacks, representing a 58% payout ratio; dividend policy revised to a minimum 40% payout.

• Transitioned to dispersed ownership after major shareholder divestments and acquisition of shares by international and leading investors.

• Surpassed 2025 targets ahead of schedule; updated medium-term growth targets to be published September 2024.

Financial highlights

• H1 2024 comprehensive income: ILS 667 million; net income: ILS 636 million; income per share: ILS 2.65.

• Core income in H1 2024 was ILS 869 million, up from ILS 650 million last year, with core ROE at 16.7%.

• Solvency II ratio stood at 191% as of March 2024, with shareholders’ equity at ILS 10.85 billion.

• Dividend per share for H1: ILS 1.07; total assets as of June 30, 2024: ILS 160.6 billion.

• EBITDA from asset management and credit reached ILS 567 million, growing over 20% year-over-year.

Outlook and guidance

• On track to meet or exceed 2025 targets for AUM, ROE, and segment income; updated targets to be published September 2024.

• Dividend policy updated to at least 40% payout of annual comprehensive income.

• IFRS 17 & IFRS 9 implementation expected in 2025 to reduce volatility and increase profit.