Phoenix Financial (PHOE) Q2 2025 earnings summary

Executive summary

• Achieved comprehensive income of ILS 1.5 billion (NIS 1,509.8 million) in H1 2025, with strong core income and robust performance across insurance and asset management lines.

• Return on equity reached 27% in H1 and 35% in Q2, with core ROE at 24% in H1, reflecting high earnings quality.

• Assets under management grew to ILS 560 billion (over $160 billion), maintaining a 20% five-year CAGR and reflecting strong organic and inorganic growth.

• Announced a quarterly dividend of ILS 400 million and doubled the annual buyback program to ILS 200 million, supporting shareholder returns.

• Successful implementation of IFRS 17/9 from January 2025 improved transparency and reduced volatility.

Financial highlights

• H1 2025 core income was ILS 1.3 billion (NIS 1,318 million), with Q2 core income of ILS 700 million (NIS 692 million), and comprehensive income of ILS 1.5 billion (NIS 1,509.8 million).

• Asset management activities grew over 40% year-over-year, contributing ILS 426 million in H1.

• Solvency ratio estimated at 181% as of March 2025, well above regulatory thresholds.

• Shareholders’ equity increased to ILS 12.2 billion as of June 30, 2025.

• Total assets reached ILS 184.9 billion as of June 30, 2025.

Outlook and guidance

• 2025 H1 run rate already within or above 2027 target range of ILS 2.4-2.6 billion; targets to be updated in Q4 2025.

• Commitment to quarterly dividends and ongoing buybacks, supported by strong internal cash flows.

• Strategic focus on capital-efficient, high-ROE activities and maximizing investment performance.

• Agencies’ 2027 EBITDA target revised upward to ILS 700–800 million.

• MSCI inclusion in Israel index from August, opening further global index opportunities.