Phoenix Financial (PHOE) Q3 2024 earnings summary

Executive summary

• Generated strong growth in core and comprehensive income, with 9M 2024 comprehensive income reaching ILS 1.3 billion and ROE at 16%, Q3 ROE exceeding 24%, and robust performance across all business segments.

• Maintained high solvency ratios and strong capital position, demonstrating resilience amid economic and geopolitical uncertainty.

• Transitioned to dispersed ownership as international investors acquired shares, reflecting confidence in strategy and performance.

• Published updated 2027 strategic targets, focusing on accelerated growth, innovation, and value creation.

• Completed major restructuring, including mergers and increased ownership in key subsidiaries, supporting future growth.

Financial highlights

• 9M 2024 comprehensive income was ILS 1.3 billion, with core income of ILS 1.4 billion and net income of ILS 1.11 billion; Q3 comprehensive income was ILS 617 million.

• ROE for 9M 2024 was 16–16.8%, with Q3 ROE ranging from 18.6% to 24.4%; core ROE reached 18%.

• Assets under management grew to ILS 502 billion, up 19% annually over five years.

• EBITDA from asset management, agencies, and credit reached ILS 860 million in nine months.

• Distributed over ILS 500 million in dividends and buybacks YTD 2024, maintaining a dividend yield above 5%.

Outlook and guidance

• On track to achieve 2027 strategic targets, including AUM of 600–650 billion and ROE of 16–18%, with focus on high-margin, capital-light businesses.

• IFRS 17 and 9 implementation in 2025 expected to increase income, reduce equity by ILS 0.4–0.8 billion, and improve transparency and income stability.

• ROE targets will be reviewed post-IFRS 17 implementation in 2025.