Phoenix Financial (PHOE) Q3 2025 earnings summary

Executive summary

• Reported strong Q3 and 9M 2025 results with net income of ILS 800 million for Q3, comprehensive income of ILS 2.3 billion for 9M, EPS of ILS 3.2 for Q3 and ILS 9 for 9M, and ROE of 29% for Q3 and 27% for 9M.

• Core income reached ILS 1,985 million for 9M 2025, with robust growth in both insurance and asset management segments.

• Increased stake in Phoenix Agencies from 78% to 95%, accelerating value creation and strategic growth.

• Distributed quarterly dividends totaling ILS 950 million for 9M 2025 and executed ILS 188 million in buybacks, reflecting strong capital management.

• Implemented IFRS 17 and IFRS 9 in 2025, impacting financial reporting and segment classification.

Financial highlights

• Q3 2025 comprehensive income: ILS 803 million; 9M 2025: ILS 2,299 million; core income for 9M: ILS 1,985 million.

• Asset management pre-tax income: ILS 400 million in Q3 (+43% YoY); adjusted EBITDA for 9M: ILS 1,188 million.

• Insurance segment generated almost ILS 2 billion pre-tax in nine months; P&C delivered ILS 713 million pre-tax; health segment ILS 744 million pre-tax (+10% YoY).

• Shareholders’ equity at ILS 12.1 billion; AUM at ILS 585 billion; total assets at ILS 190.1 billion as of September 30, 2025.

• Strong investment performance added ILS 314 million to YTD results; non-operating effects contributed ILS 584 million pre-tax.

Outlook and guidance

• Updated 2028 guidance: core income of ILS 3.3–3.5 billion, with ILS 1.9–2.2 billion from insurance and ILS 1.3–1.5 billion from asset management.

• Targeting AUM of ILS 700–800 billion and adjusted EBITDA of ILS 2.4–2.6 billion by 2028.

• Dividend and buyback payout ratio to remain above 50%, with at least 40% as dividends.

• Guidance assumes primarily organic growth, with upside from M&A, technology/AI, and regional developments.

• 2025 run-rate already achieves previous 2027 guidance, prompting accelerated targets.