Phoenix Financial (PHOE) Q4 2024 earnings summary

Executive summary

• Achieved comprehensive income of 2,087 NISm (over ILS 2 billion) in 2024, with 8.32 NIS per share and 18.6% ROE; Q4 income exceeded 800 NISm with ROE above 30%.

• Core income reached 1,760 NISm (15.9% core ROE), up over 30% year-over-year, driven by strong performance across all activities.

• Assets under management surpassed $140 billion (525 NISb), reflecting strong growth in insurance and asset management.

• Strategic focus on high-margin businesses, innovation, and capital deployment to drive value creation.

• Transitioned to dispersed ownership after leading international investors acquired shares in Q3.

Financial highlights

• Assets under management reached 525 NISb ($144b), with a 20% five-year CAGR.

• Shareholders' equity at 11.9 NISb; solvency ratio at 189% as of September 2024.

• Dividend payout from 2024 income totals 835 NISm, with a policy of at least 40% payout and buybacks of 182 NISm executed.

• Adjusted EBITDA for Asset Management, Agencies & Credit reached 1,145 NISm in 2024.

• Non-operating effects, mainly from investment performance, contributed over 300 NISm.

Outlook and guidance

• 2027 targets reaffirmed: comprehensive income of 2,000 NISm and ROE of 16–18%, with upside potential of 400–600 NISm from IFRS 17 and business growth.

• IFRS 17 expected to add 400 NISm annually to income, with pro forma H1 2024 showing 200 NISm additional income.

• Asset management AUM target of 600–650 NISb by 2027, with focus on high-margin activities.

• Dividend payout ratio of at least 50% (cash and buybacks) to be maintained through 2027.

• Updated 2027 plan to be provided in the coming quarters.