Phoenix Financial (PHOE) Q4 2025 earnings summary

Executive summary

• Achieved record comprehensive income of NIS 3.19 billion in 2025, up 34–35% year-over-year, with EPS of ILS 12.6 and strong Q4 performance; core income reached NIS 2.65 billion, up 16% year-over-year, and ROE at 22.6%.

• Asset management core income grew 42% year-over-year to NIS 1.76 billion; insurance core income rose 6% to over NIS 1.7 billion.

• Strategic focus on integrated financial services, digital platforms, and AI implementation to drive future growth and efficiency.

• International investors hold 35–40% of shares, with inclusion in the MSCI Israel index and high trading volumes.

• Distributed over NIS 1.31 billion in dividends and NIS 300 million in buybacks for 2025, with payout ratio set to increase to at least 55% in 2026.

Financial highlights

• Comprehensive income for 2025 reached NIS 3.19 billion, up 34% year-over-year; core income surpassed NIS 2.65 billion.

• Q4 2025 comprehensive income was NIS 887 million; strong investment performance contributed NIS 500 million in 2025.

• Asset management platforms delivered 42–43% year-over-year growth; insurance segment grew steadily.

• Shareholders’ equity reached NIS 12.5 billion; AUM grew to NIS 610 billion.

• Dividend yield averaged 5.5% in recent years; NIS 360 million dividend announced for Q4 2025.

Outlook and guidance

• Targeting core income of NIS 3.3–3.5 billion by 2028, with 10% annual growth; asset management to grow 20% annually.

• Insurance segment expected to reach NIS 1.9–2.1 billion by 2028; P&C premiums targeted at NIS 6.3–6.7 billion.

• Dividend and buyback payout ratio to increase to at least 55% of comprehensive income from 2026.

• Early impact from integrated financial platform, AI, digital cross-sales, and M&A expected to provide upside beyond guidance.

• M&A activity expected to continue in 2026, focusing on synergies and new capabilities.