Phoenix Financial (PHOE) Q1 2025 earnings summary

Executive summary

• Q1 net income was NIS 590.7m; attributable comprehensive income was NIS 568.5m, up from NIS 509.7m year over year.

• Core income rose 15% year over year to NIS 626m, with core ROE of 23.6%; reported ROE was 21.3%.

• First-time IFRS 17 and IFRS 9 reporting changed insurance measurement and presentation; management expects reduced earnings volatility.

• Asset Management core income rose 43% year over year to NIS 204m; Insurance core income was NIS 422m.

• Quarterly dividend policy adopted; NIS 230m dividend announced, with NIS 21m in Q1 buybacks.

Financial highlights

• Insurance-service revenue was NIS 2,361.3m versus NIS 2,260.8m year over year; profit before tax was NIS 840.5m versus NIS 790.9m.

• Consolidated adjusted EBITDA, including minority interest, rose 30% year over year to NIS 377m; Asset Management adjusted EBITDA was NIS 1,185m.

• Assets under management reached NIS 529bn; shareholders’ equity was NIS 11.5bn at March 31, 2025.

• Reported basic and diluted EPS were NIS 2.20 and NIS 2.19, respectively.

• Assets totaled NIS 175.6bn at March 31, 2025; insurance-contract liabilities were NIS 105.4bn.

Outlook and guidance

• 2027 targets to be reviewed in H2 2025; IFRS adoption and outperformance indicate NIS 400–600m of potential additional core income.

• 2027 core income targets are NIS 2.4–2.6bn overall, NIS 1.4–1.7bn for Insurance and NIS 800m–1.1bn for Asset Management; AUM target is NIS 600–650bn.

• 2027 capital-return target is at least 50% of comprehensive income through dividends and buybacks; dividend policy sets a 40% minimum payout of distributable comprehensive income.

• Focus on high-ROE, capital-light activities and continued investment in technology and capabilities.

• Q2 2025 results difficult to assess amid market and interest-rate developments; April market moves and CPI changes affected the liquid portfolio and insurance balance-sheet sensitivities.