Phoenix Financial (PHOE) Q2 2025 earnings summary

Executive summary

• H1 comprehensive income was NIS 1,496m, with net income of NIS 1.58bn; core income rose to NIS 1,318m from NIS 1,080m year over year.

• Comprehensive ROE reached 26.9% in H1 and 35.2% in Q2; core ROE was 23.7% and 25.8%, respectively.

• AUM reached NIS 560bn, sustaining a 20% five-year CAGR.

• A quarterly dividend of NIS 400m was declared and the 2025 buyback plan was doubled to NIS 200m.

Financial highlights

• Q2 comprehensive income was NIS 928m, versus NIS 585m in Q2 2024; Q2 net income was NIS 990m versus NIS 404m on the restated IFRS basis.

• H1 core income rose to NIS 1,318m from NIS 1,080m; Q2 core income was NIS 692m versus NIS 538m.

• Non-operating effects contributed NIS 178m in H1 and NIS 236m in Q2, reflecting strong investment performance partly offset by negative interest-rate effects.

• H1 insurance-service revenue was NIS 4.810bn versus NIS 4.543bn in the restated prior-year period; total assets were NIS 184.9bn at June 30, 2025.

• Annualized nominal return on the corporate account was 9.3% in H1 2025.

Outlook and guidance

• H1 core-income run rate reached the 2027 target range; revised strategic targets are expected in Q4 2025.

• Published 2027 targets are NIS 2bn core income and 16–18% ROE, with at least 50% of comprehensive income targeted for dividends and buybacks; NIS 400–600m of potential core income is cited beyond the target.

• Phoenix Agencies’ 2027 core-income target increased to NIS 350–450m; revised targets also include NIS 700–800m EBITDA.

• Strategic focus is on accelerating growth in capital-efficient, high-ROE activities.