Phoenix Financial (PHOE) Q2 2026 earnings summary

Executive summary

• Delivered comprehensive income of NIS 1,574 million (ILS 1.6 billion) and EPS of 6.3 in H1 2026, with ROE of 26.1%, driven by strong asset management and stable insurance performance.

• Asset management core income grew 36% YoY in H1, shifting earnings mix toward recurring fee income and capital-light activities.

• Distributed 62% of H1 income (NIS 720 million dividends, NIS 252 million buybacks), exceeding payout guidance and reflecting strong cash flow.

• Digital platform reached 1 million app users, fueling cross-sales and client engagement; BUYME acquisition expanded digital payments.

• Continued M&A activity, including increased stake in El Al Frequent Flyer Club and acquisitions in wealth management.

Financial highlights

• H1 2026 comprehensive income: NIS 1,574 million; EPS: 6.3; ROE: 26.1%; AUM: NIS 658 billion.

• Asset management EBITDA grew 29% in H1 and 40% in Q2; adjusted EBITDA for H1: NIS 980 million.

• Insurance segment contributed NIS 873 million core income in H1; P&C: NIS 590 million before tax; Health: NIS 637 million; Life: NIS 227 million.

• Wealth and investments segment: NIS 338 million before tax; brokers and advisors: NIS 238 million before tax (30% YoY growth).

• Payment and financing segment: NIS 123 million before tax, with BUYME consolidated for the first time.

Outlook and guidance

• Baseline guidance: 10% annual core income growth through 2028, with 20% CAGR in asset management and 5% in insurance.

• H1 asset management growth (36%) and AUM (NIS 658 billion, up 8% YTD) already near 2028 guidance, prompting a planned guidance update.

• Payout policy of at least 55% of earnings, with actual H1 payout at 62% and Q2 at 65%.

• Stochastic model expected to add NIS 100 million pre-tax earnings and increase solvency ratio by 12%.

• Strategic focus on organic and inorganic growth, digital transformation, and efficiency improvements.