Phoenix Financial (PHOE) Q3 2025 earnings summary

Executive summary

• Reported strong Q3 and nine-month results, with comprehensive income of ILS 803 million in Q3 and ILS 2.3 billion year-to-date, and ROE of 29.2% and 26.8% respectively.

• Core income reached ILS 1,985 million for 9M 2025, with robust growth in both insurance and asset management, and investment performance contributing ILS 314 million in non-operating effects.

• Strategic focus on high-multiple, capital-light activities, especially in asset management, driving 43% growth in core income year-over-year.

• Increased holdings in Phoenix Agencies from 78% to 95%, accelerating value creation and completing major acquisitions.

• Distributed significant dividends and executed share buybacks, reflecting strong liquidity and capital management, with a quarterly dividend of ILS 320 million and buybacks of ILS 188 million YTD.

Financial highlights

• Q3 net income: ILS 800 million; EPS: ILS 3.2; ROE: 29%; 9M 2025 comprehensive income: ILS 2.3 billion; ROE: 26.8%.

• Core income for 9M: ILS 1,985 million; asset management ILS 683 million, both with strong YoY growth.

• Adjusted EBITDA for Asset Management segments reached ILS 1,188 million for 9M 2025.

• Dividend of ILS 320 million announced for Q3, totaling ILS 950 million YTD; buybacks of ILS 188 million executed.

• Solvency II ratio at 182% (June 2025), above long-term target of 150–170%.

Outlook and guidance

• Updated 2028 guidance: core income ILS 3.3–3.5 billion, insurance ILS 1.9–2.2 billion, asset management ILS 1.3–1.5 billion, and AUM 700–800 billion.

• EBITDA target for 2028: ILS 2.5 billion for asset management.

• Dividend and buyback payout ratio to remain above 50%, with at least 40% as dividends.

• Guidance based primarily on organic growth, with upside potential from M&A, technology, and regional developments.

• 2025 run-rate already achieves previous 2027 guidance, prompting accelerated targets.