Phoenix Financial (PHOE) Q3 2024 earnings summary

Executive summary

• Achieved strong growth in core and comprehensive income, with ILS 1.3 billion (NIS 1,284 million) comprehensive income and 16% ROE in the first nine months of 2024; Q3 ROE exceeded 24% despite market volatility and war-related uncertainty.

• Assets under management surpassed ILS 500 billion (NIS 502 billion), growing 19% annually over five years.

• Strategic focus on high-ROE, capital-light businesses, innovation, and strong capital management, with published 2027 targets for accelerated growth.

• Transitioned to dispersed ownership as international investors acquired shares from control shareholders, reflecting confidence in strategy and management.

• Completed major restructuring, including mergers within asset management and credit, and increased ownership in key subsidiaries.

Financial highlights

• Insurance businesses generated ILS 909 million, asset management and credit ILS 433 million in core income for the first nine months.

• Comprehensive income for the period was ILS 1.28 billion (NIS 1,284 million) before tax; Q3 profit was ILS 617 million before tax.

• Core income for the nine months was NIS 1.34 billion, a 40% increase year-over-year; Q3 core income was NIS 474 million, up 55%.

• Annualized ROE reached 16.8% for the nine months; Q3 ROE was 24.4%.

• Distributed nearly ILS 500 million (NIS 535 million) in dividends and buybacks in 2024, maintaining a >5% dividend yield.

Outlook and guidance

• On track to meet 2027 strategic targets, including AUM of 600–650 billion and ROE of 16–18%.

• IFRS 17 & 9 implementation in 2025 expected to increase income, decrease equity by ILS/NIS 0.4–0.8 billion, and boost ROE; initial balance sheet impact to be shared in March 2025.

• Will update ROE targets post-IFRS 17 implementation if needed.

• Management expects continued resilience despite macroeconomic and geopolitical uncertainties, with ongoing focus on capital efficiency and digital innovation.