TEL-AVIV, Israel, March 26, 2026 /PRNewswire/ -- Phoenix Financial Ltd., a leading Israel-based asset management and insurance company (TASE: PHOE) ("Phoenix," the "Group," or the "Company") today reported its full year 2025 results.
Highlights
Strong growth in comprehensive income - Annual comprehensive income reached NIS 3,186 million in 2025 and NIS 887 million in the fourth quarter of 2025, an increase of 34% and 23% respectively, compared to the corresponding periods last year.
Increase in return on equity - Phoenix achieved ROE of 26.6% in 2025 and 28.9% in the fourth quarter of 2025.
Strong growth in core income, reaching NIS 2,650 million in 2025 and NIS 665 million in the fourth quarter of 2025, an increase of 16% and 9% respectively, compared to the corresponding periods last year. The growth rate exceeds the rate required to achieve the Company's 2028 guidance of NIS 3.3-3.5 billion.
Accelerated growth in asset management activities with NIS 895 million in core income, an increase of approximately 42% compared to 2024. Total AUM reached NIS 610 billion (roughly $200 billion), an increase of approximately 16% compared to the end of 2024.
Growing dividend - Phoenix generates strong cash flows and profitable growth and today announced a quarterly dividend of NIS 360 million, or approximately NIS 1.6 per share, with respect to its fourth quarter 2025 results. Total dividends for 2025 amount to NIS 1,310 million, or approximately roughly NIS 6.0 per share, and are in addition to share buybacks of approximately NIS 300 million. Phoenix has updated its dividend policy from a minimum of 40% to a minimum of 45% of comprehensive income and is guiding for combined dividends and buybacks of at least 55% in 2026.
Business performance and strategic growth
- Phoenix reports comprehensive income of NIS 3,186 million (NIS 12.6 per share) for 2025 and NIS 887 million (NIS 3.5 per share) for the fourth quarter of 2025, compared to NIS 2,374 million and NIS 721 million respectively in the corresponding periods last year.
- Core income for 2025 amounted to NIS 2,650 million and NIS 665 million for the fourth quarter of 2025 compared to NIS 2,296 million and NIS 645 million respectively in the corresponding periods last year (core income excluding capital market, interest rate, and special effects). The current growth rate exceeds the rate required to meet the Company's 2028 guidance of NIS 3.3-3.5 billion.
- The return on equity from group activity stood at 26.6% in 2025 and 28.9% in the fourth quarter of 2025. Core return on equity stood at 22.6% in 2025 and 21.9% in the fourth quarter of 2025.
- Accelerated growth in asset management activity and shift in mix toward high-multiple growth engines with low capital requirements - Core income from Asset Management activities (including Wealth & Investments, Retirement, Brokers & Advisors, and Payments & Financing) amounted to NIS 895 million in 2025 and NIS 213 million in the fourth quarter of 2025, compared to NIS 630 million and NIS 155 million respectively in the corresponding periods last year. Adjusted EBITDA on a consolidated basis including minority interest grew to NIS 1,567 million in 2025 and NIS 379 million in the fourth quarter, compared to NIS 1,185 million and NIS 325 million in the corresponding periods last year due to accelerated growth, efficiency, and the realization of competitive advantages.
- Increase in asset and credit portfolios - As of December 31, 2025, total assets under management in the Group increased to NIS 610 billion (roughly $200 billion). The Phoenix Gama credit portfolio continued to grow and amounted to NIS 4.8 billion.
- Insurance activity - Core Income from Insurance activity amounted to NIS 1,755 million in 2025 and NIS 452 million in the fourth quarter of 2025, compared to NIS 1,666 million and NIS 490 million, respectively, in the corresponding periods last year, due to the realization of competitive advantages in P&C and the implementation of extensive digitization and optimization processes.
- Non-operating effects increased comprehensive income by NIS 536 million in 2025 and by NIS 222 million in the fourth quarter of 2025, mainly due to strong investment returns and corporate (Nostro) account nominal return of roughly 8.5%, which was partially offset by interest rate effects as a result of an activity structure that provides for low sensitivity to interest rate effects.
Stable cashflows translated into growing dividend distributions
- Phoenix continues to maintain high financial strength, liquidity balances, and low leverage focusing on efficient capital management to maximize profitability. The Phoenix Insurance subsidiary was rated A3 by Moody's, higher than the sovereign rating of Israel.
- The Insurance business had a solvency ratio of 179% as of September 30, 2025 (including transitional measures and a quarterly dividend distribution), which is above the long-term target of 150-170%.
- Phoenix announces a NIS 360 million quarterly dividend. Including previous dividends, total dividends from 2025 income amount to NIS 1,310 million, resulting in a dividend yield of approximately 6.5% (based on the average share price). In addition, Phoenix executed share buybacks totaling approximately NIS 300 million. Starting in 2026, the Company has updated its dividend policy and increased the minimum dividend payout from 40% to 45% of comprehensive income. In addition, the Company is guiding for a total distribution of 55% from comprehensive income, including both dividends and share buybacks.
Progress toward 2028 guidance and upside potential
- Income growth rate in 2025 was higher than the growth rate in the guidance for 2028 income, as Phoenix disrupts Israeli financial services and builds integrated financial services capabilities. During 2025, Phoenix increased group app adoption to over 500,000 active clients, facilitating broad services across investments, savings, insurance, and financing, with 90,000 clients using the brokerage trading app (as of March 2026). Phoenix continues to increase the implementation speed of data and AI engines in underwriting, claims, service, and sales in order to accelerate competitive advantages and significantly improve the client experience.
Eyal Ben Simon, CEO of Phoenix Financial:
"Phoenix concludes another year of strong performance and continued strategic growth. In 2025, comprehensive income increased by 34% and exceeded NIS 3 billion, driven by accelerated growth of approximately 42% in asset management activities, increased insurance income, and investment performance generating excess yield for clients and contributing to the Group. The Group's performance in 2025 represents a high growth rate in core income relative to the guidance range of NIS 3.3-3.5 billion for 2028.
Looking ahead, Phoenix is well positioned to leverage long-term trends and opportunities in the market and is accelerating the building of capabilities for the next wave of value-creating growth. The Company is building an integrated financial services platform including advanced products and services and a distinctive client experience across channels. For this purpose, the Company is focusing its efforts on technological innovation centered on data and AI, talent development, and synergistic acquisitions. During 2025, we completed several M&A transactions aimed at expanding Phoenix's capabilities in strategic areas, creating synergies, and strengthening value propositions for the Group's clients.
Our proven strategy and the capabilities we are building will enable Phoenix to accelerate growth, create value, and disrupt the Israeli financial sector in the short and long terms.
The Company's financial strength gives us the flexibility to invest in building capabilities, execute M&A, continue distributing quarterly dividends, and perform share buybacks. Moody's recently upgraded Phoenix Insurance's international rating to A3, higher than Israel's sovereign rating, reflecting confidence in the Company's financial strength.
We are pleased with the increasing confidence from investors, including international investors who hold 35-40% of Phoenix Financial's shares. Trading volumes in the share continue to be high relative to the Company's valuation and represent further evidence of the Group's achievements and high business potential.
The results we present today reflect the commitment and consistency of the Group's employees and managers, and we express our appreciation for their efforts, as well as the Company's board of directors.
2025 ended with the return home of all our hostages, allowing for the beginning of Israel's national recovery, while 2026 started with the ongoing war with Iran. Phoenix stands with the defense forces, shares in the grief of the families of the fallen, and hopes for the recovery of the wounded. May calm return to our region and open a window of opportunity for political, social, and economic renewal and prosperity in Israel and the Middle East."
Conference Call Information
Phoenix Financial will hold a conference call on March 26th 2026 at 1pm local time in Hebrew and at 5pm local time / 3pm UK / 11am EDT in English, and has published dial-in details and the presentation through the Tel Aviv Stock Exchange website.
About Phoenix Financial
Phoenix Financial is a leading Israel-based asset management and insurance company traded on the Tel Aviv Stock Exchange (TASE: PHOE). Group activities include multi-line insurance, broad asset and wealth management solutions, advisory & brokerage, and payments & financing, and have demonstrated strong growth and performance across the cycle. Phoenix serves a significant portion of Israeli households with a broad set of activities and solutions across businesses and client segments. Managing roughly $200 billion in assets, Phoenix accesses Israel's vibrant and innovative economic activity through a robust investment portfolio, creating value for both clients and shareholders.
The above includes information regarding the Company's financial statements results and strategic plan & guidance. Accordingly, the presentation includes forward-looking information as defined in section 32A of the Securities Law 1968. The information regarding the strategic plan & guidance includes, among other things, forecasts, goals, assessments, and various estimates, including information presented by way of illustrations and/or graphs and/or tables relating to future events or matters, the realization of which is uncertain and not under the control of the Company or the companies in the Phoenix group, including, among other things, regarding revenues and profitability from new initiatives and the implementation of various plans, profit forecasts, EBITDA, and other future financial data. The Company's management has carried out a process of updating its strategic goals, based on the Company's data, market data, raw or processed internal information collected, and comparative information, and based on certain working assumptions regarding the Company's activities and relevant markets. Such information is based on the subjective assessment of the Company and its advisors, and among other things, relies on past experience, the professional knowledge accumulated by the Company, existing information, and current expectations and assessments, including future developments as known to the Company today. The realization and/or non-realization of forward-looking information which is stated in the financial reports and this presentation will be affected by risk factors that characterize the activities of the Company and group companies, as detailed in the Company's periodic reports, including changes in economic conditions, capital market in Israel and globally, the development of competition in the segments relevant to the group's activities, regulatory changes, changes in consumer preferences and consumption habits, changes in working assumptions or in the economic models and assumptions, and changes in implementation or execution - that cannot be estimated in advance and may not be controlled by the Company. Hence, there is no certainty that the actual results and achievements of the Company in the future will be in accordance with these views and may differ, also substantially, from those presented in this material.
SOURCE Phoenix Financial Ltd.
