TEL-AVIV, Israel, May 28, 2026 /PRNewswire/ -- Phoenix Financial Ltd., a leading Israel-based financial platform and capital allocator (TASE: PHOE) ("Phoenix," the "Group," or the "Company") today reported its 2026 Q1 results.
Highlights
Comprehensive income growth - Comprehensive income for the first quarter of 2026 was NIS 702 million, 24% higher than the corresponding period last year.
Return on equity (ROE) remained strong - Return on equity for the first quarter of 2026 was 24.1%.
Core income growth continued above expected - Core income for the first quarter of 2026 was NIS 709 million, an increase of more than 13% compared with the corresponding period last year and above expectations.
Asset management delivered accelerated growth - Core income from asset management activities for the first quarter of 2026 was NIS 251 million, up approximately 23% compared to the corresponding period last year; total assets under management were NIS 623 billion at the end of Q1 compared to NIS 610 billion at the end of 2025.
Phoenix is building out its full financial services platform and continues to disrupt the Israeli financial sector - During the quarter, Phoenix completed the acquisition of digital platform BUYME and wealth manager Fidelis, grew the user base of the group's app, and advanced the implementation of AI-based capabilities across sales, service, advisory, underwriting, and claims.
Stable growth and higher payout - Group businesses have stable and continuous growth in income, cashflow, and ROE; Phoenix declared a quarterly dividend of NIS 320 million (NIS 1.3 per share) and executed NIS 85 million in share repurchases during the quarter, for a total capital payout of NIS 405 million, representing 57% of Q1 2026 income.
Accelerated strategic organic growth
- Phoenix reports comprehensive income of NIS 702 million in the first quarter of 2026 (NIS 2.8 per share), an increase of 24% compared to NIS 568 million in the corresponding period last year.
- Core income in the first quarter of 2026 totaled NIS 709 million, an increase of 13% compared to NIS 626 million in the corresponding period last year (core income excluding non-operating capital market effects above and below risk-free interest rates plus 2.5%, interest rate effects, and special items); the growth rate is above expectations
- Return on equity (ROE) was 24.1% in the first quarter of 2026, while Core ROE was 24.4%.
- Accelerated growth in Asset Management, compounding scalable fee-based revenue streams across wealth, retirement, and financing; improving earnings mix with transition to fee-based businesses - Core income from Asset Management (including Wealth & Investments, Retirement, Brokers & Advisors, Payments & Financing) totaled NIS 251 million in the first quarter, an increase of 23% compared to NIS 204 million in the corresponding period last year. Adjusted EBITDA (on a consolidated basis including minority interests) rose to NIS 442 million in the first quarter from NIS 377 million in the corresponding period last year, driven by accelerated organic growth, efficiency, and realization of competitive advantages.
- Growth in AUMs and credit portfolio - As of March 31, 2026, total assets under management increased to NIS 623 billion from NIS 610 billion at the end of 2025, while the total business and consumer credit portfolio of Phoenix Gamma continued to grow and reached NIS 5.3 billion.
- Insurance activity - Core income increased and totaled NIS 458 million in the first quarter of 2026, an increase of 9% compared to NIS 422 million in the corresponding period last year, driven by the realization of competitive advantages. The Company is in the process of implementing a stochastic model in life insurance (used for actuarial reserve estimates), which could positively impact CSM balances and Solvency (roughly a 12% increase in Solvency), based on preliminary assessments.
Phoenix platform is disrupting Israeli financial services
- Phoenix operates as a leading financial platform and capital allocator with a full range of services and solutions for households and businesses in Israel, on the one hand, while allocating capital to businesses and infrastructure in Israel and across diversified international investments together with leading global partners, on the other hand.
- The company is expanding its capabilities through acquisitions. During the first quarter, the company completed the acquisition of digital platform BUYME, a leading digital brand in Israel, and of wealth manager Fidelis. Phoenix continues to explore additional acquisition opportunities aimed at creating value through synergies, capability building, and accelerating competition in strategic areas.
- Phoenix is accelerating digitization processes and AI implementation. Traffic and usage of the group's app increased, as the app provides a broad range of financial services in investments and savings, insurance, and financing, as well as access to the securities trading app which had over 90,000 active traders as of March 2026. Phoenix continues to accelerate the implementation of data and AI engines in service, sales, trading, underwriting, and claims, in order to strengthen competitive advantages, including personalization, accuracy, efficiency, and significant improvements in customer experience across the value chain.
Dividend distribution and share buybacks representing 57% of quarterly earnings
- Phoenix is focused on efficient capital management to maximize performance and continues to maintain strong financial resilience, high liquidity, and low net debt. Phoenix Financial was rated internationally for the first time with an international BBB rating from S&P with a stable outlook, in addition to the international rating of its subsidiary Phoenix Insurance from S&P (A-) and Moody's (A3).
- Subsidiary Phoenix Insurance has a solvency ratio as of December 31, 2025 of 178% (including transitional measures and after dividend distribution), above the long-term target of 150-170%.
- Phoenix is paying a dividend of NIS 320 million from first-quarter earnings. In addition, during the quarter Phoenix executed share buybacks in the amount of NIS 85 million. In total, through dividends and buybacks, Phoenix is distributing NIS 405 million, representing 57% of total quarterly income, in line with its 2026 guidance for payouts of at least 55% of comprehensive income.
Eyal Ben Simon, CEO of Phoenix Financial:
"Our first-quarter results reflect continued organic growth momentum, above expectations, while maintaining disciplined execution and a focus on profitable, efficient, and cash-generative growth. Asset management continued to expand at an accelerated pace, while our insurance operations delivered stable growth, strong cash flows, and continued financial resilience.
We continue to capture both organic and inorganic growth opportunities while further strengthening the organization for long-term value creation. Phoenix has become a leading financial platform for Israeli clients, an institutional-grade capital allocator with diversified, structurally sticky assets and strong capitalization, supported by deep origination and investment capabilities in Israel and partnerships with leading global managers. We are building out this platform with full financial services offerings for private and commercial segments. Continued investment in digitization and data/AI capabilities, driving group synergies and strengthening our client focus, is supporting differentiation, expanding our client base, increasing client value, and driving accelerated growth.
We are pleased with Phoenix's inclusion in the MSCI World equities index, after entering the MSCI Israel index last year, as well as the continued expansion of our global shareholder base. Our financial resilience, including the initial BBB international rating assigned to Phoenix Financial by S&P, alongside the existing ratings of Phoenix Insurance, provides flexibility to continue investing in capabilities, pursue acquisitions, and accelerate market disruption, while maintaining responsible capital management and delivering sustained value for shareholders."
Conference Call Information
Phoenix Financial will hold a conference call on May 28th 2026 at 1pm local time in Hebrew and at 5pm local time / 3pm UK / 10am EDT in English, and has published dial-in details and the presentation through the Tel Aviv Stock Exchange website.
About Phoenix Financial
Phoenix Financial (TASE: PHOE) is a leading Israeli financial platform and capital allocator with over $215 billion assets under management. Phoenix operates across multi-line insurance and asset management activities, including fund management, wealth solutions, retirement, advisory, brokerage, employee stock option administration, and credit origination. Phoenix trades on the Tel Aviv Stock Exchange within leading equity indices, including Tel Aviv 35, MSCI World, MSCI Israel, FTSE Developed, and Bloomberg Developed Markets.
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.
