TEL AVIV, Israel, Aug. 25, 2026 /PRNewswire/ -- Phoenix Financial Ltd., a leading Israel-based financial platform and asset manager (TASE: PHOE) ("Phoenix" or the "Company") today reported its results for the first half of 2026s.
Highlights
Strong performance and 10% strategic growth the first half of 2026- comprehensive income totaled NIS 1,574 million, reflecting a return on equity of 26.1%; core income reached NIS 1,452 million, representing 10% growth compared to the same period in 2025 and exceeded the expected run-rate; the Company plans to revisit guidance in light of its accelerated performance.
Accelerated growth in asset management activities - core income totaled NIS 579 million in the first half of 2026 and NIS 328 million in the second quarter of 2026, increasing by 36% and 48%, respectively, compared to the corresponding periods last year; AUM reached NIS 658 billion, reflecting 8% growth during H1.
Strong cash-generation and 62% of core income returned to shareholders - strong cash flows and profitable growth in asset management activities supported total shareholder returns of NIS 972 million, or 62% of comprehensive income, in the first half of 2026, including NIS 720 million in cash dividends and NIS 252 million in share buybacks. A NIS 400 million dividend was declared today with respect to the second quarter of 2026s, and the 2026 share buyback plan was increased from NIS 300 million to NIS 400 million.
Phoenix's full-service financial platform is disrupting Israeli financial services - Phoenix has one million app users including roughly 100,000 securities traders. User-based growth increases the potential for cross-selling across investments, financing, insurance, and other financial services. The Company continues to invest in deeper data capabilities and AI-based solutions.
Additional growth engines - during the reporting period, Phoenix announced the establishment of an international reinsurance platform and continues to evaluate acquisition-led growth opportunities, capture synergies from acquired companies, and enhance its client value propositions.
Strong performance, strategic growth, and a continued shift in business mix
- Phoenix reported comprehensive income of NIS 1,574 million, or approximately NIS 6.3 per share, in the first half of 2026 and NIS 872 million in the second quarter of 2026, compared with NIS 1,496 million and NIS 928 million, respectively, in the corresponding periods last year.
- Core income increased by 10% to NIS 1,452 million in the first half of 2026, excluding capital market performance above or below a risk-free return plus a 2.5% spread, interest-rate effects, and special items. This compares to NIS 1,318 million in the same period in 2025. Core income totaled NIS 743 million in the second quarter of 2026, compared with NIS 692 million in the second quarter of 2025. Phoenix is generating strong performance across its growth engines, identifies upside potential beyond the expected run-rate, and plans to revisit guidance going forward.
- ROE from group operations was 26.1% in the first half of 2026 and 29.7% in the second quarter of 2026. Normalized ROE was 23.8% in the first half of 2026 and 24.8% in the second quarter of 2026.
- Asset management activities delivered accelerated growth ahead of expectations, with core income up year-over-year by 36% and 48% in the first half of 2026 and the second quarter of 2026, respectively, as Phoenix continues to shift its business mix toward higher-multiple, capital-efficient growth engines. Core income from asset management activities, including the wealth and investments, retirement, payments and financing, and brokers and advisors segments totaled NIS 579 million in the first half of 2026 and NIS 328 million in second quarter of 2026, compared with NIS 426 million and NIS 222 million, respectively, in the corresponding periods last year. Adjusted EBITDA including minority interests increased to NIS 980 million in first half of 2026 and NIS 538 million in the second quarter of 2026, compared with NIS 761 million and NIS 385 million, respectively, in the corresponding periods last year, driven by accelerated growth, efficiency, and the realization of competitive advantages. Total group AUM increased by 8% to NIS 658 billion as of June 30, 2026, compared with NIS 610 billion at the beginning of the year. Phoenix Gama's business and consumer credit portfolio continued to grow and reached NIS 5.7 billion.
- Insurance performance was in line with expectations, with core income of NIS 873 million in the first half of 2026 and NIS 415 million in the second quarter of 2026, compared with NIS 892 million and NIS 470 million, respectively, in the corresponding periods last year, and consistent with the Company's 2028 guidance. Phoenix expects a significant positive impact from the implementation of the stochastic model in life insurance, including an increase of NIS 1.2-1.5 billion in CSM balances and an approximately NIS 100 million contribution to core income before tax.
- Non-operating effects totaled a net positive NIS 122 million in the first half of 2026 and NIS 129 million in the second quarter of 2026, primarily due to investment returns and an 8% annualized nominal return on the nostro portfolio, partly offset by interest-rate effects related to the Company's business structure, which provides relatively low sensitivity to interest-rate movements.
The integrated Phoenix platform is disrupting Israeli financial services
- Phoenix operates as a leading financial platform, offering a full range of services and solutions to households and businesses in Israel, while also investing in Israeli businesses and infrastructure and across diversified international investment channels together with leading global partners.
- Phoenix is accelerating digitalization and AI adoption across the group. The Company has one million app users including roughly 100,000 securities traders. Phoenix's app enables clients to access information and perform a broad range of activities across investment and savings products, insurance and credit. Phoenix continues to accelerate the deployment of data and AI engines across service, sales, trading, underwriting and claims, with the aim of strengthening competitive advantages, including accuracy, efficiency and a significant improvement in client experience.
- The Company continues to expand capabilities and capture synergies through M&A. Phoenix continues to evaluate acquisition opportunities designed to create value through synergies, capability-building and stronger competition in strategic areas. During the reporting period, Phoenix announced the establishment of an international reinsurance platform and continues to evaluate growth through acquisitions, the realization of synergies from acquired companies and improvement of client value propositions.
Phoenix returned 62% of first half 2026 core income in dividends and buybacks
- Phoenix declared a dividend of NIS 400 million, or approximately NIS 1.6 per share, related to the second quarter of 2026. The Company also reported share buybacks totaling NIS 167 million during the quarter. In the first half of 2026, Phoenix returned NIS 972 million to shareholders in cash dividends and share buybacks, representing approximately 62% of total earnings for the period. The Company also announced an increase in its 2026 share buyback plan from NIS 300 million to NIS 400 million.
- Phoenix remains focused on efficient capital management to maximize income while maintaining high financial resilience, strong liquidity and low leverage. Phoenix Financial was rated for the first time by Moody's (in addition to subsidiary Phoenix Insurance), receiving an international Baa2 rating with a stable outlook. S&P also revised the outlook for Phoenix Financial's BBB rating and Phoenix Insurance's A- rating from stable to positive. Phoenix Insurance's international rating from Moody's is A3 with a stable outlook.
- Phoenix Insurance's Solvency II ratio as of March 31, 2026, was 177%, including the implementation of transitional measures and following a dividend distribution, above the long-term target range of 150-170%. The Company increased dividend threshold to 125%
Eyal Ben Simon, CEO of Phoenix Financial:
"Phoenix continues to deliver strong performance and generate strategic growth above expectations. First half results highlight the shift in our business mix to higher multiple business like asset management, which grew by 36% year-over-year. We plan to revisit and update our guidance in light of the Company's strong growth.
Phoenix continues to lead and disrupt financial services in Israel, supported by this accelerated growth in investments and asset management, distinctive product and service offerings, a large client base, hybrid distribution through direct platforms and agent channels, growing cross sales, advanced data capabilities, digitalization, and personalization tailored to client needs.
We are integrating the businesses we recently acquired and expect to capture synergies going forward. The Company continuously evaluates opportunities for additional transactions. At the same time, we are expanding the capabilities of the Phoenix platform: we recently established an international reinsurance capacity and we continue to accelerate investments in technology and the development of digital, data and AI capabilities, with a focus on improving client experience. These investments enable us to strengthen our competitive advantages by delivering more value to our clients, expand our client base, and accelerate growth.
The Company generates high-quality, cash-based earnings and maintains strong capitalization, returning NIS 970 million to shareholders through cash dividends and share buybacks, representing 62% of first half 2026 earnings. We also increased the annual share buyback plan to NIS 400 million.
We are pleased with the international recognition reflected in our expanded global shareholder base and in the international ratings of both Phoenix Financial and the Phoenix Insurance subsidiary. These provide us with flexibility to continue investing in growth and capabilities and accelerate M&A activity, while maintaining responsible capital management and creating significant value for shareholders."
Conference Call Information
Phoenix Financial will hold a conference call on August 25, 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 asset manager with over $220 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 statement 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.
