#Israel #Tel Aviv #Phoenix Financial #financial results #Israel Financial Group

Phoenix Financial’s Q3 and First Nine Months of 2024 Results

Phoenix Financial Ltd., previously known as Phoenix Holdings, has released its financial results for the third quarter and the first nine months of 2024, reflecting significant growth and robust performance in various sectors of its business. Based in Israel, this leading financial, insurance, and investment group has reported a comprehensive income of NIS 1.3 billion for the first nine months, highlighting an impressive return on equity of 16.1%.

Q3 Performance

In the third quarter alone, Phoenix achieved a comprehensive income of NIS 617 million. This translates to earnings per share of NIS 2.46 and a booming return on equity of 24.4%. The company's core comprehensive income for the quarter is reported at NIS 474 million, demonstrating an 18.6% core ROE. These numbers show that Phoenix is not only resilient in the financial sector but is also finding ways to navigate through economic challenges effectively.

The growth trajectory continued as both asset management services and credit distribution segments saw an accelerated expansion of 28% when compared to the same period last year, contributing significantly to the overall performance. This is marked by an increase in total assets under management, which has now crossed the NIS 502 billion mark for the first time in the company's history.

Key Financial Highlights

• - Core Income: The core income for the first nine months of 2024 has risen to NIS 1,342 million, yielding a 16.8% core return on equity, which is a solid improvement over last year's figures.
• - Growth in Asset Management and Credit: The comprehensive income from asset management, distribution, and credit reached NIS 159 million for the third quarter and NIS 433 million for the nine-month period.
• - Insurance Performance: Insurance core income also buoyed the numbers significantly, reaching NIS 315 million in Q3 and NIS 909 million for the first nine months. This success is attributed mainly to enhancements in property and health segments.

Financial Resilience and Strategic Growth

Phoenix's financial stance remains strong, characterized by high liquidity and minimal net debt, promoting consistent dividend distributions. The firm is preparing for the upcoming implementation of IFRS 17 in 2025, indicating its commitment to transparency and adaptation in reporting.

The CEO of Phoenix Financial, Eyal Ben Simon, remarked on the successful quarter, emphasizing the group's strategic focus on high-margin, capital-efficient operations. This aligns with their pursuit of advanced client service, innovative technology applications, and aggressive market strategies.

The ownership structure of the company is marking a significant shift with increased interest from international investors. About a third of shares are now held by prominent international funds and investors, illustrating strong confidence in both Phoenix and the broader Israeli economy.

Future Directions

Phoenix has set ambitious strategic targets for the next three years, aiming for comprehensive income of NIS 2 billion, a return on equity between 16% and 18%, and continuous shareholder engagement via dividends and buybacks. As part of growth initiatives, the firm has extended agreements with partners in asset management and has increased its stake in various investment segments.

In conclusion, Phoenix Financial's robust financial results for Q3 2024 signal a positive trajectory amid challenging market conditions. The company’s commitment to continuous improvement and strategic execution positions it favorably for sustained growth and competitive advantage in the fast-evolving financial landscape. The upcoming conference call will further elucidate on these results and the strategy going forward.