Phoenix Financial Releases Impressive Q2 and H1 2025 Earnings: Major Growth Highlights

Phoenix Financial Reports Strong Q2 and H1 2025 Results

Phoenix Financial Ltd., a major asset management and investment firm based in Israel, has released its financial results for the second quarter and first half of 2025, revealing remarkable growth and profitability metrics.

Financial Highlights

For H1 2025, the company reported comprehensive income reaching NIS 1,496 million, translating to earnings of NIS 6.0 per share. The return on equity (ROE) also showcased an impressive 27%. Meanwhile, for the second quarter of the same year, comprehensive income was recorded at NIS 928 million or NIS 3.7 per share, achieving a 35% ROE.

A significant aspect of this performance was the remarkable 22% increase in core income, which amounted to NIS 1,318 million for H1 2025. This rise indicates that Phoenix is on track with its strategic objectives, aligning its financial results with targeted growth forecasts for 2027, which management anticipates revisiting in Q4 2025.

Key Growth Drivers

One of the notable contributors to this growth was the 44% rise in income from the Asset Management division, reaching NIS 426 million in H1 2025 compared to the previous year's figures. Detailed segments within this division, such as Wealth Investments and Insurance, demonstrated high profitability and cash flow stability, further enhancing the overall performance of the firm. Moreover, core income from insurance activities increased significantly, from NIS 783 million in H1 2024 to NIS 892 million in the same period in 2025.

Additionally, comprehensive net income from non-operating effects contributed NIS 178 million for H1 and NIS 236 million in Q2, primarily benefitting from strong investment performance. However, the company did experience some headwinds from negative interest rate effects that impacted its overall financials.

Dividend and Share Buyback Programs

In light of its strong performance, Phoenix Financial announced a dividend of NIS 400 million, or NIS 1.59 per share, declared from its Q2 earnings. This dividend follows a previous distribution of NIS 230 million from first-quarter earnings, making a total of NIS 630 million distributed for the first half of the year. Furthermore, the company has announced an extension of its share buyback program, increasing it from NIS 100 million to NIS 200 million this year.

Major Strategic Moves

In a strategic move to enhance its growth, Phoenix Financial is set to increase its ownership stake in Phoenix Agencies to 95%, following a transaction that will see the firm acquire a further 17% of its shares. This acquisition is aimed at accelerating value generation within the brokers and advisors business segment, which is expected to continue driving cash flow and profitability. Additionally, Phoenix announced its inclusion in the MSCI Israel index, further showcasing its robust market position and visibility among international investors.

Commitment to Community Support

Besides financial achievements, Phoenix Financial has reiterated its commitment to community support, particularly during challenging times such as the recent conflict in Iran. The firm remains engaged in providing assistance to families affected by the conflict, and it holds a Platinum Plus rating from Maala, reflecting its efforts in ESG initiatives.

Conclusion

Eyal Ben Simon, CEO of Phoenix Financial, stated that the results for the first half of 2025 reflect solid long-term growth momentum. He emphasized the importance of effective capital management, innovation, and client service excellence as critical components for future success. Phoenix Financial is thus well-positioned to continue generating high-quality earnings while pursuing strategic opportunities in the market.

With an eye on evolving market dynamics and the continued demand for its diverse financial solutions, Phoenix Financial is set to enhance shareholder value through disciplined execution of its growth strategies and timely adjustments based on financial performance.

Conference Call

For further details on these results, Phoenix Financial will hold a conference call today, August 25, at 1 PM IL in Hebrew and 5 PM IL / 3 PM UK / 10 AM ET in English. Dial-in information has been published on the Tel Aviv Stock Exchange website to ensure interested parties can participate and gain deeper insights into the company's financial trajectory.