TEL AVIV, Israel, March 13, 2025 /PRNewswire/ — Phoenix Financial Ltd., a leading Israel-based asset management, insurance, and financial group (TLV:PHOE) (“Phoenix,” the “Group,” or the “Company”), today reported its results for the fourth quarter of 2024 and calendar year 2024.
Highlights
Comprehensive income of NIS 2.087 billion (NIS 8.32 per share) and ROE of 18.6% for 2024;
Comprehensive income of NIS 803 million (NIS 3.20 per share) and 30.9% ROE for the fourth quarter of 2024;
Core income increased by 33% to NIS 1.76 billion compared to 2023, with a core ROE of 15.9%, in line with the strategic roadmap;
Strong performance from growth engines Asset Management, Credit, and Distribution with NIS 585 million in core income;
Dividend distribution of NIS 565 million announced, reflecting NIS 1.017 billion in annual dividends and share buybacks from 2024 income, including NIS 270 million dividend distributed in September 2024 and NIS 182 million in share buybacks during 2024;
Expected update to 2027 strategic targets during 2025, with NIS 400-600 million additional income potential above NIS 2 billion comprehensive income target for 2027, driven by IFRS 17 implementation in 2025 overperformance in growth engines.
Total profitability and return on equity
Phoenix Financial reports NIS 2,087 million in comprehensive income for 2024, NIS 8.32 per share, and 18.6% in return on equity; core comprehensive income (net of non-operating effects of the capital markets above and below a real return of 3%, interest rate impact and special items) totaled NIS 1,760 million, resulting in 15.9% core ROE;
In the fourth quarter of 2024, comprehensive income totaled NIS 803 million, primarily due to investment income exceeding a real 3%, resulting in earnings per share of NIS 3.20 and 30.9% ROE; core comprehensive income in the fourth quarter of 2024 totaled NIS 418 million, resulting core ROE of 15.6%.
Continued growth in activities and profitability
Growth in Asset Management, Credit, and Distribution: Core income from asset management activities (including Phoenix Investment House, Wealth, and Retirement (Pension and Provident), Distribution (Agencies) and Credit (Phoenix-Gama) totaled NIS 585 million in 2024 and NIS 152 million in the fourth quarter, compared to NIS 450 million and NIS 111 million in 2023 and the fourth quarter of 2023, respectively; adjusted EBITDA totaled NIS 1,145 million in 2024 and NIS 289 million in the fourth quarter of 2024 on a consolidated basis, including minority interests; profitability across growth engines was the result of accelerated growth and synergies arising from acquisitions completed over the last two years;
Growth in the Insurance Activity: Core income from insurance activities totaled NIS 1,175 million in 2024 and NIS 266 million in the fourth quarter, compared to NIS 872 million and NIS 255 in 2023 and the fourth quarter of 2023, respectively, due to the ongoing realization of competitive advantages in P&C insurance and broad digitization and optimization across the business.
Positive non-operating effects: Contributed NIS 327 million in 2024 and NIS 385 million in the fourth quarter, due to investment performance with real returns above 3% and the collection of variable management fees;
Expansion of assets under management and credit portfolio: Assets under management continued to grow, reaching NIS 525 billion at the end of 2024;
In addition, the credit portfolio of Phoenix Gama grew to NIS 3.4 billion, including Construction Financing, which was transferred from Phoenix Insurance to Phoenix Gama in early 2024, and the digital consumer credit platform launched during the year;
Strategic targets and roadmap: Phoenix continues to grow towards a target of NIS 2 billion in comprehensive income in 2027, compared to NIS 1.760 billion in core income in 2024;
Phoenix estimates the potential to generated additional income of NIS 400-600 million in excess of the target, due to IFRS 17 implementation in 2025 as well as the Company’s performance, and expects to revise its 2027 strategic targets during 2025.
Financial strength and resilience