This article first appeared on GuruFocus .
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Comprehensive Income:ILS702 million in Q1 2026, a 24% increase compared to Q1 2025.
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Return on Equity:24% for Q1 2026.
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Total Assets Under Management (AUM):ILS623 billion.
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Core Income:ILS709 million in Q1 2026, a 13% increase year-on-year.
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Asset Management Core Income:ILS251 million in Q1 2026, a 23% growth year-on-year.
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Insurance Core Income:Nearly ILS460 million, a 9% growth year-on-year.
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Dividend Payout:ILS1.3 per share, totaling ILS320 million for Q1 2026.
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Buybacks:ILS85 million during Q1 2026.
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Dividend and Buyback Payout Ratio:57% of Q1 income.
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Quarterly Dividends from Subsidiaries:ILS484 million.
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EBITDA Growth:17% year-on-year during Q1 2026.
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P&C Income Before Tax:ILS261 million.
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Life Segment Income Before Tax:ILS38 million.
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Wealth and Investment Segment Income Before Tax:ILS125 million.
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Retirement Business Income Before Tax:ILS32 million.
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Brokers and Advisors Segment Income Before Tax:ILS125 million, a 38% growth year-on-year.
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Payment and Financing Segment Income Before Tax:ILS53 million.
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Solvency Ratio:178% with transition measure of December 2025.
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Warning! GuruFocus has detected 5 Warning Signs with BOM:507552.
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Release Date: May 28, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
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Phoenix Financial Ltd ( XTAE:PHOE ) reported a strong comprehensive income of ILS702 million for Q1 2026, with a return on equity of 24%.
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The company achieved a 23% year-on-year growth in its asset management platforms, indicating a successful transition to more fee-based businesses.
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Phoenix Financial Ltd ( XTAE:PHOE ) completed strategic acquisitions of BUYME Digital platform and Fidelis Wealth Management, enhancing its client acquisition and delivery capabilities.
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The company is distributing 57% of Q1 income through dividends and buybacks, aligning with its guidance of at least 55% payout in 2026.
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Phoenix Financial Ltd ( XTAE:PHOE ) maintains a strong solvency position at 178%, above its long-term targets, providing financial flexibility for growth and cash flow.
Negative Points
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The company faces challenges from the impact of the Iran war in March, which affected corporate account nominal annualized returns.
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Investment performance in the health segment was partially offset by non-operating effects, impacting overall profitability.
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Despite strong growth, the investment in AI is currently larger than the immediate value generated, indicating a longer-term return on investment.
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The first quarter was characterized by broad market uncertainty, which could continue to affect Phoenix Financial Ltd ( XTAE:PHOE ) throughout the year.
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The company is exposed to potential risks from lower interest rates, which could impact net profit by approximately ILS200 million for each 50 basis point reduction.
Q & A Highlights
Q: You continue to make acquisitions. Going forward, in which areas are you looking to acquire? And can it be meaningful for Phoenix? A: Eyal Ben Simon, CEO: M&A is a strategic tool for us, although not included in our guidance. We target acquisitions in strategic areas like P&C and asset management to accelerate growth. Recent acquisitions like BUYME and Fidelis are expected to integrate well and add value.
Q: How will the lower interest rate that was announced this week impact Phoenix? A: Eli Schwartz, CFO: The recent capital market correction may improve our return on equity in Q2. A 50 basis point reduction in interest rates could positively impact our net profit by approximately ILS200 million.
Q: The Bank of Israel recently reported a significant increase in Israelis' exposure to investments in traded securities. Do you also see this trend? And how does it impact your business? A: Eyal Ben Simon, CEO: Yes, we see this trend and have built our strategy to capture value from it. The market is maturing, and we expect this trend to strengthen, benefiting our financial solutions and investment products.
Q: You discussed growing investments in AI. How do you measure the returns on investment? And what will be the impact on the business in the short term and the long term? A: Eyal Ben Simon, CEO: We are investing in AI across three levels: machine learning, GenAI, and Agentic AI. While current investments exceed returns, we expect AI to enhance sales and customer service, eventually generating more value than the investment.
Q: You're reporting growth in CSM and the Life and Health segments. Are you changing your strategy to grow faster in these segments? A: Eyal Ben Simon, CEO: Our strategy remains unchanged, focusing on strong growth across all segments, including Life and Health. We anticipate further growth and profitability improvements, especially with enhancements in our stochastic model.
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
