Amid strong market growth…

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comprehensive income: ILS702 million in Q1 2026, an increase of 24% compared to Q1 2025.
Dividend: 24% for the first quarter of 2026.
Total Assets Under Management (AUM): ILS623 billion.
Basic Income: ILS709 million in Q1 2026, an increase of 13% year-on-year.
Asset Management Core Income: ILS251 million in Q1 2026, an increase of 23% year-on-year.
Insurance Basic Income: Approximately ILS460 million, an increase of 9% year-on-year.
Dividend Payment: ILS1.3 per share, totaling ILS320 million for Q1 2026.
Buyback: ILS85 million during Q1 2026.
Dividend and Buyback Payout Ratio: 57% of Q1 revenue.
Quarterly Dividend from Subsidiaries: ILS484 million.
EBITDA growth: 17% year-on-year through the first quarter of 2026.
P&C Income Before Tax: ILS261 million.
Life segment income before tax: ILS38 million.
Wealth and Investments Segment Income Before Tax: ILS125 million.
Retirement Business Income Before Tax: ILS32 million.
Breakdown of brokers’ and advisors’ income before tax: ILS125 million, an increase of 38% year-on-year.
Payment and financing segment income before tax: ILS53 million.
Solvency Ratio: 178% with a December 2025 transition measurement.

Release date: May 28, 2026

For a full transcript of the earnings call, please visit full earnings call transcript.

positive point

Phoenix Financial Limited (XTAE:PHOE) reported strong comprehensive earnings of ILS702 million for the first quarter of 2026 with a return on equity of 24%.
The company achieved 23% year-on-year growth in its asset management platforms, indicating a successful transition to more fee-based businesses.
Phoenix Financial Limited (XTAE:PHOE) Completed the strategic acquisition of BUYME Digital Platform and Fidelis Wealth Management, enhancing its client acquisition and distribution capabilities.
The company is distributing 57% of Q1 earnings through dividends and buybacks, in line with its guidance of paying out at least 55% in 2026.
Phoenix Financial Limited (XTAE:PHOE) maintains a strong solvency position at 178%, above its long-term target, providing financial flexibility for growth and cash flow.

negative point

The company faced challenges from the impact of the Iran war in March, which affected nominal annual returns on corporate accounts.
The performance of investments in the health sector was partially affected by non-operational impacts, which affected overall profitability.
Despite strong growth, investments in AI are currently larger than the immediate value generated, indicating long-term returns on investment.
The first quarter was characterized by broader market uncertainty, which may continue to impact Phoenix Financial Ltd. (XTAE:PHOE) throughout the year.
The Company is exposed to potential risks from low interest rates, which could impact net profit by approximately ILS200 million for every 50 basis point reduction.

Q&A Highlights

Why: You continue to make acquisitions. Going forward, what sectors are you looking to make acquisitions in? And could it make sense for Phoenix? A: Eyal Ben Simon, CEO: M&A is a strategic tool for us, although it is not included in our guidance. We aim to make acquisitions in strategic sectors such as P&C and asset management to accelerate growth. Recent acquisitions like BUYME and Fidelis are expected to integrate well and add value.

Why: How will the low interest rates announced this week impact Phoenix? A: Eli Schwartz, CFO: The recent capital markets improvement could improve our return on equity in the second quarter. A 50 basis point reduction in interest rates could have a positive impact of approximately ILS200 million on our net profit.

Why: The Bank of Israel has recently reported a significant increase in Israelis’ exposure to investments in traded securities. Do you also see this trend? And what impact does it have on your business? A: Eyal Ben Simon, CEO: Yes, we see this trend and we have built our strategy to derive value from it. The market is maturing, and we expect this trend to strengthen, which will benefit our financial solutions and investment products.

Why: You discussed increasing investment in AI. How do you measure return on investment? And what will be the impact on business in the short term and long term? A: Eyal Ben Simon, CEO: We are investing in AI at three levels: machine learning, GenAI and agentic AI. While current investment returns are high, we expect AI to enhance sales and customer service, ultimately generating more value than investment.

Why: You are reporting growth in the CSM and Life & Health sectors. Are you changing your strategy to grow faster in these areas? A: Eyal Ben Simon, CEO: Our strategy remains unchanged, focused on strong growth across all sectors, including life and health. We look forward to further growth and improvement in profitability, especially with enhancements to our stochastic model.

For a full transcript of the earnings call, please visit full earnings call transcript.

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