Phoenix Holdings Publishes 2022 Financial Statements and Reports Comprehensive Income of NIS 1.1 Billion with Dividend Distribution, Despite Capital Market Declines
Phoenix Holdings Ltd., a leading Israel-based financial, insurance and investment group (TASE: PHOE) (“The Phoenix,” the “Group,” or the “Company”), today reported results for 2022 and the fourth quarter of 2022.
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Comprehensive income by segment (2022, in NIS millions) (Graphic: Business Wire)
- The Group reported comprehensive income of NIS 1,124 million for 2022 and NIS 526 million for the fourth quarter, reflecting a 11.4% annual return on equity and 23.0% in the quarter.
- The results reflect a 45% improvement in profit from operations before tax over last year - from NIS 1,248 million in 2021 to NIS 1,796 million in 2022. Total profit from asset management, distribution (agencies) and credit contributed NIS 624 million before tax in 2022, compared with NIS 453 million in 2021.
- The Phoenix's 2022 results were affected by the challenging economic environment and declines in the financial markets. The total negative impact, before tax, of the declines in the markets on Phoenix results, net of the interest rate increase, amounted to NIS 359 million compared to a positive effect of NIS 1,595 million in 2021. During the fourth quarter of 2022, the total positive effect before tax amounted to NIS 362 million compared to NIS 738 million in the same period last year.
- Pursuant to the Company’s dividend policy of distributing at least 30% of the total annual comprehensive income, The Phoenix is announcing a dividend of NIS 177 million for the second half of 2022, resulting in total dividend distributions of NIS 337 million for 2022, which equates to 30% of 2022 income.
- In the insurance segment, total premiums and contributions towards benefits grew 3.1% in 2022 compared with last year, totaling NIS 19.7 billion.
- The Company makes acquisitions that are in line with its strategy and financial targets in the areas of asset management, agencies, and credit. Total assets under management as of December 31, 2022 reached NIS 371 billion., Including the recently signed acquisitions of Epsilon Investment House and selected assets from Psagot Investment House, AUMs amount to an aggregate of NIS 399 billion, on a pro forma basis as at the end of 2022, subject to receiving required approvals.
- As of December 31, 2022, equity capital totaled NIS 10.1 billion, following the NIS 160 million dividend distribution from 2022 first half income and a share buyback of NIS 56 million. The Phoenix announced a share buyback plan for 2023, totaling NIS 100 million. As of the date of this report, the Company has repurchased approximately NIS 6 million of shares under its 2023 buyback plan.
- The Phoenix Insurance Solvency ratio has improved following the increase in interest rates, reaching 202% as of June 30, 2022, including transitional measures, compared to 190% as of December 31, 2021 (137% compared to 117% in 2021 without transitional measures). The Phoenix sees its substantial financial resilience and liquidity as a distinct competitive advantage that will allow it to continue advancing its strategic goals, generate excess returns and maximize business opportunities.
- The Group continues focus on client value propositions and to make significant investments in its infrastructure and digital capabilities.
Eyal Ben Simon, CEO of Phoenix Holdings:
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