Bank Hapoalim B.M.

Investor Presentation • May 19, 2025

Bank Hapoalim

Quarterly Financial Review 1Q25

Disclaimer

This presentation includes condensed information and Special items in ROE, net profit, and expenses refer to of reimbursement by insurance and potential income selected data from Bank Hapoalim's 1Q25 financial provision made in relation to the investigation of the from the disposal of real-estate properties owned by results. This presentation is not a substitute for the US authorities. the Bank in the course of the relocation to the Poalim Bank's 1Q25 Financial Statements, which include the full Center. The targets may not be realized, in full or in financial information, including forward-looking The targets listed in this presentation constitute part, and the actual business results achieved may be information. The financial statements are available on forward-looking information, as defined in the materially different, due, among other factors, to the availa the Bank's website at www.bankhapoalim.com - Securities Law. The targets are based on various www.bankhapoali

may cause actual results to differ materially from those 2.5% during the years of the plan, and GDP growth of "Review of risks". contemplated. Such forward-looking statements 3.3%-3.5% during the years of the plan. include, but are not limited to, product demand, The Bank's plans and the financial targets are subject to pricing, market acceptance, changing economic In addition, the targets were set based on the existing changes that may be required from time to time, conditions, risks in product and technology regulation at the date of the report (not including the including due to factors that may affect their development, and the effect of the Bank's accounting outline for the banking system regarding which the realization, as described above. Subject to the accounti

according to "operating segments based on the Corporate Governance Report), including in management approach" as disclosed in note 28A in the connection with profit distribution, and do not include

Investor Relations/Financial Information. assumptions, estimates, and evaluations with regard to materialize; changes in the business environment, in Some of the information in this presentation that does future events, the materialization of which is uncertain Israel and globally, and in macroeconomic conditions; not refer to historical facts constitutes forward-looking and/ or not under the Bank's control, including the condition of the global economy; the economic, information, as defined in the Securities Law. assumptions regarding macroeconomic conditions, in political, and security situation in Israel and in the line with expectations derived from the market; these Forward-looking statements regarding region; regulatory changes and consequent restrictions include a Bank of Israel interest rate of 4.00% at the end the Bank's business, financial condition, and results of applicable to the Bank; or the materialization of any of of 2025 and 3.75% at the end of 2026, inflation of 2.3%- operations are subject to risks and uncertainties that the risk factors that affect the Bank. See the section

policies, as well as certain other risk factors detailed Bank of Israel issued a press release close to the date of det from time to time in the Bank's filings with the directives of the law, the Bank shall not be obligated to approval of the financial statements, the details, securities authorities. update the information regarding the financial targets manner of implementation, and impacts of which are at any time. Data relating to business segments is presented still unclear; see the section "Regulatory initiatives" in Bank's annual report. the effects of one-time events, including recognition

failure of the assumptions detailed above to environ

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Strong opening of the year, with robust profitability, significant growth and solid balance sheet metrics

ROBUST PROFITABILITY	CONTINUOUS GROWTH	SOLID BALANCE SHEET
16.4% ROE	+10.8% YoY +2.7% QoQ	11.74% CET-1 ratio
2.4 +25.1% NIS Bn YoY Net profit	Credit growth +11.8% YoY	0.52% NPL rati ratio
35.0% C/I ratio	+3.2% QoQ Total income	128% LCR

Continued strong profitability

14.8% 15.0% 13.8% 11.8% Net profit, ROE & EPS, annual NIS million 7,360 7,635 6,532 4,914 2021 2022 2023 2024 2,238 1,938 1,905 Net profit, ROE & EPS, quarterly NIS million 14.6% 13.6% 1.67 1.45 1.43 5.72 5.50 EPS 4.89 NIS 3.68

4Q24 and FY24: Including ~NIS 400 m negative net impact of retirement plan and a special war tax expense of approx. 4.5% (due to the partial period) of the FY24 profit generated in Israel.

2021: Excluding special items, net profit for 2021 totaled NIS 4,957 million (ROE of 11.9%).

1Q25: Including NIS 0.3 billion tax income recorded in respect of the liquidation of the subsidiary Hapoalim Switzerland and a special war tax expense of approx. 6% of the profit generated in Israel.

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Significant growth momentum

Credit growth across all segments of operation NIS billion

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Consumer Small businesses

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Resilient financing income and margins performance, positively affected by credit growth, CPI, asset portfolio rollover and duration extension

activity

Total financing income

Financial margin

BOI interest rate

(avg.)

Income from regular financing activity

Financing income, NIS million

Bank of Israel outline for monetary reliefs

On March 30, 2025, BOI issued an outline of reliefs to assist customers during 2025-2026, which has been voluntarily adopted by the banking system. The total sum of benefits which will be provided by the banking system is NIS 1.5 billion per year, of which the Bank announced a series of grants and benefits at the amount of NIS 400 million per year, beginning in the second quarter of 2025.

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Growth in customer activity reflected in strong fee volume

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Alongside the increase in revenues, disciplined cost base management

Total expenses, NIS million

Total expenses
	-29.1%	-10.0%
Early retirement plan	QoQ	QoQ
Other expenses	-2.2%	Excluding early retirement plan
Maintenance and depreciation	YoY
Salary and related expenses

Cost- income ratio	39.9%	50.9%	35.0%
		40.1% excl. early retirement plan

Further build of the collective allowance alongside income from individual allowance

Provision for credit losses, NIS million

The provision in the first quarter of 2025 was driven by an increase in the collective allowance for credit losses, due to growth of the credit portfolio as well as potential impacts of the change in the economic, political, and security environment in Israel.

In the first quarter, income was recorded in respect of the individual allowance as a result of recoveries from a small number of borrowers.

High credit quality metrics; low NPL ratio alongside allowance of almost triple the NPLs

* Balance sheet allowance for credit losses to NPL.

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** Allowance in respect of loans, including off-balance sheet items, of total loans.

*** Proforma data. The proforma allowance for credit losses includes the effect of the initial implementation of CECL.

Allowance to credit ratio**

Balance of allowance for credit losses

Collective

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Largest-in-sector retail deposit base provides a competitive advantage

Non-interest bearing deposit ratio 26% Vs. 28% in 1Q24

Substantial organic capital generation and surplus

equity, NIS billion

* Relief valid until December 31, 2025. The minimum regulatory requirement pre-relief is 6%. For additional information regarding capital requirements, refer to note 9 in the 1Q25 report.

Continued distribution of 40% of net profit

* Calculated as the dividend per share declared in respect of the last four quarters' profits, including 1Q25, divided by share price on the record date of each distribution or declaration.

Financial targets for 2025-2026 as published in March 2025

Note: financial targets are subject to baseline assumptions, as disclosed in section 1.2.2 in the 2024 annual report.

* By cash dividend or share buyback, subject to the guidelines of the Bank of Israel and all relevant circumstances. (see section 2.3.2 in the 2024 annual financial report regarding capital and capital adequacy).

Economic activity is recovering gradually, though still below potential

Israel's growth remains higher than most advanced economies

GDP growth 2023-2025F Source: IMF

Tight labor market

Employed persons (thousands) and unemployment rate, SA , Source: CBS

The fiscal stance has improved but risk premiums stay high

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Risk premiums Government balance, 12-month trailing sum

10-year government bond yields. Source: Bloomberg Public debt as a percentage of GDP, 2024 projections

Housing starts rise while home sales have moderated

Housing starts and permits Home sales

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SAAR, Source: CBS Units per month. Source: CBS

1Q25 key takeaways

1

Strong opening of the year, on track to meeting our financial targets

Significant credit growth momentum; growth was broad-based across all segments

3

Robust profitability – ROE 16.4% cost income ratio 35%

Growth was recorded while credit quality metrics continued to improve; NPL ratio 0.52%; credit-loss allowance to NPLs 293%

positively affected by growth in activity, CPI, asset portfolio rollover and duration extension

5

Resilient financing income and fees, Substantial organic capital generation and surplus allows for continued total distribution of 40% of net profit

1Q25 Financial Review

Appendix

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Key balance sheet items NIS million

	1Q24	4Q24	1Q25
Cash and deposits with banks	97,901	117,053	90,552
Securities	119,486	121,838	133,277
Net credit to the public	411,286	443,483	455,594
Deposits from the public	539,902	574,285	565,886
Deposits from banks	13,011	10,837	7,016
Bonds and subordinated notes	20,775	20,190	24,708
Shareholders' equity	54,048	58,150	60,224
Total balance sheet	665,893	720,844	720,197

Key profit and loss items NIS million

	1Q24	4Q24	1Q25
Total net financing profit	4,086	4,498	4,600
Fees and other income	1,004	1,013	1,090
Total income	5,090	5,511	5,690
Salaries and related expenses	(1,122)	(1,153)	(1,115)
Maintenance and depreciation of buildings and equipment	(378)	(356)	(345)
Other expenses	(533)	(1,297)	(529)
Total operating and other expenses	(2,033)	(2,806)	(1,989)
Provision for credit losses	14	(350)	(262)
Profit before taxes	3,071	2,355	3,439
Provision for taxes on profit	(1,157)	(804)	(1,049)
Net profit	1,938	1,554	2,424
ROE	14.6%	10.8%	16.4%

Note: For a full profit and loss analysis, please refer to the bank's financial statements for 1Q25.

Israel's leading

financial institution