Bank Hapoalim B.M.

Investor Presentation • Mar 3, 2025

Bank Hapoalim Annual Report 2024

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 2024 annual provision made in relation to the investigation of the from the disposal of real-estate properties owned by financial results. This presentation is not a substitute for US authorities. the Bank in the course of the relocation to the Poalim the Bank's 2024 Annual Financial Statements, which Center. The targets may not be realized, in full or in include the full financial information, including forward- The targets listed in this presentation constitute part, and the actual business results achieved may be looking information. The financial statements are forward-looking information, as defined in the materially different, due, among other factors, to the available on the Bank's website at Securities Law. The targets are based on various

may cause actual results to differ materially from those 3.3%-3.5% during the years of the plan. The Bank's plans and the financial targets are subject to

Data relating to business segments is presented according the Corporate Governance Report), including in to "operating segments based on management approach" connection with profit distribution, and do not include

www.bankhapoalim.com failure of the assumptions detailed above to -Investor Relations/Financial assumptions, estimates, and evaluations with regard to Information. materialize; changes in the business environment, in future events, the materialization of which is uncertain Israel and globally, and in macroeconomic conditions; Some of the information in this presentation that does and/ or not under the Bank's control, including the condition of the global economy; the economic, not refer to historical facts constitutes forward-looking assumptions regarding macroeconomic conditions, in political, and security situation in Israel and in the information, as defined in the Securities Law. line with expectations derived from the market; these region; regulatory changes and consequent restrictions include a Bank of Israel interest rate of 4.00% at the end Forward-looking statements regarding applicable to the Bank; or the materialization of any of of 2025 and 3.75% at the end of 2026, inflation of 2.3%- the Bank's business, financial condition, and results of the risk factors that affect the Bank. See the section 2.5% during the years of the plan, and GDP growth of operations are subject to risks and uncertainties that "Review of risks," below.

policies, as well as certain other risk factors detailed update the information regarding the financial targets approval of the financial statements, the details, from time to time in the Bank's filings with the at any time. manner of implementation, and impacts of which are securities authorities. still unclear; see the section "Regulatory initiatives" in as disclosed in note 28A in the Bank's annual report. the effects of one-time events, including recognition

contemplated. Such forward-looking statements changes that may be required from time to time, include, but are not limited to, product demand, In addition, the targets were set based on the existing including due to factors that may affect their pricing, market acceptance, changing economic regulation at the date of the report (not including the realization, as described above. Subject to the conditions, risks in product and technology outline for the banking system regarding which the directives of the law, the Bank shall not be obligated to development and the effect of the Bank's accounting Bank of Israel issued a press release close to the date of s accounti

2024 Annual Financial Review

Yadin Antebi, CEO Financial targets

2024: a year of growth, strong profitability and shareholder value creation

Financial targets for 2025-2026

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

Key baseline assumptions for targets (as of March 2025)

BOI interest rate	4.00% at the end of 2025, 3.75% at the end of 2026, in-line with market-implied expectations
Inflation (known CPI)	2.5% in 2025, 2.3% in 2026, in-line with market-implied expectations
GDP growth	3.3% in 2025, 3.5% in 2026
Other income	Excluding gains from real-estate asset realizations * and recognition of insurance reimbursement

*Insurance reimbursement: under a settlement agreement in the amount of USD 135 million. For further details, see note 25 of the 2024 annual report. Note: For a detailed disclosure regarding capital and capital distribution, see item 2.3.2 in the financial report.

2024 Annual Financial Review

Strategic focus

Strategic focus

Leadership in retail banking

Accelerating growth by focusing on sales and service

Customer interactions across channels, per month

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Maximizing potential in housing loans

to increase market share

sales, service, and models including complex in the mortgage center (SLA)

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Re-org of the Updating Expanding the A significant leap in mortgage operation: compensation customer base, service, particularly retention contact transactions application process

Leadership in corporate banking

Accelerating growth through process improvements

Continued leadership in capital markets activities

and expansion of Poalim Equity operations

bit – a unique driver of innovation in the Israeli market

3 million active users

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New revenue streams

Transaction fee 0.6% on incoming payments above NIS 25k per year.

Payment account

• Reduces current clearing fees
• Expands the bank's deposit base

Improvement in operational efficiency

Efficiency plan of 770 (net) employee positions

When concluded, the plan will lead to cost savings of NIS 300 million per year, before tax.

Focus on cost savings in other expenses

Gen AI & data

Embedding data as a cross-organizational resource, integrated into workflows

Leveraging data for underwriting, sales, service, email and more

2024 Annual Financial Review

Ram Gev, CFO Financials

2024 and 4Q24 key messages

Profitability	• Strong profitability in the full year and fourth quarter of 2024: ROE of 13.8% and 10.8%, respectively. • Full-year and fourth-quarter quarter2024 net profit were impacted by a ~NIS 400 m (net) expense for an early retirement plan.
Growth	• Strong credit growth across allsegment of operations; 8.9% YoY and 3.0% QoQ. • Growth wasrecorded while NPL ratio continued to improve, currently 0.59%.
Capital and distribution	• Total distribution of net profit in respect of the fourth quarter amounts to 40%, including cash dividend and share buyback. • Capital and liquidity ratios continue to be substantially higher than requirements, reflecting significant buffers.
Financial targets	• New financial targets introduced for 2025-2026.

Strong and stable profitability			Significant and responsible growth		Robust capital and liquidity position
ROE	Impact of retirement plan	Credit	NPL	CET-1 ratio	Profit distribution
13.8%	597 m NIS	+8.9%	0.59%	11.80%	40%
2024	Before tax	YoY	NPL ratio	LCR	Retail deposit ratio d
10.8% 4Q24	400 m ~NIS Net	+3.0% QoQ	255% NPL coverage ratio	131%	57%

Continued strong profitability

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Significant growth momentum in the fourth quarter and full year

Credit growth across all segments of operation NIS billion

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Continued financing income growth

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Fourth quarter financing income and margin impacted by CPI differences; excluding CPI contribution, core financing income soared

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Growth in customer activity reflected in strong fee volume

Fees in 2023 and 2024 were impacted by benefits granted to customers to help cope with the Swords of Iron War.

Benefits granted amounted to NIS 30 million in 2023, and NIS 67 million in 2024.

Early retirement plan affected expenses; will positively impact future results

Total expenses, NIS million

Early retirement plan:

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• Planned reduction of 770 (net) employee positions by 2028.
• The actual pace of retirements will be aligned with the progress ofthe Bank'sstrategic plan.
• The efficiency plan, when concluded, is expected to lead to cost savings of approx. NIS 300 million per year, before tax effect.

The decrease in salary and related expenses in 2024 was impacted by approx. NIS 200 m in respect of the collective wage agreement recorded in 2023, partially offset by an increase in bonuses. Current salary and related expenses remained stable in 2024. Other expenses were impacted by donations and aid granted in connection with the war, in the amount of approx. NIS 84 million (vs. NIS 10 million in 2023), and an increase in expenses for legal proceedings (primarily in the second half of 2024) and in IT expenses.

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Continuous improvement in productivity ratios to support future profitability. Growth and retirement plan creates further potential

Further build of the collective allowance alongside income from individual allowance

Provision for credit losses, NIS million

In 2024, 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 more than double the NPLs

NPL coverage ratio* 255% 161% 174% 137% Total problematic debt, NPL ratio & NPL coverage ratio NIS million NPL ratio 3,871 4,091 5,054 Special mention 2,614 1,115 ^{858 872} 4,785 4,681 1,018 4,258 3,178 *** 2021 2022 2023 Non-accruing Substandard 2024 1.11% 0.97% 0.87% 0.59% 9,771 9,630 9,250 7,744 ***

* 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.

Largest-in-sector retail base provides a competitive advantage

Substantial organic capital generation

The gap between the current CET-1 ratio and the minimum internal target reflects a substantial capital surplus, to serve various future growth scenarios, potential further capital distribution, a buffer for negative scenarios, etc.

CET-1 capital ratio Strong growth in shareholders' 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 24 in the FY24 report.

Continued distribution of 40% of net profit

* Calculated as the dividend per share declared in respect of the last four quarters' profits, including 4Q24, divided by share price on the record date of each distribution or declaration.

Future relocation to Poalim Center: potential to increase productivity and record capital gains

Today, the bank's headquarters are scattered over eight buildings owned by the bank in Tel Aviv. The main sites are:

50 Rothschild Blvd. & Menora building 63 Yehuda Halevy St.

Construction rights for:

tower

Mixed-use designation for residential, office, and commercial spaces

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33% owned by the bank

Mixed-use designation for residential, office, and commercial spaces

Rubinstein Towers Fully owned by the bank

Poalim Center

A 40-story office tower with area of ~66,000 sq.m.

A central, accessible location near a major transportation hub

An innovative, smart, tech-based tower compliant with LEED Gold green building standards

One Bank -full synergy, partnership, and agility

A leap forward in the employee experience

Relocation planned for 2026

A full year of war resulted in low growth, yet far from recession

Assuming the ceasefire holds, the worst is behind us

GDP growth, source: CBS

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Tight labor market

The fiscal picture has improved and risk premiums declined, opening the way to a more accommodative monetary policy

10-year government bond yields, source: Bloomberg Implied interest rates, source: Bloomberg

Risk premiums have declined Interest rates expected to decrease

2024 and 4Q24 key takeaways

We introduced financial targets for the years 2025-2026: Net profit of NIS 8.5-9.5 billion; ROE of ~ 14%-15%; to NPLs was 255%. Annual credit growth of 7%; Distribution of at least 50% of net profit.

NPL continued to decline, bringing the NPL ratio to 0.59%; credit-loss allowance

Continued strong profitability – ROE of 13.8% in 2024 and 10.8% in 4Q24, impacted by ~NIS 400 m (net) expense for early retirement plan.

Strong organic capital generation creates a large capital buffer and allows for a total distribution of 40% of net profit.

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Strong credit growth in the quarter and full year; growth was broad-based across all segments.

The Board of Directors resolved to elect Noam Hanegbi as the Chairperson of the Bank. The appointment took effect on Feb. 18, 2025.

Appendix

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Key balance sheet items NIS million

Year ended	2023	2024
Cash on hand and deposits with banks	107,730	117,053
Securities	127,122	121,838
Net credit to the public	407,381	443,483
Deposits from the public	554,595	574,285
Deposits from banks	9,085	10,837
Bonds and subordinated notes	21,800	20,190
Shareholders' equity	52,430	58,150
Total balance sheet	686,530	720,844

Note: For a full balance sheet analysis, please refer to the bank's financial statements for FY24.

Key profit and loss items NIS million

Year ended	2023	2024
Total net financing profit	17,352	17,909
Fees and other income	4,030	4,051
Total income	21,382	21,960
Wages	(4,577)	(4,486)
Maintenance and depreciation of buildings and equipment	(1,477)	(1,445)
Other expenses	(2,177)	(3,076)
Total operating and other expenses	(8,231)	(9,007)
Provision for credit losses	(1,879)	(693)
Profit before taxes	11,272	12,260
Provision for taxes on profit	(3,930)	(4,559)
Net profit	7,360	7,635
ROE	15.0%	13.8%

Israel's leading financial institution