Bank Hapoalim B.M.

Investor Presentation • Nov 18, 2024

Bank Hapoalim

3Q24 Quarterly Financial Review

Disclaimer

This presentation includes condensed contemplated. Such forward-looking Hapoalim's 3Q24 financial results. product demand, pricing, market

include the full financial information, accounting policies, as well as certain other including forward-looking information. The risk factors detailed from time to time in financial statements are available on the the Bank's filings with the securities Bank's website at www.bankhapoalim.com - authorities. Investor Relations/Financial Information.

information, as defined in the Securities Bank's annual report. Law.

results of operations are subject to risks and uncertainties that may cause actual results to differ materially from those

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information and selected data from Bank statements include, but are not limited to, acceptance, changing economic conditions, This presentation is not a substitute for the risks in product and technology Bank's 3Q24 Financial Statements, which development, and the effect of the Bank's

Data relating to business segments is Some of the information in this presented according to "operating presentation that does not refer to segments based on management historical facts constitutes forward-looking approach" as disclosed in note 28A in the

Special items in ROE, net profit, and Forward-looking statements regarding the expenses refer to provision made in relation Bank's business, financial condition, and to the investigation of the US authorities.

3Q24 key messages

Strong and stable profitability		Significant and responsible growth			Best-in-class capital and liquidity
ROE	Cost-income ratio	Credit	NPL		CET-1 ratio	Profit distribution
13.6% 3Q24	36.6%	+3.4% QoQ	0.71% NPL ratio		11.90%	40%
14.9% 9M24		+6.4% YoY	224% NPL coverage cover ratio	LCR	132%

• th Profitability The 11 consecutive quarter of solid double-digit ROE, 3Q24 net profit of NIS 1.9 billion.
  • Continuous high income level supported by high CPI and growth in activity, mitigated by bond realizations; cost-income ratio of 36.6%.
  • Continued built of collective allowance to reflect the continuation and expansion of the war, and possible effects of the war on the real-estate sector.

Balance

• Strong credit growth across allsegment of operations, while NPL ratio improved.
• Sticky deposit base (58% retail);LDR of 76%.

• sheet High level of buffers capital and liquidity surplussubstantially above targets, and creditloss allowance buffer at1.81% of total credit.

• Strong organic capital generation.

• Significant capitalsurplus over the minimum internal CET-1 capitaltarget. Capital and
• distribution Total distribution of 40% of 3Q net profit NIS ⁵¹² million cash dividend ⁺ NIS ²⁵⁰ share buyback.

The economy is functioning, though not at full capacity

Supply-side constraints slow growth Tight labor market is here to stay

YOY rate of change

risk premiums have decreased Inflation moving in opposite direction to global trends;

Source: CBS, Bloomberg Source: Bloomberg

Year-on-year change in CPI 10-year government bond yields, local currency

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Housing market: demand has stabilized at a high level, while a shortage of workersis delaying housing completions

Source: BOI Source: CBS Israeli workers 300 Palestinian workers 2 3 3 ^{2 250 72 2 2 2} 2 200 ^{6 29 150 221 222 221 215 203 206 197 192 179} 100 159 120 50 26 24 22 23 24 25 26 27 29 30 31 0 3 3 3 3 4 4 4 4 4 4 4 2 2 2 2 2 2 2 2 2 2 2 / / / / / / / / / / / 9 0 1 2 1 1 2 3 5 7 0 1 1 4 6 0 0 0 0 0 0 0 Foreign workers

Jobs in the construction industry

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The fiscal position has weakened; markets do not anticipate a rate cut in the near future

Implied interest rate (as of November 14, 2024)

Consistently delivering mid-double-digit ROE

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

Strong income in the quarter, even excluding CPI contribution

High and stable income also when excl. CPI

Slight decrease in the share of non-interest bearing deposits

Continuous cost control leading to strong efficiency ratio

Salary and related expenses in the first half of 2023 were impacted by a one-time grant in respect of the collective wage agreement signed in July 2023. In addition, salary and related expenses in the last 9 months, were influenced by a decrease in performance-based bonuses and a slight decrease in salary expenses, vs. the same period last year.

Strong growth in credit in the quarter as suppressed demand released

Credit growth attributed to all segments of operationsNIS billion

Further build of collective allowance to reflect the continuation of the war; the trend of income from individual allowance continues

Provision for credit losses NIS million

Credit losses in the third quarter amounted to NIS 406

This resulted from an increase in the collective allowance, due to the continuation and expansion of the war, as well as possible effects ofthe war on the real-estate sector.

Alongside that, the trend of income from individual allowance continued, as a result of recoveries from a

0.6% Share of book

NPLs are low and improving, credit-loss allowance is more than double the NPL balance

Allowance balance & NPL coverage ratio NIS billion Balance of allowance for credit losses Collective allowance NPL coverage ratio* Allowance to credit ratio** 8.0 6.5 6.5 *** 2021 2022 2023 3Q24 7.1 5.7 5.3 224% 161% 174% 137% 8.0 7.4 1.92% 1.80% 1.81% 1.64%

Total problematic debt & NPL ratio NIS million 1.11% 0.97% 0.87% 0.71%

* 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. ***

High quality real-estate book focused on housing construction, characterized by good underwriting parameters and high allowance buffer

Focus on customers whose main sector of activity is housing construction*

Sound buffers for any development

2.48% Allowance to loans in the real-estate sector in Israel

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High underwriting standards in the real-estate and mortgage ** sectors

Only Only of completed

of land financing properties financing 4% with LTV>80% 1% with LTV>80%

of real estate The absorption capacity of the of decline in the value of the asset as with absorption 99% completed without the bank incurring capacity of over 25% lossesfrom the projects

under construction projects is the maximum possible rate

* For full disclosure regarding segmentation of credit risk in the construction and real-estate sectors in Israel, by customers' principal area of activity, refer to table 3-5 in the quarterly report.

** For full disclosure regarding credit risk in the real-estate sector at the Corporate Banking Division in Israel, by financing rate (LTV) and absorption capacity, refer to table 3-7 in the quarterly report.

Our largest-in-the-sector retail base provides a competitive advantage

Substantial organic capital generation leading to high capital ratios

CET-1 capital ratio

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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.

Impact of S&P sovereign rating downgrade on CET-1 ratio (0.25% at the date of the downgrade)

3Q24 report.

Strong growth in shareholders' equity NIS billion

is 6%. For additional information regarding capital requirements, refer to note 9 in the

High shareholder return through dividend distribution and share buyback

* Calculated as the dividend per share declared in respect of the last four quarters' profits, including 3Q24, divided by share price on the record date of each distribution or declaration.

Bit – a one-of-its-kind strategic asset in the Israeli market

Current offering

P2P transactions Most popular app in Israel

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P2M (online payments) Working with:

• •Over 30k merchants
• •Leading PSPs (payment service providers) in Israel

Claims disbursements Working with almost all insurance companies and pension funds

Bill payments

• •Water bill •Municipal tax
• Toll road

Bit's new developments

Transaction fee

For commercial users, starting January 1, 2025, a 0.6% fee will apply to incoming payments exceeding the total amount of NIS 25k per year.

Payment account

For all users, customers will be able to hold and manage stored funds through a payment account in the app.

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

Further expansion of product offering based on the new payment account

3Q24 key takeaways

Consistently delivering double-digit ROE; cost-income ratio at 36.6%.

NPL continued to decline, bringing the NPL ratio to 0.71%; credit-loss allowance is more than double the NPL balance.

Strong credit growth in the quarter as the bank succeeded in translating the release of suppressed demand into broad-based growth across all segments.

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

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Increase in income from regular financing activity, even excluding the CPI effect, as a result of the growth in average credit balances.

Bit introduces two new developments: starting in 2025, a 0.6% fee will apply to certain transactions, and customers will be able to hold and manage stored funds through a payment account.

Appendix

Key balance sheet items NIS million

	3Q23	2Q24	3Q24
Cash on hand and deposits with banks	92,131	107,821	115,842
Securities	136,810	123,948	124,400
Net credit to the public	404,371	416,297	430,395
Deposits from the public	532,756	552,612	569,938
Deposits from banks	8,953	11,371	10,839
Bonds and subordinated notes	23,810	19,535	20,823
Shareholders' equity	50,252	55,506	57,156
Total balance sheet	675,988	685,140	713,667

Key profit and loss items NIS million

	3Q23	2Q24	3Q24
Total net financing profit	4,209	4,706	4,619
Fees and other income	1,089	1,026	1,008
Total income	5,298	5,732	5,627
Wages	(1,136)	(1,129)	(1,036)
Maintenance and depreciation of buildings and equipment	(353)	(363)	(376)
Other expenses	(570)	(614)	(650)
Total operating and other expenses	(2,059)	(2,106)	(2,062)
Provision for credit losses	(662)	49	(406)
Profit before taxes	2,577	3,675	3,159
Provision for taxes on profit	(917)	(1,402)	(1,196)
Net profit	1,669	2,238	1,905
ROE	13.4%	16.4%	13.6%

Israel's leading financial institution