Bank Hapoalim B.M.

Earnings Release • May 20, 2024

1Q24 Quarterly Financial Review Q1

Dummy Text

Disclaimer

This presentation includes condensed contemplated. Such forward-lookinginformation and selected data from Bank statements, include, but are not limited to,

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.

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

Bank's business, financial condition, and to the investigation ofthe US authorities. results of operations are subject to risks and uncertainties that may cause actual results to differ materially from those

Dummy Text

Hapoalim's 1Q24 financial results. product demand, pricing, market acceptance, changing economic conditions, This presentation is not ^a substitute for the risks in product and technology Bank's 1Q24 Financial Statements, which development, and the effect of the Bank's

Data relating to business segments is

Special items in ROE, net profit and Forward-looking statements regarding the expenses refer to provision made in relation

1Q24 Quarterly Financial Review // 3

Dummy Text

Key highlights of 1Q24: strong profitability metrics, coupled with the best-in-sector capital, liquidity, and allowance buffers

14.6 % ROE		* Another quarter of high profitability
12.11 % ratio	CET-1 capital	Robust capital buffers; dividend payout ratio raised back to policy ceiling – 40% of net profit
0.94 % NPL ratio		Low NPL maintained; portfolio well covered with high allowance buffers
(0.01 ) % LLP ratio		Improved macroeconomic indicators and forecasts in the provision model led to collective allowance release
39.9 %	Cost-income ratio	Another quarter of strong efficiency
1.0 %	Credit growth QoQ	Credit growth aligned with macroeconomic environment

* Including a 4.5% tax payment in accordance with the Special Payment for the Achievement of the Budget Goals Law (Temporary Order – Swords of Iron), 2024. For full disclosure refer to note 1-D in the financial report.

The economy is bouncing back after a sharp drop in Q4

Inflation has moderated, but wage pressures pose concerns over the near term

The war eroded the fiscal stance; expectations for rate cuts have moderated

8.2% 2024 2025

But the level of debt is still low compared to DMs

Public debt as a percentage of GDP, 2024 projections

Credit rating downgrades were already priced in the markets; however, local corporate spreads fell to low levels

1Q24 Quarterly Financial Review // 8

Dummy Text

Consistently delivering mid-double digit ROE

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

Robust capital and liquidity position will allow for future realization of opportunities

Note: In the second quarter of 2024, common equity Tier 1 capital ratio will include an approximately 0.25% negative direct effect of the downgrade of State of Israel credit rating by S&P in April.

Best-prepared for potential negative developments too, due to pre-adjusted growth pace along with build of allowance buffer

Continuing to lead responsible credit growth, aligned with market dynamics

Credit growth pace 0.94

Dummy Text

While maintaining low NPLs

%

While building a substantial allowance buffer, mainly in collective allowance

% % NPL ratio 1.87 175 Allowance NPL % % 1.0 4.3 to credit coverage * ** QoQ YoY ratio ratio This quarter our preparedness allowed us to reduce the collective allowance

NIS ~(100)million

Reduction in the collective allowance

% 1Q24 (0.01 ) Income from credit losses incl. individual provision and net charge-offs

* Allowance in respect of loans, including off-balance sheet items, of total loans. ** Balance sheet allowance for credit losses to NPL.

High level of income; non-interest bearing deposits stabilize

1Q24 Quarterly Financial Review // 13

Dummy Text

Responsible credit growth; pace aligned to the changing environment

Credit growth in line with sector dynamics

NIS billion

Dummy Text

1Q24 Quarterly Financial Review // 15

Dummy Text

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

137%

LCR

Retail deposits continue to grow, strengthening our liquidity position

Bonds buyback:

The strong liquidity position allowed for a NIS 1 billion buyback of bonds, executed in March 2024.

The bank's board approved an additional NIS 2 billion bonds buyback plan to be optionally executed by December 2024.

Continuous cost control leading to strong efficiency ratio

Progress on Poalim Center relocation plan; building core currently being finalized. Future realizations of real estate assets

Today, the bank's headquarters are scattered over eight buildings owned by Bank Hapoalim in Tel Aviv

The main sites are at 50 Rothschild Blvd. & 63 Yehuda Halevy St.

Construction rights for a 45-story tower on an area of ~47,000 sq.m.

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

Dummy Text

Menora building 33% owned by the Bank Betterment plan for a 45-story tower on an area of ~ 60,000 sq.m.

Rubinstein Towers

Poalim Center

A 40-story office tower with area of ~60,000 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

Operational efficiency

Relocation planned for 2026

Slight decrease in the collective allowance; individual provision remains low

The income from credit losses in the first quarter was due to a decrease in the collective allowance and income in the individual provision, due to recoveries.

automatic charge-offs.

The decrease in the collective allowance resulted from improvement in macroeconomic parameters and improvement in the forecast values of the parameters included in the collective allowance model, such as the unemployment rate, housing prices, and the GDP, compared with the values included in the model atthe end of 2023.

Resilient asset quality as NPLs are relatively low and well covered by a substantial allowance buffer

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

The bank's solid position is supported by high underwriting standards and a responsible risk-management approach

52.1% Housing construction 27.0% Yield- generating properties 17.9% Other 3.0% Construction for commerce, services, and industry Real-estate activity in the corporate division, in Israel Allowance to loans in the real estate sector in Israel Focus on customers whose main sector of activity is housing * construction 2.42% Sound buffers for any development Peer 2 Poalim

High underwriting standards in the real-estate sector; ** low proportion of risky layers , as of Dec. 2023

Absorption rate of real estate under construction

45%

40%

35%

30%

25%

20%

15%

10%

5%

0%

The absorption capacity is the maximum possible s rate of decline in the completed asset's value without the bank incurring losses from the project

* 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 1Q24 report.

** Data extracted from the banks' 2023 annual report and in accordance with the segmentation and methodology applied by each bank. For full disclosure regarding Bank Hapoalim credit risk in the real-estate sector at the Corporate Banking Division in Israel, by financing rate (LTV) and absorption capacity refer to table 3-8 in the annual report.

Strong organic capital generation and buffer creation allow for 40% dividend payout ratio and future growth

Cash dividend

Impact of the war

352

40%

* Calculated as the dividend per share declared in respect of the last four quarters' profits, including 1Q24, divided by share price on the record date of each distribution or declaration. ** Relief valid until December 31, 2025. The minimum regulatory requirement pre-relief is 6%. Note: The direct effect of the downgrade of the credit rating of the State of Israel by S&P in April will lead, as at the report date,to a decrease of approximately 0.25% and approximately 0.31% in the common equity Tier 1 capital ratio and the total capital ratio of the bank, respectively, reflected in the second quarter of 2024. For additional information regarding capital requirements, refer to note 9 in the 1Q24 report.

1Q24 key takeaways

First-quarter rebound in economic activity, after the initial shock from the war; uncertainty level remained elevated

CET-1 ratio at 12.11%, well above minimum regulatory requirement and internal target. Dividend payout ratio raised back to 40% of net profit

Consistently delivering strong results, with solid double-digit ROE. High level of income, coupled with cost control, leads to cost-income ratio below 40%

Dummy Text

Bank Hapoalim has the best-inthe-sector preparedness, based on a good combination of responsible growth, solid capital, liquidity and credit-loss buffers, and high underwriting standards

Collective allowance decreased slightly, as economic factors taken into account in the allowance model in previous quarter, turned out better than anticipated

The CEO of the bank, Dov Kotler, has informed the board of directors of his intention to conclude his service, following five years in office. The Board has appointed a search committee, headed by the Chairman, Ruben Krupik

1Q24 Quarterly Financial Review

Appendix

Dummy Text

Key balance sheet items NIS million

	1Q23	4Q23	1Q24
Cash on hand and deposits with banks	95,918	107,730	97,901
Securities	137,338	127,122	119,486
Net credit to the public	394,399	407,381	411,286
Deposits from the public	528,897	554,595	539,902
Deposits from banks	9,284	9,085	13,011
Bonds and subordinated notes	26,417	21,800	20,775
Shareholders' equity	48,115	52,430	54,048
Total balance sheet	666,665	686,530	665,893

Note: For a full balance sheet analysis, please referto the bank's financialstatementsfor 1Q24.

Key profit and loss items NIS million

	1Q23	4Q23	1Q24
Total net financing profit	4,377	4,057	4,086
Fees and other income	982	943	1,004
Total income	5,359	5,000	5,090
Wages	(1,248)	(937)	(1,099)
Maintenance and depreciation of buildings and equipment	(356)	(377)	(391)
Other expenses	(490)	(583)	(543)
Total operating and other expenses	(2,094)	(1,897)	(2,033)
Provision for credit losses	(185)	(453)	14
Profit before taxes	3,080	2,650	3,071
Provision for taxes on profit	(1,089)	(868)	(1,157)
Net profit	2,008	1,761	1,938
ROE	17.0%	14.0%	14.6%

Israel 's leading financial institution