Bank Hapoalim B.M.

Investor Presentation • Mar 7, 2024

Bank Hapoalim Annual Report 2023

Disclaimer

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

which 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

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Hapoalim's2023 annual 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 ²⁰²³ Annual Financial Statements, 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

Dov Kotler, CEO CEO comments

2023: Another year of robust profitability and efficiency

Note: Excluding special items, net profit for 2021 totaled NIS 4,957 million (ROE of 11.9%) and total expenses for the years 2020 and 2021 are NIS 7,487 million and NIS 7,753 million respectively.

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Following the initial shock, economic activity is recovering; still several economic challenges ahead

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Well-prepared for potential negative developments due to pre-adjusted growth pace and continued build of allowance buffer

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

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

* 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 3-6 in the annual 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 3-8 in the annual report.

Pioneering and proactive in supporting our customers

1 NIS 0 mil 0 lion

Comprehensive support for customers

The bank expanded the BOI assistance program and offered its customers further benefits, including mortgage and loan Founded an aid fund, dedicated to rebuilding of deferrals, fee and interest waivers, interest-

Total benefits amounted to NIS 159 million as of Dec. 31, 2023.

As of the date of publication, an additional NIS 59 million will be booked in 1Q24.

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We created a support system for the relatives of the casualties and at a volume of NIS 10 million for immediate needs in various areas, hostages among our customers: we offered personal service by including donations to rescue organizations, hospitals, non-profit employees at the bank, in order to deliver quick solutions for all of their organizations providing mental-health support, the Hostages and banking needs. In February 2024, we also opened a contact center Missing Families Forum, and aid for displaced families. The bank also dedicated to our customers who have been injured during their service acted to raise donations through the Bit app, where NIS 14 million has in the military or security forces in the Swords of Iron War, to respond been collected forsimilar purposes. personally to their banking-related requests.

The bank set up an emergency network and provided emergency aid

Poalim 2026: moving forward with our strategy amid the war

Professional excellence & leading service Resource optimization

Continued leadership in corporate banking and capital markets

Adaptation of the retail banking operating model Responsible

and greater productivity

CTRO Unit

Differentiating and influential innovation growth

Ram Gev, CFO Financials

Execution of our strategy delivered another year of strong results

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Consistently delivering robust performance

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

Income boost in 2023

Financing income levered on interest-rate hikes and growth in activity, NIS million

Good performance in various fees mainly due to the growth in financing activity, NIS million

Mixed trends in income during the year

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Responsible credit growth; pace aligned to the changing environment

Credit portfolio, NIS billion 407 389 353 302 2020 2021 2022 2023 0.7% Well-diversified credit portfolio QoQ 30.4% Corporate 5.6% International & financial management 9.2% Consumer Total credit NIS 407 billion

14.6%

32.2%

8.0%

Small business

Commercial

Housing loans

Credit growth in line with sector and macro dynamics NIS billion

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

Largest retail deposit base in the sector, NIS billion

Above regulatory requirement of 100%

Continuous cost control leading to strong efficiency ratio

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Continuous improvement in productivity ratios to support future profitability

In the process of relocating to the Poalim Center; best-in-class headquarter building in prime location

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

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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

Continuing to increase collective allowance; Individual provision remains relatively low

Provision for credit losses, NIS million The provision in 2023 was . 8 153 ⁶⁶⁸ 1,935 1,726 768 608 579 -155 -613 -748 -472 2018 2019 2020 2021 2022 Collective provision and net automatic charge-offs Individual provision Total credit losses 0.22% 0.44% 0.64% -0.37% Credit loss ratio 613 1,276 1,943 -1,220 1,879 0.46% 2023 Affected by COVID-19 reserve build and release 113 ^{54 96} 669 ^{466 399 334 196 192} -50 ⁹⁹ -8 -151 -7 -7 -550 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 3Q23 4Q23 -0.66% 0.10% 0.05% 0.44% 0.19% 0.57% 0.65% 0.44% -600 91 45 430 185 579 662 453 -0.01% -34

mainly influenced by an increase in the collective allowance for credit losses, due to adjustments in respect of macroeconomic effects, in view of the increase in the probability of economic deceleration as a result of the effects of the war, as estimated at this stage, and a high interestrate environment over a long period. In addition, automatic charge-offs increased.

Individual provision remains relatively low.

Resilient asset quality as NPL 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.

Strong organic capital generation and buffer creation allow for continued dividend payout and future growth

* Calculated as the dividend per share declared in respect of the last four quarters' profits, including 4Q23, 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: For additional information regarding capital requirements, refer to note 24 in the annual report.

The economy is bouncing back after a sharp fall in Q4

Credit card sales on a recovery track after the initial shock; Credit card purchases, index; source: CBS

Labor market is gradually recovering Source: CBS

The shekel is back to pre-war levels

While risk premium has increased, overall impact on the markets was benign

Risk premium has stabilized at a relatively high level

Market implies rate cuts to follow the Fed The local bond market remains resilient

Implied interest rates (as of March 1, 2024), source: Bloomberg

The war appears to be deflationary in the short term

5Y CDS, source: Bloomberg CPI, year-on-year rate of change, source: CBS

10-year government bond yield, local currencies, Source: Bloomberg

2023 and 4Q23 key takeaways

Following the initial shock from the war, economic activity is recovering; but still there are several economic challenges ahead

Total income jumped 19.3%, while costs grew only 3.2%, creating substantial positive jaws; cost-income ratio of 38.5%

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

Continuing to increase collective allowance, mainly due to expected consequences of the war; total allowance constitutes1.92% of credit

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Continuous robust profitability. ROE of 15% in 2023; th 14% in the 4 quarter

Strong organic capital generation; Despite high capital buffer, 2H23 payout ratio lower than policy due to BOI guideline in view of the war

Appendix

Key balance sheet items NIS million

Year ended	2022	2023
Cash on hand and deposits with banks	133,424	107,730
Securities	107,400	127,122
Net credit to the public	388,727	407,381
Deposits from the public	532,588	554,595
Deposits from banks	8,696	9,085
Bonds and subordinated notes	26,866	21,800
Shareholders' equity	46,502	52,430
Total balance sheet	665,353	686,530

Note: For a full balance sheet analysis, please referto the Bank's financialstatementsfor FY23.

Key profit and loss items NIS million

Year ended	2022	2023
Total net financing profit	14,048	17,352
Fees and other income	3,872	4,030
Total income	17,920	21,382
Wages	(4,387)	(4,492)
Maintenance and depreciation of buildings and equipment	(1,441)	(1,529)
Other expenses	(2,144)	(2,210)
Total operating and other expenses	(7,972)	(8,231)
Provision for credit losses	34	(1,879)
Profit before taxes	9,982	11,272
Provision for taxes on profit	(3,548)	(3,930)
Net profit	6,532	7,360
ROE	14.8%	15.0%

Note: For a full profit and loss analysis, please referto the Bank's financialstatementsfor FY23.

Israel 's leading financial institution