Bank Hapoalim B.M.

Investor Presentation • Nov 16, 2023

Quarterly Financial Review

Disclaimer

This presentation includes condensed information and selected data from Bank Hapoalim s 3Q23 financial results.

This presentation is not a substitute for the Bank s 3Q23 Financial Statements, which include the full financial information, including forward-looking information. The financial statements are available on the Bank s website at www.bankhapoalim.com - Investor Relations/Financial Information.

Some of the information in this presentation that does not refer to historical facts constitutes forward-looking information, as defined in the Securities Law.

Forward-looking statements regarding the Bank s business, financial condition, and results of operations, are subject to risks and uncertainties that may cause actual results to differ materially from those contemplated. Such forward-looking statements include, but are not limited to, product demand, pricing, market acceptance, changing economic conditions, risks in product and technology development, and the effect of the Bank s accounting policies, as well as certain other risk factors detailed from time to time in the Bank s filings with the securities authorities.

Data relating to business segments is presented according to operating segments based on management approach as disclosed in note 12A in the Bank s report.

The Israeli economy in wartime

Local bond market remains resilient

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

Credit card sales on track to recovery after the shock Risk premium has stabilized at a relatively high level 23=100, Source: CBS 5Y CDS, Source: Bloomberg 160 140 120 100 80 60 40 20

Prompt response of the central bank managed to stabilize the shekel

USD/ILS, Source: Terminal

0

Entering the situation with strong fundamentals

as a percentage of GDP, Source: MOF USD millions, Source: BOI

Public debt is close to pre-Covid level High foreign exchange reserves enabled BOI intervention

BOI and government measures mitigate the impact on corporates and households

BOI measures calmed the markets

• o Program to sell up to USD 30 billion in foreign exchange. In addition, a USD 15 billion plan to provide liquidity to the market through FX SWAP mechanisms.
• o Deferral or exemption of loan repayments, as well as interest charges on negative balances in current accounts and fees.
• o BOI will provide NIS 10 billion in subsidized loans to banks, against loans granted by the banks to small and micro businesses whose revenue was negatively impacted by the war.

Government aid package

• o Direct property damages are covered by a special gov. fund.
• o Frontier corporates and households are eligible for full compensation for their economic losses.
• o Other areas of the country: grants for SMEs to partially compensate for fixed costs, including wages.
• o Unemployment benefits for furloughed employees (under certain criteria).
• o Tax deferrals.
• o Government loan guarantees fund for SMEs.

Fully operational since the outbreak of the war

Branches are open and fully operating subject to Home-Front Command instructions

Expansion of services through virtual channels and activation of mobile branches

Immediate expansion of work-from-home capabilities

Back up site provide full IT redundancy, in case of need

Proactive approach in supporting our customers and Israeli citizens in times of need

Directly affected customers

• ^o Interest-free bridge loans (fund of NIS 750 million). Poalim Rebuild
• o Deferral of loan payments by up to 3 months at no cost.
• • o Suspension or exemption of 3 mortgage payments.
  • ^o Dedicated to rebuilding of the ^o affected communities in the south No interest charges on negative balances (under certain criteria).

Other customers

• o Loans at a Prime interest rate only.

• o Rescheduling or deferral of payments on existing loans.

  • o Easier breaking of existing deposits.
  • o Deferral or rescheduling of charges for the month of November in bank credit cards, at no cost.

• ^o An exemption from various fees through the end of ^o Founded an aid fund based on 2023. donation of NIS 100 m.

  • of Israel.
  • o Will collaborate with local council leaders, focusing on rehabilitation of communities.
  • o Will conduct mapping and prioritization to identify specific needs and uses.

~420 NIS million

Assessment of full utilization of the benefits; will be recorded mainly in the fourth quarter

100 Poalim Rebuild NIS million Aid Fund

Entering the situation with pre-adjusted growth pace and significant buffers; best positioned to cope with future developments

Credit growth pace was already aligned to global uncertainties in 2022 5.8% 5.2% 3.6% 3.3% 2.6% 2.1% 1.9% 1.5% 1.5% 1.1% 2Q21 3Q21 4Q21 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 Credit growth QoQ Growth pace pre-adjusted to the changing environment Covid rebound period

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

Best-in-the-sector preparedness, based on a combination of responsible growth and allowance buffer

Leading capital and liquidity position provides a cushion for future developments

Organic capital generation and tight management led to solid buffers & continued dividend distribution

Ample liquidity mainly based on retail deposits NSFR 125% LCR 124% LDR 76% Retail deposits 59% Above regulatory requirement of 100% 1.13% 1.28% 1.30% 0.87% 1.02% 10.23% 10.23% 10.23% 10.23% 10.23% 3Q22 4Q22 1Q23 2Q23 3Q23 11.53% 11.36% CET-1 capital ratio minimum regulatory requirement* CET-1 capital ratio CET-1 capital ratio buffer 11.51% 11.23% CET-1 10.64% capital 10.35% 10.23% ratio PEER 4 PEER 3 PEER 2 PEER 1 POLI 11.51% 11.25% 11.10% Dividend payout ratio

Best-in-class CET-1 capital ratio, as of 2Q23

* CET-1 capital ratio minimum internal target is 10.5%

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Q23 Financial Review

Highlights of the third quarter

Continuous robust profitability

• o High level of income supports the strong profitability
• o Strong efficiency metrics

High quality loan book; Best-in-class buffers further build of reserve

^{o o} Capital surplus allows for continued dividend payout Increase in the collective provision for credit losses, mainly due (20% of net income) to the increase in the probability of an economic slowdown and the consequences of the war

Continued responsible credit growth

o Growth pace in line with sector and macro dynamics o Diversified growth across business economic sectors

%

Credit growth of growth is in non-real estate economic sectors* ~50% 3Q23 1.1 QoQ YTD

o Strong buffers of capital, liquidity, and credit loss reserve

% 124

LCR

* Business sector debts in Israel, as defined in table D-3 in the report on risks.

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

Strong profitability and efficiency metrics

High level of income and margins, though affected by lower inflation and the exhaustion of the rise in interest rate

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CPI

contribution

Responsible credit growth; alignment over time of the growth pace with the changing environment

NIS billion Credit growth in line with sector and macro dynamics

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3Q23 // Quarterly Financial Review

Sound funding base; strong liquidity buffers in place

Robust efficiency metrics

Continuing to increase collective allowance; Reflecting the consequences of the war

Consistent increase in the collective provision in previous quarters, to reflect macroeconomic effects, in view of the increase in the probability of economic deceleration and a high interest-rate environment over a long period;

Third quarter provision was also affected by the increase in the probability of an economic slowdown due to the consequences of the war;

Individual provision remains low, affected by recoveries.

Resilient asset quality; NPL increased but remains relatively low and the allowance buffer continued to grow

NIS million NIS billion

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* 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

* Calculated as the dividend per share declared in respect of the last four quarters profits, including 3Q23, divided by share price on the record date of each distribution or declaration.

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** Relief valid until December 31, 2023. The minimum regulatory requirement pre-relief is 6%. Note: For additional information regarding capital requirements, refer to note 9 in the 3Q23 report.

3Q23 key takeaways

The economic situation of Israel has changed with the outbreak of the war. However, Israel entered the situation with strong fundamentals

Continuing to increase collective allowance, mainly due to the increase in the probability of an economic slowdown due to the consequences of the war

Bank hapoalim has the Best-in-thesector preparedness, based on a good combination of responsible growth and capital, liquidity and credit loss buffers

Strong organic capital generation and buffer creation allow for continued dividend payout (20% of net income)

Continuous robust profitability. Net profit of NIS 1.7 billion; ROE of 13.4%; cost-income ratio of 38.9%.

A proactive approach to support for our customers and Israeli citizens in times of need

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3Q23 // Quarterly Financial Review

3Q23 Quarterly Financial Review

Appendix

Key balance sheet items

NIS million

	3Q22	2Q23	3Q23
Cash on hand and deposits with banks	145,423	97,082	92,131
Securities	90,078	132,301	136,810
Net credit to the public	381,582	400,136	404,371
Deposits from the public	527,699	529,703	532,756
Deposits from banks	9,779	10,793	8,953
Bonds and subordinated notes	26,263	24,804	23,810
Shareholders equity	45,068	49,342	50,252
Total balance sheet	658,336	668,784	675,988

Note: For a full balance sheet analysis, please referto the bank s financial statements for 3Q23.

Key profit and loss items

NIS million

	3Q22	2Q23	3Q23
Total net financing profit	,	4,709	4, 09
Fees and other income		1,016	1,0
Total income	4,753	5,725	5,298
Wages	(1,076)	(1,171)	(1,136)
Maintenance and depreciation of buildings and equipment	(382)	(443)	(353)
Other expenses	(514)	(567)	(570)
Total operating and other expenses	(1,972)	(2,181)	(2,059)
Provision for credit losses	(45)	(579)	(662)
Profit before taxes	2,736	2,965	2,577
Provision for taxes on profit	(967)	(1,056)	(917)
Net profit	1,785	1,922	1,669
ROE	15.9%	15.8%	13.4%

Note: For a full profit and loss analysis, please referto the bank s financial statements for 3Q23.

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Israel s leading financial institution