Bank Hapoalim B.M.

Investor Presentation • Mar 9, 2023

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Dov Kotler, CEO Opening & strategy

Ram Gev, CFO Financials

presentation that does not refer to "operating segments based on to historical facts constitutes management approach" as forward-looking information, as disclosed in note 28A in the bank's defined in the SecuritiesLaw. annual report.

Forward-looking statements regarding the Bank's business, financial condition and results of

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condensed information and uncertainties that may cause refer to provision made in relation selected data from Bank actual results to differ materially to the investigation of the US Hapoalim's 2022 annual financial from those contemplated. Such authorities and related legal results. forward looking statements, proceedings, the effect of the include, but are not limited to, closure of the Bank's private This presentation is not a product demand, pricing, market banking activities overseas, substitute for the Bank's 2022 acceptance, changing economic loss/profit from the separation Annual Financial Statements, which conditions, risks in product and from Isracard, and loss from include the full financial technology development and the impairment relating to Bank information, including forward- effect of the Bank's accounting Pozitif. Special items in expenses looking information. The financial policies, as well as certain other refer to provisions made in statements are available on the risk factors detailed from time to relation to the investigation of the Bank's website at time in the Bank's filings with the US authorities and related legal www.bankhapoalim.com - Investor securities authorities. proceedings, and the effect of the

Data relating to business banking activities overseas. Some of the information in this segments is presented according

This presentation includes operations, are subject to risks and Special items in ROE and net profit Relations/Financial Information. closure of the Bank's private

Dov Kotler, CEO Opening

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Note: Excluding special items, net profit for 2021 totaled NIS 4,957 million (ROE of 11.9%). In addition, total expenses in previous years are excluding special items.

The balance-sheet structure we built over the last few years boosted revenues significantly; financing profit and fees increased as a result of business momentum and higher spreads due to rates increase

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We continued to rigorously manage our resources, attaining excellent efficiency and productivity metrics

We maintained the high quality of our credit portfolio; a result of significant optimization measures of recent years We demonstrated advanced capital-management capabilities based on organic capital generation and expertise in RWA efficiency

We gained a clear relative advantage in liquidity and profitability, due to the largest retail deposit base in the Israeli banking industry

We maximized value for our stakeholders by paying our employees bonuses for their performance and distributing dividends of NIS 1.5 billion to our shareholders in respect of 2022 earnings

To retain our advantages and our leadership, we formulated a strategic plan for the coming years 8 focused on core banking

Our competitive advantages will serve us as we head into 2023 and beyond – we have built a winning core banking business for the long term

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Ram Gev, CFO Financials

Driven by the growth in activity, interest-rate hikes, and higher inflation

Total income

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Continued strong delivery on cost discipline; increase below inflation

Maintaining substantial positive jaws

Cost-income ratio

% % 44.52022 39.1 4Q22

High quality loan book

Full-year loan loss provisions almost zero; further build of collective allowance reserve in 4Q due to macro uncertainties

NPL and NPL coverage ratios

% % 0.87 31.12.2022 161 31.12.2022

Robust capital and liquidity position

Generating capital organically allowing for continued growth and shareholder value

CET-1 ratio, dividend payout ratio, and LCR

31.12.2022 of 4Q22 net income

% %

Financing income levered on growth, CPI, and interest-rate hikes

NIS million

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Good performance in fees due to activity growth and diversification

NIS million

NIS +1 million In 4 resp 5 ect of 2Q+3Q+4Q

Impact of the bank's new agreement with Isracard for the issuance and operation of credit cards

Income from regular financing activity excl. CPI

Well-diversified credit portfolio

NIS billion

Commercial

Consumer

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Mortgages

Small business

Largest retail deposit base in the sector

NSFR 130% LCR 122%

Above regulatory requirement of 100%

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Today, the bank's headquarters are scattered over eight buildings owned by Bank Hapoalim in Tel Aviv; the main site is at 50 Rothschild Blvd. and 63 Yehuda Halevy Street

A betterment plan for the site was deposited with the city of Tel Aviv in July 2022

The plan provides construction rights for a 45-story tower on an area of ~48,000 sq.m.

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

In 2021, the bank decided on centralization of its head-office units in one main tower, and began the construction of Poalim Center in Tel Aviv

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

A central, accessible location near 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

Provision for credit losses NIS million

* Balance sheet allowance for credit losses to NPL.

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

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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 24 in the 2022 annual report.

Current offering

P2P transactions Most popular app in Israel

Claims disbursements Working with almost all insurance companies and pension funds

Bill payments

• •Water bill
• •Municipal tax
• Toll road

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P2M customers (online payments) Working with:

• •Over 20k merchants
• •Leading PSPs (paym (payment service providers) in Israel

Bit's potential

Future transition to A2A (promoted by BoI)

Loyalty

Transition to clearing using Moneysend and Visa Direct

Expansion of product offering

The existing and developing capabilities of Bit are a strong foundation for future advanced banking value proposition for

club* 3 million Active users

* Subject to regulatory approvals

From post-Covid rebound to more sustainable growth Real GDP growth

Inflation turns out to be more sticky than previously assumed

CPI, year-on-year rate of change

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Exports are softening

Exports of goods and services

Markets expect further rate hikes

Housing starts

New home sales fell to below pre-Covid level

New home sales, units per-month

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Apartment prices House price indices 600 550 Existing and new 500 apartments 450 400 350 300 71 8 1 8 1 1 1 1 2 1 8 1 18 81 81 1 1 19 91 19 19 9 9 0 0 0 0 0 0 2 2 2 2 2 / 1 1 / / / / / / / / / / / / 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 1 1 3 5 9 1 1 3 7 1 / 2 2 7 5 9 1 / / / / / 1/ / / / / 11/ 3 5 7 9 1/ / / / / / 1 1 0 0 1 0 0 3 5 7 0 0 0 0 0 1 9 1 0 0 0 0 0 0 1 0 3 5 7 9 0 0 0 0 0 0 0 0 0 1 New apartments

Unsold housing stock low, though rising

stock of unsold homes, units

Foreign currency reserves are high Public debt decreased to pre-Covid level As a percentage of GDP, as of 2022 As a percentage of GDP

Record profit of NIS 6.5 billion; ROE of 14.8%

Outstanding positive jaws with

revenues up 24.5%, resulted from activity growth, boosted by spreads. Cost-income ratio dropped to 44.5%

Responsible credit growth;

pace aligned to the changing environment

Resilient asset quality, NPL ratio of 0.87%; collective provision gradually

increased to reflect potential macro effects and uncertainties

Tight management of capital and RWA optimization;

NIS 1.5 billion of dividend distributed in respect of 2022 profits

Adopted multi-annual strategy to maintain the positive momentum and strengthen our position as a leading bank in Israel

2022 Annual Financial Review

Dov Kotler, CEO Strategy

* Net profit and ROE for the years 2018-2021 are as reported (including the effect of special items).

Bank Hapoalim has created a multi-annual strategic plan designed to maintain its positive trend, lead further responsible growth, substantially improve customer service, and solidify its leadership in the various segments of its activity.

The plan will strengthen its standing as a leading bank in Israel.

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2022 Annual Financial Review 29

Professional Excellence & Leading Continued leadership in corporate

Growth Adaptation of the retail banking operating model

Service Resource optimization and greater productivity

Differentiating and influential innovation

banking and capital markets Responsible

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CTRO Unit

Poalim 2026 – Committed to responsible growth, professional excellence, and leading service

Solidifying the leadership of Bank Hapoalim in core banking

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• projec • Integrating third-party technologies Reshape of future branch network to focus on advisory shorten time to market; allocation of and products from the Israeli and global
• Full digital availability and a seamless experience across implement strategic initiatives of the processes and improve service service channels, including enhancement of remote bank banking services

Continued leadership in corporate banking • Productivity and human capital:

• (residential focused), increase market share in implement the strategic plan and syndications, and offer new proposition to Hi-tech implement a change-embracing customers. Continued growth of Poalim Equity organizational culture • Leveraging our leading position in financial markets to
• offer new products and services in the areas of trading, OTC and deposits, including advanced and digital tools
• and upgrade of platforms Implementation of data-based pricing tools; development of advanced digital means to improve service and customer portfolio management

Resource optimization and greater productivity

Continued investment in segment with focus on credit, deposits and securities products infrastructure modernization project to the core IT technological development resources to • ecosystem to streamline operational services, complex products, and sales

and capital markets Transition to the Agile model ("tribes") • Leveraging our leading position for continued growth; for end-to-end management of banking * financing projects in infrastructures and real estate products; CTRO Unit established to

Differentiating and influential innovation

• Strengthening retail banking and adapting Financial resources: Leveraging the Bit app, which reached the operating model Implementation of global best practices ~3 million users (mostly non-Bank Transition to a digital-first service concept to improve asset and liability Hapoalim customers), for the Enhancing digital sales, by advanced customer journeys, management efficiency and further development of new banking products, models and tools optimization and mitigation of RWA expansion of activity in payments, and Focus on private-banking customers and small creation of unique innovative value businesses; new value proposition for these segments, propositions Technological resources:
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*During 25 years of operations, the bank financed 55 infrastructure projects at a scope of NIS 60 billion (approximately NIS 5.5 in 2022). According to data by government officials, the scope of planned material infrastructure projects for 2023-2025 is approximately NIS 42 billion.

Appendix

NIS million

Year ended	2021	2022
Cash on hand and deposits with banks	189,283	133,424
Securities	71,105	107,400
Net credit to the public	352,623	388,727
Deposits from the public	525,072	532,588
Deposits from banks	11,601	8,696
Bonds and subordinated notes	25,582	26,866
Shareholders' equity	42,735	46,502
Total balance sheet	638,781	665,353

Note: For a full balance sheet analysis, please referto the Bank's financialstatementsfor FY22.

NIS million

Year ended	2021	2022
Total net financing profit	10,848	14,048
Fees and other income	3,544	3,872
Total income	14,392	17,920
Wages	(4,333)	(4,387)
Maintenance and depreciation of buildings and equipment	(1,333)	(1,441)
Other expenses	(2,087)	(2,144)
Special items	(50)	-
Total operating and other expenses	(7,803)	(7,972)
Provision for credit losses	1,220	34
Profit before taxes	7,809	9,982
Provision for taxes on profit	(2,958)	(3,548)
Net profit*	4,914	6,532
ROE*	11.8%	14.8%

* Excluding special items net profittotaled NIS 4,957 million (ROE of 11.9%) in 2021. For ^a full profit and loss analysis, please referto the Bank's financialstatementsfor FY22.

Israel's leading

financial institution