Bank Hapoalim B.M.

Investor Presentation • Nov 23, 2022

Quarterly Financial Review

3Q22 Quarterly Financial Review 1

Disclaimer

This presentation includes condensed information and selected data from Bank Hapoalim's thirdquarter2022financial results.

This presentation is not a substitute for the Bank's third-quarter Financial Statements, which include the full financial information, including forward-looking information. The financial statements are available on the Bank's website at www factors detailed from time to time in the Bank's .bankhapoalim.com - filings with the securities authorities. Investor Relations/Financial Information.

Some of the information in this presentation that does not refer to historical facts constitutes forwardlooking information, as defined in the SecuritiesLaw.

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

Robust performance in the quarter NIS million

Executing our strategy to drive greater profitability and strength

Driven by the continuous credit growth, interest-rate hikes, % % and higher inflation 17.2 QoQ 54.8YoY

Strong trend in fee income

Driven by the growth in activity coupled with the impact from the % % Isracard agreement (NIS 95 million in respect of 2Q22 and 3Q22) 17.4 YoY 13.09M22 vs. 9M21

Continuous cost discipline and efficiency Cost-income ratio and change in expenses

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Consistently strong credit quality Credit losses and NPL ratios

Prudent buffers remain in place – crucial for enduring % % adverse macro developments 0.05 3Q22 0.78

Generating capital organically allowing for continued % %

Strong financing income boost Income from regular financing activity improvement % % YoY Substantial positive jaws 41.5 -1.4 Robust capital position CET-1 ratio and dividend ratio growth and shareholder value 11.103Q22 30 of 3Q22 net income Fees 3Q22 3Q22

Interest income trend to remain favorable given expected rate rises

High sensitivity to interest rates

Continued responsible credit growth

. bi 8 llion

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Effect of a parallel 1% increase in interest rates 0 on financing income NIS

% Non-interest-bearing deposits 41 of total deposits

* CPI exposure excluding employee benefit liabilities.

Our strategic focus on growing non-interest activities is paying off

NIS + million in 9 2Q 5 +3Q (NIS 48 m in 3Q22)

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

Real estate efficiency measures

Potential for realization by 2025, thanks to Poalim Center project

Continuous cost discipline and efficiency improvement; substantial positive jaws NIS million

Continually strong credit quality with low NPLs; Prudent buffers remain in place – crucial for enduring adverse macro developments

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

Strong retail deposit base; superior liquidity ratios

Resilient capital position as strong organic capital generation allows for targeted credit growth and dividend payment

Note: For additional information regarding capital requirements, refer to note 9 in the 3Q22 financial report.

Source: CBS

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Slower growth, soft landing in the housing market, further rate hikes

Inflation is up, albeit lower than in most advanced economies Markets expect rates to peak in 2023Q1

11/22 01/23 03/23 05/23 07/23 09/23 11/23 01/24 03/24 05/24 07/24 09/24 11/24 01/25 03/25 05/25 07/25 09/25 11/25 Source: Economics department

key takeaways

Very strong profitability in the quarter and first 9 months

2 3 Significant impact from rates hike due to balance sheet structure, trend to remain favorable given expected rate rises

Continued responsible credit growth, in line with current macroeconomic environment

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4 5 Cost-income ratio at historically low levels; high positive jaws

High asset quality maintained; still very low level of provisions

High organic capital generation; will continue to support growth and future dividends

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Key balance sheet items NIS million

	3Q21	2Q22	3Q22
Cash on hand and deposits with banks	175,765	162,579	145,423
Securities	70,383	81,506	90,078
Net credit to the public	335,297	371,976	381,582
Deposits from the public	505,483	529,508	527,699
Deposits from banks	10,448	9,045	9,779
Bonds and subordinated notes	18,761	27,334	26,263
Shareholders' equity	42,717	44,217	45,068
Total balance sheet	604,324	651,598	658,336

Note: For a full balance sheet analysis, please refer to the bank's financial statements for 3Q22.

Key profit and loss items NIS million

	3Q21	2Q22	3Q22
Total net financing profit	2,777	3,168	3,751
Fees and other income	867	920	1,002
Total income	3,644	4,088	4,753
Wages	(1,153)	(1,068)	(1,076)
Maintenance and depreciation of buildings and equipment	(332)	(369)	(382)
Other expenses	(514)	(559)	(514)
Total operating and other expenses	(1,999)	(1,996)	(1,972)
Profit before provision and taxes	1,645	2,092	2,781
Provision for credit losses	252	(91)	(45)
Profit before taxes	1,897	2,001	2,736
Provision for taxes on profit	(705)	(704)	(967)
Net profit	1,207	1,343	1,785
ROE	11.3%	12.3%	15.9%

Note: For a full profit and loss analysis, please referto the bank's financialstatementsfor 3Q22.

Responsible credit growth; well-diversified portfolio

NIS billion

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3Q22 Quarterly Financial Review 17

Israel's leading financial institution

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