Israel Discount Bank Ltd.

Quarterly Report • Nov 23, 2022

3Q 22 REVIEW

Investor Relations

November 23, 2022

Disclaimer:

This document has been prepared by Israel Discount Bank Ltd. (the "Bank") solely for use by the Bank in its presentation of its 3rd quarter 2022 report, as well as in strategic updates referred to in the Bank's reports. This presentation is not a substitute for the Bank's 3rd quarter financial statements which include the full financial information including forward-looking Information. The English version of the financial statements are available on the Bank's investor relations website at www.investors.discountbank.co.il

This presentation includes forward-looking information, as defined in the Israeli Securities Law, 5728 - 1968. Such information includes, among other things, projections, objectives, estimates and assessments of the Bank, which relate to future events or issues, the occurrence of which is not certain and is outside the control of the Bank. Forward-looking information does not constitute proven, factual information, and is based solely on the viewpoint of the Bank's management, which is based, among other things, on analysis of general information that is known to the Bank's management as of the date of this presentation. Forward-looking information, by definition, is subject to the substantial risk of not coming to fruition, and such information is not definite and cannot be estimated in advance and is at times even beyond the Bank's control. The fulfillment of forward-looking information is impacted by risk factors that are characteristic of the Bank's activities and also by developments in the general environment and external factors that affect the Bank's operations, which cannot be estimated in advance and that by their nature are beyond the control of the Bank. Therefore, readers of this presentation are hereby warned that the results and achievements of the Bank in the future may be significantly different than those presented in the forward-looking information included in this presentation. Similarly, forward-looking projections and estimations are based on assumptions and information in the possession of the Bank as of the time of the presentation, and the Bank shall not be required to update or revise any such projection or estimation in order to reflect events or conditions that transpire after the date of the presentation.

Disclaimer regarding unsponsored American Depository Receipt (ADR):

U.S. depository institutions or banks may establish ADR programs in respect of the shares of certain non-U.S. issuers without the consent or participation of such issuers (the so called "Unsponsored ADRs"(. An ADR or American Depositary Receipt, which is issued by a U.S. bank or depository to evidence a share of a non-U.S. issuer that has been deposited with the U.S. bank or depository. An Unsponsored ADR program is set up without the cooperation of the non-U.S. issuer or even without its consent. Israel Discount Bank does not support or encourage the creation of Unsponsored ADR programs in respect of its securities and, in any event, disclaims any liability in connection with an Unsponsored ADR.

Israel Discount Bank makes no representation regarding its compliance with Rule 12g3-2(b) of the U.S. Securities Exchange Act of 1934, as amended.

Opening Remarks and Financial Review

Barak Nardi, CFO

CONTINUOUS STRONG UNDERLYING PERFORMANCE ACROSS THE KEY INDICATORS IN 3Q22

NET INCOME 893M

ROE 15.0%

NET INTEREST INCOME GROWTH

(YOY)

37.6%

EFFICIENCY RATIO

55.2%

CREDIT LOSS EXPENSES

0.18%

3Q AND 9M 2022 HIGHLIGHTS

• Record profitability with 3Q22 net income of 893m and ROE of 15.0% supported by increase in revenues from core banking activity.
• Strong positive impact of interest rate increase: Net interest income increased in 3Q to 2,280 million, 37.6% YoY increase and 10% increase from 2Q.22.
• Operating efficiency materially improved to 55.2%, bringing us closer to our strategic target of below 55%.
• Continued focus on targeted segments: Mortgage balance grew by 26.0% YoY and medium enterprises balance grew by 18.1% YoY. Credit growth in 3Q22 slowed down, aligned with market conditions.
• Conservative management of credit portfolio: Credit Loss Expenses Ratio stood at 0.18% largely due to changes in macro assumptions, partially offset by improvement in the quality of our loan book.
• Dividend payout of 20% of 3Q.22 net income: NIS 178.6 million, in line with dividend policy.

2 2	Net Income	ROE	Cost-Income Ratio	Credit Loss Expenses Rati o	2 2	Net income	ROE	Cost-Income Ratio	Credit Loss Expenses Ratio
.Q 3	NIS 893 2Q22: NIS 680 m;	15.0% 2Q22: 11.8%;	55.2% 2Q22: 59.2%;	0.18% 2Q22: 0.23%	M 9	NIS 2,556m 9M21: NIS 2,244m	15.0% 9M21: 14.9%	56.5% 9M21: 63.3%	0.1% 9M21: (0.46%)
	3Q21: NIS 722 m	3Q21: 13.8%	3Q21: 62.0%	3Q21: (0.25%)

SIGNS OF ECONOMIC SLOWDOWN, YET MACRO FUNDAMENTALS ARE STILL SOLID

Israel's GDP Growth (%) to slowdown* in 2023

Early signs of slowdown in labor market

6

Dummy Text

Bank of Israel's Rate reached 3.25% in November 2022

Inflation is rising but expected to remain lower than advanced

* Latest Bank of Israel projections as of Oct 2022 **Defined as unemployed persons temporarily absent from work for economic reasons, not participating in the labor force who stopped working due to dismissal from March 2020 and discouraged workers. Data for age group 25-64 *** Last 12 months Source: Bank of Israel, Central Bureau of Statistics, Israel, 2022-2023 forecasts for Israel are from Bank of Israel projections from October 2022

RESPONSIBLE CREDIT GROWTH FOCUSED ON TARGETED SEGMENTS

GROWTH IN NET INTEREST INCOME AND IN FEES HIGHLIGHT THE STRENGTH OF OUR CORE BUSINESS

Financing Income from current operations is total net financing income excluding various items, such as CPI effect, net profit from realization and fair value adjustments, profit or loss from investments in shares, exchange rates differences, net profit on the sale of loans

8

COST INCOME RATIO IS IMPROVING DUE TO REVENUES GROWING FASTER THAN EXPENSES

9 * 9 months revenues and expenses change compared with same period in the previous year. Jaws: Difference between revenues growth and expenses growth in the same period

HIGH QUALITY LOANS AND CONSERVATIVE UNDERWRITING PRODUCE SOLID CREDIT METRICS

Increase in Group Basis Provision Drove the Overall Increase in Credit Loss Expenses

(in NIS m and %)

ASSET QUALITY REMAINS STRONG WITH APPROPRIATE COVERAGE

Allowance for Loan Loss Provisions from Total Credit* NPL/Total Credit** remain relatively low

Dummy Text

0.74% 0.84% 0.67% 0.84% 0.74% 0.67%

NPLs Are Well Covered by Loan Loss Provision***

3Q22

2Q22

1Q22 2Q22 3Q22

1Q22

11 * Calculated as percent of Loan Loss Provisions from total credit **NPL: percent of non accrual and 90 days and above past due from gross total credit.. ***NPL coverage: percent of loan loss provision from non accrual and 90 days and above past due credit.

SOLID FUNDING BASE AND AMPLE LIQUIDITY

MERCANTILE: INCREASE IN NET INTEREST INCOME LEADING TO STRONG NET INCOME AND ROE

• 3Q22 Strong ROE of 19.3% and net income of NIS 185 million were driven by increase in net interest income, due to higher interest rates and higher inflation.
• 17.4% YoY loan book growth was mainly driven by significant growth across all segments. Mortgages increased by 30.4%, and medium enterprises increased by 18.4%.
• Total income from core banking activity grew by 31.7% in 3Q22 compared with 3Q21. Cost income ratio continued to improve and stood at 49.3% for 9M.22.

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50

50

100

150

200

IDBBANK: INCREASE IN REVENUES OFFSET BY SHIFT TO POSITIVE CREDIT LOSS EXPENSES

• IDBNY solid net income of \$25 million in 3Q22 is driven by 42.3% YoY increase in net interest income,, after further increase in Fed Funds rates.
• Net interest income growth was driven primarily by 69bps increase in NIM .

After 5 consecutive quarters of credit loss provision release, credit losses were positive at \$5 million, 0.23% from total credit, reflecting the shifting economic environment.

CAL: GROWING CONSUMER CREDIT AND TRANSACTION TURNOVER SUPPORT STRONG RESULTS

92

92

18.7%

• In 3Q22 CAL reported strong net income of NIS 109 million and 20.9% ROE.
• The results were supported by 24.1% increase in consumer credit, 16.2% increase in credit cards transaction turnover and 6.5% increase in active
• In 3Q22 CAL disposed shares of Visa Inc. which produced income of NIS 30 million.

in NIS bn

TO SUMMARIZE

We delivered record 3Q22 results, with ROE of 15% and Cost Income of 55.2%, as we remained focused on continuous execution of our strategic initiatives.

We benefited from increase in interest rate, which became evident during the quarter and led to increase of 37.6% in net interest income to 2,280 million in 3Q22.

Credit growth in 3Q22 slowed down aligned to market conditions. We remained focused on our targeted segments and grew by 26.0% YoY in mortgages and 18.1% YoY in medium enterprises.

Loan book continues to display resilience with solid asset quality metrics. We reflect worsening macro indicators in increasing group basis provisioning.

Q&A

Barak Nardi, CFO Yossi Beressi, Chief Accountant

APPENDICES

ISRAEL DISCOUNT BANK: P&L AND SELECTED RATIOS

NIS m	3Q22	2Q22	3Q21	Vs. 2Q22	Vs. 3Q21	9M22	9M21	Change
Net interest income	2,280	2,073	1,657	10.0%	37.6%	6,153	4,846	27.0%
Credit loss expenses (expenses release)	106	131	(126)	(19.1%)	--	177	(683)	--
Non-interest financing income	151	(27)	198	--	(23.7%)	169	585	(71.1%)
Commissions	871	851	807	2.4%	7.9%	2,547	2,316	10.0%
Other income	5	0	10	100.0%	(50.0%)	421	22	1813.6%
Total non-interest income	1,027	824	1,015	24.6%	1.2%	3,137	2,923	7.3%
Total income	3,307	2,897	2,672	14.2%	23.8%	9,290	7,769	19.6%
Salaries and related expenses	881	844	867	4.4%	1.6%	2,580	2,498	3.3%
Maintenance & depreciation	309	307	292	0.7%	5.8%	919	894	2.8%
Other expenses	637	565	497	12.7%	28.2%	1,751	1,527	14.7%
Total operating and other expenses	1,827	1,716	1,656	6.5%	10.3%	5,250	4,919	6.7%
Income before taxes	1,374	1,050	1,142	30.9%	20.3%	3,863	3,533	9.3%
Provision for taxes on income	472	371	401	27.2%	17.7%	1,290	1,247	3.4%
Income after taxes	902	679	741	32.8%	21.7%	2,573	2,286	12.6%
Net income attributable to shareholders	893	680	722	31.3%	23.7%	2,556	2,244	13.9%
ROE	15.0%	11.8%	13.8%			15.0%	14.9%
Cost income ratio	55.2%	59.2%	62.0%			56.5%	63.3%
CET-1 ratio	10.17%	10.16%	10.29%			10.17%	10.29%
NIM	2.74%	2.63%	2.36%			2.58%	2.35%
Rate of credit loss expenses	0.18%	(0.02%)	(0.25%)			0.10%	(0.46%)
NPL ratio	0.67%	0.84%	0.87%			0.67%	0.87%
Dividend per share (in Agurot)*	14.43	10.99	12.41			41.33	--

* Dividend in respect of the relevant period

ISRAEL DISCOUNT BANK: SELECTED BALANCE SHEET ITEMS

NIS m	30.09.22	31.12.21	30.09.21
Cash and deposits with banks	71,510	59,638	46,334
Securities*	43,904	45,076	47,104
Credit to the public	240,032	216,196	206,944
Provision for credit losses	-3,151	-3,040	-3,117
Credit to the public, net	236,881	213,156	203,827
Credit to governments	2,574	2,664	3,217
Investment in investee companies	502	462	392
Buildings and equipment	3,724	3,401	3,203
Intangible assets and goodwill	163	163	163
Assets in respect of derivative instruments	13,601	5,522	4,367
Other assets	6,215	5,006	4,894
Total Assets	379,074	335,088	313,411
Deposits from the public	290,646	260,907	245,393
Deposits from banks and governments	16,839	12,880	13,920
Securities borrowed or sold via repo agreements*	3,038
Bonds and subordinated debt notes	13,491	15,071	11,170
Liabilities in respect of derivative instruments	11,718	6,323	4,570
Other liabilities	18,624	17,759	16,352
Total liabilities	354,356	312,940	291,405
Equity capital attributed to the Bank's shareholders	24,112	21,483	21,346
Non-controlling rights in consolidated companies	606	665	660
Total equity	24,718	22,148	22,006
Total Liabilities and Equity	379,074	335,088	313,411

* Including securities borrowed or purchased under agreements to resell

MERCANTILE: FINANCIAL PERFORMANCE

Main P&L and Balance Sheet metrics and selected ratios

NIS m	3Q22	2Q22	3Q21	Vs. 2Q22	Vs. 3Q21	9M22	9M21	change
Net interest income	452	414	341	9.2%	32.6%	1,225	982	24.7%
Credit loss expenses (expenses release)	16	36	7	(55.6%)	128.6%	77	(75)	--
Non-interest income	101	89	79	13.5%	27.8%	279	375	(25.6%)
Total income	553	503	420	9.9%	31.7%	1,504	1,357	10.8%
Operating & other expenses	253	247	228	2.4%	11.0%	741	712	4.1%
Net income	185	144	120	28.5%	54.2%	450	471	(4.5%)
Return on equity	19.3%	15.5%	13.4%			15.9%	18.5%
Cost-income ratio	45.8%	49.1%	54.3%			49.3%	52.5%
Rate of credit loss expenses	0.25%	0.36%	(0.29%)			0.25%	(0.29%)
NIM	2.90%	2.86%	2.67%			2.76%	2.65%
Total assets	65,485	63,081	54,058	3.8%	21.1%
Credit to the public, net	42,325	41,306	36,035	2.5%	17.5%
Securities	6,911	7,001	6,431	(1.3%)	7.5%
Deposits from the public	51,507	49,466	42,924	4.1%	20.0%
Total equity	3,928	3,777	3,650	4.0%	7.6%

IDBBANK: FINANCIAL PERFORMANCE

Main P&L and Balance Sheet metrics and selected ratios

USD m	3Q22	2Q22	3Q21	Vs. 2Q22	Vs. 3Q21	9M22	9M21	change
Net Interest Income	92	79	64	16.5%	43.8%	243	186	30.6%
Credit Loss Expenses (Expenses Release)	5	-2	-9	--	--	-4	--	--
Non-Interest Income	17	20	21	(15.0%)	(19.0%)	55	65	(15.4%)
Total Income	109	99	85	10.1%	28.2%	298	251	18.7%
Operating & Other Expenses	71	62	57	14.5%	24.6%	191	168	13.7%
Net Income	25	29	27	(13.8%)	(7.4%)	82	62	32.3%
Return on Equity	8.9%	10.8%	9.3%			9.8%	7.1%
Cost-Income Ratio	65.1%	62.6%	67.1%			64.1%	66.9%
Credit Loss Expenses ratio (Expenses Release)	0.2%	(0.1%)	(0.5%)			(0.1%)	--
NIM	3.1%	2.6%	2.4%			2.7%	2.4%
Total Assets	12,369	12,604	11,725	(1.9%)	5.5%
Loans, net	8,455	8,608	7,840	(1.8%)	7.8%
Securities	2,571	2,607	2,716	(1.4%)	(5.3%)
Deposits from the Public	10,462	10,821	10,225	(3.3%)	2.3%
Total Equity	1,081	1,094	1,145	(1.2%)	(5.6%)

CAL: FINANCIAL PERFORMANCE

Main P&L and Balance Sheet metrics and selected ratios

NIS m	3Q22	2Q22	3Q21	Vs. 2Q22	Vs. 3Q21	9M22	9M21	change
Income From Credit Card Transactions	434	412	381	5.3%	13.9%	1,223	1,044	17.1%
Net Interest Income	170	172	140	(1.2%)	21.4%	502	402	24.9%
Credit Loss Expenses (Expenses Release)	28	27	1	3.7%	--	54	(18)	--
Non-Interest Financing Income	61	31	4	96.8%	1,425.0%	109	4	--
Total Income	665	615	525	8.1%	26.7%	1,834	1,450	26.5%
Total Expenses (excluding credit loss expenses)	482	475	394	1.5%	22.3%	1,397	1,141	22.4%
Net income	109	81	92	34.6%	18.5%	270	231	16.9%
Return on equity	20.9%	14.6%	18.7%			16.5%	15.6%
Cost-income ratio	72.5%	77.2%	75.0%			76.2%	78.7%
Total assets	18,564	17,698	15,165	4.9%	22.4%
Interest bearing credit	7,832	7,520	6,245	4.1%	25.4%
Consumer credit	6,709	6,416	5,447	4.6%	23.2%
Total equity	2,091	2,057	2,159	1.7%	(3.1%)