Bank Hapoalim B.M.

Investor Presentation • May 23, 2022

Quarterly Financial Review

1Q22 Quarterly Financial Review 1

Disclaimer

This presentation includes condensed information and selected data from Bank Hapoalim's first-quarter 2022 financial results.

This presentation is not a substitute for the Bank's first-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

presentation authorities. that does not refer to historical facts constitutes forward-looking Special items in ROE and net profit refer to information, as defined in the Securities provisions made in relation to the

the Bank's business, financial condition and related legal proceedings, the effect of the results of operations, are subject to risks closure of the Bank's private-banking and uncertainties that may cause actual activities overseas, loss/profit from the results to differ materially from those separation from Isracard, and loss from contemplated. Such forward looking impairment relating to Bank Pozitif. Special statements, include, but are not limited to, items in expenses refer to provisions made product demand, pricing, market in relation to the investigation of the US acceptance, changing economic authorities (including exchange rate conditions, risks in product and technology differentials) and related legal development and the effect of the Bank's proceedings, and the effect of the closure .bankhapoalim.com accounting policies, as well as certain other of the Bank's private-banking activities -Investor Relations/Financial Information. risk factors detailed from time to time in overseas. Some of the Bank's filings with the securities the information in this

Law. Forward looking statements regarding investigation of the US authorities and

Key messages for the quarter

Robust profitability

o Continued increase in income due to the growth in activity and high inflation

o Income from credit losses

ROE Cost- income

ratio

Solid and responsible credit growth

o Growth in line with recent macroeconomic developments

o Maintained high quality of the book

QoQ NPL growth

credit % ratio % 3.3 0.92

Strengthened capital position despite unfavorable market impact

-

• ^o Capital supports a possible dividend resumption * in respect of 2Q22 and onward

CET-1 ratio

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Favorably positioned to benefit from the new interest rate environment

• o High organic capital generation o Largest retail deposit base in the sector
• o RWA mitigation o High proportion of non-interest bearing deposits

* Subject to, among other matters, the results of the Bank, market trends and developments, macroeconomic conditions, and the effect of the implementation of future regulatory directives, as well as compliance with legal tests

** Market implied for a 12-month horizon

*** The effect of a parallel 1% increase in interest rates on financing income

More challenging macroeconomic environment also creates some opportunities

Markets expect 2.75% BOI interest rate in the 12 month horizon

Long-term rates have increased; rate hikes are now implied

Strong fundamentals provide a cushion to the economy and the bank

Very strong profitability in the quarter NIS million

P&L highlights				Net profit
	1Q21	4Q21
Total net financing profit	2,682	2,680	2,864		1,354	1,419
Fees and other income	899	954	984				1,207
Total income	3,581	3,634	3,848					934
Operating and other expenses	1,919	1,905	1,958
Profit before provisions and taxes	1,662	1,729	1,890
Provision for credit losses	-508	187	-600
Profit before taxes	2,170	1,542	2,490
Net profit*	1,354	934	1,654
ROE*	13.5%	9.1%	15.6%

* Excluding special items, net profittotaled NIS 977 million (ROEof 9.5%) in 4Q21.

Note: For a full profit and loss disclosure, please refer to the Bank'sfinancialstatements for 1Q22.

Solid and responsible credit growth; in line with recent macroeconomic developments

Solid credit growth; continued income momentum

Solid credit growth; continued income momentum

Consumer

Strong retail deposit base; robust liquidity position well above regulatory requirements

Continued revenue momentum in core banking; significant earnings upside NIS million

Positive trend in fees on the back of a good business drive NIS million

Disciplined management of operating expenses NIS million

NIS million Asset quality remained resilient; allowance back to pre-Covid levels

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

High underwriting standards

Construction and real-estate credit risk

Only 1.1% of real estate under construction with absorption capacity lower than 25%

Only % problem 1 ati . c c 3 redit risk of total credit risk

Risk mitigation by insurance of land credit portfolio and Sale Law guarantees

% ~ 6 0

Housing loans

o f lo ans with original LTV lower than 60%

% * 7 max 5 imum LTV

Up to maximum pa 4 ym 0 ent % ** to income

Only % 0 . 4 9 ars

of loans a re i n a rre of 90 days or more

* Excluding loans of which more than 50% are from state funds under an eligibility program

** Excluding negligible cases (0.1% of new loans as of 1Q22)

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Resilient capital position despite unfavorable market impact; supports possible dividend resumption in respect of 2Q22 and onward

RWA reduction despite credit growth in the quarter

• Optimization measures
• Reduction in off-balance sheet financial instruments
• Purchase of insurance policy for Sale Law guarantees issued in real-estate projects as well as for loans secured by a lien on land
• Syndications and loan sale

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* Reli 3. The minimum regulatory requirement pre-relief is 6%. ef valid until December 31, 202

** Subject to, among other matters, the results of the Bank, market trends and developments, macroeconomic conditions, and the effect of the implementation of future regulatory directives, as well as compliance with legal tests

Note: For additional information regarding capital requirements, refer to note 9 in the 1Q22 financial report.

Dividend**

• The Board continues to prioritize the long term growth strategy and therefore resolved to refrain from dividend distribution this quarter, despite robust capital position
• This cautious approach is supported by the market volatility and risinguncertainty in the economic environment
• The Bank estimates that current solid capital position and balanced growth supports a possible dividend resumption in respect of 2Q22 and onward

CET-1 ratio	Total capital ratio
11.17%	14.44%
+ 21 bps in 1Q22	vs. min. regulatory req. of 13.5%
Leverage ratio

% vs. current min. regulatory req. * 6.12 of 5.5% (under relief )

Corporate strategy focused on three pillars

Committed to growth through innovative and fair banking for our

1

Growth in core banking

Retail banking

• Increase digital direct sales through advanced analytical tools
• Further adapt retail network to enhance sales capabilities and advisory services
• Expand market share in mortgages

Commercial and corporate banking

• Strengthen relationship and extend activity with clients
• Expand dealing and brokerage activity by improving the digital offering

Create 2

a new way

• Acquire new customers in the digital arena using the "bit" application platform
• customers Solidify leading positions in the payment market by expanding the range of to bank payment solutions offered through "bit" and expanding collaborations with e-commerce partners
  • Leverage the open-banking infrastructure to create new revenue sources

3

Build a growthsupporting organizational

• Further encourage a customer–centric and growthsupporting organizational culture
• Modernize core IT systems to improve time-to-market capabilities and reduce IT costs
• infrastructure Bring cutting-edge data analytics

key takeaways

Credit growth of 3.3%, in line with recent 2 macroeconomic developments

Continued positive trend in core banking 3 revenues

Maintained high asset quality; 4 still very low levels of provisions

CET-1 ratio of 11.17%; supports possible dividend resumption in respect of 2Q22 and onward 5 *

Significant upside potential from the 6 new interest-rate environment

directives, as well as compliance with legal tests * Subject to, among other matters, the results of the Bank, market trends and developments, macroeconomic conditions, and the effect of the implementation of future regulatory

Key balance sheet items NIS million

	1Q21	4Q21
Cash on hand and deposits with banks	159,943	189,283	178,317
Securities	64,798	71,105	68,604
Net credit to the public	306,117	352,623	364,257
Deposits from the public	455,394	525,072	519,776
Deposits from banks	6,942	11,601	11,370
Bonds and subordinated notes	21,415	25,582	27,411
Shareholders' equity	40,835	42,735	43,230
Total balance sheet	554,398	638,781	637,625

Note: For a full balance sheet analysis, please refer to the Bank's financial statements for 1Q22.

Israel's leading financial institution

1Q22 Quarterly Financial Review 21