Bank Hapoalim B.M.

Investor Presentation • May 13, 2021

1Q21

Quarterly Financial Review

Disclaimer

This presentation includes condensed information and selected data on Bank Hapoalim's 2021 first-quarter results.

This presentation is not a substitute for the Bank's First Quarter 2021 Financial Statements, which contain 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 concerning 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, statements on the subjects of 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 which are detailed from time to time in the Bank's filings with the securities authorities.

Special items in ROE and net profit in previous periods, refer to provisions made in relation to the US authorities, the effect of the dosure of the Banking activities overseas, loss/profit from the separation from Isracard, and loss from impairment relating to Bank Pozitif. Special items in expenses, refer to provisions made in relation to the investigations of the US authorities (including exchange rate differentials), and the effect of the Bank's private banking activities overseas.

Israel and COVID-19: Strong start to 2021

Cautious optimism as we look ahead

• High pace of vaccination paved the way to reopen the economy - BOI forecast GDP growth of 6.3% in 2021
• Political uncertainty has not affected consumer confidence or risk premiums
• ♥ Commodity prices and local supply factors expected to gradually increase inflation to 1.9% by year-end

Less than 100 new confirmed cases per day

58% of population fully vaccinated

Inflation rising

CPI, year-on-year rate of change

Consumer confidence back on track

Bank Hapoalim and KANTAR TNS consumer confidence index

VC investments in hi-tech sector at record levels

Quarterly investments in hi-tech companies, \$ billions

� bank hapoalim

Delivered robust performance in 1Q21

Strong profitability

14.2%

ROE

NIS 1 35 bn Net profit

Credit growth momentum

1 4% Q0Q

Net credit to the public

3.6%。

Commercial

credit

1.9%.

Housing

loans

Improving credit quality

1.05%

NPL ratio

1.6% vs 14.5%
as reported in 2020x Deferrals / total credit

Large capital buffer

Well
above 11.67% targets CET-1ratio

8.5%

Growth in Shareholders' equity

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* Deferrals, as reported in the 2020 financial report, include debts for which the payment deferral period ended prior to that date.

Very strong profitability in the quarter NIS million

P&L highlights

	1Q20	4Q20	1Q21
Total net financing profit	2,498	2,492	2,682
Fees and other income	885	845	899
Total income	3,383	3,337	3,581
Operating and other expenses	1,916	1,908	1,919
Profit before provisions and taxes	1,467	1,429	1,662
Provision for credit losses	809	-187	-508
Profit before taxes	658	1,616	2,170
Net profit*	192	915	1,554
ROE*	2.0%	9.6%	14.2%

♦ bank hapoalim

* Excluding special items, net profit totaled NIS 313 million (ROE of 3.3%) in 1Q20.

5

Targeted credit growth

= Net, NIS billion

Small

30.2

1Q20

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1Q21

Continued growth in retail deposits

Positive core banking revenue evolution

* Excluding special items.

9

1Q21

Asset quality trends encouraging

* Deferrals, as reported in the 2020 financial report, include debts for which the payment deferral period that date.

10

Improved economic indicators allowed for collective allowance release; reserves remain high

NIS million

Allowance for credit losses

� bank hapoalim

Strong capital position; large buffer over targets NIS billion

� bank hapoalim

Note: for additional information regarding capital requirements, refer to note 9 in 1Q21 financial report.

1Q21 key takeaways

ROE of 14.2% in 1Q21

credit growth, amidst the challenging environment

Positive core banking revenue evolution, supported by

Strong cost control as we continue to implement our efficiency plan

Solid risk indicators; encouraging outlook

Robust capital generation; significant capital buffer over both regulatory requirement and internal target

bit - continuing to solidify popularity in P2P payments, B2C and E-commerce; launched digital wallet and bit-card

Appendix

Key balance sheet items NIS million

	1Q20	4Q20	1071
Cash on hand and deposits with banks	89,475	138,711	159,943
Securities	74,500	71,885	64,798
Net credit to the public	299,548	२०१,८२८	306,117
Deposits from the public	588,566	435,217	455,394
Deposits from banks	3,980	6,591	6,942
Bonds and subordinated notes	24,491	23,490	21,415
Shareholders' equity	37,632	39,873	40,835
Total balance sheet	491,459	539,602	554,398

Israel's leading financial institution