Bank Hapoalim B.M.

Investor Presentation • Mar 11, 2021

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Annual Financial Review

This presentation includes condensed information and selected data Bank Hapoalim's 2020 annual financial results.

This presentation does not substitute the Bank's 2020 Annual Financial Statements which include 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 forward-looking information, as defined in the Securities Law. Forward looking statements for the Bank's business, financial condition and results of operations, are subject to risks and uncertainties, that could cause actual results to m 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 factors which are detailed from time in the Bank's filings with the securities authorities.

Special items in ROE and Net Profit refer to provision made in relation of the US Authorities, the effect of the closure 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 provision made in relation of the US Authorities (including exchange rate differentials), and the effect of the Bank's private banking activities overseas.

2020 | Israel and COVID-19: Recapping 2020

Relatively low impact on GDP

GDP annual rate of change, 2020

Source: Individual country data

GDP drop was lower than preliminary expectations on the back of several factors:

• Favorable initial conditions
• Strong high-tech sector
• ♥ Closing of the skies contributed to domestic consumption
• ♥ Expansionary fiscal and monetary policy

High private saving was a cushion to private consumption

Personal saving as a percentage of disposable personal income

Public debt increased, yet low vs. advanced economies

Source: IMF

2020 | Israel and COVID-19: A look ahead

Cautious optimism as we look at 2021

• High pace of vaccination paved the way to reopen the economy
• Commodity prices and local supply factors expected to gradually increase inflation
• Shekel yield curve on par with global trends, and is now steeper

Leading the world in vaccination

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Share of population received at least one dose (as at 6 March, 2021)

Inflation is rising, though still in negative territory

Steeper curve, monetary expansion here to stay

10-year government bond yield

Two-year breakeven inflation

Source: Terminal

2020 (vs. 2019)

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2020 | Strong parameters support fortress balance sheet

7 =

Weighted Assets (%)

	2020	Vs. 2019
Total net financing profit	9,885	0.1%
Fees and other income	3,291	-1.2%
Total income	13,176	-0.2%
Operating and other expenses	(7,501)	-14.5%
Net operating profit	5,675	28.0%
Provision for credit losses	(1,943)	52.3%
Profit before taxes	3,752	18.3%
Net profit*	2,056	14.3%
ROE*	5.3%	4.6%

* Excluding special items, net profit totaled NIS 2,205 million (ROE of 5.7%) in 2020 and NIS 2,778 million (ROE of 7.1%) in 2019. For a full profit and loss analysis,

please referto the Bank's financialstatements for FY20.

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* Adjusted total expenses and cost income ratio exclude special items. Adjusted data for 2019 include NIS 210 million cost of wage

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ofitability

2020 | Broad efforts to structurally reduce the cost base

2020 | Solid and diversified growth strategy

In Israel, NIS billion

Total credit

Small business

Housing loans

Corporate 78.1 77.3 72.1 1.0%A 2018 2019 2020

Consumer

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Year ended	2019	2020
Cash on hand and deposits with banks	88,122	138,711
Securities	59,486	71,885
Net credit to the public	292,940	301,828
Deposits from the public	361,645	435,217
Deposits from banks	3,520	6,591
Bonds and subordinated notes	26,853	23,490
Shareholders' equity	38,181	39,873
Total balance sheet	463,688	539,602

Note: For a full balance sheet analysis, please referto the Bank's financialstatements for FY20.

Year ending December 31	2019	2020
Total net financing profit	9,878	9,885
Fees and other income	5,550	3,291
Total income	13,208	13,176
Wages	(4,092)	(3,836)
Maintenance and depreciation of buildings and equipment	(1,3333)	(1,377)
Other expenses	(2,457)	(2,229)
Special items	(894)	(59)
Total operating and other expenses	(8,776)	(7,501)
Provision for credit losses	(1,276)	(1,943)
Profit before taxes	5,156	3,752
Provision for taxes on profit	(1,681)	(1,590)
Net profit*	1,799	2,056
ROE*	4.6%	5.3%

* Excluding special items net profittotaled NIS 2,205 million (ROE of 5.7%) in 2020 and NIS 2,778 million (ROE of 7.1%) in 2019 .

Note: For a full profit and loss analysis, please referto the Bank's financialstatementsfor FY20.

2020 | Strong capital base, well above targets

NIS billion

Israel's leading financial institution