Bank Hapoalim B.M.

Earnings Release • Nov 19, 2020

3Q20

Quarterly Financial Review

This presentation includes condensed information and selected data regarding Bank Hapoalim's Third Quarter 2020 results.

This presentation does not substitute the Bank's Third Quarter 2020 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 facts constitutes 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 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 factors which are detailed from time to time in the Bank's filings with the securities authorities.

3Q20 ▼ | Strong fundaments support a fortress position

Solid profit in Q3 despite challenging macro environment

Following high reserve build in 1H20 Q3 provision materially lower

Strong capital generation high surplus vs. targets

Robust liquidity position supported by large retail deposit base

Astute credit growth in line with risk management

Vigilant cost control allows for continued investment in growth

3Q20 financial highlights

ROE 8.8%

Provision ratio 0.26%

Cost income ratio 56.1%

CET1 ratio 11.53%

Collective allowance ratio 1.58%

3Q20 4 Israel and COVID-19

The rate of infection has decreased

Daily new confirmed cases of Covid-19 per million people

Post second wave of high infection rate and lockdown, Israel is ahead of other economies

Impact of the second lockdown on the economy was less severe than the first

Fast rebound in economic activity post lockdown, learning curve apparent

3Q20 ₪ | Israel and COVID-19

Mortgage market continues to track strong

NIS millions, monthly average of executions

Expansionary monitory policy pushed current account balances upwards

NIS billions

Public debt increased, yet low vs advanced economies

Low yields ease gov't funding 1.5 1.0 0.5 0.0 01/20 Source: Terminal

Source: Bank of Israel

3Q20

NIS million

	3019	2Q20	3020
Total Net Financing Profit	2,341	2,359	2,536
Fees and Other Income	826	795	766
Total Income	3,167	3,154	3,302
Provision for Credit Losses	40	(1,128)	(193)
Operating and Other Expenses	(1,970)	(1,826)	(1,851)
Profit before Taxes	1,237	200	1,258
Provision for Taxes on Profit	(523)	(73)	(449)
Net Profit	736	ી રેડિક	816
ROE	7.6%	1.4%	8.8%

Note: For a full profit and loss analysis, please refer to the Bank's financial statements for 3Q20.

a percent of total credit, excluding impaired loans.

� bank hapoalim

4.8

Evaluating actions to structurally reduce the cost base

C/I ratio*

Expediting fifth efficiency plan

Streamlining of branch network

Proposed consolidation of Bank's CBD HQ

Cost reduction task force, sustaining continued investment in growth

refers to debts for which the payment deferral period has ended and debts in deferral at report date. data refers only to paymentsin deferral atthe report date. Please refer to table 3-1 in the 3Q20 financial statement for full disclosure.

3Q20 ® | Highly diversified loan book

Net, NIS billion

3Q20 ■ | Highly diversified loan book

In Israel, NIS billion

Housing loans

Small business

Corporate

Consumer

3Q20 ▪ □ Deposit base an important funding source

NIS billion

3Q20 % | FED and local rate reduction affecting margins

NIS million

Financial margin from regular activity

FED interest rate average, upper bound

Bank of Israel interest rate average for period

Net financing profit

| Others Income from regular financing activity

Total expenses in 2Q20 exclude income of NIS 53 million of exchange rate differentials associated with provision made with respectto the investigation of the Bank Group's business with American clients.

3Q20

Appendix

	2019	3020
Cash on hand and deposits with banks	88,122	128,421
Securities	59,486	67,835
Net credit to the public	292,940	292,845
Deposits from the public	361,645	417,005
Deposits from banks	5,520	3,280
Bonds and subordinated notes	26,855	24,724
Shareholders' equity	58,181	38,971
Total balance sheet	465,688	513,686

Note: For a full balance sheet analysis, please refer to the Bank's financial statements for 3Q20.

Israel's leading financial institution