Bank Hapoalim B.M.

Investor Presentation • Aug 13, 2020

Quarterly Financial Review

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

This presentation does not substitute the Bank's Second 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.

Mortgage market continues to track strong

NIS millions, monthly average of executions

Post peak, decline in unemployment

Source: Bank of Israel

Corporate bond spreads leveled off

Tel-bond 60 spread over gov. bonds, bps

Partial recovery in credit card activity

Local purchases, change vs January 2020

NIS million

	2Q19	1Q20	2020
Total Net Financing Profit	2,632	2,498	2,359
Fees and Other Income	833	885	795	Includes NIS 806
Total Income	3,465	3,383	3,154	million of COVID-19 collective provision
Provision for Credit Losses	(319)	(809)	(1,128)
Operating and Other Expenses	(1,992)	(1,916)	(1,826)
Profit before Taxes	1,154	658	200
Provision for Taxes on Profit	(441)	(363)	(73)
Net Profit	871	192	133
ROE	9.3%	2.0%	1.4%

Note: For a full profit and loss analysis, please refer to the Bank's financial statements for 2Q20.

NIS million

individual provision.

Payment deferrals granted*

• Deferral of loan payments supporting customer demand for cash flow relief
• the onset of the pandemic
• Current balance of credit still in deferral is significantly lower than the cumulative amount

* Weekly payment deferrals granted to consumers and small businesses until the end of the reporting period.

Net, NIS billion

In Israel, NIS billion

Housing loans

Small business

Consumer

2Q20 14 | Financing income and margin

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 respect to the investigation of the Bank Group's business with American clients. Total expenses in 1Q20 exclude expense of NIS 97 million of exchange rate differentials associated with provision made with respect to the investigation of the Bank Group's business with American clients as well as provision in the amount of 15 million associated with the investigation.

2Q20

Appendix

	2019	2020
Cash on hand and deposits with banks	88,122	113,033
Securities	59,486	66,513
Net credit to the public	292,940	293,700
Deposits from the public	361,645	400,816
Deposits from banks	3,520	3,418
Bonds and subordinated notes	26,853	25,196
Shareholders' equity	58,181	38,024
Total balance sheet	463,688	499,280

Note: For a full balance sheet analysis, please refer to the Bank's financial statements for 2Q20.

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