Bank Hapoalim B.M.

Investor Presentation • May 14, 2020

1Q20 Quarterly Financial Review

1Q20 Disclaimer

This presentation includes condensed information and selected data regarding Bank Hapoalim's First Quarter 2020 results, and refers in part to the Bank's results from continued operation (not including data of Isracard Group), excluding those relating to capital, net profit and ROE data.

This presentation does not substitute the Bank's First 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 Company'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 Company's accounting policies. As well as certain other risk factors which are detailed from time to time in the Company's filings with the securities authorities.

1Q20 Israel and COVID-19 Macro perspective

close its borders and adopt a strict lower than in most advanced lockdown policy. economies. Israel directs FED rate FFD rate arrivals from Gov't eases reduction reduction China to enter restrictions to 1.25% to 0.25% containment (15) (29) 19 25 ( 3 (3) (20) (6) Feb 10 Apr Mar May Partial opening Gov't approves Full branch Bol reduces Bol rate emergency of the economy opening capital req. reduction regulations and by 100 bps to 0.10% restrictions Impact on GDP Unemployment (annual average) 8.7% GDP and on 6.0% Unemployment ● 5.5% 3.5% Bol forecast 3.3% 2020 2021 2019 2020 2021 5.39

The spread of the virus is

Israel was one of the first countries to

1Q20 Israel and COVID-19 Policy measures

Central bank policy

• Rate cut of 15bps to 0.1%
• QE-NIS 50 billion purchase of government bonds
• Repo with financial institutions
• \$/NIS swaps
• Capital requirement decrease of 100bps
• Easing debt classification

Government aid package of 6% of GDP

• Increase in health expenses
• Compensation for "unpaid leave" workers
• Deferring tax l
• Discount in municipalities taxes for businesses
• Guarantees for SME's credit
• Creating credit fund for large corporates
• Grants for self-employees

Corporate bond spread Tel-bond 60 spread over gov. bonds 4.0 3.0 2.0 1.0 0.0 11/03/2020 15/01/2020 11/02/2020 07/04/2020 12/05/2020 TA-125 index 2,000 1,500 1,000 500 01/01/2020 01/02/2020 01/04/2020 01/05/2020 10-year government bond yield 96 2.5 2.0 1.5 1.0 0.5 01/01/2020 01/02/2020 01/03/2020 01/04/2020 01/05/2020

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1Q20 Our response to COVID-19

Operational resilience

• Employee welfare, health and ability to perform their roles addressed from the onset.
• Dedicated emergency task force and cross functional response teams put in place.
• Strategic operations (cyber units, dealing rooms, call center) duplicated and enhanced.
• Digital and IT infrastructure enhanced to support capacity peaks.
• Retail branch network adjusted in line with Bol directives and gov't health regulations.
• High productivity levels maintained.

1Q20 Our response to COVID-19

Supporting people & families

Gradual branch opening, 100% of branches open today

Increased call center support and digital services

| open

(3

Loan payment holiday (3 payments)

90 day postponement of mortgage payments

Tailored deposits for volatile market conditions

Donated 5 Nis
3 million to health & social causes 16 million to national campaigns

Supporting businesses

Dedicated fund for up to NIS 10,000 for self-employed

Loans granted through gov't guarantee fund

Versatile credit solutions for businesses and self employed

Expert hotline for small businesses and self employed

Dedicated call center for businesses

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1Q20 COVID-19 met a strong bank

Significantly de-risked loan book

• Reduced risk profile of retail loan book
• Conservative and highly regulated mortgage book
• Corporate growth in line with Bank's risk appetite
• Reduction in borrower concentration over the years

• Highly diversified portfolio

• Collective wage agreement

• Divestment of Isracard
• Resolution of US investigations

1Q20 Highlights

Reserve build		Resilient balance sheet
COVID-19 collective provision	Collective allowance ratio	CET1 ratio	LCR
NIS 603 million	1.24%	11.21%	126%
	Growth parameters tracking well vs 1Q19	Strong business 0 parameters
Credit	Retail deposits	Financial margin	Cost income
+5.8%	+12.8%	2.27%	56.6%
			8

1Q20
	Key profit
and loss
items

NIS million

Note: For a full profit and loss analysis, please refer to the Bank's financial statements for 1Q20.

	1019	4Q19	1020
Total Net Financing Profit	2,366	2,539	2,498
Fees and Other Income	803	868	835	Includes NIS 603 million of COVID-19 collective
Total Income	3,169	3,407	3,383	provision
Provision for Credit Losses	(121)	(876)	(809)
Operating and Other Expenses	(1,877)	(2,937)	(1,916)
Profit before Taxes	1,171	(406)	658
Provision for Taxes on Profit	(449)	(268)	(363)	Includes loss of NIS 109
Net Profit from Continued Operations	730	(667)	301	million from completion of separation from Isracard
Net Profit	821	(629)	192
ROE from Continued Operations	7.9%	(6.6%)	3.2%
ROE	9.0%	(6.2%)	2.0%

9

1Q20 Credit growth In Israel

NIS billion

◆ bank hapoalim

11

1Q20 Financing income and margın NIS million

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regular financing

1Q20 Problematic debt

NIS million

14,656

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. Total expenses in 4Q19 exclude NIS 1,000 million associated with said provision, income of NIS 15 million associated with said exchange rate differentials and net income of NIS 4 million

1Q20 Balance Sheet resilience

1Q20 Appendix

1Q20 Key balance sheet items

NIS million

Note: For a full balance sheet analysis, please refer to the Bank's financial statements for 1Q20.

	1019	4Q19	10,20
Cash on hand and deposits with banks	78,332	88,122	89,475
Securities	66,259	59,486	74,500
Net credit to the public	283,048	292,940	299,548
Deposits from the public	354,232	361,645	388,566
Deposits from banks	3,328	5,520	3,980
Bonds and subordinated notes	29,695	26,855	24,491
Shareholders' equity	58,481	38,181	57,632
Total balance sheet	465,778	463,688	491,459

Israel's leading financial institution