Bank Hapoalim B.M.

Investor Presentation • Aug 13, 2025

Bank Hapoalim

Quarterly Financial Review 2Q25

Disclaimer

This presentation includes condensed information and selected data from Bank In addition, the targets were set based on the existing regulation at the date of the

Data relating to business segments is presented according to "operating segments risks" in ²⁰²⁴ financial report. based on management approach" as disclosed in note 28A in the Bank's annual report.

defined in the Securities Law. The targets are based on various assumptions, information regarding the financial targets at any time. estimates, and evaluations with regard to future events, the materialization of which is uncertain and/ or not under the Bank's control, including assumptions regarding macroeconomic conditions, in line with expectations derived from the market; these include a Bank of Israel interest rate of 4.00% at the end of 2025 and 3.75% at the end of 2026, inflation of 2.3%-2.5% during the years of the plan, and GDP growth of 3.3%-3.5% during the years of the plan.

Hapoalim's 2Q25 financial results. This presentation is not a substitute for the Bank's report (not including the outline for the banking system regarding which the Bank of 2Q25 Financial Statements, which include the full financial information, including Israel issued a press release close to the date of approval of the financial statements, the forward-looking information. The financial statements are available on the Bank's details, manner of implementation, and impacts of which are still unclear; see the section website at www.bankhapoalim.com - Investor Relations/Financial Information. "Regulatory initiatives" in the Corporate Governance Report), including in connection Some of the information in this presentation that does not refer to historical facts with profit distribution, and do not include the effects of one-time events, including constitutes forward-looking information, as defined in the Securities Law. recognition of reimbursement by insurance and potential income from the disposal of Forward-looking statements regarding the Bank's business, financial condition, and real-estate properties owned by the Bank in the course of the relocation to the Poalim results of operations are subject to risks and uncertainties that may cause actual Center. The targets may not be realized, in full or in part, and the actual business results results to differ materially from those contemplated. Such forward-looking achieved may be materially different, due, among other factors, to the failure of the statements include, but are not limited to, product demand, pricing, market assumptions detailed above to materialize; changes in the business environment, in acceptance, changing economic conditions, risks in product and technology Israel and globally, and in macroeconomic conditions; the condition of the global development, and the effect of the Bank's accounting policies, as well as certain economy; the economic, political, and security situation in Israel and in the region; other risk factors detailed from time to time in the Bank's filings with the securities regulatory changes and consequent restrictions applicable to the Bank; or the authorities. materialization of any of the risk factors that affect the Bank. See the section "Review of

Special items in ROE, net profit, and expenses refer to provision made in relation to The Bank's plans and the financial targets are subject to changes that may be required the investigation of the US authorities. from time to time, including due to factors that may affect their realization, as described The targets listed in this presentation constitute forward-looking information, as above. Subject to the directives of the law, the Bank shall not be obligated to update the

Excellent quarter and first half in profit, credit growth, and capital generation, well on track with the bank's financial targets

Additional updates

Dividend distribution

Profit distribution raised to 50% of 2Q25 net profit, in line with the Bank's financial targets

Dividend policy

Updated to up to 50%of net profit

Expected one-time profit recognition in 3Q25

Insurance reimbursement of NIS 380 million net, will be recognized in 3Q25 P&L

Another quarter of robust profitability

Net profit, ROE & EPS, annual

Net profit, ROE & EPS, quarterly NIS million

* 2021: Excluding special items, net profit for 2021 totaled NIS 4,957 million (ROE of 11.9%).

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NIS million

Significant loan growth momentum

Credit portfolio, NIS billion

469 ^{456 443 430} 416 2Q24 3Q24 4Q24 1Q25 2Q25 12.7% 3.0%

Well-diversified credit portfolio

Credit growth across all segments of operation NIS billion

7 | 2Q25 Financial Review

Resilient financing income and margins, positively affected by credit growth, CPI contribution, and asset repricing

Positive fee income trend levered on increased customer activity

Fees, NIS million

Fees in the second quarter were positively impacted by one-time income received from international credit-card organizations. On the other hand, fees were impacted by benefits provided to customers in respect of various outlines issued by the Bank of Israel and adopted by the Israeli banking sector.

Best-in-class efficiency

Total expenses, NIS million

10 | 2Q25 Financial Review

Continuing to build the collective allowance; income recorded from individual allowance

Provision for credit losses, NIS million

The provision in the second quarter of 2025 was driven by an increase in the collective allowance for credit losses, due to growth of the credit portfolio as well as effects of uncertainty in the economic environment due to the continuation of the war. In respect of the individual allowance, income was recorded, as a result of recoveries from a small number of borrowers.

Strong credit quality metrics due to conservative approach; low NPL ratio alongside substantial allowance of almost triple the NPLs

* Balance sheet allowance for credit losses to NPL.

** Allowance in respect of loans, including off-balance sheet items, of total loans.

12 | 2Q25 Financial Review

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*** Proforma data. The proforma allowance for credit losses includes the effect of the initial implementation of CECL.

Largest-in-sector retail deposit base provides a competitive advantage

Deposit base

Stability in non-interest bearing deposits

Non-interest bearing deposit ratio 26% vs. 27% in 2Q24

Sound capital position, with impressive generation capabilities

Distribution increased to 50% of net profit, in line with the bank's financial targets

* Calculated as the dividend per share declared in respect of the last four quarters' profits, including 2Q25, divided by share price on the record date of each distribution or declaration.

Reminder - Financial targets for 2025-2026

as published in March 2025

Note: financial targets are subject to baseline assumptions, as disclosed in section 1.2.2 in the 2024 annual report.

* By cash dividend or share buyback, subject to the guidelines of the Bank of Israel and all relevant circumstances (see section 2.3.2 in the 2024 annual financial report regarding capital and capital adequacy).

Risk premium falls further, inflation runs above target, markets believe in more moderate rate cuts

Risk premiums

Risk premium derived from 10-year government bond and 5Y CDS Source: Bloomberg

Expectations for rate cuts have moderated

Inflation remains elevated, mainly affected by services prices

High level of housing investments, home sales declined

2Q25 key takeaways

Strong opening of the year, on track 1 to meeting our financial targets

4 Significant credit growth momentum; growth was broad-based across all segments

2 Robust profitability – ROE 16.7% cost income ratio 32.8% 5

Growth was recorded while credit quality metrics continued to be strong; NPL ratio 0.50% & credit-loss allowance to NPLs 298%

3 Resilient financing income and fees, boosted by the growth in activity and CPI contribution

6

Substantial organic capital generation and surplus allowed an increase in the distribution to 50% of net profit; updated dividend policy to up to 50% of net profit

Appendix 2Q25 Financial Review

Key balance sheet items

NIS million

	2Q24	1Q25	2Q25
Cash and deposits with banks	107,821	90,552	80,569
Securities	123,948	133,277	150,255
Net credit to the public	416,297	455,594	469,052
Deposits from the public	552,612	565,886	576,888
Deposits from banks	11,371	7,016	15,388
Bonds and subordinated notes	19,535	24,708	26,637
Shareholders' equity	55,506	60,224	62,123
Total balance sheet	685,140	720,197	758,085

Key profit and loss items

NIS million

	2Q24	1Q25	2Q25
Total net financing profit	4,706	4,600	5,293
Fees and other income	1,026	1,090	1,152
Total income	5,732	5,690	6,445
Salaries and related expenses	(1,151)	(1,115)	(1,165)
Maintenance and depreciation of buildings and equipment	(349)	(345)	(360)
Other expenses	(606)	(529)	(588)
Total operating and other expenses	(2,106)	(1,989)	(2,113)
Provision for credit losses	49	(262)	(302)
Profit before taxes	3,675	3,439	4,030
Provision for taxes on profit	(1,402)	(1,049)	(1,478)
Net profit	2,238	2,424	2,542
ROE	16.4%	16.4%	16.7%

23 | 2Q25 Financial Review

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Israel's leading

financial institution