Israel Discount Bank Ltd.

Capital/Financing Update • Nov 19, 2025

Rating Action Update and November 2025

Contacts:

1 Yossi Yona

Senior Analyst, Lead Rating Evaluator

yosi.y@midroog.co.il

2 Amit Federman, CPA

Senior Team Leader, Secondary Rating Evaluator amit.federman@midroog.co.il

3 Moti Citrin, EVP

Head of Financial Institutions, Structured Finance and Additional Services moty.c@midroog.co.il

Page 1

Internal Financial Strength Assessment (BCA)	aa2.il	undened
Long-Term Deposits and Bonds	Aaa.il	Outlook: Stable
Deferred Debentures with Contractual Loss Absorption Mechanism (CoCo)	Aa3.il(hyb)	Outlook: Stable
Short-Term Deposits / CP	P-1.il

Following the rating action report dated 17.11.2025, Midroog assigns a rating of Aaa.il with a stable outlook for the issuance of bonds (series YD and YZ) totaling up to NIS 3.1 billion par value, replacing the previously rated NIS 1.5 billion par value. In addition, a rating of P-1.il is assigned for the issuance of commercial papers (Series 7) totaling up to NIS 1.5 billion par value, replacing the previously rated NIS 1.0 billion par value. The issuances will be carried out by Discount Issuers Ltd., a whollyowned subsidiary of ISRAEL DISCOUNT BANK LTD. (hereinafter: the Bank), which serves as the Bank's issuing arm.

According to Midroog's methodology, the rating of the commercial papers is based on the rating of the Bank's long-term deposits and senior debt, as well as its short-term liquidity analysis, considering its liquidity prole assessed in the Bank's nancial strength evaluation, the stability of its funding structure¹, and the proportion of liquid assets² relative to total public deposits.

For more information regarding the rating considerations, see the follow-up and rating action reports from November 2025³.

Related Reports

The reports are published on the Midroog website www.midroog.co.il

• 1 ISRAEL DISCOUNT BANK LTD. Related Reports
• 2 Bank Rating Methodology Methodological Report, September 2019
• 3 Short-Term Rating Methodological Report, November 2025
• 4 Promoting Competition in the Banking System Special Report, February 2023
• 5 Guidelines for Assessment of Environmental, Social and Governance (ESG) Risks Within Credit Ratings Methodological Report, February 2022

6 Aliation and Holding Table

7 Midroog Rating Scales and Denitions

General Information

Rating report date:

Last date of the rating update:

Original rating publication date:

Rating initiator name:

ISRAEL DISCOUNT BANK LTD.

Name of entity that paid for the rating:

ISRAEL DISCOUNT BANK LTD.

1 19.11.2025

2 17.11.2025

3 22.12.2005

Information from the Issuer

Midroog bases its ratings, among other things, on information received from authorized representatives of the issuer.

• Deposits from banks, deposits from institutional entities, commercial papers, bonds, and debentures payable within the next 12 months, as a share of total assets. 1
• Cash and deposits in banks, Israel and US Government bond series, and assets guaranteed by the US Government. 2
• Rating reports are published on the Midroog website. 3

ISRAEL DISCOUNT BANK LTD. - Rating Action Update 19/11/2025 2

Page 2

Rating Action Update

19/11/2025

aaa.il	Higher relative to other local issuers, in the absence of any possibility for external support from a related company or from the state.
aa.il	Very high relative to other local issuers, in the absence of any possibility for external support from a related company or from the state.
a.il	High relative to other local issuers, in the absence of any possibility for external support from a related company or from the state.
baa.il	Certain speculative characteristics.
ba.il	Speculative.
b.il	Signicant speculative characteristics.
caa.il	Most signicant speculative characteristics.
ca.il	Any redemption of principal and interest is questionable.
c.il	Redemption of principal and interest is highly questionable.

Subsequent to the rating action report dated 17.11.2025, Midroog assigns a rating of Aaa.il with a stable outlook for the issuance of bonds (series YD and YZ), totaling up to NIS 3.1 billion par value, replacing the previously rated NIS 1.5 billion par value. Additionally, a rating of P-1.il is assigned for the issuance of commercial papers (Series 7) totaling up to NIS 1.5 billion par value, replacing the previously rated NIS 1.0 billion par value. The issuances will be carried out by Discount Issuers Ltd., a whollyowned subsidiary of ISRAEL DISCOUNT BANK LTD. (hereinafter: the Bank), which serves as the Bank's issuing arm.

According to Midroog's methodology, the rating of the commercial papers is based on the rating of the bank's long-term deposits and senior debt, and an analysis of its short-term liquidity, based on the liquidity prole reviewed in the evaluation of the bank's nancial strength, the stability of the funding structure¹ and liquid assets² relative to total public deposits.

For information about the rating considerations, refer to the follow-up report and the rating action report from November 2025³.

Related Reports

The reports are published on the Midroog website www.midroog.co.il

• 1 ISRAEL DISCOUNT BANK LTD. Related Reports
• 2 Bank Rating Methodology Methodological Report, September 2019
• 3 Short-Term Rating Methodological Report, November 2025
• 4 Promoting Competition in the Banking System Special Report, February 2023
• 5 Guidelines for Assessment of Environmental, Social and Corporate Governance Risks within Credit Ratings Methodological Report, February 2022
• 6 Aliation and Holdings Table
• 7 Midroog's Rating Scales and Denitions

General Information

Rating report date:

Last date of rating update:

Date of original rating publication:

Rating initiator name:

ISRAEL DISCOUNT BANK LTD.

Name of entity that paid for the rating:

ISRAEL DISCOUNT BANK LTD.

1 19.11.2025

2 17.11.2025

3 22.12.2005

Information from the Issuer

Midroog relies, among other things, on information received from authorized entities at the issuer for its ratings.

ISRAEL DISCOUNT BANK LTD. - Rating Action Update 19/11/2025 3

Deposits from banks, deposits from institutional entities, commercial papers, bonds, and debentures payable within the next 12 months, as a share of total assets. 1

Cash and deposits in banks, Israel and US Government bond series, and assets guaranteed by the US Government. 2

Rating reports are published on the Midroog website. 3

Rating Action Update

19/11/2025

Aaa.il	Other local issuers.
Aa.il	Other local issuers.
A.il	Others.
Baa.il	Other local issuers and may be associated with certain speculative characteristics.
Ba.il	Other local issuers and have speculative characteristics.
B.il	Other local issuers and have signicant speculative characteristics.
Caa.il	Other local issuers and have the most signicant speculative characteristics.
Ca.il	Very close to default, with some chance of principal and interest recovery.
C.il	In default, with slim chances of principal and interest recovery.

Following the rating action report dated 17.11.2025, Midroog has assigned an Aaa.il rating, with a stable outlook, for the issuance of bonds (series YD and YZ), with a total aggregate nominal value of up to NIS 3.1 billion, replacing the previously rated nominal value of NIS 1.5 billion. Similarly, a P-1.il rating was assigned for the issuance of commercial papers (series 7) up to a nominal value of NIS 1.5 billion, replacing the previously rated nominal value of NIS 1.0 billion. The issuances will be conducted by Discount Issuers Ltd., a wholly owned subsidiary of ISRAEL DISCOUNT BANK LTD. (hereinafter: the Bank), which is the issuing arm of the Bank.

According to Midroog's methodology, the rating of the commercial papers is based on the bank's long-term deposits and senior debt ratings, as well as on its short-term liquidity analysis, based on the liquidity prole evaluated in the assessment of the bank's nancial strength, the stability of the funding structure¹, and liquid assets² relative to total public deposits.

For information regarding the key considerations in the rating, please refer to the follow-up report and the rating action update report from November 2025³.

Related Reports

The reports are published on the Midroog website www.midroog.co.il

• 1 ISRAEL DISCOUNT BANK LTD. Related Reports
• 2 Bank Rating Methodology Methodological Report, September 2019
• 3 Short-Term Rating Methodological Report, November 2025
• 4 Promoting Competition in the Banking System Special Report, February 2023
• 5 Guidelines for the Assessment of Environmental, Social, and Corporate Governance Risks within Credit Ratings Methodological Report, February 2022
• 6 Aliation and Holdings Table
• 7 Midroog's Rating Scales and Denitions

General Information

Rating report date:

Last date rating was updated:

Date rating was rst published:

Rating initiator:

ISRAEL DISCOUNT BANK LTD.

Name of entity paying for the rating:

ISRAEL DISCOUNT BANK LTD.

1 19.11.2025

2 17.11.2025

3 22.12.2005

Information from the Issuer

Midroog relies in its rating, among other things, on information received from authorized ocers at the issuer.

ISRAEL DISCOUNT BANK LTD. - Rating Action Update 19/11/2025 4

Deposits from banks, deposits from institutional entities, commercial papers, bonds, and debentures payable within the next 12 months, as a share of total assets. 1

Cash and deposits in banks, Israel Government and U.S. Government bond series, and assets guaranteed by the U.S. Government. 2

Rating reports are published on the Midroog website. 3

Rating Action Update

19/11/2025

Local Short-Term Rating Scale

P-1.il	Relatively short compared to other local issuers.
P-2.il	Compared to other local issuers.
P-3.il	Compared to other local issuers.
NP.il

Issuers rated Prime-1.il are, according to Midroog's judgment, considered to have a very strong ability to meet their short-term obligations.

Issuers rated Prime-2.il are, according to Midroog's judgment, considered to have a strong ability to meet their short-term obligations.

Issuers rated Prime-3.il are, according to Midroog's judgment, considered to have a moderate ability to meet their short-term obligations.

Issuers rated Not Prime.il, according to Midroog's judgment, do not belong to any of the three Prime categories above.

The Connection Between the Long-Term Rating Scale and the Short-Term Rating Scale

The following table details the applicable long-term ratings that correspond to the short-term ratings, as long as long-term ratings exist.

ISRAEL DISCOUNT BANK LTD. - Rating Action Update 19/11/2025 5

19/11/2025

© All rights reserved to Midroog Ltd. (hereinafter: Midroog). Ratings issued by Midroog reect the subjective opinions of Midroog regarding the relative future credit repayment ability of entities, obligations, debts and/or debt-like nancial instruments, as of the date of their publication or supply, and as long as Midroog has not changed the rating or discontinued it, and all materials, products, services and information published or provided by Midroog (hereinafter: Midroog Materials), may include subjective opinions as stated above. Midroog denes credit repayment ability as the issuer's ability to meet its contractual obligations and the loss in the event of a default or impairment event. Midroog's ratings do not address any other factor, such as but not limited to liquidity risks, market value, interest rate changes, price volatility or any other factor that is not credit repayment ability. Midroog's ratings, non-credit risk assessments (hereinafter: Midroog assessments), or any opinion included in Midroog Materials, should not be regarded as facts or historical data. Midroog Materials may also include quantitative assessments regarding credit repayment ability, based on models, as well as opinions and comments regarding these assessments. Midroog's credit ratings, Midroog assessments, Midroog opinions, and other Midroog Materials, do not constitute investment advice or nancial advice, and are not a recommendation to purchase, sell or hold any securities. Midroog's credit ratings, Midroog assessments, Midroog opinions, and other Midroog Materials, are not an opinion as to the suitability of any investment to the needs of any specic investor. Midroog issues credit ratings, assessments and other opinions and publishes or supplies the Midroog Materials on the presumption and expectation that each investor will exercise due caution and make their own assessments regarding the advisability of purchasing, selling or retaining any security. Midroog recommends that every individual investor consult professional advice regarding investment advisability, applicable law, and any other professional matter, before making any decision regarding investments. Midroog's ratings, Midroog assessments, and any other opinion or Midroog Materials are not intended for use by private investors. Private investors are hereby warned not to base investment decisions on Midroog Materials. A private investor who makes decisions on investments based on Midroog Materials acts recklessly and irresponsibly. Midroog recommends every individual investor consult a nancial advisor or other professional advisor before making any investment decisions. All information included in this document is protected by law, including, among other things, under copyright and intellectual property laws. It is forbidden to copy all or any part of this information or scan it, rewrite it, distribute it, transfer it, duplicate it, display it, translate it or store it for further use for any purpose, in any way, without Midroog's prior written approval. For the purposes of the opinions provided by Midroog, Midroog uses rating scales, in accordance with the denitions detailed in each scale. The notation chosen to reect Midroog's opinion regarding credit repayment ability reects only a relative assessment of said risk. Midroog's ratings are not conducted according to a global scale—they are opinions regarding the issuer's or issuance's credit repayment ability relative to that of other issuers or issuances in Israel. Midroog's credit ratings, assessments and opinions, and Midroog Materials are not intended for use as a benchmark, as dened in a regulatory context, and must not be used in any way that could lead them to be considered a benchmark. Midroog does not provide any warranty, explicit or implied, regarding the accuracy of any rating, assessment or other opinion or information delivered or created by Midroog in any way, or as to its correctness as of a specic date, or as to its completeness, merchantability or tness for any purpose. All information included in Midroog's ratings, assessments, opinions and materials (hereinafter: the Information) was provided to Midroog by sources deemed by it to be reliable and accurate. However, since human error or technical failure may always occur, as well as other factors, all the information included in this document is provided as is, without any warranty of any kind. Midroog is not responsible for the accuracy of the information. Midroog takes reasonable steps to ensure that the information it uses for the purpose of rating is of sucient quality and comes from sources it considers reliable, including information obtained from independent third parties, if relevant. However, Midroog is not an auditing body and therefore cannot authenticate or validate the information received in every case during the rating process or during the preparation of Midroog Materials. The content of Midroog Materials is not part of Midroog's methodology, except for those sections of the content that are explicitly stated as being part of the methodology. Subject to the provisions of any law, Midroog, its directors, ocers, employees, agents, representatives, any entity that granted a license to Midroog, and its suppliers (hereinafter: Midroog Persons), will not be liable to any person or entity for any indirect, special, consequential or incidental damage or loss arising from the information in this document or from using such information or from inability to use such information, even if Midroog or any of the Midroog Persons have been advised that such damage or loss may occur. Without derogating from the generality of the foregoing, Midroog shall not be responsible: (a) for loss of prots, present or future; (b) for loss or damage arising from a nancial instrument that was not the direct focus of a specic Midroog credit rating. Subject to the provisions of any law, Midroog and the Midroog Persons will not be liable to any person or entity for any direct damage or loss arising from information contained in this document, or from its use or the inability to use it, including, among other things, damage or loss resulting from their negligence (except for fraud, willful misconduct or any other action that the law does not permit waiving liability for), or from an unforeseen event, whether such event is within the control of Midroog or the Midroog Persons, or not. Midroog has adopted policy and procedures regarding rating independence and rating procedures.

Any rating, assessment or opinion issued by Midroog may change as a result of changes in the information on which it was based and/or as a result of receiving new information and/or for any other reason. As relevant, updates and/or changes in ratings appear on Midroog's website at www.midroog.co.il.

ISRAEL DISCOUNT BANK LTD. - Rating Action Update 19/11/2025 6

Page 6

11/19/2025 | 12:26:17 PM