Mizrahi Tefahot Bank Ltd.

Earnings Release • Mar 1, 2022

Q4/21 Disclaimer

• This document has been prepared by Mizrahi-Tefahot Bank Ltd (UMTB) solely for use at the company's presentation. The information contained in this document constitutes information from the bank's 2021 quarterly and annual reports and/ or immediate reports, as well as the periodic, quarterly and annual reports and/or immediate reports published by the bank in previous years.
• Accordingly, the information contained in this document is only partial, is not exhaustive and does not include the full details regarding the bank and its operations or regarding the risk factors involved in its activity and certainly does not replace the information included in the periodic, quarterly, annual or immediate reports published by the bank. In order to receive the full picture regarding the bank's 2021 quarterly and annual reports, the aforesaid reports should be perused fully, as published to the public.
• None of the company, or any of their employees or representatives shall have any liability whatsoever (in negligence or otherwise) for any loss howsoever arising from any use of this document or its contents or otherwise arising in connection with this document.
• The bank's results in practice may be significantly different from those included in the forecasting information, as a result of a large number of factors, including, inter alia, changes in the domestic and global equity markets, macro-economic changes, geo-political changes, legislation and regulation changes, and other changes that are not under the bank's control, which may lead to the estimations not realizing and/or to changes in the business plans.
• The forecasting information may change subject to risks and uncertainty, due to being based on the management's estimations regarding future events, which include, inter alia: global and local economic development forecasts, particularly regarding the economic situation in the market, including the effect of macro-economic and geo-political conditions; expectations for changes and developments in the currency and equity markets; forecasts related to other various factors affecting exposure to financial risks; forecasts with respect to changes to borrowers' financial strength, public preferences, changes in legislation and the provisions of regulators, competitors' behavior, the status of the bank's perception, technological developments and human resources developments.
• This document does not constitute an offer to sell, or a solicitation of an offer to buy, or a recommendation of any kind regarding any security or any interest in security.

Q4/21 Macro environment

5.5%

2022F

2) From March 2020 onwards – Broad Unemployment Rate, including unemployed persons, temporarily absent from work for reasons related to Coronavirus and not participating in the labor force who stopped working due to dismissal. Original data, excluding seasonality.

3) As of February 23, 2022

Q4/21 Overview of Mizrahi-Tefahot

(1) As of December 31, 2021. (2) For 2021. (3) Tel Aviv Stock Exchange (as of February 22, 2022)

(4) The Bank is in the process of merging some of Union Bank's branches with UMTB's branches, towards 205 branches in total by the end of the process. (5) As of September 30, 2021. (6) Market share in credit to Households and Private Banking segments (supervisory operating segments).

Q4/21 Financial Highlights

(1) NPL Ratio is calculated as Impaired Credit not Accruing Interest Income, divided by Gross Loans to the Public.

Q4/21 Asset quality

Segment	2021		2020		Q4/2021		Q4/2020
	Provision	Rate of provision	Provision	Rate of provision	Provision	Rate of provision	Provision	Rate of provision
Housing loans	)133(	)0.08%(	279	0.18%	)41(	)0.09%(	7	0.02%
Business	)89(	)0.13%(	635	0.90%	48	0.27%	97	0.60%
Households	)56(	)0.21%(	136	0.53%	)22(	)0.34%(	14	0.22%
Total	)278(	)0.10%(	1,050	0.43%	)15(	)0.03%(	118	0.19%

CECL - The Bank has applied the new directives with regard to provisions for credit losses as from January 1, 2022. According to Bank estimates, application of the new directives should result in an increase of NIS 0.1 billion in the balance of provision with respect to households, and NIS 0.3 billion with respect to business and commercial borrowers, against a decrease of NIS 0.1 billion in provision with respect to residential mortgages. The Bank intends to charge the cumulative effect to retained earnings upon initial application.

Provisions / loans to the public

Q4/21 Profitability and efficiency 2021

The bank recorded the highest profit ever

6

Q4/21 Continuous loan growth

Credit to the public (NIS bil)

Business segment	31.12.21	31.12.20	% change in
Housing loans	174,822	155,422	12.5
Households + private banking	26,087	25,697	1.5
Total individuals	200,909	181,119	10.9
(1) Total businesses	70,519	64,406	9.5
Total	271,428	245,525	10.6

Supervisory operating segments

7 (1) Small and micro businesses, Medium businesses and Large businesses, Institutional investors and Overseas operations

Q4/21 Continuous deposit growth

(1) Core deposits by segments

Total core deposits: NIS 205.7 bil Share of core deposits: 67%

Segment

8

Q4/21 Financing revenues from current operations continue to grow despite decrease in interest rates (1)

Q1/2015 Q2/2015 Q3/2015 Q4/2015 Q1/2016 Q2/2016 Q3/2016 Q4/2016 Q1/2017 Q2/2017 Q3/2017 Q4/2017 Q1/2018 Q2/2018 Q3/2018 Q4/2018 Q1/2019 Q2/2019 Q3/2019 Q4/2019 Q1/2020 Q2/2020 Q3/2020 Q4/2020 Q1/2021 Q2/2021 Q3/2021 Q4/2021

	2021	2020	Rate of change
Interest revenues, net	7,685	5,820
Non-interest financing revenues	401	221
Total financing revenues	8,086	6,041
Financing revenues Union Bank	922	235
Total financing revenues Excluding Union Bank, less:	7,164	5,806	23.4%
Linkage differentials with respect to CPI position	406	)105(
Revenues from collection of interest on troubled debt	53	39
Gain from debentures	6	97
Effect of accounting treatment of derivatives at fair value and others	593	204
Total effects other than current operations	1,058	235
Total financing revenues from current operations	6,106	5,571	9.6%
NIS mil			9

(1) Excluding Union Bank

Operating and other expenses (NIS mil)

Most of the increase is due to performance based remuneration

Q4/21 Equity, capital adequacy and dividend

(1) For the relevant period

11 (2) For 2020 and 1Q-3Q/2021 - 30% in accordance with BoI guidance, for 4Q/2021 - 40% in accordance with the dividend policy and removal of BoI limitations due to BoI interim directive expiration