Mizrahi Tefahot Bank Ltd.

Investor Presentation • Nov 28, 2022

Q3/22 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 2022 quarterly 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 2022 quarterly reports, the aforesaid reportsshould 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.

Q3/22 Macro environment

2

1) 2022F-2023F according to BoI forecast from Oct 2022

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.

Q3/22 Overview of Mizrahi-Tefahot

(1) As of September 30, 2022. (2) For 1-9/2022. (3) Tel Aviv Stock Exchange (as of Nov 23, 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. As of reporting date, due to the merger, most of Union Bank's branches have been closed. (5) As of December 31, 2021. (6) As of June 30, 2022. (7) Market share in credit to Households and Private Banking segments (supervisory operating segments).

Q3/22 Financial Highlights

Q3/22 Merger with Union Bank

• On September 5, 2022, the Bank filed a proposed merger with the Registrar of Companies. The statutory merger of Union Bank into Mizrahi Tefahot is expected on December 29, 2022. 1
• The process of customer transition, which started in the second quarter of 2021, was gradual and the great majority of accounts have been transitioned to the Bank.
• After the reports date, the IT conversion of banking operations from Union Bank systems to Mizrahi Tefahot systems was successfully completed, including those accounts not previously transitioned, as described above, as part of the gradual transition process. This included conversion of the residential mortgage portfolio and consumer credit operations of Union Bank, and conversion of accounts of all other Union Bank customers to Mizrahi Tefahot.

(1) For more information see immediate report dated September 5, 2022 (2022-01-113842).

Q3/22 Asset quality (NIS mil)

Segment	1-9/2022		1-9/2021		Q3/2022		Q3/2021
	Provision	Rate of provision	Provision	Rate of provision	Provision	Rate of provision	Provision	Rate of provision
Housing loans	88	0.06%	)92(	)0.07%(	36	0.07%	)10(	)0.02%(
Business	200	0.32%	)137(	)0.28%(	98	0.47%	)27(	)0.17%(
Households	53	0.26%	)34(	)0.18%(	21	0.31%	1	0.02%
Total	341	0.15%	)263(	)0.13%(	155	0.20%	)36(	)0.06%(
CECL - The Bank has applied the new directives with regard to provisions for credit losses as from January 1, 2022.

Expenses with respect to credit losses in the first nine months of 2022 are primarily due to adjustments to the group-based provision due to growth of the Bank's business loan portfolio and residential mortgages portfolio. In the first nine months of 2021, due to the gradual emergence from the Corona Virus crisis, there was improvement in the economic environment, that influenced the level of provision.

Q3/22 Asset quality (NIS mil)

	1-9/2022	% of total provisions	1-9/2021	Q3/2022	% of total provisions	Q3/2021
Provision for credit losses on individual basis (including accounting write-offs):	133	39%	63	47	30%	38
Of which
Increased expenses	332		323	141		116
Decreased expenses	(199)		(260)	(94)		(78)
Provision for credit losses on group basis:	208	61%	(326)	108	70%	(74)
Of which
with respect to residential mortgages	88		(92)	36		(10)
Other	120		(234)	72		(64)
Total expenses with respect to credit losses	341		(263)	155		(36)

Expenses with respect to credit losses in the first nine months of 2022 include increase in the group-based provision due to growth of the Bank's commercial loan portfolio and residential mortgages portfolio, with the group-based provision reflecting the higher market interest rate. The increase in group-based provision contributed 205 to total expenses with respect to credit losses in the first nine months of 2022. Excluding this effect, the rate of expenses with respect to credit losses to total loans to the public, net would have been 0.06%.

Q3/22 Profitability and efficiency

10

(1) Excluding effect of capital gain in the first quarter of 2022

Q3/22 Continuous loan growth (NIS bil)

Business segment	30.9.22	30.6.22	% change in annual terms
Housing loans	192,772	189,366	7.2%
Households + private banking	26,772	26,628	2.2%
Total individuals	219,544	215,994	6.6%
(1) Total businesses	84,560	82,239	11.3%
Total	304,104	298,233	7.9%

Supervisory operating segments

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

(1) Excluding Union Bank credit

12 (2) Small and micro businesses, Medium businesses and Large businesses, Institutional investors and Overseas operations

Q3/22 Continuous deposit growth (NIS bil)

(1) Core deposits by segments

Total core deposits: NIS 221.0 bil Share of core deposits: 64%

Segment

Q3/22 Financing revenues from current operations continue to grow

Q1/2015Q2/2015Q3/2015Q4/2015Q1/2016Q2/2016Q3/2016Q4/2016Q1/2017Q2/2017Q3/2017Q4/2017Q1/2018Q2/2018Q3/2018Q4/2018Q1/2019Q2/2019Q3/2019Q4/2019Q1/2020Q2/2020Q3/2020Q4/2020Q1/2021Q2/2021Q3/2021Q4/2021Q1/2022Q2/2022Q3/2022 From Q4/2020 including Union Bank. NIS mil

	Q3 2022	Q3 2021	Rate of change
Interest revenues, net	2,691	2,001
Non-interest financing revenues	263	63
Total financing revenues	2,954	2,064	43.1%
less:
Linkage differentials with respect to CPI position	267	173
Revenues from collection of interest on troubled debt	22	14
Gain from debentures	34	13
Effect of accounting treatment of derivatives at fair value and others	84	193
Total effects other than current operations	407	393
Total financing revenues from current operations	2,547	1,671	52.4%

Operating and other expenses (NIS mil) Salaries (NIS mil)

Q3/22 Gradual return to dividend policy

16

(1) On November 28, 2022, the Bank Board of Directors resolved to distribute a dividend amounting to NIS 353.4 million, or 30% of earnings in the third quarter of 2022. This is in line with the Bank's dividend policy, in order to support continued future growth of the Bank in view of macro-economic developments.

(2) Including the interim BOI directive for the COVID period of reduction of regulatory capital requirements applicable to banks by one percentage point, that expired January 1, 2022