Mizrahi Tefahot Bank Ltd.

Investor Presentation • Aug 15, 2023

Financial statements June 30, 2023

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Q2/23 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 2023 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 2023 quarterly 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.

Q2/23 Macro environment

¹⁾ 2023E-2024F according to BoI forecast from July 2023

2) Unemployment Rate in the general population, ages 25-64 excluding seasonality.

3) As of August 8, 2023

Q2/23 Overview of Mizrahi-Tefahot

(1) As of June 30, 2023. (2) For H1 2023. (3) Tel Aviv Stock Exchange (as of August 7, 2023)

(4) Data through December 31, 2022 include 373 former Union Bank employees whose employment was terminated in early 2023. (5) As of December 31, 2022. (6) Market share in credit to Households and Private Banking segments (supervisory operating segments).

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Q2/23 Financial Highlights

(1) Excluding effect of capital gain, net from sale of assets, ROE in the first half and full year 2022 is 18.0% and 19.0% respectively, and the cost/income ratio in the first half and full year 2022 is 46.8% and 46.4% respectively. (2) NPL Ratio is calculated as Impaired Credit not Accruing Interest Income, divided by Gross Loans to the Public. ⁴

Q2/23 Asset quality (NIS mil)

Segment	1-6/2023		1-6/2022		Q2/2023		Q2/2022
	Provision	Rate of provision	Provision	Rate of provision	Provision	Rate of provision	Provision	Rate of provision
Housing loans	63	0.06%	52	0.05%	21	0.04%	38	0.08%
Business	268	0.61%	102	0.25%	168	0.76%	51	0.25%
Households	143	1.04%	32	0.24%	58	0.84%	18	0.27%
Total	474	0.30%	186	0.12%	247	0.31%	107	0.14%

Expenses with respect to credit losses in the first half of 2023 include an increase in the group-based provision due to growth of the Bank's loan portfolio and higher risk in the market due, inter alia, to the higher interest rates.

Provisions / loans to the public

Q2/23 Profitability and efficiency

(1) Excluding effect of capital gain, net from sale of assets.

Q2/23 Continuous loan growth (NIS bil)

Business segment	30.6.23	30.6.22	% change in
Housing loans	200.9	189.4	6.1
Households + private banking	27.6	26.6	3.8
Total individuals	228.5	216.0	5.8
(1) Total businesses	88.4	82.2	7.5
Total	316.9	298.2	6.3

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Supervisory operating segments (1) Small and micro businesses, Medium businesses and Large businesses, Institutional investors and Overseas operations

Q2/23 Continuous deposit growth (NIS bil)

Q2/23 Financing revenues from current operations continue to grow

From Q4/2020 including Union Bank. NIS mil

	H1 2023	H1 2022	Rate of change
Interest revenues, net	6,327	4,597
Non-interest financing revenues	337	293
Total financing revenues	6,664	4,890	36.3%
less:
Effect of the Consumer Price Index	695	607
Revenues from collection of interest on troubled debt	20	33
Gains (losses) from bonds, shares and real investments	)26(	)16(
Effect of accounting treatment of derivatives at fair value and others	71	336
Total effects other than current operations	760	960
Total financing revenues from current operations	5,904	3,930	50.2%

Q2/23 Expenses

Q2/23 Equity, capital adequacy and dividend

(1) For the relevant period.

(2) It is hereby clarified that there is no change to the Bank's dividend policy, as detailed in the report published by the Bank on April 27, 2021 (reference no. 2021-01-071448).

(3) In conformity with the Bank's dividend policy and so as to enable continued future growth of the Bank, even duly noting the uncertainty with regard to developments in the macro-economic environment.