Bank Leumi le Israel B M : Financial results presentation

Q2 2023

Financial results presentation

Disclaimer

This document and the information contained herein -

1. Has been prepared by Bank Leumi le-Israel B.M. (the "Bank") solely for the purpose of presenting the Bank's business;
2. Is provided solely for your information and may not to be copied, distributed or forwarded, directly or indirectly, in any form to any other person, nor published, wholly or partially, for any purpose;
3. Does not purport to be all-inclusive or to contain all the information that may be relevant in making any decision concerning an investment in the securities of the Bank;
4. Some of the information contained in this document and/or discussed throughout the conference call that does not refer to historical facts, constitutes forward-looking information with respect to the Bank's business, financial condition and results of its operations, which is based, inter alia, on forecasts of the future regarding various matters, which include but are not limited to changing economic conditions in Israel and abroad, especially in the foreign exchange and capital markets, legislation, directives of regulatory bodies, the behavior of competitors, product demand, pricing, market acceptance, risks in product and technological developments, personnel issues, the effect of the Bank's accounting policies as well as certain other risk factors which are detailed from time to time in the Bank's filings with the securities authority, etc. and is subject to risks, uncertainties and changes in circumstances, that could cause actual results to differ materially from those included herein. For more information on the meaning of forward looking information, we would refer you to the Bank's most recent published Consolidated Financial Statements;
5. Does not constitute an offer or invitation to purchase or subscribe for any securities, nor does it constitute advice.

The conference call does not replace the need to review the latest periodic / quarterly reports in which full information is contained, including forward looking information, as defined in the Israeli Securities Law, and set out in the afore mentioned reports.

2

Strong underlying performance

Key financial metrics

Net Income

ROE

Cost Income Ratio

Credit Loss Expenses

Net Loan Growth

Core Deposit Growth

Q2 2023

2,453

19.4%

29.5%

0.31%

Q-o-Q

1.4%

Q-o-Q

2.2%

H1 2023	FY 2022
3,434	7,709
13.6%	17.0%
31.0%	37.2%
0.36%	0.13%
YTD	Y-o-Y
6.4%	18.4%
YTD	Y-o-Y
5.4%	9.5%

3 (NIS Millions)

FY 2022 excludes Leumi USA; Core Deposits = Deposits from Private individuals.

In Q1 2023 the bank recorded a NIS 1.1bn impairment of its stake in Valley National Bank.

H1 2023 vs. H1 2022 - Breakdown of Income and Expenses

↗︎Finance Income	8,720
			34.0%
			6,506		8,212
			5,824
			41.0%
H1 2022
CPI 3.1%	682		508
NIM 2.1%
			H1 2022	H1 2023
Net Interest Income	Non-interest Finance Income

H1 2023

CPI 2.5%

NIM 2.7%

↗︎ Operating and Other Expenses

1.1%

3,2773,312

1,8731,760

1,404	1,552

H1 2022	H1 2023
Total Salary & Related Expenses	Maintenance & Depreciation Expenses and Others

↗︎Fees and Commissions

	4.8%
1,754	1,838
H1 2022	H2 2023

↗︎ PPNR - Pre Provisions Net Revenue

	48.1%	7,383
4,985
H1 2022		H1 2023

4 (NIS Millions)

H1 2022 is excluding Leumi USA.

Q2 2023 vs. Q2 2022 - Breakdown of Income and Expenses

↗︎Finance Income	4,767
			25.0%
			3,813			4,284
			3,125
			37.1%
Q2 2022
CPI 1.9%	688			483
NIM 2.2%
			Q2 2022	Q2 2023
Net Interest Income	Non-interest Finance Income

Q2 2023 CPI 1.4% NIM 2.8%

↗︎ Operating and Other Expenses

2.6%

1,6411,683

961915

680	768
	Q2 2022		Q2 2023
Total Salary & Related Expenses	Maintenance & Depreciation Expenses and Others

↗︎Fees and Commissions

↗︎ PPNR - Pre Provisions Net Revenue

			32.0%
			4,013
	2.1%	3,041
872	890
Q2 2022	Q2 2023	Q2 2022	Q2 2023

5 (NIS Millions)