Bank Leumi Le Israel B M : COMPANY PRESENTATION- SEPTEMBER 30, 2022 FINANCIAL RESULTS

SEPTEMBER 30, 2022 FINANCIAL RESULTS PRESENTATION

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 aforementioned reports.

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 in this document that does not refer to historical facts, constitutes forward-looking information, which is based, inter alia, on forecasts of the future regarding various matters related to economic developments in Israel and abroad, and especially to the foreign exchange and capital markets, legislation, directives of regulatory bodies, the behavior of competitors, technological developments, personnel issues, 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.

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Macroeconomic Factors and Indicators

GDP Forecasts for 2022 - 2023 (IMF)

			Positive Growth Gap
							7.4		8.6
		6.8
								5.7	6.0
4.9	4.5				4.9	4.5
3.8					4.1		3.6
3.3							3.0
		2.6		2.6
		2.5
1.9	1.5		1.5	1.71.71.6	2.0			1.6
		0.7				0.8	0.3	1.0
			-0.3
Australia	Canada	France	Germany	Japan	Korea Netherlands United	United	Israel
							Kingdom	States

2021 2022 2023

Inflation Forecasts for 2022 - 2023 (IMF)

											Low Relative Inflation
													12.0
											8.5			9.19.0	8.1
												8.0
											7.2
			6.5		6.9
							5.8
									5.5
				4.8				4.6				4.7
				4.2		3.8			4.5
					3.4				3.2			3.5	3.6
2.8						2.5	2.8	2.6
					2.1	2.01.4
												1.5
											-0.2
	Australia Canada		France	Germany Japan	Korea	Netherlands	United	United	Israel
														Kingdom	States

2021 2022 2023

Bank of Israel and Fed Funds Rates, %

4.0%
3.0%
2.0%
1.0%
0.0%
01/11/2019	01/11/2020	01/11/2021	01/11/2022
	BoI Rates	Fed Funds Target Rates

Sources: IMF as of October 2022, Refinitiv, CBS and Bank of Israel.

* Bank of Israel.

Unemployment, Age Group 15+

4.5%	4.6%
3.8%	3.9%	3.5%

2019

2020

2021

Q3 2022

*2023

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Core Business Continues to Improve - Key Financial Metrics

	9M 2022	Q3 2022	Annual 2021
Net Income (NIS millions)	5,383	1,782	6,028
ROE	16.3%	14.9%	15.0%
Credit Growth	17.9%	5.0%	16.1%
Credit Loss Expense (Income)	0.07%	0.11%	(0.25%)
Cost / Income	39.9%	39.1%	46.8%
PPNR YoY Growth	24.3%	33.0%	39.5%
CET-1	11.41%	11.41%	11.50
ROA	1.1%	1.1%	1.0%

9M 2022 Credit Growth excludes Leumi USA on a comparative basis.

* Pre-provision net revenue equals net interest income plus total non-interest income less total non-interest expense; presented on an annualized basis. 9M and Q3 exclued Leumi USA

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Improving Returns via Delivery of Enhanced Operating Leverage

Cost Income Ratio

58.1%

53.8%

45.8%

39.5%

2019(1)

2020

2021*

9M 2022*

Loan Loss Expenses (Income)

0.88%

0.06%

0.22%

(0.25%)

2019

2020

2021

9M 2022*

ROE

16.3%

15.0%

9.2%

5.7%

2019 (1)

2020

2021

9M 2022

ROE and Cost Income Ratio are net of the effect of the sale of Leumi Card. * Excluding Leumi USA.

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