Bank Leumi Le Israel B M : JUNE 30, 2022 FINANCIAL RESULTS PRESENTATION

JUNE 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;

2

Macroeconomic Factors and Indicators

		IMF - GDP Forecasts for 2022 - 2023
		Resilient Recovery from COVID-19 in Israel
														8.2
													7.4
		6.8
														5.7
4.8	4.5								4.9		5.0
						4.1
3.8											3.5
3.4											3.2
		2.9
		2.3				2.32.1	2.5		2.3
2.2
	1.71.71.7
		1.8	1.2
		1.0	0.8						1.0		1.0
								0.5
	Australia	Canada France	Germany Japan		Korea	Netherlands United	United Israel
						2021			2022			2023	Kingdom	States

Bank of Israel and Fed Funds Rates, %

3.00%			2.33%
2.00%
1.00%
			1.25%
0.00%
01/08/2019	01/08/2020	01/08/2021	01/08/2022
	BoI Rates	Fed Funds Target Rates

			BOI - GDP, Rate of Change, Real Terms
			8.2%
3.8%
				5.0%
				3.5%

	(2.2%)
2019	2020	2021	F2022*	F2023*

Unemployment**, Age Group 15+

BOI estimates
	17.7%
		10.0%
3.8%	4.5%	4.6%	3.4%	3.3%	3.5%

2019	2020	2021			Q2 2022	*2022		*2023
					Standard Unemployment Rate			Broad Unemployment Rate
			Estimates					CPI
	2020					2021				E2022			E2023
	(0.6%)					2.4%		4.5%-5.0%		2.0%-3.0%

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

*BOI Forecast as of July 7, 2022. CBS figures as of February 16, 2022. 2022 unemployment forecast refers to expected annual average for age group 25-64.CPI estimates derived from market expectations. **Broad Unemployment rate includes employees temporarily absent from their places of work due to the coronavirus crisis and those dismissed since March and who do not currently participate in the workforce.

3

Core Business Continues to Improve - Key Financial Metrics

Net Income (NIS millions)

ROE

Credit Growth

Cost / Income Ratio

Credit Loss (Income) Expense Ratio

PPNR / Average Assets*

ROA

H1 2022

3,601

17.1%

12.3%

40.3%

0.05%

1.6%

1.1%

Q2 2022

Annual 2021

1,9926,028

18.5%15.0%

4.3%16.1%

35.0%46.8%

0.14%(0.25%)

1.9%1.4%

1.2%1.0%

*Pre-provision net revenue equals net interest income plus total non-interest income less total non-interest expense; presented on an annualized basis H1-2021 ROE is restated according to new BOI regulations

4 H1-2022 Credit Growth excludes Leumi USA on a comparative basis

Improving Returns via Delivery of Enhanced Operating Leverage

Cost Income Ratio

58.1%

53.8%

45.8%

39.7%

2019(1) 2020 2021* H12022*

Loan Loss Expenses (Income)

0.88%

0.22%0.04%

(0.24%)

2019

2020

2021

H1 2022*

ROE

17.1%

15.0%

9.2%

5.7%

2019(1)

2020

2021

H1 2022

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

5