Bank Leumi le Israel B M : INVESTORS PRESENTATION- DECEMBER 31, 2021 FINANCIAL RESULTS PRESENTATION

DECEMBER 31, 2021 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

OECD- GDP Forecast for 2021-2022

BOI - GDP, Rate of Change, Real Terms

	Resilient Recovery from COVID-19 in Israel
										8.1
		6.8							6.9
										5.6
3.8 4.1	4.8	4.2	4.1					4.3	4.7	4.9
3.9			4.0		3.7
			3.4	3.0		3.2
			2.9
			1.8
Australia	Canada	France Germany Japan		Korea Netherlands United	United Israel
					2021		2022		Kingdom	States

Bank of Israel and Fed Funds Rates, %

					8.1%	5.5%
4.5%	4.4%	4.0%	3.8%
				(2.2%)
2016	2017	2018	2019	2020	2021	F2022*

Broad Unemployment**, Age Group 15+

BOI estimates

	15.8%	15.5%
			9.8%	8.1%	6.5%4.6%
3.8%	4.9%	4.7%	5.2%	5.3%	4.8%

2019 Q4 2020

Q1 2021 Q2 2021 Q3 2021

Q4 2021 F-Q4 2022*

Standard Unemployment Rate

Broad Unemployment Rate

Estimates

CPI

2020

2021

E2022

(0.6%)

2.4%

2.5%-3.5%

Sources: Bank of Israel, CBS, OECD as of December 2021.

*BOI Forecast as of Jan 3, 2022. CBS figures as of February 16, 2022. 2022 unemployment forecast refers to expected Q4 average.

**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

Cost / Income Ratio

Credit Loss (Income) Expense Ratio

PPNR / Average Assets*

2021	2020	Q4 2021
6,028	2,102	1,470
15.0%	5.7%	14.8%
46.8%	53.8%	47.9%
(0.25%)	0.88%	(0.10%)
1.4%	1.2%	1.3%

ROA	1.0%	0.4%	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

4

Performance Indicators

ROE - Annual Progress

15.0%

9.0% 9.2%

5.7%

*2018

*2019

2020

2021

Cost Income Ratio Continues to Improve

60.5%

58.1%

53.8%

46.8%

*2018

*2019

2020

2021

*2018 and 2019 ROE, Net Income and Cost Income Ratio are net of the effect of the sale of Leumi Card.

Loan Loss Expenses (Income) - 2018 through 2021

0.88%

0.19% 0.22%

(0.25%)

2018

2019

2020

2021

5

(NIS Billions)