Israel Discount Bank : First Quarter 2024 Financial Report

Link to an accessible report

Board of Directors and

Management Report

9 Board of Directors and Management Report - List of tables

11 Chapter "A" - General overview, goals and strategy

11 Condensed financial information on financial position and operating results

13 Market share

1. Goals and business strategy
2. Chapter "B" - Explication and analysis of the financial results and

	business position
14	Material trends, occurrences,
	developments and changes

21 Material developments in income, expenses and other comprehensive

income

29 Structure and developments of assets, liabilities, capital and capital adequacy

37	Capital and capital adequacy
40	Dividends distribution

40 Activity of the Group according to principal Segments of Operation -

	principal quantitative data and main
	developments
45	Support of Customers during the "Iron
	Swords" War period

1. Main Investee Companies

1. Chapter "C" - Risks review

54 General description of the risks and manner of management thereof

1. Credit Risks

1. Market Risks

79	Liquidity and financing risks
81	Operational Risks

1. Other risks
2. Risk Factors Table

82 Chapter "D" - Accounting policy and critical accounting estimates,

controls and procedures

1. Critical Accounting Policies and Critical Accounting Estimates
2. Controls and Procedures

Internal Control over

Financial Reporting

1. President & CEO's certification
2. Chief Accountant's certification

Condensed Financial

Statements

1. Review Report of the independent auditors to the shareholders of Israel Discount Bank Ltd.
2. Condensed Consolidated statement of profit and loss
3. Condensed Consolidated statement of comprehensive Income
4. Condensed Consolidated Balance Sheet
5. Condensed Statement of Changes in Equity
6. Condensed Consolidated Statement of Cash Flows

99 Notes to the Condensed Financial Statements

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Israel Discount Bank Limited and its Subsidiaries | Table of Contents

Corporate Governance, Audit and Additional details on the business of the banking corporation and management thereof

1. Corporate Governance and additional details - List of tables
2. Corporate governance and audit

1. Board of Directors and Management

1. The Internal Audit in the Group

1. Transactions with Interested and Related Parties
2. Special and independent committee - proceedings in Australia
3. Support of the community during the

"Iron Swords" War period

1. 'Keren Or' - Foundation in aid of children and youth harmed during the War
2. Additional details on the business of the banking corporation and

management thereof

1. Discount Group Structure

1. The human capital
2. Rating of Liabilities of the Bank and some of its Subsidiaries
3. Activity of the Group according to regulatory operating segments -

additional details

204 Credit Card Operations

204 Technological improvements and innovation

206 Main developments in the Israeli economy and around the world in the

first three months of 2024

1. Legislation and Supervision

1. Legal Proceedings

1. Proceedings regarding Authorities

Appendices to the Quarterly

Report

1. Appendices - List of tables
2. Appendix no. 1 - Rates of interest Income and Expenses on a consolidated basis and analysis of the changes in interest Income and expenses

226 Appendix no. 2 - Additional details - securities portfolio

1. Appendix no. 3 - Additional details

1. Appendix no. 4 - Glossary

1. Appendix no. 5 - Index

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9 Board of Directors and Management Report - List of tables

11 Chapter "A" - General

overview, goals and strategy

11 Condensed financial information on financial position and operating results

13 Market share

1. Goals and business strategy
2. Chapter "B" - Explication and analysis of the financial results and business

position

14 Material trends, occurrences, developments and changes

21 Material developments in income, expenses and other comprehensive income

29 Structure and developments of assets, liabilities, capital and capital adequacy

1. Capital and capital adequacy

1. Dividends distribution

1. Activity of the Group according to principal Segments of Operation - principal quantitative data and main developments

45 Support of Customers during the "Iron Swords" War period

1. Main Investee Companies

1. Chapter "C" - Risks review

54 General description of the risks and manner of management thereof

1. Credit Risks

1. Market Risks

1. Liquidity and financing risks

1. Operational Risks

1. Other risks
2. Risk Factors Table

1. Chapter "D" - Accounting policy and critical accounting estimates,

controls and procedures

1. Critical Accounting Policies and Critical Accounting Estimates
2. Controls and Procedures

Israel Discount Bank Limited and its Subsidiaries | Board of Directors and Management Report

Board of Directors and Management Report - List of tables

	Page No.
Condensed financial information and main performance indicators over a period of time - consolidated	13
Data excluding ICC	12
Market share	12
Development of the Discount share	13
Developments in certain income statement items in the first quarter of 2024, compared with the fourth quarter of 2023	22
and compared with the first quarter of 2023
Profitability - excluding certain components	22
Distribution of volume of operations according to interest bearing assets, net interest income and interest margin by	23
linkage segments
Composition of the net financing income	24
Analysis of the total net financing income	24
Details of the net interest income by regulatory operating segments	25
Development of the quarterly development in the credit loss expenses	27
Distribution of the fees and commissions	27
Quarterly developments in salaries and related expenses, detailing the effect of certain components	28
Changes in other comprehensive income (loss) after tax effect	28
Developments in the principal balance sheet items	29
Data on the composition of net credit to the public by linkage segments	30
Review of developments in the balance of net credit to the public, by regulatory operating segments	30
Developments of total credit to the public risk, by main economic sectors	31
Overall credit risk and the rate of problematic credit risk in principal economic sectors	32
The distribution of expenses and the rate of credit loss expenses in the different economic sectors in relation to the	33
outstanding balance of credit to the public in those sectors
Composition of the securities portfolio by linkage segments	34
Composition of investments in securities according to portfolio classification according to directives of the Supervisor of	34
Banks
Data on the composition of deposits from the public by linkage segments	36
Developments in the balance of deposits from the public, by regulatory operating segments	36
Components of the regulatory capital as of March 31, 2024	39
Principal data on the household segment (Domestic operations)	40
Principal data on the Private Banking segment (Domestic operations)	41
Principal data on the Small and minute businesses segment (Domestic operations)	41
Principal data on the Medium businesses segment (Domestic operations)	42
Principal data on the Large businesses segment (Domestic operations)	43
Principal data on the Institutional bodies segment (Domestic operations)	43
Principal data on the Financial management segment (Domestic operations)	44
Principal data on the International operations segment	44
Distribution of Net profit by the Group's structure	49
Discount Bancorp, Inc. - principal data	50

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Board of Directors and Management Report - List of tables (continued)

	Page No.
Mercantile Discount Bank - principal data	51
Israel Credit Cards - principal data	52
Discount Capital - principal data	53
Analysis of credit quality, problematic credit risk and non-performing assets of the public	55
Changes in non-accruing debts (for credit to the public only)	56
Indices of analysis of quality of credit to the public, expenses and allowance for credit losses	57
Credit risk by economic sectors - consolidated	58
Exposure to Foreign Countries - consolidated	61
Details of present credit exposure to foreign financial institutions on a consolidated basis	62
Certain risk characteristics of the Group's housing loans portfolio	63
Amount of loans and average financing ratios	63
Division of housing credit balances according to size of credit to borrowers	64
Volume of problematic debts in housing loans	64
Distribution of housing credit granted, according to financing ratios and as a ratio of credit granted	64
Data on developments in housing credit balances according to linkage segments	64
Composition of loans granted for housing purposes, divided by the ratio of repayments to earnings	65
Distribution by customer's fixed income and by financial assets portfolio related to the account	66
Distribution by the average remaining period to maturity	66
Distribution by size of credit to the borrower	67
Distribution by exposure to changes in interest rates	67
Distribution of collateral securing the credit	67
Development of problematic credit risk for private individuals	67
The Bank's exposure to leveraged finance according to economic sector of the acquired corporation	73
Net balance-sheet balance and net adjusted fair value of the financial instruments of the Bank and its consolidated	74
companies
The impact of scenarios of changes in interest rates on the net adjusted fair value - consolidated	75
The impact of scenarios of changes in interest rates on net interest income and on non-interest financing income -	75
consolidated
Effect of hypothetical changes in interest rates of 100 base points on the Group's economic value	78
The impact of scenarios of changes in interest rates on the equity attributed to the Bank's shareholders	78
The Bank's capital sensitivity of changes in exchange rates	79
Sensitivity of the capital to changes in the CPI	79
Deposits from the public	80
Deposits from Banks	80
Adjustments made to assets and liabilities for derivative instruments	83

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