Israel Discount Bank : Investor Presentation - 2023 REVIEW Financial Highlights

2023 REVIEW

Financial Highlights

Investor Relations

March 11,2024

Disclaimer:

This document has been prepared by Israel Discount Bank Ltd. (the "Bank") solely for use by the Bank in its presentation of its 2023 full year and 4th quarter report, as well as in strategic updates referred to in the Bank's reports. This presentation is not a substitute for the Bank's 2023 full year

and 4th quarter financial statements which include the full financial information including forward-looking Information. The English version of the

financial statements are available on the Bank's investor relations website at www.investors.discountbank.co.il

This presentation includes forward-looking information, as defined in the Israeli Securities Law, 5728 - 1968. Such information includes, among other things, projections, objectives, estimates and assessments of the Bank, which relate to future events or issues, the occurrence of which is not certain and is outside the control of the Bank. Forward-looking information does not constitute proven, factual information, and is based solely on the viewpoint of the Bank's management, which is based, among other things, on analysis of general information that is known to the

Bank's management as of the date of this presentation. Forward-looking information, by definition, is subject to the substantial risk of not coming

to fruition, and such information is not definite and cannot be estimated in advance and is at times even beyond the Bank's control. The fulfillment of forward-looking information is impacted by risk factors that are characteristic of the Bank's activities and also by developments in

the general environment and external factors that affect the Bank's operations, which cannot be estimated in advance and that by their

nature are beyond the control of the Bank. Therefore, readers of this presentation are hereby warned that the results and achievements of the Bank in the future may be significantly different than those presented in the forward-looking information included in this presentation. Similarly, forward-looking projections and estimations are based on assumptions and information in the possession of the Bank as of the time of the presentation, and the Bank shall not be required to update or revise any such projection or estimation in order to reflect events or conditions that transpire after the date of the presentation.

Disclaimer regarding unsponsored American Depository Receipt (ADR):

U.S. depository institutions or banks may establish ADR programs in respect of the shares of certain non-U.S. issuers without the consent or participation of such issuers (the so called "Unsponsored ADRs"(. An ADR or American Depositary Receipt, which is issued by a U.S. bank or depository to evidence a share of a non-U.S. issuer that has been deposited with the U.S. bank or depository. An Unsponsored ADR program is set up without the cooperation of the non-U.S. issuer or even without its consent. Israel Discount Bank does not support or encourage the creation of Unsponsored ADR programs in respect of its securities and, in any event, disclaims any liability in connection with an Unsponsored ADR.

Israel Discount Bank makes no representation regarding its compliance with Rule 12g3-2(b) of the U.S. Securities Exchange Act of 1934, as

amended.

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AGENDA Opening Remarks

Avi Levi, CEO

3

2023 - KEEPING STRONG PERFORMANCE

AMIDST MARKET TURBULENCE

NET INCOME	ROE	EFFICIENCY RATIO
M	15.7%	49.6	%
4,192

TOTAL EQUITY

DIVIDEND PAYOUT

29.2BN20%

** Consolidated figures for banking operations of Discount & Mercantile ** As calculated

4

NII GROWTH	CREDIT GROWTH
YoY	YoY
25.8%	7.6%

CONTINUE OUR JOURNEY

2014

WHERE WE STARTED(1)

2019

WHERE WE WERE

2022

Net Income

505m

1,702m

3,495m

ROE

4.2%

9.4%

15.1%

Efficiency Ratio

87.1%

65.2%

55.8%

Source: Company filings.

5	(1) In 2014 the Bank implemented its long-term strategic plan to improve its profitability and efficiency

NAVIGATING THE ECONOMIC CHALLENGES IN 2024

The Israeli economy demonstrates resilience and has a history of fast recovery

after war. The macro indicators exhibiting an upward momentum as of Jan 2024.

Governmental aid-plan for the business sector is essential for enduring economic

growth with emphasis on supporting SMEs, reducing bureaucracy and reinstating the momentum in the construction sector.

For the banking sector, this year faces challenges with lower interest rates, reduced credit demand and a weakened business cycle.

Yet, Discount bank is committed to support the businesses and individuals adversely impacted by the war and to promote the economy.

BoI Composite state of the Economy Index & Credit Cards Turnover

(%)

BoI composite state of the economy Index Credit cards turnover

6

Photography: Eyal Tagar

CULTIVATING A CULTURE OF CHANGE & EXCELLENCE

Completing the transition to our new campus - shifting residence and

change our operational approach.

The new 150,000 sqm facility is aimed at leveraging the employee

experience and improve cooperation among employees and

departments.

Set up a framework for a nimble organization & an agile culture.

Sustaining leadership in the disruptive landscape of banking in Israel through our innovation and establishment of new ventures.

Preserving our Goals

To be the best financial institution for its customers,

which creates maximum value to its shareholders over time

7

Photography: Eyal Tagar

STANDING BY OUR CUSTOMERS

AND SUPPORTING THE COMMUNITY

Philanthropic activity for the residents of the south and for IDF soldiers

Discount has inaugurated the "Keren-Or", a specialized

• assistance fund with an initial allocation of NIS 50 million dedicated to children and youths adversely affected by
  . the horrors of the war

Establishment of "Discount Command Center" - Addresses the immediate needs of wounded soldiers in the rehabilitation

. ward at Sheba hospital

.Discount is supporting two IDF regiments

The expenditure for BOI aid outline was lower than anticipated

. BoI has extended the aid-outline for an additional three months

The preliminary expenses for the six-months aid outline for affected

• customers* was estimated in 4Q23 to be NIS 276 million at full utilization Executed costs of benefits reduced to NIS 177 million, due to partial
• demand
  Total overall credit amount impacted was 15.8 bil, with NIS 1.1 bil thereof
  .subject to deferral

.Customers who live up to 7 km from the Gaza Strip & Deferral and exemptions to customers who are directly affected by the war **

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AGENDA

Financial and Strategic Review

Asaf Pasternak, CFO

9

THE ECONOMY REGAINS MOMENTUM

FOLLOWING THE FOURTH QUARTER SETBACK

GDP Growth (%) is poised to revert to pre-war levels, primarily

driven by increased public expenditure *

Pre-war forecast GDP Business GDP

Unemployment has decreased to levels seen before the war

(%)

Unemployment Unemployment Finance reasons

Source: CBS Feb2024

Bank of Israel's Rate has decreased to 4.50% in January

2024 and expected to decrease in 50-75bps *

(%)

3.40 **

Inflation is expected to converge within range *

(%)

			5.3
		2.8		3.0
				2.7
0.6
2019	2020-1.0	2021	2022	2023	2024

10 Source:	* Discount Bank - Chief Economist forecast
	** Market information Mar2024