Israel Discount Bank : 2022-Q2 Presentation

2Q 22 REVIEW

Investor Relations

August 11, 2022

Disclaimer:

This document has been prepared by Israel Discount Bank Ltd. (the "Bank") solely for use by the Bank in its presentation of its 1st quarter 2022 report, as well as in strategic updates referred to in the Bank's reports. This presentation is not a substitute for the Bank's 1st 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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Opening Remarks and Financial Review

Barak Nardi, CFO

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STRONG UNDERLYING PERFORMANCE

ACROSS THE KEY INDICATORS

NET INCOME	ROE
M	11.8%
680

YoY	EFFICIENCY RATIO	YoY MORTGAGE
CREDIT GROWTH	ORIGINATION GROWTH
59.2%
%	%
16.4		47.5

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2Q AND 1H 2022 HIGHLIGHTS

Net income of 680m and ROE of 11.8% supported by increase in revenues from core banking activity, which outpace the growth in operating expenses, leading to improving cost income ratio of 59.2%.

Leverage of NIS 1.4 billion equity raise into NIS 14.8 billion credit growth (6.7% QoQ).

Focus on key segments: Mortgage balance grew by 28.9% and medium enterprises balance grew by 22.0% YoY. We took advantage of a market opportunity and grew in corporate credit by 10.3% QoQ.

Net interest income grew by 23% YoY supported by credit growth and NIM improving to 2.63%

Conservative management of credit portfolio: Credit Loss Expenses Ratio stood at 0.23% largely due to increase in credit growth, changes in macro assumptions, partially offset by improvement in the quality of our loan book.

Dividend payout of NIS 136m; 20% of 2Q 22 net income

2Q22

Net Income	ROE		Cost-Income		Credit Loss
	Ratio		Expenses Ratio
NIS 680m	11.8%		59.2%	0.23%
1Q22: NIS 983 m;	1Q22: 18.3%;	1Q22: 55.3%;	1Q22: (0.11%)
2Q21: NIS 860 m	2Q21: 17.2%	2Q21: 62.9%	2Q21: (0.82%)

1H22

					Cost-Income		Credit Loss
Net income		ROE		Ratio		Expenses Ratio
NIS 1,663m	14.9%	57.2%	0.06%
1H21: NIS 1,522 m	1H21: 15.5%	1H21: 64.0%	1H21: (-0.56%)

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