Slides
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INVESTOR PRESENTATION Bank Leumi Financial Results Presentation Q2 2026 Leumi
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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. 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. 3. Some of the information contained in this document and/or discussed throughout the conference call that does not refer to historical facts, constitutes forward- looking information with respect to the Bank’s business, financial condition and results of its operations, which is based, inter alia, on forecasts of the future regarding various matters, which include but are not limited to changing economic conditions in Israel and abroad, especially in the foreign exchange and capital markets, legislation, directives of regulatory bodies, the behavior of competitors, product demand, pricing, market acceptance, risks in product and technological developments, personnel issues, the effect of the Bank’s accounting policies as well as certain other risk factors which are detailed from time to time in the Bank’s filings with the securities authority, 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; 4. The financial targets detailed in this presentation constitute forward-looking information and are based on plans formulated by the Bank’s management. These targets are based on forecasts, assessments and assumptions that are not certain to be realized and their realization is not necessarily within the Bank’s control. The targets are based, inter alia, on the following macro-economic assumptions: the average Bank of Israel rate during the relevant period will be between 3.2%- 3.7% and the average annual inflation rate will be 1.8%-2% in the forecast years. The target for the annual payout ratio is subject, among other things, to the removal of distribution restrictions by the BOI and to the BOI guidelines. The targets are based on regulatory provisions in effect at the time of the report’s publication, such as the assumption that the impact of the customer benefits program in 2026-2027 will be similar to the one in 2024-2025. Targets also include a special tax imposed on the banks under the 2026 state budget framework. The targets may not be realized, in whole or in part, and the Bank’s business results may differ materially. The Bank shall not be obligated to update the information relating to the targets, including any change in the forecasts or the assumptions on which they are based, subject to the provisions of the law. 5. Does not constitute an offer or invitation to purchase or subscribe for any securities, nor does it constitute advice. 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 afore mentioned reports. Bank Leumi · Q2 2026 Results 2
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P A R T 1 · S T R A T E G Y & H I G H L I G H T S Hanan Friedman President & Chief Executive Officer Bank Leumi · Q2 2026 Results 3
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Bank Leumi: Key Financial Highlights – Q2 2026 ROBUST PROFITABILITY Net Income RETURN ON EQUITY Reported Adjusted for Special tax (1) Adjusted and Normalized (2) CAPITAL RETURN Dividend + Buyback Payout ratio Div yield BEST-IN-CLASS EFFICIENCY Cost Income Ratio SOLID CAPITAL CET 1 Ratio Capital surplus(3) Data refers to the 2Q 2026, Net Loans, Deposits and CET1 ratio as of 30.06.2026. Dividend yield is based on an average market cap. Financial figures in US$ are converted from NIS using exchange rate as of 30.06.2026. (1) Reported Net Income and ROE include a special tax levy of NIS 293 m’. Adjusted for a special tax, Net Income would have been NIS 3.1 Bn and ROE 17.9%. (2) ROE adjusted for a special tax and for the excess capital – capital normalized to the bank's internal CET 1 target 10.85%. (3) Capital excess above the regulatory CET 1 target. Bank Leumi · Q2 2026 Results CONTINUED GROWTH Net Loans QoQ Deposits QoQ 4 (1) (1) ($ 0.95 Bn) 16.3% 24.7% 17.9% 19.3% 11.65% ($ 0.5 Bn) 50.0% 5.5% NIS 567Bn +3.4% ($ 190 Bn) ($ 241 Bn) NIS 719Bn +3.4% NIS 8.5 Bn ($ 2.9 Bn) NIS Bn 2.83 NIS Bn 1.4
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P A R T 2 · F I N A N C I A L D E E P D I V E Hagit Argov SVP & Chief Financial Officer I N T H I S S E C T I O N 01 Performance vs Targets 02 Income, Expenses & Efficiency 03 04 Credit Quality & Growth 05 Deposits & Liquidity Ratios 06 Capital Ratios & Capital Return Bank Leumi · Q2 2026 Results 5 Macro Environment
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Strong Underlying Performance — Key Financial Metrics *Adjusted for a special tax of NIS 293m’ for Q2 2026, NIS 214m’ for Q2 2025, NIS 551m’ for H1 2026 and NIS 419m’ for FY 2025. Bank Leumi · Q2 2026 Results 6 FY 2025H1 2026Q2 2025Q2 2026 10,2625,1782,6102,832Reported 10,6815,7292,8243,125Adjusted * 15.8%14.9%16.2%16.3%Reported 16.4%16.5%17.5%17.9%Adjusted * 6.863.501.741.92Reported 7.203.871.892.12Adjusted * 26.9% 0.19% +5.7% +3.2% EPS +12.0%+4.4%+3.0%BVPS Growth +14.1%+9.0%+3.4%Net Loan Growth 0.09%0.17%0.20%Credit Loss Expenses Net Income (NIS M) ROE 29.3%26.7%24.7%Cost-Income Ratio QoQ YTD YoY QoQ YTD YoY QoQ QoQ
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H1 2026 Performance vs. Strategic Targets Bank Leumi · Q2 2026 Results Macroeconomic assumptions: Annual CPI averaging 1.8-2% and an average BOI interest rate of 3.2-3.7%. Targets are based on the regulatory instructions in effect as of the publication date of the 2025 financials, including assumptions that during 2026-2027, the impact on the Bank’s results regarding the benefits program will be similar to the one in 2024-2025. Targets also include a special tax imposed on the banks under the 2026 state budget framework. ROE and Capital Return targets are both subject, among other things, to the removal of restrictions on capital distribution set by the Bank of Israel and the Bank of Israel’s instructions. The credit growth target reflects the activity environment and the scope of known infrastructure projects at the time of thepublication of the 2025 financials. A significant expansion of national infrastructure investments beyond current estimates may support higher growth than the current target. 7 H1 2026 ACTUALS2026 FINANCIAL TARGETSMETRIC Capital Return Cash Dividend + Share Buyback 52.3%50% - 65% Net Income ROE 9.0%8% - 10%Credit Growth NIS 9 - 11 Bn 13.75% - 15.25% NIS 5.2 Bn 14.9% YTD
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Market Indicators: Strong and Resilient GDP Real Growth Rate % CPI (Inflation) % Year-End Unemployment Rate % ages 15+ Government Debt to GDP % Israel OECD Source: OECD and Israeli CBS. 2026-27 forecasts for Israeli GDP, CPI and government debt are BOI (July 6, 2026). 2026-2027 forecast for unemployment is Leumi. Bank Leumi · Q2 2026 Results 8 2.8% 5.3% 3.0% 3.2% 2.6% 1.8% 1.8% 2 2 2 22 2 23 2 2 2 2 2026E 2027F 9.3% 6.4% 2.1% 1.0% 2.9% 4.0% 5.5% 6.3% 3.3% 1.8% 1.8% 1.8% 1.5% 1.7% 2 2 2 22 2 23 2 2 2 2 2026E 2027F 65.6% 58.5% 59.9% 67.6% 68.5% 69.0% 69.0% 2 2 2 22 2 23 2 2 2 2 2026E 2027F 4.9% 3.8% 3.4% 3.0% 3.0% 3.0% 3.3% 6.2% 5.0% 4.9% 4.9% 5.0% 5.1% 5.0% 2 2 2 22 2 23 2 2 2 2 2026E 2027F
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3.91%4.50%BOI Interest rate (avg.) 3.75%4.50%FED Interest rate (avg.) 1.3%1.3%Change in CPI* 3.4%5.7%Credit Growth** KEY DRIVERS - Q2 2025 vs Q2 2026 Income Breakdown - Q2 2026 vs. Q2 2025 Bank Leumi · Q2 2026 Results KEY TAKEAWAYS Driven by loan book growth and higher non-finance income NIM vs. Q1 ’26 1.96% (Reported) · 1.95% (Excluding CPI) NIS Millions. Total revenue 4,540 4,572 410 960 1,014 1,04222 14 5,986 6,588 Q2 2025 Q2 2026 Other incom e Fee incom e Non finance incom e Net interest incom e Total Revenue YOY +10.1% Reported 2.16% · Excluding CPI 1.90% * Known CPI ** Net Credit
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Fee - Based Revenue Growth Bank Leumi · Q2 2026 Results 10 FEE S BREAKDOWN — Q 2 2026 vs Q 2 2025 157 100 129 198 145 285 171 28 142 213 150 338 Other Fees Credit Cards Exchange Diff. Securities Account Mgmt Financing Trx. Q2 2026 Q2 2025 1,0421,014 2,171 2,035 76 11 76 11 Q2 2026Q2 2025H1 2026H1 2025 H1 26 vs H1 25 * Reported fees include customers support measures of NIS 76 million in 2Q’26 and H1’26 (vs. NIS 11 million in 2Q‘25 and H1’25). Q2 26 vs Q2 25 +2.8%+6.7%Reported +9.1%+9.8%Adjusted NIS Millions.
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Expenses Breakdown and Pre-Provision Net Revenue (PPNR) Q2 2026 vs. Q2 2025 Bank Leumi · Q2 2026 Results 11 (0.09%) KEY TAKEAWAYS Total Salaries and Related Expenses include pension and other salary costs of NIS 37 million in 2Q’26, NIS 96 million in 2Q’25. YoY Total Expenses PPNR Salaries Strong PPNR growth YoY 982977 645633 1,6271,610 Q2 2026Q2 2025 Maintenance & Depreciatio n Expenses and Oth ers Total Salary & Related Expenses +1.1% +13.4% 4,961 Q2'26 vs 4,376 Q2'25 NIS Millions. Driven by higher performance-based bonuses, partly offset by the continuing decrease in head-count
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Income & Expenses Breakdown - H1 2026 vs. H1 2025 Bank Leumi · Q2 2026 Results 12 (0.09%) Total Salaries and Related Expenses include pension and other salary costs of NIS 112 million in H1’26, NIS 215 million in H1’25. YoY Total Expenses 8,557 8,481 703 1,368 2,035 2,17176 33 11,371 12 ,053 H1 2025 H1 2026 Other incom e Fee incom e Non finance incom e Net interest incom e Income Expenses YoY PPNR +10.0% -3.7% 1 ,9 3 62,056 1 ,2 8 31,285 3 ,2 1 93,341 H1 2026H1 2025 Maintenance & Depreciation Expenses and Oth ers Total Salary & Related ExpensesSalary Expenses YoY -5.8% 3.96%4.50%BOI Interest rate (avg.) 3.75%4.50%FED Interest rate (avg.) 1.2%1.6%Change in known CPI* 9.0%7.4%Credit Growth** KEY DRIVERS - H1 2025 vs H1 2026 NIS Millions. * Known CPI ** Net Credit
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Multi-Year Decline in Cost-Income Ratio K E Y T A K E A W A Y Technology and AI driven efficiency delivered a World-Class Cost-Income ratio. Leumi Cost Income ratio for 2019 is net of the effect of Leumi Card and for 2019-2022 excludes BLUSA. 13 26.7%29.3%29.9%32.6% 37.2% 45.8% 53.2% 57.9% H1 20262 2 2 2 2 232 222 2 2 2 2 31.2 pp improvement since 2019 Q2 2026 24.7% Bank Leumi · Q2 2026 Results
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Credit Loss Expenses Specific Collective K E Y T A K E A W A Y Q2 2 0 2 6 Income from Specific Provisions over a period of ten quarters. Collective Provisions reflect the credit growth in the quarter. C r e d i t L o s s r a t i o Bank Leumi · Q2 2026 Results 14 0.20%0.12%0.11%0.03%0.19% (4)(98)(4)(74)(162) 295264144106 385 291 166 14032 223 Q2/26Q1/26Q4/25Q3/25Q2/25 NIS Millions.
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High Quality Credit Indicators N P L R A T I O T R O U B L E D D E B T R A T I O C R E D I T L O S S P R O V I S I O N S NIS Bn M U L T I- Y E AR T R E N D — % O F GROSS L O AN S NPL ratio = non-performing loans as a share of the loan portfolio. 13 T R O U B L E D D E B T R A T I O P r o v i s i o n s / N P L s NPL Bank Leumi · Q2 2026 Results 15 0.45%0.40%0.50% 0.85% 2 2 2 2 2 2 23 1.11%1.24% 1.45% 1.78% 2 2 2 2 2 2 23 0.45% 2.7 1.11% 6.89 vs 3.2 FY2 · 3. FY2 vs .8 FY2 · .8 FY2
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Credit Growth in Target Segments N E T L O A N S T O T H E P U B L I C — N I S B N S E G M E N T G R O W T H — Q 2 2026 Mortgages Bn QoQ YTD Corporate + RE Commercial Bn Net Loans are presented according to Management approach. 2020-2021 excluding BLUSA. Segment balances in NIS billions. Bank Leumi · Q2 2026 Results 16 163.1 188.5 73.6 vs 156.7 FY'25 Bn vs 165.4 FY'25 vs 69.1 FY'25 567 520 456 419 385 325 278 282 2 2 2 2 2 2 232 222 2 2 2 2 YTD +9.0% Since 2019 +101% +2.0% +3.3% +3.2% QoQ YTD QoQ YTD +4.1% +14.0% +6.5%
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Expanding and Diversifying the Deposit Base D E P O S I T S — N I S B N D E P O S I T B A S E D E P O S I T G R O WTH YTD L O AN-TO -D E P O S I T I N D I V I D U ALD E P O S I TS Bn L C R Regulatory requirement: 100% Deposits from the public. Loan-to-Deposit ratio based on Net Loans. 2020-2021 excluding BLUSA. LCR = Liquidity Coverage Ratio as of 3 .06.2026. Bank Leumi · Q2 2026 Results 17 YTD 719 687 618 568 557 515 428 374 2 2 2 2 2 2 232 222 2 2 2 2 Since 2019 +92% 230.3 122% 78.8% +4.7% LOAN-TO-DEPOSITQ2 2026 vs 75.7% FY25 +1.5% +3.4% QoQ
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Diversified Credit and Deposit Portfolio C r e d i t P o r t f o l i o D e p o s i t s B a s e Bank Leumi · Q2 2026 Results 18 NIS Bn. * Net credit growth from Private Individuals includes SME. Private Ind. 32.0 % SMEs 8.7 % Commercial 12.1 % Corporate+RE 8.8 % Cap. Markets 38.3 % NIS 719 bn Private Ind. 5.7% Mortgages 28.8% SMEs 5.3% Commercial 13.0% Corporate 19.2% Real Estate 14.1% Cap. Markets 10.7% Other 3.2% NIS 567 bn * Q 2 2026 A s o f 3 0 . 6 . 2 0 2 6
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Diversified Credit and Deposit Portfolio C r e d i t P o r t f o l i o D e p o s i t s B a s e 19 NIS Bn. * Net credit growth from Private Individuals includes SME. Private Ind. 32.0 % SMEs 8.7 % Commercial 12.1 % Corporate+RE 8.8 % Cap. Markets 38.3 % NIS 719 bn Private Ind. 5.7% Mortgages 28.8% SMEs 5.3% Commercial 13.0% Corporate 19.2% Real Estate 14.1% Cap. Markets 10.7% Other 3.2% NIS 567 bn * H 1 2026 A s o f 3 0 . 6 . 2 0 2 6 Bank Leumi · Q2 2026 Results
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Solid Capital ratios and Capital Return Q U A R T E R L Y C A P I T A L R E T U R N — N I S B NQ 2 2 0 2 6 S U M M A R Y– a s o f 3 0 . 0 6 . 2 0 2 6 Tota l Ca pital Re turn Q2’26 NIS Bn Q2 2 0 26 PAYOUT of Net Income D I V Y I E L D* Div + Buyback Bank Leumi · Q2 2026 Results 20 Payout ratio is Dividend + Buyback as % of Net income. Dividend yield based on quarterly average market cap. * Annualized. Internal Target: Regulatory Target: TOTAL CAPITAL RATIO Regulatory Target: LEVERAGE RATIO Regulatory Target: Capital and leverage ratios calculated under Basel III. Capital targets, both the regulatory and the internal are minimum targets as of June 30,2026. 11.65% vs 12.05% FY 2025 10.85% 14.43% 6.58% vs 14.08% FY 2025 vs 6.82% FY 2025 13.5% 5.5% 50% 5.5% 10.23% 1.4 NIS Bn 1.1 Dividend + 0.3 Buyback ($ 0.5 Bn) C o m m o n E q u i t y T i e r 1 (C E T 1 )
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Bank Leumi · Q2 2026 Results Investment Highlights P R O F I T A B I L I T Y Strong and Consistent Profitability Resilient performance in a changing environment. C R E D I T Q U A L I T Y Responsible Growth High-quality underwriting and strong credit portfolio quality metrics. C A P I T A L Financial Strength and Shareholder Returns Capital ratios are well above regulatory requirements alongside consistent dividend distributions. 21 G R O W T H Core Business Growth Continued accelerated growth in loans and deposits, focused on strategic segments. E F F I C I E N C Y Technology and AI Leadership Technology and AI driving efficiency improvements, supporting a best-in-class efficiency ratio.
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Thank you Q U E S T I O N S & A N S W E R S 22