Bank Hapoalim Bm · TASE:POLI
Bank Hapoalim Bm — Q1 2020 Earnings Presentation
22 slides from Bank Hapoalim Bm's earnings presentation, May 25, 2020
Slide 1: Quarterly Financial Review
1020 Qua rterly Financial Review @ bank hapoalim
Slide 2: Disclaimer
Disclaimer @ bank hapoalim This presentation includes condensed information and selected data regarding Bank Hapoalim’s First Quarter 2020 results, and refers in part to the Bank's results from continued operation (not including data of Isracard Group), excluding those relating to capital, net profi
Slide 3: Israel and COVID-19 Macro perspective
Israel and COVID-19 Macro perspective @ bank hapoalim Israel was one of the first countries to close its borders and adopt a strict lockdown policy. Israel directs arrivals from FED rate FED rate The spread of the virus is lower than in most advanced economies. Chinatoenter reduction reduction Gov't
Slide 4: Israel and COVID-19 Policy measures
Israel and COVID-19 Policy measures @ bank hapoalim Central bank policy - Rate cut of 15bps to 0.1% - QE-NIS50 billion purchase of government bonds - Repo with financial institutions - $/NIS swaps - Capital requirement decrease of 100bps - Easing debt classification Government aid package of 6% of G
Slide 5: Our response to COVID-19
Our response to COVID-19 @ bank hapoalim Operational resilience - Employee welfare, health and ability to perform their roles addressed from the onset. - Dedicated emergency task force and cross functional response teams put in place. ~ Strategic operations (cyber units, dealing rooms, call center)
Slide 6: Our response to COVID-19: supporting people, families and businesses
Supporting people & families Supporting businesses Dedicated fund for up to Our Gradual branch opening, NIS 10,000 for self-employed response = 100% of branches open today to COVID-19 & Increased call center Loans granted through ca support and digital services gov't guarantee fund @ Loan payment Ve
Slide 7: COVID-19 met a strong bank
COVID-19 met astrong bank @ bank hapoalim Capital well above targets liquidity resilience LCR exceeding target Disciplined cost base fifth efficiency plan underway High digital preparedness Significant measures completed Significantly de-risked loan book i ( - Divestment of Isracard - Resolution of
Slide 8: Highlights
Highlights @ bank hapoalim &o, Reserve build COVID-19 Collective collective allowance ratio provision NIS 603 million 1.24% 7 Growth parameters tracking well vs 1019 Credit Retail deposits +5.8% +12.8% Resilient nu balance sheet CET1 ratio LCR 11.21% 126% Strong business i) parameters Financial marg
Slide 9: Key profit and loss items
Key profit and loss items Note: For a full profit and loss analysis, please refer to the Bank's financial statements for 1020. @ bank hapoalim 1Q19 4Q19 1Q20 Total Net Financing Profit 2,366 2,539 2,498 Fees and Other Income 803 868 885 Includes NIS 603 million of COVID-19 collective Total Income 3,
Slide 10: Credit portfolio
Credit portfolio @ bank hapoalim 300 Sino gp NIS billion 4 5.8% A r | C 300 29 | | i ] | 1Q19, 2Q19 3Q19 4Q19 1Q20 13% Consumer 5% International 28% Corporate Credit portfolio 18% Commercial Small business 31% Housing loans
Slide 11: Credit growth
1Q20 Credit growth — In Israel NIS billion @ bank hapoalim Commercial Housing loans 89.3 92.1 32.4 1 nO 3.1% SS & = fo) S ro) is = od 2018 Corporate 81.0 75.7 0 io aS 7.0%. Cc a g 5 5 6 N N = Consumer 31.0 30.2 45.9 AAA | oN -2.8%0 fon | B fee} 5 ) 5 5 g = g g “5 39.4 m=. -4.9%0
Slide 12: Deposit base
@ bank hapoalim 3 8 9 peposit ase NIS billion J Retail deposits | 12.8% A | 231 -232)—231—235 Yl 10.9% A 1219 219: 3Q19 4Q19 1Q20 5% International activity 13% i : Corporate 67% | Deposit Retail base & Financial management 1% Commercial Small business 12
Slide 13: Financing income and margin
1Q20 Financing income and margin NIS million @ bank hapoalim 2.27% 1.83% 0.25% 1.40% Financial margin from regular activity FED interest rate average, upper bound Bank of Israel interest rate average for period Net financing profit 1 Others Income from regular financing activity
Slide 14: Credit losses
1Q20 Credit losses NIS million @ bank hapoalim Includs —— meuces |) 876 809 effects of — COVID-19 319 121 | | ~40 a 1Q19 2a19 3Q19 4Q19 1Q20 1.24% 4.10% 1.18% 113% 5% am —_— — > 1Q19 2aQ19 3Q19 4a 1Q20 Total provision for credit losses Adverse effects of COVID-19 on collective provision Collective a
Slide 15: Problematic debt
Problematic debt 14,656 11,153 10,886 8,951 8045 8,184 : Special supervision a [res 2014 2015 2016 2018 2019 @ bank hapoalim 15
Slide 16: NPL levels
1Q20 NPL levels NIS million @ bank hapoalim 2.26% 2014 4,928 2015 3,480 2016 3,867 2019 3,650 1Q20 1.20% NPL ratio 16
Slide 17: Total expenses notes
Total expenses in 1Q20 exclude expense of NIS 97 million of exchange rate differentials associated with provision made with respect to the investigation of the Bank Group’s business with American clients as well as provision in the amount of 15 million associated with the investigation. Total expens
Slide 18: Capital base
1Q20 Capital base NIS billion @ bank hapoalim 14.2 % Total capital ratio 7.1% Leverage ratio 2014 2015 2016 36.6 2017 38.0 2018 38.8 2019 38.2 I 11.21% 1Q20 CET1 capit al CET 1 capital ratio 9. 5% Internal capital target 9.27% Min. regulatory requirement 18
Slide 19: Balance Sheet resilience
Balance Sheet resilience @ bank hapoalim Robust capital CET1 _———"T Min. regulatory requirement Leverage ratio Min. regulatory requirement Strong liquidity & funding LCR —~ Min regulatory requirement Credit & deposit - 77*LDR 4 389 300 67% Retail Net credit to the Deposits from the public public 19
Slide 20: @ bank hapoalim
@ bank hapoalim
Slide 21: Key balance sheet items
Key balance sheet items Note: For a full balance sheet analysis, please refer to the Bank's financial statements for 120. @ bank hapoalim 1Q19 4Q19 Cash on hand and deposits with banks 78,332 88,122 89,475 Securities 66,259 59,486 74,500 Net credit to the public 283,048 292,940 299,548 Deposits from
Slide 22: Israel's leading financial institution
Israel's leading financial institution @ bank hapoalim