Bank Leumi Le-israel B.m. · TASE:LUMI
Bank Leumi Le-israel B.m — Q4 2024 Earnings Presentation
65 slides from Bank Leumi Le-israel B.m's earnings presentation, March 2025
Slide 1: Driving Sustainable Growth, Maximizing ROE, Enhancing Efficiency
"Driving Sustainable • Growth Maximizing ROE CEO’s presentation for investors March 2025 Enhancing Efficiency"
Slide 2: Largest Bank in Israel, Growing Faster Than Ever
LARGEST BANK IN ISRAEL תGROWING FASTER THAN EVER
Slide 3: Largest Bank In Israel, Growing Faster Than Ever
Largest Bank In Israel, Growing Faster Than Ever Responsible and consistent credit growth Consistent growth in deposits (Bn NIS) Loans to the public, net J = NPL 15% a ame 5% a ame i al ; r ] I : i 2019 2020 2021 2022 2023 2024 2019 2020 2021 2022 2023 2024 itl My
Slide 4: The Most Profitable Bank In Israel
The Most Profitable Bank In Israel
Slide 5: The Bank Presents Best-Ever Efficiency Ratio
The Bank Presents Best-Ever Efficiency Ratio Israeli banks – Avg: Discount, Mizrahi, Poalim, Fibi
Slide 6: Extensive And Strategic Investments In Technology Infrastructure
Extensive And Strategic Investments In Technology Infrastructure Doing More With Less
Slide 7: Leumi Is Best Positioned To Create Maximum Value
Leumi Is Best Positioned To Create Maximum Value 02 Excellent ability to implement 03 Significant growth 01 Unique strategic decisionsQuickly, potential operational and effectively, and at scale. •Deepening existing activities technological and expanding in the infrastructures growing Israeli market
Slide 8: How These Principles Have Been Implemented In Recent Years
"How These Principles Have Been Implemented In Recent Years." How These Principles Have Been Implemented In Recent Years
Slide 9: Best Positioned | Proven success and responsible growth
"Best Positioned | Proven success and responsible growth"
Slide 10: Best Positioned | Proven Success In Mortgages
"Best Positioned | Proven Success In Mortgages" "Fastest Growth In The Market"
Slide 11: Best Positioned | Proven Success In Service
12 Best Positioned | Proven Success In Service From 4" To 1° Place Actions © G& OD Dedicated CEO Team 1day SLA Banker via support — Zoom “first timers” E = S 2 ® e ann) 74 Post Extended service Branch manager weekend hours (6:00-23:00) by WhatsApp service Marketest Index, Individual customers custom
Slide 12: Highest Ever Levels Of New Customer Acquisition
13 And As A Result: Highest Ever Levels Of New Customer Acquisition 250% Increase in monthly average Since 2014 > 2024 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 1-6/24 Jul 7-12/24
Slide 13: Bottom line
"Bottom line:" The paragraph states: "Leumi has an organizational culture of 'hunger for the right business,' a history of achievement and meeting targets, together with strong technological infrastructure and business processes." At the bottom, the key takeaway is highlighted in bold: "This all ena
Slide 14: Let's Review Israeli Macro Market Trends
"Let’s Review Israeli Macro Market Trends."
Slide 15: Glance At The Market: Macro Parameters Remain Strong
16 Glance At The Market: Despite A Challenging Geopolitical Backdrop, Macro Parameters Remain Strong And The Economy Is Growing Gross bank credit (5 large bank) +=—— NPL 1,691,751 1,553,925 1,457,271 1,297,267 1,141,381 1,061,674 5 0.89% 93% 0.85% 0.73% 0.69% 0.93: 0.69% 2019 2020 2021 2022 2023 202
Slide 16: Glance At The Market: More Potential To Increase Market Penetration
Glance At The Market: Alongside Ongoing Growth In Credit There Is Still More Potential To Increas Market Penetration Household debt as % of GDP vs GDP per capita in comparison to other markets 160,000.00 Hovsshold debts xof GDP —®-GDP percapita 126% 140,000.00 112% ‘ 120,000.00 102% oy ie 91% ‘ 87%
Slide 17: The Market Is Growing, And At Leumi We Have Only Begun
"The Market Is Growing, And At Leumi We Have Only Begun To Realize The Potential."
Slide 18: The Vision: Fulfilling The Potential In The Israeli Market
"The Vision: Fulfilling The Potential In The Israeli Market For Responsible Growth And Sustainable Value For Our Shareholders."
Slide 19: Strategy For The Next 3 Years: ROE Focused Growth
"We Defined Our Strategy For The Next 3 Years: Roe Focused Growth." Three Pillars of Strategy 1.Accelerated Growth Focused on ROE 1. Leading responsible growth while balancing business lines and revenue streams. 2.Customer Centricity 1. Becoming the primary bank for customers through a customer-cent
Slide 20: Financial Targets For 2025–2026
"Financial Targets For 2025–2026" 3.32 Bn NIS
Slide 21: Our Unique Assets, Enabling Strategy Execution & Delivery
"Our Unique Assets, Enabling Strategy Execution & Delivery" Five Key Assets: 1.Leading Digital Assets 1. With innovative capabilities. 2.Group Synergy 1. To extract value and improve customer experience. 3.Advanced Credit Models And Data Capabilities 1. Enables quality credit management and growth.
Slide 22: Leading Digital Assets
23 sur Uni . ur Unique Assets, ; Enabling Strategy Execution & Delivery 01 Leading Digital Assets With innovative capabilities Leumi customers are more to] active on digital than customers 87 So in western Europe ° Private customer transactions 20% 7 through digital ° | 89% Business customer transac
Slide 23: Leveraging the power of the whole organization
Leveraging the power of the whole organization Our Unique Assets, Enabling Strategy Execution & Delivery 0) ] Leading Digital Assets Open Initial English Trading platform With innovative capabilities banking approval App eo = ee - ®. am, saaen a=
Slide 24: Group Synergy
Our Unique Assets, Enabling Strategy Execution & Delivery 02 Group Synergy To extract value and improve customer experience Growth potential from leveraging synergies Across all financial products and all types of customer 25
Slide 25: Advanced Credit Models And Data Capabilities
26 suru ; ur Unique Assets, ; Enabling Strategy Execution & Delivery 03 Advanced Credit Models And Data Capabilities Enables quality credit management and growth GenAl and sales models optimization Automated underwriting for loans Collaborations with Automation in FinTech Companies and personalized
Slide 26: A Unique Retail Operation Model
suru ; ur Unique Assets, ; Enabling Strategy Execution & Delivery Slim and effective activation model Enables the bank to provide tailored solutions for customers, and to extract value, thanks to advanced data-based service and sales models Upper U; ent Affluent shes : Dedicated branches and profess
Slide 27: Leadership in financing real estate and national infrastructure projects
28 Our Unique Assets, Enabling Strategy Execution & Delivery Leadership in financing real estate and national infrastructure projects caw UnPy 7 Onn DIR’ 7a In 7507 TAY NxNAY 12 Av WONA TINA NUON 17 TNEN TWN DAN "INT 7 nenwn PeTUNT ITT [=>] Tp pI 77-7 nw" »mND I"3In Tn'n Tray MN|V—TTNI "NIND porns I
Slide 28: Leadership in the high-tech sector
29 Customer focus Our Unique Assets, Enabling Strategy Execution & Delivery Leadership in the high-tech sector 1# Number of Startups (per capita) 1# Number of Unicorns (per capita) 1# R&D Investment |% GDP) 2# Venture Capital Investment (per capita) 1# % employees in the high tech sector LEUMITECH S
Slide 29: Israeli Sector
16.9% 16.5% 15.5% 14.5% 13.2% Israeli Sector
Slide 30: Stock Performance Over Time
Stock Performance Over Time 462.66% 382.17% — 379.10% @ Leur 214.28% @ TA bank: Nasdaq 100 m@ S&P 500 84.56% 59.43% nuynx ow 1¢ ONNX oOWTIN 12
Slide 31: The bottom line
•"The bottom line" Key Message: •Leumi is well positioned and determined to implement its strategy. •The bank aims to deliver accelerated growth focused on ROE (Return on Equity).
Slide 32: Thank You
THANK YOU
Slide 33: Investor Conference, March 2025
INVESTOR CONFERENCE, MARCH 2025
Slide 34: Disclaimer
DISCLAIMER This document and the information contained herein –Has been prepared by Bank Leumi le-Israel B.M. (the “Bank”) solely for the purpose of presenting the Bank’s business;Is provided solely for your information and may not be copied, distributed or forwarded, directly or indirectly, in any
Slide 35: ROE
ROE
Slide 36: ROE Financial Targets: Double-digit ROE
Double-digit ROE Financial Targets * 16.9% 15.6% 15.9% 16%-15% 15.5% 16%-15% 15.5% 15.0% ROE below 10% 9.8% 9.5% 9.8% 5.7% 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026
Slide 37: Impact of a 1% decline in interest rates on ROE
Impact of a 1% decline in interest rates on ROE: Double-digit ROE Financial Targets * Leumi – 0.8% lower 16.9% 15.6% 15.9% 16%-15% 15.5% 16%-15% 15.5% 15.0% ROE below 10% 9.8% 9.5% 9.8% 5.7% 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026
Slide 38: Financial Performance
ne I, Financial Performanc de |
Slide 39: ROE versus Israeli peers
19.8% 18.5% 18.3% 16.9% 15.6% 14.2% 14.4% 13.8% Discount Discount Mizrahi Mizrahi Hapoalim Hapoalim Leumi Leumi 18.4% 17.7% 17.6% 15.3% 15.7% 14.7% 14.6% 13.9% Discount דיסקונט Mizrahi מזרחי Hapoalim פועלים Leumi לאומי as assets are each more than 24% of the system
Slide 40: Financial Targets: 9-11 Billion each year
Financial Targets 9-11 Billion each year 9.8 8.1 7.1 6.0 3.5 2.1 2019 2020 2021 2022 2023 2024 2025-2026
Slide 41: Efficiency ratio 2019-2024
56.8% 53.8% 46.8% 37.5% 32.6% 29.9% 2019 2020 2021 2022 2023 2024
Slide 42: Efficiency ratios by segment
66.4% 56.8% 53.8% 56.9% 54.2% 46.8% 44.5% 41.0% 37.5% 38.5% 32.6% 29.9% 2019 2020 2021 2022 2023 2024 2019 2020 2021 2022 2023 2024 65.2% 67.5% 65.4% 54.6% 53.9% 54.0% 55.8% 52.1% 45.2% 49.6% 37.7% 35.5% 2019 2020 2021 2022 2023 2024 2019 2020 2021 2022 2023 2024
Slide 43: Financial Targets: Growth of 8-10% per year
Financial Targets 600.0 598.8 597.7 596.5 595.4 594.2 593.0 591.9 590.7 589.6 588.4 587.2 586.1 Growth of 8-10% per year 584.9 583.8 582.6 581.4 580.3 579.1 578.0 576.8 575.6 574.5 573.3 572.2 571.0 569.8 568.7 567.5 566.4 565.2 564.0 562.9 561.7 560.6 559.4 558.2 557.1 555.9 554.8 553.6 552.4 551.3
Slide 44: Financial Stability And Risk Management
FINANCIAL STABILITY AND RISK MANAGEMENTT
Slide 45: NPLs, Troubled debts, Net credit growth
NPLs Troubled debts Net credit growth Financial Targets for 2025-26 1.85% 40.2% 1.78% 455.5 0.85% 419.5 384.8 0.75% 1.54% 325.0 * 1.45% 0.49% 0.50% 6.4 6.0 7.6 6.7 +8.6% +18.4% 2021 2022 2023 2024 2021 2022 2023 2024 2021 2022 2023 2024 2025 2026
Slide 46: NPLs, Troubled debts, Net credit growth vs sector
NPLs Troubled debts Net credit growth Sector Sector Sector 0.96% 29.2% 2.25% 1,212.6 Financial 2.06% 1,054.3 1,110.8 Targets for 0.76% 1.72% 1.84% 938.6 2025-26 0.76% 0.73% 1.85% 40.2% 1.78% 455.5 0.85% 419.5 384.8 0.75% 1.54% 325.0 * 1.45% 0.49% 0.50% 6.4 6.0 7.6 6.7 +8.6% +18.4% 2021 2022 2023 202
Slide 47: NPLs
NPLs Specific Collective 0.58% 2,033 0.16% 0.13% (0.25%) 1,041 937 350 (326) (328) (486) (454) 2021 2022 2023 2024 Millions
Slide 48: Total Capital and CET1
Total Capital CET1 TCR Minimum Regulatory Target CET1 Ratio Minimum Regulatory Target 14.72% 14.83% Excess of 14.29% ~ NIS 10 Bn 12.17% 13.50% 13.50% 13.50% 11.46% 11.66% 10.21% 10.22% 10.24% 2022 2023 2024 2022 2023 2024 Ratios and Minimum Regulatory Requirement are as of 31st December 2024
Slide 49: Excess Capital
Excess Capital Excess versus regulatory requirement (%) 9.7 1.93% 7.8 1.40% 4.5 2.5 Discount דיסקונט Mizrahi מזרחי Hapoalim פועלים Leumi לאומי Sectorיתר המערכת Leumi לאומי NIS Billions. Sector is Hapoalim, Mizrahi, Discount and FIBI Ratios and Minimum Regulatory Requirement are as of 3
Slide 50: Capital Return
Capital Return Dividends Buybacks 3.9 1.0 2.3 1.8 0.6 2.9 1.8 1.7 2022 2023 2024 2025-2026 Payout 23% 33% 40% 50% ratio * Minimum
Slide 51: Growth Drivers And Competitive Advantage
GROWTH DRIVERS AND COMPETITIVE ADVANTAGE
Slide 52: Leading bank in Israel by assets, loans and deposits
Market shares are as Leading bank in Israel by assets, loans and deposits 28.8% (2 (ex Share of deposits Share of loans Share of assets of 31st December 2024, based on financial reports of Leumi, Hapoalim, Mizrahi, Discount, FIBI and Bank of Jerusalem. Ey
Slide 53: Loans to Private Individuals – market shares
Loans to Private Individuals – market shares Loans by segment - Leumi Private 1.3% Individuals Commercial 6.7% 16.2% 14.3% 22.3% Other 3.8% Capital Markets 6.8% Mortgages 32.2% 13.4% Corporate & Real Estate 20.0% 26.8% 30.1% Small Businesses 6.1% Leumi Hapoalim Mizrahi Discount FIBI Jerusalem
Slide 54: Deposits from Private Individuals – market shares
Deposits from Private Individuals – market shares Growth in deposits from the public 1.8% 618.3 11.0% 515.0 557.1 567.8 373.6 427.5 22.7% 75.6% 73.7% 2019 * 2020 * 2021 2022 2023 2024 15.4% Deposit breakdown by segment Capital Private Markets Individuals 31% 37% 21.3% 27.8% Corporate & Leumi Hapoali
Slide 55: Leumi is Highly Profitable
Leumi is Highly Profitable Along side rigorous risk management
Slide 56: Thank You
THANK YOU
Slide 57: Investor Conference, March 2025
INVESTOR CONFERENCE, MARCH 2025
Slide 58: Disclaimer
DISCLAIMER This document and the information contained herein –Has been prepared by Bank Leumi le-Israel B.M. (the “Bank”) solely for the purpose of presenting the Bank’s business;Is provided solely for your information and may not be copied, distributed or forwarded, directly or indirectly, in any
Slide 59: Targets 2025-2026
1.27% 2025-2026 Targets 1.09% 0.97% 42.9% 202.4 189.9 0.86% 170.3 136.5 0.47% 0.49% 2022 2023 2024 2021 2022 2023 2024 2025 2026
Slide 60: National infrastructure projects
National infrastructure projects ome FUAY TY ONIN 1X7 ma Ww" 750 yy IV TRV RVIVINT aT fatr WITAA NANA THITO WOT yond 7330 [ID MADD | | rows quad ay men aan HY TIM OM pain ya ntwy7 RUBIN wv AWTY yetaax 4 a (=a -nwy7 nawyn mv" 3393 | 917 1Pn 750 Sw Paya NNNIAI ] JN"I7INF_ > — eae inman v won yon! Tr E
Slide 61: Responsible Growth in Real Estate Lending
Responsible Growth in Real Estate Lending – Focus on Residential Projects NPL (Non-Performing Loan) Ratio: Low NPL ratio over an extended period reflects conservative underwriting and strict oversight of projects.Insurance: The book is insured through sales guarantees and land guarantees.Concentrati
Slide 62: Land and construction financing in Israel
Land financing in Israel by LTV as of 12/2024 Construction financing by absorption rate as of 12/2024 NIS billions NIS billions 26.2 22.7 25% to 50% 9,633 14.2 Above 75% 12.8 27% 16,350 45% 9.0 6.4 4.5 4.4 3.0 50% to 75% 1.4 1.3 2.0 10,309 28% 45% Up toעד 45% 65% ועדto45% 45% 65%מעל 65% 80% ו
Slide 63: Portfolio monitored with focus on cash flows and coverage ratios
The portfolio is constantly being monitored with focus on cash flows and coverage ratios and stressed for higher interest expense scenarios
Slide 64: Real estate loans: NPLs, troubled debts and growth
NPLs Troubled debts Growth in the real estate loans 2.80% 2.80% Sector 55.5% 1.60% 118.3 1.40% 1.50% 110.1 1.16% 93.1 Sector 1.20% 76.1 1.07% 1.00% 0.66% 0.66% 0.62% 0.37% 1.1 1.6 1.2 0.27% 0.50% 0.19% 0.4 2021 2022 2023 2024 2021 2022 2023 2024 2021 2022 2023 2024
Slide 65: Thank You
THANK YOU
Bank Leumi le-Israel B.M. — Q4 2024 Earnings Presentation on 6ix