Israel Discount Bank Limited Class A · TASE:DSCT
Israel Discount Bank Limited Class A — Q3 2025 Earnings Presentation
19 slides from Israel Discount Bank Limited Class A's earnings presentation, Nov 17, 2025
Slide 1: Q3 2025 Review: Financial Highlights
Q3 2025 REVIEW Financial Highlights 1
Slide 2: 3Q 2025 – Main indicators
3Q 2025 – Main indicators Net Income ROE Efficiency Ratio* 1,133M 13.7% 44.0% Banking in Israel ** 890M 14.3% 42.6% Dividend Distribution NII Change* Credit Growth* 50% - 0.2% 3.4% QoQ QoQ * The comparative figures have been restated to reflect the classification of CAL’s operations as “discontinued
Slide 3: Consistent double-digit ROE and stable NI
Consistent double-digit ROE and stable NI 2.0 Net Income (Bn) & ROE (%) 16.0% 1.8 14.9% 15.0% 1.6 14.1% 13.6% 13.7% 14.0% 1.4 13.4% 13.0% 13.0% 1.2 1.1 1.1 1.1 1.1 1.1 1.0 1.0 12.0% 0.8 11.0% 0.6 10.0% 0.4 9.0% 0.2 0.0 8.0% 2Q24 3Q24 4Q24 1Q25 2Q25 3Q25 3 3
Slide 4: The Economy is expected to rebound in 2026
The Economy is expected to rebound in 2026 GDP is expected to almost double Job market shows resilience (GDP growth, in %) 4.7 3.4 3.4 3.4 3.0 2.5 2.0 0.9 2023 2024 2025E 2026F 2023 2024 2025E 2026F Unemployment, % 4 Source: BoI, Sept 2025
Slide 5: Corporate demand drives strong credit growth
Corporate demand drives strong credit growth Total Credit Small businesses Corporates in NIS bn; growth % in NIS bn; growth % in NIS bn; growth % 8.9% 4.6% 17.4% 3.4% 1.6% 5.6% 45.4 90.5 44.7 43.4 85.7 290.4 77.1 281.0 3Q24 2Q25 3Q25 3Q24 2Q25 3Q25 266.6 Households Mortgages in NIS bn; growth % in N
Slide 6: NPL ratio & Credit loss expenses
NPL ratio & Credit loss expenses NPL/Total Credit Ratio Credit loss expenses 800 in NIS m and % 750 0.90% 0.74% 0.70% 0.67% 0.68% 700 0.57% 650 0.70% 600 0.17% 0.15% 550 0.50% 500 3Q24 4Q24 1Q25 2Q25 3Q25 450 0.30% 0.28% 400 0.30% 0.29% Allowance for Loan Loss Provisions from Total Credit 350 300 0.
Slide 7: Revenues – NII & Fees
Revenues – NII & Fees Total Revenues Financing Income From Regular Operations 1.0% -3.4% 0.9% -1.1% 3,485 3,490 3,520 4 32 2 2,566 364 274 326 2,523 2,498 2,465 526 539 2,437 486 +10.9% +2.5% Other Income Non-Interest Financing income 2,631 2,658 2,653 +0.8% -0.2% Fees Net Interest Income 3Q24 4Q24
Slide 8: Notable improvement in cost efficiency
Notable improvement in cost efficiency 72.0% 67% Cost Income Ratio 68.3% 68.2% 67.5% 67.0% 65.2% 65.4% 62.0% 52% Cost Income Ratio (CIR) 57.0% 55.8% 52.1% 52.0% 49.6% Ex-CAL 45% CIR 48.8% 47.0% 46.1% 44.0% 42.0% 2017 2018 2019 2020 2021 2022 2023 2024 1Q25 2Q25 3Q25 8 Cost to Income (%) 8
Slide 9: Maintaining expense discipline
Maintaining expense discipline Total Expenses in NIS m 43.9% 46.1% 44.0% - 1.2% - 3.8% 1,610 1,530 1,549 399 363 433 Cost Income Ratio 324 348 287 Other 107 106 116 Maintenance & depreciation Awards 736 757 713 Salary & related 3Q24 2Q25 3Q25 9 The comparative figures have been restated to reflect t
Slide 10: Robust and diversified funding base with strong capital Ratio
Robust and diversified funding base with strong capital Ratio Diversified domestic public deposit base Maintaining solid LCR And NSFR well above the regulatory with 48% share of retail deposits requirement (100%) in % 132.6% 130.1% 128.5% 126.6% Int’l 27.1% 121.0% 121.4% 11.0% Households 117.9% 116.
Slide 11: Contribution to Profit from key subsidiaries
Contribution to Profit from key subsidiaries Net income Net income Net income in NIS mil. in USD mil. in NIS mil. RoE 17.1% 15.6% 15.8% RoE 6.7% 4.9% 7.0% RoE 13.6% 10.5% (12.3%) 24.0 230 234 7.6% 12.9% 90 12.6% 226 73 21.0 Total Credit net Total Credit net Credit card Growth %, YoY 17.0 Growth %, Y
Slide 12: Main Takeaways
Main Takeaways Executing on our Strategy Strong 3Q25 and 9M25 financial performance – ROE of 13.7% 3Q25; CIR of 44%; +8.9% YoY loan growth; CET1 10.5% and NPL ratio of 0.7% CAL sale will boost– 1) FY25e ROE by c1.2% (+ILS 0.5bn to FY25 NI); 2) CET1 by 0.6%; 3) CIR by -4%, providing the bank with ade
Slide 13: Israel Discount Bank: P&L and Selected Ratios
Israel Discount Bank: P&L and Selected Ratios NIS m 3Q25 2Q25 3Q24 vs.2Q25 vs.3Q24 Net interest income 2,653 2,658 2,631 (0.2%) 0.8% Credit loss expenses 197 60 195 228.3% 1.0% Non-interest financing income 326 274 364 19.0% (10.4%) Commissions 539 526 486 2.5% 10.9% Other income 2 32 4 (93.8%) (50.
Slide 14: Israel Discount Bank: Adjustments to P&L
Israel Discount Bank: Adjustments to P&L NIS m 3Q25 2Q25 3Q24 Reported net income 1,133 1,115 1,137 Realization of Assets (17) - Profit from the sale of rights in Visa Europe (12) - (18) Special income tax 78 86 74 Effect of settlement 7 - 5 Provision for discontinued operation (CAL) 33 13 - Court d
Slide 15: Israel Discount Bank: Selected Balance sheet Items
Israel Discount Bank: Selected Balance sheet Items NIS m 30.9.2025 30.9.2024 31.12.2024 Cash and deposits with banks 66,135 57,072 62,575 Securities –Total 73,743 67,207 67,627 Credit to the public 290,425 266,647 270,997 Provision for credit losses )3,763( )3,810( )3,685( Credit to the public, net
Slide 16: Mercantile Discount Bank – principal data
Mercantile Discount Bank – principal data NIS m 3Q25 3Q24 9M25 9M24 2024 Net profit attributed to the shareholders 234 226 670 635 843 Net interest income 585 588 1,695 1,696 2,220 Credit loss expenses 66 55 137 164 187 Non-financing income 140 93 366 303 403 Non-financing expenses 272 262 822 821 1
Slide 17: Discount Bancorp, Inc. – principal data
Discount Bancorp, Inc. – principal data US$ m 3Q25 3Q24 9M25 9M24 2024 Net profit attributed to the shareholders 24 21 63 59 89 The contribution to the Bank's business results 18 21 47 59 75 Net interest income 93 82 273 242 328 Credit loss expenses 3 2 17 9 2 Non-financing income 19 20 61 59 77 Non
Slide 18: Israel Credit Cards – principal data
Israel Credit Cards – principal data NIS m 3Q25 3Q24 9M25 9M24 2024 Net profit attributed to the shareholders (88) 90 82 252 301 The contribution to the Bank's business results 40 45 69 129 145 Income from credit card transactions 598 526 1,661 1,443 1,946 Net interest income 252 231 733 677 906 Non
Slide 19: Disclaimer
Disclaimer This document has been prepared by Israel Discount Bank Ltd. (the “Bank”) solely for use by the Bank in its presentation of its 3rd quarter 2025 report, as well as in strategic updates referred to in the Bank’s reports. This presentation is not a substitute for the Bank’s 3rd quarter 2025