Mizrahi Tefahot Bank Ltd · TASE:MZTF
Mizrahi Tefahot Bank — Investor Presentation (June 2025)
47 slides from Mizrahi Tefahot Bank's investor presentation, Jun 5, 2025
Slide 1: Immediate Report: Strategic Plan 2025-2027 Investors Presentation
Mizrahi Tefahot Bank Ltd.’s Immediate Reports are published in Hebrew on the Israel Securities Authority and the Tel Aviv Stock Exchange websites. The English version is prepared for convenience purposes only. The only binding version of the Immediate Reports is the Hebrew version. In the event of a
Slide 2: Details of authorized signatories
Details of the signatories authorized to sign on behalf of the corporation Signatory’s Name Position 1 Adi Shachaf Other Head of the Finance Division 2 Menahem Aviv Other Head of the Information & Financial Reporting Division Explanation: According to Regulation 5 of the Securities (Periodic and Imm
Slide 3: Strategic Plan 2025-2027 Investors Deck
Strategic Plan 2025-2027 Investors Deck | June 2025 People First בני אדם לפני הכל
Slide 4: General Notes Regarding Legal Responsibility
General Notes Regarding Legal Responsibility This presentation was prepared by Mizrahi Tefahot Bank Ltd (the “Bank”), in connection It is hereby clarified that the information and data in the Presentation that relate to with the Bank’s new strategic plan for the years 2025-2027, as published today i
Slide 5: The Challenger of the Israeli banking system
Mizrahi Tefahot, one of the Mizrahi-Tefahot Delivered on the Core Goals of Its Current Strategic Plan, and Presents Exceptional Performance: three largest banks in Israel, with high return on equity and The bank has shown consistent growth in its credit and deposit portfolios, record profits, high r
Slide 6: Credit growth in Mizrahi-Tefahot group (Bank of Israel report)
The rate of growth in credit to the public in the Mizrahi-Tefahot group in recent years has been faster than that recorded in the rest of the banking groups index of development of credit to the public (net), Figure A-4 across the banking system and credit cards companies | 2019–2024 (Base year inde
Slide 7: Risk-Adjusted Return on Equity (Bank of Israel report)
There has been variation across the banks in terms of Risk-Adjusted Return on Equity (RAROC) Figure C-14 Risk-adjusted return on equity comparison, banking groups and the system average, 2019–2024. Mizrahi Tefahot FIBI From the Bank Total Leumi Discount Poalim of Israel’s BOJ 2024 Banking Supervisio
Slide 8: Let's Start: From the bottom lines
LET'S START From the bottom lines 6 People First
Slide 9: Highest Return on Equity Compared to Poalim and Leumi
The Bank with the Highest Return on Equity Compared to Poalim and Leumi Mizrahi-Tefahot demonstrates consistently higher return on equity over time Return on Equity Development – Average Return on Equity Development of Return on Equity Mizrahi-Tefahot 2019–2024 2019–2024 15.8% 20.1% 19.1% 18.5% 13.0
Slide 10: ~5x Growth in Net Profit
Development of Net Profit (in NIS billions) ~5x Growth in Net Profit Since 2015 5.5 4.9 19% 4.5 Average annual growth rate 3.2 vs. 13% average for Poalim and Leumi 381% 1.8 1.6 1.2 1.3 1.2 1.1 Cumulative growth since 2015 vs. 197% average for Poalim and Leumi 2015 2016 2017 2018 2019 2020 2021 2022
Slide 11: Fastest-Growing Credit to the Public Portfolio in Israel
The Fastest-Growing Credit to the public Portfolio in Israel The bank leads in credit portfolio growth, with an average annual growth rate of 11.8% (compared to an average of 9.3% for Poalim and Leumi), and has increased its relative share within the banking system¹ Market Share of Total Credit to t
Slide 12: #1 in Mortgages in Israel
#1 in Mortgages in Israel - and Continuing to Grow and Expand Market Share Market Share in Ongoing Outstanding Mortgage Portfolio Mortgage Origination(2) Balance (NIS billions) (2) Market Share Average Annual ~36% Growth Rate 36.6% 10.7% 225 207 197 33.3% 176 156 135 33.3% 2019 2024 2019 2020 2021 2
Slide 13: Private Customers Accelerated Growth
Private Customers Accelerated Growth Market Share in Credit to retail customers Market Share in Deposits from retail customers Change in Market Share (Percentage Points) from 2019 to 2024 Change in Market Share (Percentage Points) from 2019 to 2024 -2.6 1.0 3.3 -1.0 - 3.8 23% 28% 20% 23% 18% 22% Poa
Slide 14: The Bank with the Most Satisfied Customers
Objective data from Bank of Israel surveys The Bank with the Most Fourth Year In a Row (2) Fifth Year in a Row (1) Satisfied Customers Since the Bank of Israel began publishing its surveys 57% 62% of small business owners at the bank of the bank’s private customers recommend it, making it the most r
Slide 15: Proven Execution Capability: Union Bank Merger
A Bank with Proven Execution Capability and a Strategy that Translates into Results The merger with Union Bank (unprecedented in the Israeli banking system) is strong evidence of Mizrahi- Tefahot’s ability to deliver complex strategic processes, with financial and operational discipline, in a respon
Slide 16: Our Success Factors
Our Success Factors A unique credit portfolio Income growth A unique, personal, and human Enables meaningful growth combined with service model that drives at a low risk level cost control preference and growth 64% 37% ‘PERSONAL BANKER’ METHOD Mortgages Cost/income ratio Extra Mile (2023–2024 averag
Slide 17: Our Success Factors
Our Success Factors A unique credit portfolio Income growth A unique, personal, and human Enables meaningful growth combined with service model that drives at a low risk level cost control preference and growth 64% 37% ‘PERSONAL BANKER’ METHOD Mortgages Cost/income ratio Extra Mile (2023–2024 averag
Slide 18: A unique credit mix enabling growth at low risk
A unique credit mix that enables significant growth at a low risk level The significantly higher weight of the mortgage portfolio compared to other banks generates stable income streams and supports risk balancing from the business portfolio. Business Mortgages 28% 32% As of Poalim & Mortgages 64% 3
Slide 19: Our Success Factors
Our Success Factors A unique credit portfolio Income growth A unique, personal, and human Enables meaningful growth combined with service model that drives at a low risk level cost control preference and growth 64% 37% ‘PERSONAL BANKER’ METHOD Mortgages Cost/income ratio Extra Mile (2023–2024 averag
Slide 20: Revenue growth along with control of operating expenses
14.7 Revenues (Billions ₪ ) Average annual change rate Revenue growth 15.0% along with control of operating expenses Revenues grew at an average 9.5 annual rate of 15% while operating expenses were kept under tight control with an 7.3 increase of only 5.5% – part of the Average annual change rate re
Slide 21: Leading in operational efficiency in international comparison
Leading in operational efficiency in international comparison Cost/income ratio (%) – global comparison 2024(1) (North America and European banks with assets of $500 billion and more) 69.0 67.0 66.0 65.6 64.8 63.0 62.0 61.5 60.4 59.7 59.0 58.6 58.1 56.2 56.1 55.8 55.3 54.4 51.0 47.0 45.6 43.3 43.1 4
Slide 22: Our Success Factors
Our Success Factors A unique credit portfolio Income growth A unique, personal, and human Enables meaningful growth combined with service model that drives at a low risk level cost control preference and growth 64% 37% ‘PERSONAL BANKER’ METHOD Mortgages Cost/income ratio Extra Mile (2023–2024 averag
Slide 23: Every Customer Has a Personal Banker
Omnichannel Communication Based on the principle of continuity of service across preferred service channels For Us, Every Customer Has a Personal Banker Personal Service Quality – Banker A Core Driver of the Bank’s Growth and Differentiation Phone WhatsApp Support (1) Ranked #1 in Customer Satisfact
Slide 24: Now Is the Time to Focus & Accelerate Growth
Over the years, we have built a solid customer base, which has led us to become a bank with a high return on equity and low risk NOW IS THE TIME TO FOCUS & ACCELERATE GROWTH! 22 People First
Slide 25: Smart and Focused: accelerated growth
SMART AND FOCUSED accelerated growth 23 People First
Slide 26: The Vision
THE VISION Continue to challenge and lead the growth of banking in Israel, set an exceptional banking standard in customer service and satisfaction, and to maximize shareholder value. 24 People First
Slide 27: Macroeconomic assumptions for 2025-2027
Macroeconomic assumptions for the strategic plan years 2025-2027 GDP Growth Bank of Israel interest rate Inflation Average annual rate Gradual decrease to a rate of Average annual rate of of 3.0% - 3.5% 3.50%-3.75% over the three years approximately 2.5% 25 People First
Slide 28: Targets 2025-2027
Return on equity (ROE) in Average cost/income ratio each of the years of the plan in years of the plan Targets 2025-2027 17%-18% ≤35% Credit to the public Market Deposit from the public Market Credit to the business sector in Share in 2027 Share in 2027 Israel market share in 2027 21.5% Starting poi
Slide 29: The balanced growth model
The balanced growth model Supports achieving stable and high returns on equity, rigorous risk management, and consistent, long- term growth – based on uncompromising service quality High return on equity while maintaining low risk #1 in A leap forward in DNA of mortgages business banking efficiency
Slide 30: The balanced growth model
The balanced growth model Supports achieving stable and high returns on equity, rigorous risk management, and consistent, long- term growth – based on uncompromising service quality High return on equity while maintaining low risk #1 in A leap forward in DNA of mortgages business banking efficiency
Slide 31: Continuing to lead the mortgage market
Continuing to lead the mortgage market Product Technological Personal and innovation innovation human connection Solutions for complex A fully digital mortgage A personal, humane and mortgages, special sectors, process, transparency and professional consulting space customized loans, products ongoin
Slide 32: The balanced growth model
The balanced growth model Supports achieving stable and high returns on equity, rigorous risk management, and consistent, long- term growth – based on uncompromising service quality High return on equity while maintaining low risk #1 in A leap forward in DNA of mortgages business banking efficiency
Slide 33: Potential to Expand Market Share in Business Segments
There is a Significant Potential to Expand Market Share in Business Segments Credit for Large Buisnesses Credit for Mid-Sized buisnesses Construction and Real Estate Sector Leveraging the bank as a meaningful player in Strengthening business centers to attract new Growth focused on geographically di
Slide 34: A strategic opportunity for a leap forward in business sectors
A strategic opportunity for a leap forward in business sectors A starting point that allows room for market share growth Market share in business credit in Israel Leveraging the infrastructure built 15%-16% after the Union Bank merger to expand the scope of business activity 11.7% Accelerated and re
Slide 35: The balanced growth model
The balanced growth model Supports achieving stable and high returns on equity, rigorous risk management, and consistent, long- term growth – based on uncompromising service quality High return on equity while maintaining low risk #1 in A leap forward in DNA of mortgages business banking efficiency
Slide 36: Efficiency is part of the bank's culture
Efficiency is not just a metric, it is part of the bank's culture. Efficiency is not just a financial result – it is a language, a way of making decisions, and a deeply rooted organizational culture. DNA Operational Capital Financial efficiency efficiency efficiency Optimal branch Optimal capital Pr
Slide 37: Operational Leader
Operational Leader One of the best cost/income ratios in the world Optimal branch layout - area and scope 54.6% 53.9% 54.0% Continued transfer of operational 45.2% activities from branches to back office 37.7% 35.5% ≤ 35.0% Automation of banking operations End-to-end digital banking processes to str
Slide 38: Headquarters Campus
Headquarters A collaborative Leveraging economies of scale - Campus organizational culture to strengthen logistical and operational efficiency Concentrating all headquarters units under one roof to improve and enhance business activity, while amplifying Strengthening the human Green building – energ
Slide 39: The balanced growth model
The balanced growth model Supports achieving stable and high returns on equity, rigorous risk management, and consistent, long- term growth – based on uncompromising service quality High return on equity while maintaining low risk #1 in A leap forward in DNA of mortgages business banking efficiency
Slide 40: LIVE+: Human banking that puts people first
Human banking that puts people first Leading the customer-centric approach, while providing accessibility to various advanced service platforms accessible and enhancing the customer's ability to choose among them, according to their needs. LIVE+ An advanced digital experience Customer-centric - Proa
Slide 41: The growth strategy: focused, responsible and profitable
The growth strategy that will lead us in the coming years is focused, responsible and profitable Return on equity in each of Deposit from the public Credit to the public Business Credit Market Average cost/income ratio, the years of the plan Market Share in 2027 Market Share in 2027 Share in 2027 ov
Slide 42: 40% dividend distribution serving long-term growth
This policy allows us to continue investing 40%(1) dividend in the quality growth of the credit portfolio, distribution increase market share and increase shareholder value. Serving long- The Board of Directors will monitor the progression of the plan, with the aim of term growth examining the possi
Slide 43: Leading in return on equity in international comparison
Leading in return on equity in international comparison Return on equity (%) of banks worldwide (1) (FY24) (North America and European banks with assets of $500 billion and more) 18.5 18.3 16.9 16.6 16.7 15.1 15.5 14.6 14.8 13.6 13.8 13.9 12.4 12.7 13.1 11.6 11.8 11.8 12.0 9.7 9.8 9.9 10.3 8.1 8.4 7
Slide 44: What is between RoE and Price-to-Book Ratio?
What is between RoE and Price-to-Book Ratio? Comparison to banks in the world with a Price-to-Book ratio of 1.5 or higher Price-to- Area Segment # of Banks RoE (%) Book Ratio 1.9 Average US & Canada Regional Bank 7 14.7% 2.2 Price-to- Book Ratio US & Canada Universal Bank 4 15.7% 1.8 15.2% Average U
Slide 45: Impact of interest rate and inflation on average ROE 2025-2027
The impact of the interest rate and inflation environment on the average return on equity in 2025-2027 Average return on equity in 2025 – 2027 High interest rate and inflation environment 17% - 18% Strategic Plan Scenario Low interest rate and inflation environment 1% decrease in interest rate -> Ap
Slide 46: Risk Factors Outside the Bank's Control
Risk Factors Outside the Bank’s Control Which May Affect Achieving the Strategic Plans’ Targets Risk Factors The Assumption The Risk No further changes to legislation and regulatory orders, which may Consumer regulation in the household sector and small businesses sector could affect profitabili
Slide 47: People First
בני אדם People First בני אדם לפני הכל בני אדם לפני הכול 45
Mizrahi Tefahot Bank — Investor Presentation (June 2025) on 6ix