Bank Leumi Le-Israel B.M. · TASE:LUMI

Bank Leumi Le-Israel B.M — Q3 2020 Earnings Presentation

15 slides from Bank Leumi Le-Israel B.M's earnings presentation, 2020

  1. Slide 1: Q3 and 9M 2020 Results Presentation

    Q3 and 9M 2020 RESULTS PRESENTATION

  2. Slide 2: Disclaimer

    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 aforementioned reports. DISCLAIMER This document and the informati

  3. Slide 3: COVID-19, Macroeconomic Factors and Indicators

    COVID-19, Macroeconomic Factors and Indicators COVID-19 in Israel, the Economy, GOVT. and BOI and Steps Announced • COVID-19 – Lockdown implemented resulted in control on 2nd wave. Gradual return to business from mid-October. • Currently at approximately 8,000 active cases, down from peak of over 72

  4. Slide 4: A Long-term View of our Loan Portfolio, Alongside Our Support of Clients Through Payment Deferrals

    A Long-term View of our Loan Portfolio, Alongside Our Support of Clients Through Payment Deferrals Troubled Balance-sheet Credit Risk, Net and NPL Loans and Payment Deferrals as of September 30, 2020(1) Outstanding Of which, Loans whose Of which, in loans for which actual deferment arrears of 1.80%

  5. Slide 5: Monitoring our Loan Portfolio in Light of COVID-19

    Monitoring our Loan Portfolio in Light of COVID-19 Loan Loss Expenses – Q3 2019 through Q3 2020 Loan Loss Provisions (NIS millions, as % of Loans to the Public)* 1.20% 1.19% 1.75% 1.60% 756 0.76% 1.33% 5,087 700 4,633 1.16% 552 3,969 3,328 0.26% 0.22% Collective 175 68 113 116 104 Specific 42 -5 Q3

  6. Slide 6: 9M 2019 vs. 9M 2020 – Breakdown of Income and Expenses

    9M 2019 vs. 9M 2020 – Breakdown of Income and Expenses Finance Income Operating and Other Expenses 7,667 8.8% 10.5% 6,993 5,832 5,221 2.6% 3,304 6,678 6,506 2,788 CPI 9M CPI 9M 2,528 2,433 2019 2020 0.5% 487 (0.6%) 989 9M 2019* 9M 2020 9M 2019 9M 2020 Net Interest Income Non-interest Finance Income*

  7. Slide 7: Q3 2019 vs. Q3 2020 – Breakdown of Income and Expenses

    Q3 2019 vs. Q3 2020 – Breakdown of Income and Expenses Finance Income Operating and Other Expenses 11.5% 2,673 9.7% 2,397 1,936 1,749 1,043 5.9% 942 2,092 2,216 CPI Q3 CPI Q3 893 2019 2020 807 (0.7%) 0.1% 305 457 Q3 2019 Q32020 Q3 2019 Q32020 Net Interest Income Non-interest Finance Income Q3 2019 M

  8. Slide 8: 9M 2019 vs. 9M 2020 - Fees and Commissions Performance

    9M 2019 vs. 9M 2020 - Fees and Commissions Performance 1.3% 2,426 2,457 540 548 522 519 488 1.5% 481 375 356 800 788 273 306 245 230 Q3 Q3 9M 9M Securities Financing Account Exchange Credit Cards Other Fees 2019 2020 2019 2020 Transactions Transactions Management Differentials 9M 2019 9M 2020 (NIS M

  9. Slide 9: Q/Q and 9M/9M - Focus on Reducing Costs Continues

    Q/Q and 9M/9M - Focus on Reducing Costs Continues Disciplined Cost Structure Cost-income Ratio 10.5% 5,832 5,221 60.0% 56.9% 55.0% 50.4% 9.7% 3,304 2,788 Total Salary & Related Expenses 1,936 1,749 Maintenance, 1,043 942 Depreciation & Other Expenses 893 807 2,528 2,433 Q3 2019 Q3 2020 9M 2019 9M 20

  10. Slide 10: Loan Growth Continues in Line with Strategy

    Loan Growth Continues in Line with Strategy Total Middle-Market 2.1% 5.2% 2.9% 286.4 42.5 280.4 280.7 40.4 272.9 Q3 2019 Q3 2020 Q3 2019* Q3 2020* Q3 2019 Q3 2020 Mortgages Corporate 5.8% 6.4% 89.3 84.4 68.4 64.3 Q3 2019 Q3 2020 Q3 2019 Q3 2020 (NIS Billions) * Total without Capital Markets Corporat

  11. Slide 11: Solid and Diverse Deposit Base. Conservative, Well-funded Portfolio

    Solid and Diverse Deposit Base. Conservative, Well-funded Portfolio 419 427 417 Deposits from the Public September 30, 2020 400.0 365 374 363 347 350.0 Retail 6% 100% Small Businesses 300.0 18% 76% 42% Commerical 250.0 67% 8% Corporate & Real Estate Capital Markets 200.0 15% 11% Subsidiaries 150.0 1

  12. Slide 12: Regulatory Easements and Requirements

    Regulatory Easements and Requirements Capital Requirement • CET1 – reduced by 1% to 9.24% • TCR – reduced by 1% to 12.74% • Revised guidance extended till March 31, 2021 Leverage Ratio • Announced reduction from 6.0% to 5.5% in November 2020 Dividends • Distribution plan implementation put on hold B

  13. Slide 13: Solid Capital, Leverage and Liquidity Ratios

    Solid Capital, Leverage and Liquidity Ratios CET1 Total Capital Ratio Minimum internal threshold: 9.50% 11.43% 11.88% 11.71% 15.67% 15.81% 9.58% 14.99% 13.74% 10.25% 10.27% 9.10% 9.24% 13.75% 13.77% 12.60% 12.74% 2015 2017 2019 Q3 2020* 2015 2017 2019 Q3 2020* CET1 Ratio Minimum Regulatory Requireme

  14. Slide 14: Q&A

    Q&A

  15. Slide 15: Thank You

    THANK YOU

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