Bank Leumi Le-israel B.m. · TASE:LUMI

Bank Leumi Le-israel B.m — Q4 2020 Earnings Presentation

18 slides from Bank Leumi Le-israel B.m's earnings presentation, March 2021

  1. Slide 1: Q4 and FY2020 Financial Results

    Q4 AND FY2020 FINANCIAL RESULTS

  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: Israel Leading Global Vaccination Efforts

    Israel Leading Global Vaccination Efforts Share of Population Fully Vaccinated Share of Population Single Vaccination Israel 42% Israel 57% Relatively Low Impact of COVID-19 in Israel • COVID-19 – Gradually exiting 3rd lockdown. Israel is leading global vaccination rates per capita • Below 40,000 (M

  4. Slide 4: COVID-19, Macroeconomic Factors and Indicators

    COVID-19, Macroeconomic Factors and Indicators Relatively Low Impact of COVID-19 in Israel GDP, Rate of Change, Real Terms GDP decline in 2020 was relatively modest 2.4%. BOI estimates 6.3% Better than the US, Germany, UK and Eurozone 3.8% 3.6% 3.5% 3.5% 3.5% Israel (2.4%) Quick Vaccination in 2020

  5. Slide 5: Performance Indicators for the Quarter and Year End

    Performance Indicators for the Quarter and Year End ROE - Q1 2020 through Q4 2020 ROE – Annual Progress 9.8% 8.4% 7.7% 9.0% 9.2% 5.7% Q1 2020 -2.6% Q2 2020 Q3 2020 Q4 2020 *2018 *2019 2020 Loan Loss Expenses – Q1 2020 through Q4 2020 Cost Income Ratio Continues to Improve 1.20% 1.19% 60.5% 58.1% 0.7

  6. Slide 6: Monitoring our Loan Portfolio in Light of COVID-19

    Monitoring our Loan Portfolio in Light of COVID-19 Loan Loss Expenses Troubled Balance-sheet Credit Risk, Net and NPL Ratio 74% of loan loss 0.88% expenses - collective 1,883 0.22% 1.50% 1.15% NPL 0.75% 0.74% 0.78% 0.81% 1.00% 550 669 59 0.50% 0.00% 2019 2020 Specific Collective -0.50% -1.00% Loan L

  7. Slide 7: Our Support of Clients Through Payment Deferrals

    Our Support of Clients Through Payment Deferrals Loans and Payment Deferrals as of December 31, 2020* Outstanding Of which, actual Loans whose Of which, in loans for which payments deferment date arrears of 30 payments were deferred has ended days or more deferred: totaled: Corporations 688 75 1,027

  8. Slide 8: 2019 vs. 2020 – Demonstrating Leverage in Reducing Operating Expenses

    2019 vs. 2020 – Demonstrating Leverage in Reducing Operating Expenses Finance Income Operating and Other Expenses 4.5% 10.9% 10,213 7,908 9,749 7,046 4,325 CPI 0.3% 1.3% CPI (0.6%) 3,742 8,841 8,723 NIM 2.14% NIM 1.90% 3,583 3,304 1,372 1,026 2019* 2020 2019* 2020 Net Interest Income Non-interest Fi

  9. Slide 9: Q4 – Breakdown of Income, Expenses and ROE

    Q4 – Breakdown of Income, Expenses and ROE Finance Income Operating and Other Expenses 8.2% 12.1% 2,546 2,756 2,076 1,825 CPI (0.2%) 1,021 2.5% CPI 0.0% 954 NIM 2.13% NIM 1.88% 2,163 2,217 1,055 871 383 539 Q4 2019 Q4 2020 Q4 Q4 2019 2019 Q4 Q4 2020 2020 Net Interest Income Non-interest Finance Inco

  10. Slide 10: Fees and Commissions Performance

    Fees and Commissions Performance 1.7% 3,281 3,225 727 690 637 642 628 615 599 578 3.1% 361 392 327 824 310 799 Q4 Q4 2019 2020 Securities Account Financing Exchange Credit Cards Other Fees 2019 2020 Transactions Management Transactions Differentials 2019 2020 (NIS Millions) 10

  11. Slide 11: Focus on Reducing Costs Continues, Reflected in Cost-income Ratio

    Focus on Reducing Costs Continues, Reflected in Cost-income Ratio Disciplined Cost Structure Cost-income Ratio 10.9% 7,908 7,046 61.7% 58.1% 53.8% 4,325 50.7% 3,742 12.1% Total Salary & Related Expenses 2,076 1,825 Maintenance, 1,021 Depreciation & 954 Other Expenses 1,055 871 3,583 3,304 Q4 2019 Q4

  12. Slide 12: Long-term Continuous Streamlining of the Business

    Long-term Continuous Streamlining of the Business Number of Employee Positions Continues to Fall Cost-income Ratio Continues to Improve 24.2% 11,636 11,227 66.1% 1,170 62.9% 60.5% 9,740 58.1% 9,239 8,816 53.8% 2016 2017 *2018 2019 2020 2016 2017 **2018 **2019 2020 *Including 1,170 employees of Leumi

  13. Slide 13: Loan Growth Continues in Line with Strategy

    Loan Growth Continues in Line with Strategy Total Middle-Market 5.2%* 9.8% 4.6% 295.3 44.6 40.7 282.5 2019 2020 2019 2020 Mortgages Corporate 6.9% 10.7% 91.3 70.9 85.4 64.1 2019 2020 2019 2020 Net Loans to the Public, NIS Billions Corporate includes Corporate and Real-Estate Management approach segm

  14. Slide 14: Solid and Diverse Deposit Base. Conservative, Well-funded Portfolio

    Solid and Diverse Deposit Base. Conservative, Well-funded Portfolio 447 450.0 Deposits from the Public December 31, 2020 400.0 365 374 363 Retail 347 5% 350.0 100% Small Businesses 20% 300.0 76% 41% Commerical 66% Corporate & Real Estate 250.0 8% Capital Markets 200.0 15% 11% Subsidiaries 150.0 100.

  15. Slide 15: Strong Balance Sheet, Supported by Ample Capital Buffers

    Strong Balance Sheet, Supported by Ample Capital Buffers CET1 Total Capital Ratio Minimum internal threshold: 9.50% 11.43% 11.88% 11.87% 15.67% 15.58% 14.99% 9.58% 13.74% 10.25% 10.27% 13.75% 13.77% 9.10% 9.23% 12.73% 12.60% 2015 2017 2019 *2020 2015 2017 2019 *2020 CET1 Ratio Minimum Regulatory Req

  16. Slide 16: Wrapping Up

    Wrapping Up • ROE reached 9.8% in Q4 2020 Key Indicators • Continuous improvement in Cost-income ratio • Consistent quarterly reduction in Loan Loss Expense ratio in 2020, down to 0.37% in Q4 2020 • Substantial capital surplus, 11.9% CET1 Ratio Loans and • Continuous loan growth focus on Mortgages,

  17. Slide 17: Q&A

    Q&A

  18. Slide 18: Thank You

    THANK YOU

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