Bank Leumi Le-israel B.m. · TASE:LUMI
Bank Leumi Le-israel B.m — FY2025 Earnings Presentation
23 slides from Bank Leumi Le-israel B.m's earnings presentation, Mar 4, 2026
Slide 1: Bank Leumi Financial Results Presentation FY 2025
Bank Leumi Financial Results Presentation FY 2025 1 1
Slide 2: Disclaimer
Disclaimer This document and the information contained herein - 1. Has been prepared by Bank Leumi le-Israel B.M. (the “Bank”) solely for the purpose of presenting the Bank’s business; 2. Does not purport to be all-inclusive or to contain all the information that may be relevant in making any decisi
Slide 3: Results Presentation: Hanan Friedman, President & CEO
Results Hanan Friedman Presentation President & CEO 3
Slide 4: Bank Leumi: Key Financial Highlights - FY 2025
Bank Leumi: Key Financial Highlights - FY 2025 Strong Return on Equity Robust Profitability Strong Return on Equity portfolio Increasing Capital Return (2) Net Profit NIS 10.3 ($ 3.2) Bn +4.7% 15.8% 17.9% NIS 5.9 Bn 58% Reported Normalized(1) ($ 1.9) Payout ratio 6.5% Dividend yield (2) Continued Gr
Slide 5: From Digital Innovation To AI-Driven Financial Excellence
From Digital Innovation To AI-Driven Financial Excellence Scaling a Gen AI Hub to Drive the Banking Revolution Integrating AI into Core Banking: Hyper-Personalization & Smart credit underwriting and Enhancing Value Proposition: management models, automation of Expanding and refining products and cod
Slide 6: 2025 performance: Strong delivery against 2025 targets
2025 performance: Strong delivery against 2025 targets 2025 Financial Targets FY 2025 Actuals CET1 Leverage Ratio Net Profit NIS 9-11 Bn NIS 10.3 Bn ROE 15%-16% 15.8% Credit growth 8%-10% 14% Capital return Minimum 50% 58% Capital return = cash dividend and share buyback 6
Slide 7: 2026-2027 Strategic targets
2026-2027 Strategic targets CET1 Net Profit NIS 10-12 Bn ROE 14.5%-16% * Credit growth 8%-10% ** Capital return 50% - 65% * Capital return = cash dividend and share buyback. All targets are in annual terms. Macroeconomic assumptions: Annual CPI averaging 1.8-2% and an average BOI interest rate of 3.
Slide 8: Results Presentation: Hagit Argov, SVP & CFO
Results Hagit Argov Presentation SVP & CFO 8
Slide 9: Israeli Economy: Strong GDP Rebound Expected in 2026
Israeli Economy: Strong GDP Rebound Expected in 2026 GDP Lower inflation expected in 2026 (Real GDP Growth) (CPI Evolution) 9.3% 5.3% 6.3% 6.4% 5.2% 2.8% 3.0% 3.2% 2.6% 3.3% 3.1% 1.7% 2.1% 1.8% 1.7% 1.7% 1.0% 1.7% 2021 2022 2023 2024 2025 2026E 2021 2022 2023 2024 2025 (2) 2026E Israel OECD Strong l
Slide 10: Strong underlying performance
Strong underlying performance Key financial metrics FY2025 FY 2024 4Q 2025 Net Income 10,262 9,798 2,549 ROE 15.8% 16.9% 15.1% Cost Income Ratio 29.3% 29.9% 31.8% Credit Loss Expenses 0.09% 0.16% 0.11% Y - o-Y Y-o-Y Q-o-Q Net Loan Growth 14.1% 8.6% 5.0% Y - o-Y Y-o-Y Q-o-Q BVPS Growth 12.0% 14.6% 2.
Slide 11: 2025 vs. 2024 – Breakdown of Income and Expenses
2025 vs. 2024 – Breakdown of Income and Expenses Finance Income Operating Operating and and Other Other Expenses Expenses Finance Income Operating and Other expenses 18,329 0.9% 18,489 8,557 6,904 8,145 (3.7%) 8,557 2024 8,145 2025 6,648 8,55 8,145 8,55 CPI 3.4% 8,145 16,509 16,852 CPI 2.4% NIM 2.44
Slide 12: Q4 25 vs. Q4 24 – Breakdown of Income and Expenses
Q4 25 vs. Q4 24 – Breakdown of Income and Expenses Finance Income Operating and Other Expenses Finance Income 9M 2025 vs 9M 2024 Finance Income 9M 2025 vs 9M 2024 Finance Income Operating and Other expenses 4,505 (5.5%) 4,258 (0.8%) Q4 2024 Q4 2025 1,712 CPI (0.1%) CPI (0.6%) 1,698 NIM 2.21% NIM 2.0
Slide 13: Net interest income and NIM
Net interest income and NIM Reported 2.53% NIM 2.21% 2.35% 2.37% 2.01% NIM 2.21% 2.27% 2.22% 2.10% 2.06% ex. CPI 4,378 4,545 4,540 4.54 3,819 4,017 4.47 3.82 4.02 3.82 Q4 2024 Q1 2025 Q2 2025 Q3 2025 Q4 2025 Profitability Credit Quality Growth Solid Capital (NIS billions) 13
Slide 14: Growth in fees
Growth in fees Excluding customers’ support*: 3,823 4,084 +10.7% vs FY 24 3,487 3,737 3,335 and +9.7% vs Q4 24 6.8% 148 4,084 3,823 FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 1,241 2024 2025 1,058 7.8% 782 582 592 654 609 648 498 521 422 994 1,072 300 Q4'24 Q4'25 2024 2025 Financing Account Securities
Slide 15: Multi-year decline in cost-income ratio
Multi-year decline in cost-income ratio 57.9% 53.2% Technology-driven efficiency delivered 45.8% a world-class Cost-to-income 37.2% 1,249 ratio 32.6% 29.9% 29.3% 2019 2020 2021 2022 2023 2024 2025 Leumi cost income ratio for 2019 is net of the effect of Leumi Card and for 2019-2022 excludes BLUSA. P
Slide 16: Loan loss expenses
Loan loss expenses Consistently low specific provisions 0.16% 0.09% 0.05% 0.19% 0.03% 0.11% 713 450 1041 223 707 (0.07%) (0.09%) 385 32 140 55 72 106 144 (328) (257) (17) (162) (4) (74) FY 2024 FY 2025 Q1 2025 Q2 2025 Q3 2025 Q4 2025 Specific Collective Loan Loss expenses ratio Profitability Credit
Slide 17: Credit quality indicators continued to improve
Credit quality indicators continued to improve Total Provisions NPLs Troubled Debts Total Provisions 3.3 3.2 1.78% Provisions / NPLs 3.0 1.45% 1.9 1.24% 6.9 6.9 (NIS bn) 6.7 0.85% 0.50% 0.40% 2023 2024 2025 2023 2024 2025 2023 2024 2025 Profitability Credit Quality Growth Solid Capital Reported. Tot
Slide 18: Credit growth in target segments
Credit growth in target segments Total loans Diversified credit base Other Private 520 Capital Markets 3.7% Individuals 456 5.0% 9.4% 6.1% 419 385 325 QoQ Real Estate Mortgages 282 278 14.2% 30.1% NIS 520 bn Corporate 17.6% Small Commercial Businesses 2019 2020 (1) 2021 (1) 2022 2023 2024 2025 13.3%
Slide 19: Expanding and Diversifying Deposit Base
Expanding and Diversifying Deposit Base Individual deposits Diversified deposit base 230 227.0 225.8 Private individuals 225 Capital markets 33.0% 35.7% 220 215 2024 2025 NIS 687bn Deposits and loan to deposits 800 687 300 568 618 515 557 Corporate and 600 428 200 real estate Small businesses 374 40
Slide 20: Solid capital and leverage ratios
Solid capital and leverage ratios Total Capital Ratio Leverage Ratio CET 1 Ratio Total Capital Ratio Leverage Ratio Minimum Regulatory Target: 10.2% Minimum Regulatory Target: 13.5% Minimum Regulatory Target: 5.5% Internal Target: 10.85% 14.72% 14.83% 14.29% 14.08% 12.17% 12.05% 11.46% 11.66% 6.36%
Slide 21: Returning capital via dividends and buybacks
Returning capital via dividends and buybacks Capital return 33% 40% 58% 40% 50% 75% 65% 6.0% 6.5% 8.2% 5.2% Dividend Dividend 6.2% 5.2% 5.7% yield* yield* 5.9 1.5 3.9 (0.07%) 1.0 (0.09%) 2.0 2.3 1.7 4.49 1.3 0.5 0.6 0.4 2.9 1.0 0.3 1.7 0.2 1.5 1.0 1.3 0.7 2023 2024 2025 Q1 2025 Q2 2025 Q3 2025 Q4 20
Slide 22: Investment Highlights
Investment Highlights Strong capital position Consistently high and stable supporting growth and profitability and profits capital return Continued growth in net Nearly 90% of our customers use Enhancing Gen AI in business Potential for increased foreign loans in target segments digital platforms. a
Slide 23: Thank you / Q&A
Results presentation Thank you / Q&A 23
Bank Leumi le-Israel B.M. — FY2025 Earnings Presentation on 6ix