Bank Leumi Le-israel B.m. · TASE:LUMI

Bank Leumi Le-israel B.m — Q2 2022 Earnings Presentation

14 slides from Bank Leumi Le-israel B.m's earnings presentation, August 2022

  1. Slide 1: June 30, 2022 Financial Results Presentation

    JUNE 30, 2022 FINANCIAL 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: Macroeconomic Factors and Indicators

    Macroeconomic Factors and Indicators IMF - GDP Forecasts for 2022 - 2023 BOI - GDP, Rate of Change, Real Terms 8.2% Resilient Recovery from COVID-19 in Israel 8.2 5.0% 3.8% 3.5% 7.4 6.8 5.7 4.8 4.9 5.0 4.5 3.8 4.1 3.4 3.2 3.5 2.9 (2.2%) 2.2 2.3 2.3 2.1 2.5 2.3 1.8 1.2 1.71.71.7 2019 2020 2021 F2022*

  4. Slide 4: Core Business Continues to Improve - Key Financial Metrics

    Core Business Continues to Improve - Key Financial Metrics H1 2022 Q2 2022 Annual 2021 Net Income (NIS millions) 3,601 1,992 6,028 ROE 17.1% 18.5% 15.0% Credit Growth 12.3% 4.3% 16.1% Cost / Income Ratio 40.3% 35.0% 46.8% Credit Loss (Income) 0.05% 0.14% (0.25%) Expense Ratio PPNR / Average Assets*

  5. Slide 5: Improving Returns via Delivery of Enhanced Operating Leverage

    Improving Returns via Delivery of Enhanced Operating Leverage Cost Income Ratio Loan Loss Expenses (Income) ROE 58.1% 17.1% 53.8% 0.88% 15.0% 45.8% 9.2% 0.04% 5.7% 0.22% 39.7% (0.24%) (1) (1) 2019 2020 2021* H12022* 2019 2020 2021 H1 2022* 2019 2020 2021 H1 2022 (1) ROE and Cost Income Ratio are net

  6. Slide 6: Income and Expenses – H1 and Q2

    Income and Expenses – H1 and Q2 Finance Income Finance Income 12.3% 6,506 19.1% 3,813 5,791 3,201 5,824 3,125 4,734 2,577 23.0% CPI 1.4% CPI 3.1% 21.3% CPI 1.3% CPI 1.9% NIM 2.02% NIM 2.05% NIM 2.13% NIM 2.15% 1,057 682 624 688 H1 2021 H1 2022 Q2 2021 Q2 2022 Net Interest Income Non-interest Finance

  7. Slide 7: Robust and Conservative Credit Portfolio

    Robust and Conservative Credit Portfolio NPL Ratio Total Provision to NPL* 189% 174% 1.15% 155% 152% 0.75% 0.75% 0.70% 2019 2020 2021 H1 2022 2019 2020 2021 H1 2022 *Loan loss Provision divided by Non Performing Loans 7

  8. Slide 8: Monitoring our Loan Portfolio in Light of COVID-19

    Monitoring our Loan Portfolio in Light of COVID-19 Loan Loss Provisions (as % of Loans to the Public)(1) Loan Loss Expenses (as % of Loans to the Public)(1) (2) (NIS, Mn) (NIS, Mn) 0.04% 1.76% 1.36% -0.26% 5,290 1.30% 370 4,887 1.16% 4,512 3,328 (119) (267) (299) Q4 2019 Q4 2020 Q4 2021 H1 2022 H1 2

  9. Slide 9: Fees and Commissions Performance Year-over-Year

    Fees and Commissions Performance Year-over-Year Fees & Commission Evolution: (NIS, Mn) (NIS, Mn) 4.7% 3,506 1,721 1,802 3,225 3,281 2.2% 853 872 Q2 Q2 H1 H1 2019 2020 2021 2021 2022 2021 2022 Fees & Commission Evolution by Type: (NIS, Mn) 411 382 360 330 315 325 297 305 242 190 178 188 Financing Tra

  10. Slide 10: Consistent Improvement in Operating Efficiency

    Consistent Improvement in Operating Efficiency Efficiency Ratio* Efficiency Ratio (excluding BLUSA merger effect)* 39.7% 43.8% 35.0% 41.8% H1 2022 Q2 2022 H1 2022 Q2 2022 (NIS Millions) * H1 2022 Excluding BLUSA 10

  11. Slide 11: Loan Growth Continues in Line with Strategy

    Loan Growth Continues in Line with Strategy Total Middle-Market 12.3% 15.8% 364.9 59.5 325.0 51.4 *31.12.2021 30.6.2022 31.12.2021 30.6.2022 Mortgages Corporate 21.9% 9.3% 103.7 114.2 104.5 85.1 31.12.2021 30.6.2022 31.12.2021 30.6.2022 (NIS Billions) Corporate includes Corporate and Real-Estate *Ex

  12. Slide 12: Solid and Diverse Deposit Base. Conservative, Well-funded Portfolio

    Solid and Diverse Deposit Base. Conservative, Well-funded Portfolio 600.0 533 515 500.0 464 Loans to Deposits by the Public June 30, 2022 Deposits Ratio 68% 400.0 Private Individuals 27% Small Businesses 300.0 37% Commerical 200.0 8% Corporate & Real Estate 18% 10% 100.0 Capital Markets 0.0 30.6.202

  13. Slide 13: Solid Capital and Leverage Ratios

    Solid Capital and Leverage Ratios CET1 Total Capital Ratio Minimum internal Minimum regulatory threshold: 10.50% requirement: 13.50% 11.88% 15.67% 15.58% 11.87% 11.50% 11.25% 14.21% 14.00% 13.50% 12.50% 10.27% 9.23% 9.19% 10.20% 12.50% 13.50% 2019 2020 2021 30.6.2022 2019 2020 2021 30.6.2022 CET1 Ra

  14. Slide 14: Q&A

    Q&A

Bank Leumi le-Israel B.M. — Q2 2022 Earnings Presentation on 6ix