Bank Hapoalim Bm · TASE:POLI
Bank Hapoalim Bm — Q2 2026 Earnings Presentation
25 slides from Bank Hapoalim Bm's earnings presentation, Aug 11, 2026
Slide 1: 2Q26 Bank Hapoalim Quarterly Financial Review
2Q26 Bank Hapoalim Quarterly Financial Review
Slide 2: Disclaimer
2 Disclaimer This presentation includes condensed information and selected data from Bank Hapoalim’s The initial assumption is that pre-tax profit from the sale will be in the range of NIS 2Q26 financial results. This presentation is not a substitute for the Bank’s 2Q26 Financial 800–900 million, to
Slide 3: A robust second quarter with high profitability, continued business momentum and balance-sheet strength
3 A robust second quarter with high profitability, continued business momentum and balance-sheet strength Net profit ROE Excluding the Another quarter of strong 2Q26 1H26 2Q26 1H26 special tax payment profitability, impacted by the special tax on banks NIS 2.5 Bn NIS 4.6 Bn 15.0% 14.0% 1H ROE is ove
Slide 4: Strong profitability in the second quarter despite the special tax on banks
4 Strong profitability in the second quarter despite the special tax on banks Net profit | ROE & EPS | Quarterly, NIS million Net profit | ROE & EPS | Annual, NIS million 15.9% 16.7% 15.0% 15.0% * 13.8% 13.0% * 15.3% Adj.** 2,542 2,488 9,802 2,124 380 7,635 9,422 Adj.** 7,360 Including ~NIS 400 m ne
Slide 5: Significant growth momentum continues
5 Significant growth momentum continues Credit portfolio*, NIS billion Well-diversified credit portfolio 503 519 536 8.1% 7.3% 469 479 Consumer Small business 5.1% International 28.7% & financial Total credit Housing loans 536 management NIS billion 36.5% 14.3% Corporate Commercial 2Q25 3Q25 4Q25 1Q
Slide 6: Diversified credit growth across all segments
6 Diversified credit growth across all segments NIS billion Total credit Corporate Commercial 186.6 195.6 519.3 536.2 177.8 469.1 479.3 502.9 157.8 157.1 69.9 73.0 76.5 66.3 69.0 2Q25 3Q25 4Q25 1Q26 2Q26 2Q25 3Q25 4Q25 1Q26 2Q26 2Q25 3Q25 4Q25 1Q26 2Q26 Consumer Housing loans Small businesses 144.7
Slide 7: Strong and growing financing income impacted by the high CPI
7 Strong and growing financing income impacted by the high CPI, strong activity growth and higher income from shares, mitigated by lower interest rate Financing income, NIS million Income from regular financing activity excl. CPI, NIS million 4.50% 4.50% 4.40% 4.02% 4,678 3.91% 4,526 4,558 4,598 4,5
Slide 8: Growth in fee income over time
8 Growth in fee income over time Fees, NIS million Total fees * Fees in the second 1,146* 1,145 1,115 quarter of 2025 were 97 109 2.7% Other fees positively affected by 107 QoQ 101 114 special income received 105 Conversion differences from international credit- 211 204 209 card organizations. -0.1%
Slide 9: Despite substantial growth in activity, disciplined cost control supports strong efficiency
9 Despite substantial growth in activity, disciplined cost control supports strong efficiency Total expenses, NIS million 2,113 2,018 2,019 0.0% Total expenses 588 QoQ 551 563 Other expenses 360 348 376 Maintenance -4.4% and depreciation YoY 1,165 1,119 Salary and related 1,080 expenses 2Q25 1Q26 2Q
Slide 10: Credit losses in the quarter reflect the continuous growth and persisting uncertainty
10 Credit losses in the quarter reflect the continuous growth and persisting uncertainty Provision for credit losses, NIS million 0.22% 0.44% 0.64% -0.37% -0.01% 0.46% 0.16% 0.27% 0.03% 0.22% Credit The provision in the loss ratio second quarter 613 1,276 1,943 -1,220 -34 1,879 693 1,299 35 298 Tota
Slide 11: Strong credit quality metrics as reflected in the low NPL ratio
11 Strong credit quality metrics as reflected in the low NPL ratio, highest-in-the-sector allowance ratio, and NPL coverage ratio of almost 300% NPL ratio Allowance balances and ratio, NIS billion 1.11% 0.97% 0.87% 8.8 9.0 Balance of allowance for 8.0 7.9 credit losses 0.59% 8.7 0.48% 0.50% 6.5 6.5
Slide 12: Largest-in-sector retail deposit base provides a competitive advantage
12 Largest-in-sector retail deposit base provides a competitive advantage Deposit mix Deposits from the public*, NIS billion 7.7% 12.0% Commercial Small businesses 11.9% Financial management Total deposits 52% 603 618 618 577 NIS Retail 23.7% billion Total Corporate 39.6% Retail 5.1% Consumer Intern
Slide 13: Sound capital position, with organic generation capabilities
13 Sound capital position, with organic generation capabilities allowing for activity growth and high profit distribution CET-1 capital ratio Strong growth in shareholders’ equity, NIS billion 1.74% 0.09% -0.91% -1.13% 62.1 65.5 67.1 12.02% 0.02% 11.83% vs. 11.0% CET-1 min. internal target 2Q25 1Q26
Slide 14: High profit distribution via cash dividend and share buyback
14 High profit distribution via cash dividend and share buyback Profit distribution, NIS million Buyback plan, fourth tranche In the amount of NIS 249 million 50% 50% 60% 50% 50% To be executed by November 2026 or earlier Distribution ratio First three tranches of NIS 736 million successfully execut
Slide 15: bit – a unique driver of innovation in the Israeli market
15 bit – a unique driver of innovation in the Israeli market 3.5 million active users activ New services introduced Transaction fee Savings and deposits 0.8% on incoming payments Opening of dedicated “pockets” above NIS 25k per year. for savings, by various deposits ~76% Payment account Pre-order FX
Slide 16: Future relocation to Poalim Center: potential to increase productivity and record capital gains
16 Future relocation to Poalim Center: potential to increase productivity and record capital gains Headquarters currently scattered across eight buildings owned Poalim Center by the bank in Tel Aviv; expected pre-tax gains of NIS 800–900 million from property A 40-story office tower sales from 2027
Slide 17: Financial targets for 2026–2027
17 Financial targets for 2026–2027 Financial targets 2026 2027 Net profit, NIS Bn 8.5-9.5 9.5-10.5 ROE 13%-14% 14%-15% Credit portfolio growth 8%-9% Profit distribution 50%-60% The relocation of the bank to its new headquarters (Poalim Center) will allow the sale of several properties. The initial a
Slide 18: Baseline assumptions for 2026-2027 financial targets
18 Baseline assumptions for 2026-2027 financial targets (as of March 5, 2026) Following completion of the special bank tax legislation on March 30, 2026 2026 2027 GDP growth 4.3% 3.6% BOI interest rate, end of period* 3.25% 3.00% Inflation* 1.5% 2.0% Special tax on banks NIS 950 m NIS 40 m * Market
Slide 19: Second quarter activity rebounded, driven by a low first-quarter base and improved productivity
19 Second quarter activity rebounded, driven by a low first-quarter base and improved productivity Credit card spending - consumers are shopping again Improved productivity in manufacturing Credit-card spending, December 2022=100 Manufacturing production and actual work hours Source: CBS Source: CBS
Slide 20: Markets imply two rate cuts; long-term yield steepening was less notable in Israel
20 Markets imply two rate cuts; long-term yield steepening was less notable in Israel Markets imply one rate cut this year and one next year Worldwide increase in yields skipped Israel Implied interest rates 10-year government bond yields (local currency) Source: Bloomberg Source: Terminal, Bloomber
Slide 21: 2Q26 key takeaways
21 2Q26 key takeaways Strong second quarter ROE 15.0% Significant credit growth with robust profitability this quarter exceeded the momentum: 14.3% in the and continued business Bank's annual financial targets last year, 3.3.% in 2Q; momentum growth was achieved while NPL ratio is 0.50% Financing in
Slide 22: Appendix
@ bank hapoalim Appendix
Slide 23: Key balance sheet items
23 Key balance sheet items NIS million 2Q25 1Q26 2Q26 Cash and deposits with banks 80,569 81,501 60,917 Securities 150,255 145,315 155,090 Net credit to the public 469,052 519,267 536,175 Deposits from the public 576,888 602,807 618,116 Deposits from banks 15,388 10,455 11,094 Bonds and subordinated
Slide 24: Key profit and loss items
24 Key profit and loss items NIS million 2Q25 1Q26 2Q26 Total net financing profit 5,293 4,391 5,434 Fees and other income 1,152 1,119 1,169 Total income 6,445 5,510 6,603 Salaries and related expenses (1,165) (1,119) (1,080) Maintenance and depreciation of buildings and equipment (360) (348) (376)
Slide 25: Israel’s leading financial institution
Israel’s leading financial institution