Bank Leumi Le-Israel B.M. (LUMI) investor relations material

Executive summary

• Achieved record quarterly net income above NIS 2.83B ($0.95B), the highest ever for an Israeli bank, with ROE at 16.3% for Q2 2026 and 14.9% for H1 2026; adjusted net income was NIS 3.13B, reflecting strong operational performance despite a special tax levy.

• Efficiency ratio reached a global best of 24.7% in Q2, reflecting strong operational discipline and technology-driven cost management.

• Credit portfolio grew 9% in H1 2026, already meeting the annual growth target, with corporate lending up 13-14%.

• Announced NIS 1.4B in dividends and buybacks, representing a 5.5% yield and 50% payout of quarterly net income.

• Maintained conservative risk management, with NPL ratio at 0.45% and strong coverage ratios.

Financial highlights

• Net interest income for Q2 was NIS 4.6B, with total revenues up 10.1% year-over-year to NIS 6.6B.

• Non-interest income surged to nearly NIS 2.02B, mainly from securities and equity investments.

• Pre-provision net revenue rose 13.4% year-over-year to NIS 5B.

• Total expenses for Q2 were NIS 1.6B, flat year-over-year; H1 expenses down 3.7%.

• Credit loss expenses remained low at 0.2% of gross loans.

Outlook and guidance

• H1 2026 net income of NIS 5.2B is at the upper end of the annual profitability target of NIS 9-11B, with continued rapid growth expected, especially in infrastructure and corporate lending.

• No immediate update to guidance, but confident in sustaining growth above targets, subject to project timing and macroeconomic assumptions.

• Asset quality expected to remain strong, with conservative provisioning and resilient Israeli economy.