Harel Insurance Investments & Financial Services (HARL) investor relations material

Executive summary

• Q2 2026 comprehensive income attributable to shareholders rose 30% YoY to NIS 1.024B; H1 reached NIS 1.586B, up 19%. H1 comprehensive income was also reported at NIS 1.589B on a different basis.

• H1 new-business CSM rose 23% to NIS 992M, exceeding the NIS 830M released to profit; net CSM reached NIS 17.7B at June 30, 2026.

• H1 premiums, benefit contributions and investment-contract receipts grew 18% to NIS 25.5B; AUM reached NIS 638.3B, up from NIS 543.4B a year earlier.

• Growth reflected stronger investment income and gains in asset management, credit and equity, supported by higher AUM and credit balances.

Financial highlights

• Core profit after tax was NIS 637M in Q2, up 17% YoY, and NIS 1.2B in H1, up 6%; H1 basic EPS was NIS 7.88 versus NIS 6.47.

• H1 investment and financing income, net, was NIS 1.892B versus NIS 1.292B; profit before tax was NIS 2.471B versus NIS 1.994B.

• H1 adjusted investment and finance income, net, was NIS 331M versus NIS 328M; Q2 was NIS 176M versus NIS 164M.

• Shareholders’ equity was NIS 12.6B at June 30, 2026, versus NIS 11.1B a year earlier.

Outlook and guidance

• 2028 targets: after-tax core profit of NIS 3.1–3.3B, adjusted ROE of 22%–23%, premiums and deposits of NIS 56–58B, and AUM of NIS 750–780B.

• Strategy prioritizes profitable growth in insurance, asset management and credit, operational excellence, customer relationships, AI and data, productivity, underwriting accuracy, service quality and capital efficiency.

• Strategic-plan assumptions include a 34.746% tax rate; outcomes may vary with market returns, growth, inflation, regulation and other factors.