Israel Discount Bank (DSCT) investor relations material

Executive summary

• Net profit attributable to shareholders for H1 2026 was NIS 2,133 million, nearly flat year-over-year, with a return on equity of 12.4% and an efficiency ratio of 46.0%.

• The bank continued to implement its Discount 2030 strategic plan, focusing on digital transformation, efficiency, and growth in core segments.

• The separation of ICC (credit card subsidiary) is ongoing, with expected capital and liquidity benefits upon completion.

• The macroeconomic environment remains volatile due to geopolitical events, but the bank maintains strong capital and liquidity positions.

Financial highlights

• Net interest income for H1 2026 was NIS 4,852 million, down 4.4% year-over-year, mainly due to a lower interest margin.

• Credit loss expenses rose sharply to NIS 252 million (up 125% year-over-year), reflecting higher collective allowances.

• Non-interest income increased by 4.4% to NIS 1,737 million, driven by higher fees and commissions.

• Operating and other expenses decreased by 5.1% to NIS 3,033 million, with salaries down 6.0%.

• Total assets at June 30, 2026, were NIS 483,460 million, up 1.1% from year-end 2025.

• Net credit to the public grew 5.4% to NIS 304,478 million; deposits from the public rose 0.5% to NIS 361,422 million.

• Dividend of NIS 481 million (40% of Q2 2026 profits) approved.

Outlook and guidance

• Discount 2030 targets: net profit >NIS 5.2 billion, efficiency ratio <43%, ROE 13–14%, dividend payout up to 50%.

• Macro assumptions: GDP growth 3–4%, inflation stabilizing at 2–3%, interest rates 3.5–4.5%.

• Continued focus on digitalization, AI, and efficiency; monitoring geopolitical and economic risks.