Israel Discount Bank (DSCT) investor relations material

Executive summary

• Net profit attributed to shareholders for Q1 2026 was NIS 930 million, down 10.2% year-over-year, with return on equity at 10.9% versus 13.0% last year.

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

• The sale of ICC is pending regulatory approval, expected to free up capital and improve liquidity, though timing and final consideration remain uncertain.

Financial highlights

• Net interest income decreased by 4.5% year-over-year to NIS 2,309 million, mainly due to a lower interest margin in the non-linked segment.

• Credit loss expenses rose sharply to NIS 182 million, up 250% year-over-year, reflecting higher balances and macroeconomic adjustments.

• Non-interest income fell 2.2% to NIS 814 million, with fees and commissions up 13.7% to NIS 589 million.

• Operating and other expenses decreased by 4.8% to NIS 1,509 million, with salaries down 7.8%.

• Comprehensive income for Q1 2026 was NIS 770 million, down from NIS 1,269 million in Q1 2025.

• Total assets stood at NIS 477,114 million, with net credit to the public at NIS 295,195 million, both up from year-end 2025.

• Deposits from the public decreased slightly by 0.7% to NIS 356,851 million.

Outlook and guidance

• The Discount 2030 plan targets net profit over NIS 5.2 billion, efficiency ratio below 43%, and ROE of at least 13-14%.

• Dividend policy is to distribute up to 50% of net profit, subject to board approval and regulatory compliance.

• Macroeconomic assumptions include GDP growth stabilizing at 3-4%, inflation at 2-3%, and interest rates in the 3.5-4.5% range.

• The group expects continued uncertainty due to geopolitical risks and macroeconomic volatility.