FIBI FIRST INTERNATIONAL BANK OF ISRAEL Overview 30

FIBI FIRST INTERNATIONAL BANK OF ISRAEL Overview 30. 09. 12

FIBI FIRST INTERNATIONAL BANK OF ISRAEL Net Earnings and ROE NIS Millions 10. 1% 449 NIS Millions 291 NIS Millions * Assuming core capital ratio of (8. 3%), (as the average core capital ratio of the Israeli banking industry at 30/06/2012) 2

FIBI FIRST INTERNATIONAL BANK OF ISRAEL Statements of income 1 -9/2012 - 1 -9/2011 NIS Millions Net interest income Expenses (income) with respect to credit loss (0. 17% provision rate) Net interest income after expenses for credit losses Total non-interest income Of which: non-interest income (expenses) Operating commissions (decrease stems mainly from decreases in customers activity in the capital markets) Other Income Total operating and other expenses Of which: salaries and related expenses (including losses appointed time compensation) Holding and depreciation on buildings and equipment Amortization and impairment of intangible assets Other expenses Profit before tax Provision for taxes on income Bank’s share of profit of associates Net earnings ROE Core capital ratio (end of period) 1 -9/2012 1 -9/2011 1, 677 1, 606 Gross change 71 85 59 26 1, 592 1, 174 137 1, 547 995 (129) 45 179 266 1, 015 1, 101 (86) 22 2, 078 23 2, 087 (1) (9) 1, 218 1, 207 11 332 126 402 688 253 30 449 10. 1% 9. 33% 336 118 426 455 196 46 291 6. 9% 8. 18% (4) 8 (24) 233 57 (16) 158 3

FIBI FIRST INTERNATIONAL BANK OF ISRAEL Statements of income 7 -9/2012 - 7 -9/2011 NIS Millions 7 -9/2012 7 -9/2011 Net interest income 570 522 Gross change 48 Expenses (income) for credit losses (0. 20% provision rate) 33 59 (26) Net interest income after expenses for credit losses Total non-interest income Of which: non-interest income (expenses) Operating commissions (decrease stems mainly from decreases in customers activity in the capital markets) Other Income Total operating and other expenses Of which: salaries and related expenses (including losses appointed time compensation) Holding and depreciation on buildings and equipment Amortization and impairment of intangible assets Other expenses Profit before tax Provision for taxes on income Bank’s share of profit of associates Net earnings ROE 537 416 64 463 198 (165) 74 218 229 335 358 (23) 17 682 5 653 12 29 392 360 32 112 42 136 271 106 5 164 11. 0% 115 39 139 8 9 16 10 0. 7% (3) 3 (3) 263 97 (11) 154 4

FIBI FIRST INTERNATIONAL BANK OF ISRAEL Income from Financing Activities (before Tax) 7 -9/2012 - 7 -9/2011 NIS Millions 7 -9/2012 7 -9/2011 Gross change Net interest income 570 522 48 Non-interest income (expenses) 64 (165) 229 Total income from interest and non-interest 634 357 277 Reconciliations to fair value of derivatives 19 (60) 79 Income from sale and reconciliations to fair value of bonds 53 44 9 Earnings investments from shares 18 1 17 Provisions for impairment of securities (1) (96) 95 Financial expenses arising from hedging investments abroad (6) (10) 4 Total income from interest and non-interest-core activities 551 478 73 2. 25% 3. 25% Average interest rate in bank of Israel 5

FIBI FIRST INTERNATIONAL BANK OF ISRAEL Total Income to Total Weighted Risk Assets Ratio 6

FIBI FIRST INTERNATIONAL BANK OF ISRAEL Operating & Other Expenses NIS Millions 1 -6/2011 1 -6/2012 911 24 - 8 7

FIBI FIRST INTERNATIONAL BANK OF ISRAEL Total Operating Expenses / Total Income Improving Operational Efficiency Ratio (Consolidated) Total Operating Expenses to Total Income % Total Operating Expenses Total Income 1 -9/2011 8

FIBI FIRST INTERNATIONAL BANK OF ISRAEL Capital Adequacy Basel II 14. 19% Core Capital Adequacy 9. 33% FIBI Strategic Assets & Liabilities Structure NIS Millions Deposits from the Public 83. 8 NIS Billion 126. 5% 34. 3% 66. 8 NIS Billion 66. 2 NIS Billion Of which: Corporate and Commercial 34. 8 Consumer 15. 4 Mortgage 16. 0 10. 02% Credit against liquid assets Deposits to Credit Ratio Liquid Assets to Deposits Ratio Credit to the Public State of Israel Bonds: 6. 5 NIS Billion Gov. & Bank Deposits 1. 6 NIS Billion Deposits-Bank of Israel: 18. 7 NIS Billion Sovereigns Bonds: 1. 2 NIS Billion 36. 1% Of capital available for Investments Capital Notes 5. 4 NIS Billion Deposits in Banks: 3. 5 NIS Billion Capital available for Investments 4. 4 NIS Billion NIS+foreign Corporate Bonds: 0. 8 NIS Billion Banks Bonds: 1. 7 NIS Billion Structure Products, Hedge Funds & Stocks: 0. 7 NIS Billion Market Risks in VAR Terms: (0. 04) NIS Billion 9

FIBI FIRST INTERNATIONAL BANK OF ISRAEL Assets Equity Total Assets, Deposits & Credit to the public NIS Millions Credit to the Public Deposits 10

FIBI FIRST INTERNATIONAL BANK OF ISRAEL Credit to the Public by segments 30. 9. 2012 NIS Millions Change in % Compared to 30. 09. 11 30. 09. 12 Total Private + Retail (Households) Of which: Mortgage Commercial + Small Business Corporate Total Credit to the Public 31. 12. 11 31, 080 28, 912 28, 855 7. 71% 15, 989 14, 702 14, 622 9. 35% 13, 335 13, 387 13, 517 1. 35%- 21, 784 22, 679 21, 710 0. 34% 66, 199 64, 978 64, 082 3. 30% 11

FIBI FIRST INTERNATIONAL BANK OF ISRAEL Provision for Credit Losses to Credit to the Public Ratio Other 4 Leading Banks FIBI New measurement according to new B. O. I Regulation* *Since 2011 all collection on Doubtful debts is shown as Expenses for credit losses instead of earnings from financing operations 12

FIBI FIRST INTERNATIONAL BANK OF ISRAEL Deposits from the Public by segments Change in % 30. 09. 11 Compared to 30. 09. 12 31. 12. 11 Private Banking 24, 062 23, 571 22, 545 6. 73% Retail (Households) 27, 741 26, 365 25, 687 8. 00% Total Private Deposits 51, 803 49, 936 48, 232 7. 40% Commercial + Small Business 10, 361 11, 138 10, 428 (0. 64%) Corporate 21, 610 20, 313 20, 206 6. 95% 83, 774 81, 387 78, 866 6. 22% Total 30. 09. 11 13

FIBI FIRST INTERNATIONAL BANK OF ISRAEL Composition of Total Proprietary Trading Book NIS Millions Volume 30. 09. 12 Volume 30. 06. 12 Composition 30. 09. 12 Composition 30. 06. 12 7, 393 8, 530 71% 74% 88% 90% 1, 756 1, 709 17% 15% Shares 460 465 4% 4% Other 828 879 8% 7% Of which: Fx Corporate Bonds 144 145 Of which: NIS Corporate Bonds 684 735 10, 437 11, 583 100% NIS Millions Government bonds & Secured by Government bonds State of Israel bonds Commercial Banks bonds Government bonds & Secured by Government bonds 71% Total PIIGS proprietary trading book exposure NIS Millions Total Spain Italy 90 83 Portugal 0 Greece Ireland 0 0 14

FIBI FIRST INTERNATIONAL BANK OF ISRAEL Core Capital Ratio - Basel II 30. 09. 12 % -1. 71 1. 620. 75 - -0. 7 * * 0. 77 - ** 14. 30% 14. 57% 13. 42% * * ** -1. 3 15

FIBI Changes in Net Profit - Subsidiaries NIS Millions FIRST INTERNATIONAL BANK OF ISRAEL 1 -9/2012 Change Relative to 19/2011 ROE Core Capital Ratio 85. 3 36% 12. 3% 8. 96% 37. 5 10% 11. 6% 15. 9% 35 10% 13. 4% 11. 7% 32. 5 24% 11. 2% 13. 76% 16

FIBI FIRST INTERNATIONAL BANK OF ISRAEL Q 3 Highlights 11% ROE at the third quarter and 10. 1% ratio for the 9 month ended on September 30. Continued increase in financing revenues from core banking activity. Continued decrease in capital market operating commissions due to the decline in stock market activity volumes, while maintaining our share in the activity. Continued decrease in operating expenses (including in expenses related to activity in the capital market). Increase in revenues from bonds and shares. a relatively large positive movement in the capital reserve. Improved profitability at subsidiaries. Core capital ratio: 9. 33%, the highest in the banking industry. 17