FIBI FIRST INTERNATIONAL BANK OF ISRAEL Overview 31/12/15

FIBI FIRST INTERNATIONAL BANK OF ISRAEL Main events in the last year - Efficiency processes 2 UBANK merging The merger of UBANK ended successfully on 30/9/15, while maintaining the brand name – a leading brand in private banking PAGI merging The merger of PAGI ended successfully on 31/12/15, while maintaining the brand name – a leading brand in ultra-orthodox sector Dealing with regulatory barriers related to the activities of small banks Improving the group synergy on the revenue side Reducing employees in the headquarters Reducing group’s real estate space (about 1,400 SF)

FIBI FIRST INTERNATIONAL BANK OF ISRAEL 7% Decrease in Expenses Main events in the last year –Efficiency processes  7% decrease in operating and other expenses,despite merger related expenses ( excluding the effects of Leumi salaries agreement and the expenses related to the merger of UBANK – a decrease of 4.5%).  202 million NIS decrease in bank expenses:  151 million NIS decrease in salaries, effected by a salary decrease in Leumi salaries agreement (72 million NIS) that was partly offset with one- time expense of 25 million NIS for the UBANK merger.  5.2% decrease in number of employees during 2015  Decrease in other expenses as well: maintenance and depreciation and other expenses as a result of real estate reduction processes in the group. Regional HQ Integration Branch Deployment Efficiency n Continued efficiency processes in branch deployment:  Closure\merger of branches and savings in branch area –reduction of 7 branches in the group (4 last year)  Cancellation of Cashier's positions in some of the group branches and improve efficiency processes in branches Labor Dispute Termination n An agreement was signed with the bank employees union in which the employees commit to three years of “peace”  Regional HQ (3 regions) integration to the retail division HQ in the beginning of

FIBI FIRST INTERNATIONAL BANK OF ISRAEL Credit Growth Main events in the last year – Growth Growth in main activities of FIBI’s Group:  8% increase in credit to retail customers (excluding mortgages)  Continued growth in mortgages – 10% increase  3% increase in commercial (Middle Market) credit  In the 4 th quarter, continued growth in all customer segments. 10% growth in corporate credit. Continued Growth in Clients’ Assets OTSAR HA- HAYAL wins the ministry of defense tender n Winning the tender for banking and loan services to the Israeli security forces. winning in this long term tender enables:  Continued growth for OTSAR HA-HAYAL  Establishing leadership in this growing customer segment  Realization of efficiency measures and improvement in credit profitability in comparison with the pervious tender (interest adjustment).  30 Billion NIS growth (9%) in client’s assets portfolio to a total of 359 Billion NIS (average balance). 4

FIBI FIRST INTERNATIONAL BANK OF ISRAEL Equity Capital (tier 1) Ratio Main events in the last year – Financial stability  Increase in equity capital ratio (tier 1) 9.81% vs. a ratio of 9.69% in The highest equity capital tier 1 ratio in the Israeli financial system (5 big groups).  4% increase in equity this year. The bank distributed 130 Million NIS on 2015 (2.6% dividend yield). Liquidity Coverage Ratio Maintaining credit portfolio quality and diversification n Expenses for credit losses of 0.02% in 2015 vs. 0.13% in n Provision for credit losses to impaired credit (including mortgages) rate of 107.9%, 93.5% (excluding mortgages). n 22% decrease in credit risk due to problematic debt.  Average liquidity coverage ratio in Q4/15 was 104% vs. 99% in previous quarter. 5

FIBI FIRST INTERNATIONAL BANK OF ISRAEL 6 Net Profit and ROE (Millions NIS) * Goodwill amortization amounts to 44 Million NIS and decreases ROE by 0.65%. Average capital Common Equity capital (tier 1) to risk weighted assets ratio 6,9896, %+ ROE 7, % 9.81% 6,668 6, %+ 2.8%+ ** Non-recurring events effecting on ROE in Q3/15 After taxes effect on ROE (1.8%-) 23ZEEVI lawsuit provision 9One time expenses due to merging of UBANK

FIBI FIRST INTERNATIONAL BANK OF ISRAEL 7 Statements of Income 2015 –2014 ((Millions NIS Change in % Gross change (10%)(229) 2,331 2,102 Interest Income and Non-Interest Financing Income (including the effect of “ZE’EVI” lawsuit - 37 million NIS) (80%)(71) 8918 Expenses from Credit Losses (0.02% in 2015) (7%)(158) 2,242 2,084 Interest Income and Non-Interest Financing Income after Expenses from Credit Losses -31,3751,378 Commissions (78%)(48) Other income (last year includes the sale of FIBI LONDON and real estate) (6%)(203) 3,6793,476 Total Income after Expenses from Credit Losses (7%)(202)2,9122,710 Total Operating and Other Expenses (8%)(151)1,7801,629 Salaries and Related Expenses (4%)(16) Maintenance and Depreciation of Property and Equipment (5%)(8)(8) Amortization and Impairment of Intangible Assets (5%)(27) Other Expenses (2%)(9)(9) Net Profit 6.8%6.5% ROE (0.47%) 0.60% 0.13% Bank of Israel Average Interest Rate 9.69% 9.81% Equity Capital (tier 1) to risk components ratio (end of period) 77.3%77.6% Efficiency Ratio (Total Operating Expenses to Total Income)

FIBI FIRST INTERNATIONAL BANK OF ISRAEL 8 השפעות חיוביות Net ChangeGross Change (1,749)(1,676) Decrease in Salaries and Related expenses ( excluding compensation provision for the merger of U-Bank and Leumi agreement) 64103(31)72 Decrease in Salaries due to Leumi Agreement 4071(89)(18) Decrease in Expenses from Credit Losses Increase in the Reconciliations in Fair Value of Derivative Instruments 3755(1,132)(1,077) Decrease in Operating and Other Expenses (excluding Salaries) Increase in Capital Markets Commissions Main Positive Influences Main Changes in Net Profit ( (Millions NIS

FIBI FIRST INTERNATIONAL BANK OF ISRAEL 9 השפעות שליליות Net ChangeGross Change (63)(101)2,0781,977 Decrease in Net Interest Income (71)(114) Decrease in Profit Realized from Bonds and Equity Portfolios (23)(37)- Outcome due to “ZE’EAVI” Lawsuit (26)(31)31-Capital Gain from the Sale of FIBI London (19)(30)- Expenses related to the merger of U-Bank (10)(17)3114 Decrease in profit from selling buildings and others Main Negative Influences Total Decrease of 9 million NIS in Net Profit Main Changes in Net Profit ( (Millions NIS

FIBI FIRST INTERNATIONAL BANK OF ISRAEL 10 Operating & Other Expenses (Millions NIS) * * Includes amortization of goodwill in 2015 in respect of subsidiaries in the amount of NIS 44 million (0.65% ROE), of which 34 NIS millions expected to be completed until 8/16 (effect of 0.5% on ROE) % % Excluding the effect of LEUMI Agreement and on time expenses due to merging UBANK – reduced by 73 million NIS 8-

FIBI FIRST INTERNATIONAL BANK OF ISRAEL Capital Notes 5.9 Capital Available for Investment 5.4 Public Deposits Gov. & Bank deposits 2.1 Credit to the Public 72.6 State of Israel Bonds 8.4 Bank of Israel Deposits 27.1 Corporate and banks Bonds (foreign & Israel currency) 3.6 Structures, Hedge Funds &Stocks 0.3 Market Risk in VAR(0.01) (*) For iIllustration only – not to scale 11 FIBI Strategic Assets & Liabilities composite (*) (NIS Billions) FIBI Strategic Assets & Liabilities Structure (NIS Billions) Capital to Risk Assets Total Ratio equity capital (tier 1) to risk components ratio Deposits to Credit Ratio Liquid Assets to Deposits Ratio 13.26%14.24% 9.81% 9.69% 142.3%138.0% 42.0%40.2% Capital Available for Investments to Investment Capital Ratio 34.1%31.5% Liquidity Ratio (LCR) 104% Bonds of foreign countries 3.9

FIBI FIRST INTERNATIONAL BANK OF ISRAEL 13.42% * 14.30% 14.57% 13.42% * * * Equity Capital (tier 1) Ratio- Capital Adequacy % 9.8% 9.15% 10.50% 9.26% Equity capital (tier 1) ratio target at 31/12/17 FIBI and MIZRAHI TEFAHOT data are updated to 31/12/15. The others bank data are updated to 30/9/15 The highest equity capital (tier 1) ratio in the banking system

FIBI FIRST INTERNATIONAL BANK OF ISRAEL 13 Credit to the public Deposits from the public Capital attributed to the shareholders of the Bank Balance sheet The Development in Balance Sheet, Equity, Credit and Deposits - consolidated, end of ( period (Billions NIS Leverage ratio at 31/12/15 is 5.43% 7%+6%5%4% 9%+ 5%+ 4%+

FIBI FIRST INTERNATIONAL BANK OF ISRAEL 14 Credit to the Public by Segment (Millions NIS) Rates of Change compared to 31/12/14 Rates of Change compared to 30/9/15 31/12/15 7.9%2.5%18,489 Private Clients (excluding mortgage) 10.2%1.1%20,431 Mortgages 9.1%1.7%38,920 Credit to Private Clients (0.2%)9.6%20,302 Corporate 3.2%1.8%13,333 Commercial and Small Businesses 5.3%3.8%72,555 Total Credit to the Public () – 31/12/14

FIBI FIRST INTERNATIONAL BANK OF ISRAEL 15 31/12/1531/12/14 Gross Change Balance -Sheet Off- Balance- SheetTotal Balance- Sheet Off- Balance- SheetTotal Impaired Credit Risk Inferior Credit Risk (402) Credit Under Special Supervision Risk ,0321, ,279 (247) Total Problematic Credit Risk 1, ,2192, ,864 (645) Ratio of the provision for credit losses to impaired credit to the public not accruing interest income accruing NPL coverage ratio 107.9%109.6% Decrease of 22% in credit risk due to Problematic Debt (Millions NIS)

FIBI FIRST INTERNATIONAL BANK OF ISRAEL 16 Deposits from the Public Breakdown by Segment (Millions NIS) Rates of Change in Compared to 31/12/14 31/12/ %54,222 Total Private Clients 8.6%33,402 Corporate 1.5%15,638 Commercial + Small Businesses 8.5%103,262 Total 26.5%42,915 Of which: Positive Current Account Balance (16%) (52%) (32%) () – 31/12/14

FIBI FIRST INTERNATIONAL BANK OF ISRAEL 17 Client Assets Portfolio (Deposits & Securities) present continued growth (average balances, Billions NIS) continued increase in client assets portfolio. Increase of 30 Billion NIS(9%) compared to % % %

FIBI FIRST INTERNATIONAL BANK OF ISRAEL 18 NOSTRO NIS millions Change compare to 31/12/1430/9/1531/12/15 31/12/1430/9/15 NIS millionsWage in %NIS millionWage in %NIS millionWage in %NIS million 3,5452,62572%9,08574%10,00577%12,630 Government bond %7,81859%8,02951%8,392 Of witch: Israel government bond %2,16217%2,26514%2,271 Banks bond %9968%1,0878%1,278 Corporate bond (50)132%3112%2482%261 stocks 3,8852,834100%12,554100%13,605100%16,439 Total equity Negative capital fund available due to available for sale securities on 31/12/15 is 18 NIS millions. As of 22/2/16 20 NIS millions.

FIBI FIRST INTERNATIONAL BANK OF ISRAEL 19 Subsidiaries Net Profit Growth Centers Equity Capital (tier 1) to Risk Componen ts Ratio ROE Net profit 2015 Millions NIS Specialization Winning the tender of the Ministry of Defense for the provision of loans and banking services to entitled customers in the coming years Expansion of the factoring activity Joining the Fund in cooperation with the Manufacturers Association - together with FIBI Winning the government tender for the provision of loans to SME together with institutional partner 9.6%5.8%65.6  Retail Clients  Commercial/ Corporate  Defense Forces Personnel  Factoring Winning in the teachers loans tender during 2014 Growth in the teachers sector due to winning the tender Growth in the Israeli-Arab sector (6 branches) 13.8% 7.1% (10.4%)* 36.5  Retail Clients  Teachers Sector  Israeli-Arab Sector Increasing network coverage in the ultra-orthodox sector 12.3% 10.6% (13.8%)* 39.4  Ultra-Orthodox Sector * ROE in accordance to average Equity capital (tier 1) to risk components ratio in the Israeli banking system Merged into FIBI On 31/12/15 while maintaining the brand name

FIBI FIRST INTERNATIONAL BANK OF ISRAEL 20 Main characteristics and strengths of FIBI group Diversified growing high quality credit portfolio Level of credit loss provisions is low over the years Expenses for credit losses of 0.02% in % decrease in credit risk due to problematic debt Consistent growth in client assets portfolio as a result of our strength in private banking and capital markets activity. In 2015, 9% growth in client assets portfolio to 360 Billion NIS. High financial stability high equity capital and liquidity ratios Equity capital ratio (tier1) 9.81% (higher than the regulatory requirement) Liquidity coverage ratio 104% Tight expenses control and reduction to improve operational efficiency In 2015, a 202 Million NIS decrease in operating expenses (7% of total expenses) √ √ √ √

FIBI FIRST INTERNATIONAL BANK OF ISRAEL 21 Dividend policy Distribution of up to 50% of net profit (*) Dividend yield (*)

FIBI FIRST INTERNATIONAL BANK OF ISRAEL 1.Without derogating from the generality of the conditions of use specified in the First International Bank of Israel Ltd. (the “Bank”) website, the content exhibited in this presentation has been prepared by the Bank solely for use of the Bank’s presentation of the quarterly and/or annual financial reports as well as strategic updates. 2.The content contained herein is partial and may include information and/or data that have not been independently verified by any outside entity. It is further emphasized that this presentation does not constitute an offer or invitation to purchase any securities and/or investments of any kind whatsoever. 3.This presentation should not be relied upon in connection with any transaction, contract, commitment or investment. For full and complete overview of the Bank’s financial situation and results of operation, please view the Bank’s quarterly and/or annual financial reports. 4.Neither the Bank nor any of its employees or representatives shall have any liability whatsoever (in negligence or otherwise) for any loss and/or damages of any kind whatsoever arising, directly or indirectly, from any use of the content presented in this file or otherwise arising in connection with this file. 5.It is hereby emphasized that portions of the information exhibited herein are regarded as forecasts about the future prospects of the Bank and the actual results of the Bank may differ materially from those contemplated taking into account the various risk factors, including but notwithstanding, changes in legislation and governmental supervision policies, changing economic conditions and uncertainties which exist regarding the Bank’s business and the result of various operations. For a more accurate and detailed description see forward looking information section in the Banks financial statements. Disclaimer 22