30/06/2011 Overview

* FiBi’s Forecast GDP Rate of Growth 2

3 Bank of Israel Interest Rate Bank of Israel Interest Rate * and the Inflation Rate Inflation Rate * Bank of Israel Interest rate for the last month of the Year / Period ** Fibi’s Forecast

S&P FITCHMOODY’S AAA1A1 Long Term A1A1F1F1P1P1 Short Term Stable Outlook 4 Israel Credit Rating

Foreign Investments in Israel In 2006: Acquisitions by “Teva” Israeli Investments Abroad In 2006: Acquisition of “Iscar” by Berkshire - Hathaway 5 Investments in and of Israel US$ millions

About FIBI

FIBI Universal bank with strong niche position in capital markets, foreign exchange and foreign trade Domestic subsidiaries target focused audiences: affluent banking (UBank), security sector - retail banking (Otsar Hahayal), ultra-orthodox Jews (PAGI), and teachers (Massad) Branches: 174 in Israel (including subsidiaries) Equity: NIS 5.7 Billion 5 th largest banking group in Israel 7

8 FIBI’s Multi-Annual Strategic Road Map Focus on Retail and PB while Realizing Synergies Market share in private banking increased Integration of the banks’ computer systems Group branding Mergers and Acquisitions Merger of mortgage banks No. of branches Cross selling products within the group Mortgages Pension planning advisory services Structured products Investment advisory services Branch network optimization measures Number of retail customers doubled Realizing Synergies, Restraining Expenses

-Retail /Commercial -Branches: 48 -Since Key Audience: Military Personnel -Retail -Branches: 19 -Since Key Audience: Teachers FIBI Banking Group First International Bank - Corporate + middle market banking - Private + affluent banking - Capital & Money Markets - 80 branches Retail Bank Cluster International - Capital Markets, Trust & Custody - Private + affluent banking - 7 branches - Since Private Banking - Since Business / Corporate Banking - Since Retail/Commercial -Branches: 20 (as for 20/01/2011) -Since Key Audience: Ultra Orthodox 9

FIBI’s Rating Moody’s A3 prime-2 Bank Deposits – foreign & domestic, long & short term BFSR D+ Financial Strength StableOutlook Midrug – Israel Aa1 Midrug Ma’alot - S&P AA / Negative Issuer AA - / Negative Subordinated Notes 10

Ownership Structure Bino/Liberman Group The PublicFIBI Holding Company Ltd.FIBI Investment House Ltd. Israel Discount Bank The First Int’l & Co. Underwriting and Investments Ltd. Modus-Selective Investments Management & Advice Ltd. International Leasing Ltd. Israel Credit Cards Ltd. First International Issues Ltd. E , V E , V E - 0, V – 0 (stocks dormant) E + V - 53 E + V – E + V E – V – E – 100 V – 100 E - 51 V - 51 E V E V E V E V E V E V - 21 E V E - 75 V - 75 E - % Share in Equity V - % Voting Rights 11

12 Shareholders The Liberman family The Liberman family has enjoyed sustained success in both Australia and Israel for over 50 years. Jack Liberman, an astute Australian businessman and entrepreneur, along with his children, built a large and diversified investment company (JGL Investments PTY Ltd.). The family, together with the Bino Group, in a long-term partnership, hold a controlling interest in both FIBI Holdings and Paz Oil Company Ltd. (“Paz”), Israel’s leading petrol player. 12

13 Shareholders Mr. Zadik Bino Mr. Zadik Bino is a highly reputable businessman with broad business interests in Israel. In a banking career spanning over 25 years, Mr. Zadik Bino filled senior positions in the local banking sector, which included CEO of Bank Leumi of Israel and Chairman of the Board of Directors and CEO of The First International Bank of Israel. Mr. Zadik Bino was also a member of the Advisers Committee and the Committee for Banking Matters of the Bank of Israel. Since 1989, Mr. Bino has devoted himself to his family's private business interests in Israel and abroad. Through the years, the Bino Group has engaged in the execution, development and nurturing of various investments. Besides banking, the main investments of the Bino family is in Energy (through a 45.5% holding in Paz oil Company Ltd. - a listed company which is Israel’s largest supplier of refined petroleum products, and which owns the Ashdod Refinery). Since acquiring the controlling interest in FIBI Holdings and the Bank in 2003, both Mr. Zadik Bino and his son, Mr. Gil Bino, serve as members of the Board of Directors of FIBI and the Bank. On June 2010 Mr. Gil Bino was appointed as FIBI Holdings chairman instead of Mr. Zadik Bino. The controlling interest in FIBI and in the Bank is held by the Bino Family (Mr. Zadik Bino and his three children). 13

Financial Reports 30/06/2011

15 Net Operating Earnings and ROE NIS Millions 5.6% 7.3% 13.5%

Statements of income 01-06/2011– 01-06/2010 NIS Millions Net change 01-06/ / ,0911,118 Net interest income before provision for doubtful debts 39N.A Recovery of loan losses (43)0 Provision for doubtful debts (8) Operating commissions 37 0 Income from investment in shares (& dividend) (8) 146 Other income 3 1,4231,426 Operating & other expenses Operating earnings before tax taxation Operating earnings after tax (1)3130 The banks net equity in operating results of investee companies 7(17)(10) Exterior share holders & extraordinary income Net earnings

17 Provision for Doubtful Debts to Credit to the Public Ratio Other 4 Leading Banks FIBI

Change Balance for date 31/12/201030/06/2011 (50)1,2421,192Defective credit risk (164) Inferior credit risk 211,0341,055 Credit risk subject to special supervision Off-balance sheet credit risk * (171)3,1402,969 Total Doubtful debts Doubtful debts according to the new B.O.I Regulation (NIS millions) * After accounting deductions and before credit lost provision 18

19 Operating & Other Expenses (NIS Millions) 1-6/ /2011

% % % 51.9% Operating Expenses to Income Operating Expenses Operating Income Income / Cost Ratio Adjusted Income / Cost Ratio * Operating income excluding dividend, realization or decline in value of shares and severance pay fund gains; expenses excluding severance pay fund effects, special provisions. Efficiency Ratio: Operating Income to Expenses

% 14.57% 13.42% Capital Adequacy Ratio – Basel II Tier 2 FIBI Core Tier 1 4 top Banks * * * * **

22 Changes in Assets, Deposits & Credit to the Public (NIS Billions) Credit to the public Public Deposits Equity Assets

23 Income & Assets according to segments AssetsIncome

24 Composition of Total Proprietary Trading Book – Chan ge Composition Composition volume volume %67%78% 10,6169,357 Government bonds & Secured by Government bonds (7%)17%10%2,6951,168 Commercial Banks bonds (1%)6%5% Shares (3%)10%7%1, Other Of which: Fx Corporate Bonds Of which: NIS Corporate Bonds 100% 15,80211,960Total

25 30/06/2011 Deposits from the Public 79.0 NIS Billion Deposits / Credit Ratio Liquid Assets Capital Adequacy – Basel II Core capital – Bazel II Credit to the Public 63.9 NIS Billion Gov. & Bank Deposits 2.2 NIS Billion 8.38% 123.8% 33.5% 44.1% Of capital available for Investments State of Israel Bonds: 8.7 NIS Billion Deposits-Bank of Israel: 14.5 NIS Billion Bonds-Foreign states: 0.7 NIS Billion Deposits in Banks: 3.3 NIS Billion Bonds-Banks: 1.2 NIS Billion NIS+Forex Corporate Bonds: 0.8 NIS Billion Structure Products, Hedge Funds & Stocks:0.8 NIS Billion Credit Risks in VAR Terms: (0.04) NIS Billion Capital Notes 5.0 NIS Billion Capital available for Investments 3.9 NIS Billion 12.98%

26 Changes in Net Profit - Subsidiaries NIS Millions Change01-06/ / % % % % 16.5

PAGI, in which FIBI has a 100% equity holding, is a retail bank with 19 branches. the majority of its clients belong to the ultra-orthodox and orthodox sectors. PAGI maintains a unique positioning as Israel’s only orthodox oriented bank and its share in its target is significant. PAGI’s strategy is to aggressively grow its client base, while focusing on target segments in personal, business, and institutional banking. UBANK - FIBI acquired 100% of share capital of UBANK (formerly Investec Bank (Israel) Ltd.) in December The acquisition of UBANK significantly bolstered FIBI’s competitive position in private banking, capital markets and foreign currency trading. In 2007 UBANK launched an innovation in Israeli banking - dedicated branches for affluent clients. This premium service (above retail and bellow classic private banking) comprises distinctive branch design and hours of operation, along with many other attractive features. 27 Banking Subsidiaries in Israel

28 OTSAR HAHAYAL - FIBI acquired the majority share of Otsar Hahayal in August, 2006, it now hold 73.8% of the bank. Bank Otsar Hahayal specializes in retail and small to medium-sized businesses (SMEs) and has a high proportion of current and former military and defense industry personnel within its client base. The inclusion of Bank Otsar Hahayal’s operations creates a banking group with a comprehensive and diverse range of activities and earnings. FIBI has completed the process of integrating Otsar Hahayal’s IT systems and is in the process of implementing a shared services model across headquarter functions. Banking Subsidiaries in Israel MASSAD - FIBI acquired 51% of the share capital of Massad in May Massad, is a sectorial bank, specializes in teaching personnel. FIBI completed the process of integrating Massad’s IT System and is currently implementing a shared services model across headquarter support functions. Massad's identity as the “teachers' bank” also places it in an advantageous position in the Arab sector, and explains its success in this sector despite rising competition. 28

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