Overview 30/09/2010

2 GDP Rate of Growth (%) * Forecast

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

4 Country Ratings S & P FITCHMOODY’S AAA1A1 Long Term A1A1F1F1P1P1 Short Term Stable Outlook

5 Foreign Investments in Israel (US$ Millions) In 2006: Acquisition by “Teva” Israeli Investments Abroad (US$ Millions) In 2006: Acquisition of “Iscar” by Berkshire - Hathaway

Financial Reports 30/09/2010

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 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 7

-Retail /Commercial -Branches: 47 -Since Key Audience: Military Personnel -Retail -Branches: 18 -Since Key Audience: Teachers First International Bank Group First International Bank - Corporate + middle market banking - Private + affluent banking - Capital & Money Markets - 79 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: 19 -Since Key Audience: Ultra Orthodox 8

9 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. 9

10 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 42.6% 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. The controlling interest in FIBI and in the Bank is held by the Bino Family (Mr. Zadik Bino and his three children). 10

11 First International Bank of Israel - 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) Foreign subsidiaries in London (commercial banking) and Zurich (private banking) Branches: 170 in Israel (including subsidiaries) Equity: NIS 5,671 Million (USD 1,547 Million*) 5 th largest banking group in Israel * $/NIS = as of Sep. 29, 2010

12 Bank Ratings Moody’s A 2 Bank Deposits (Long Term) P-1 Bank Deposits (Short Term) C-Financial Strength NegativeOutlook Midrug – Israel Aa1 Midrug Ma’a lot - S&P AA / Stable Issuer AA - / Stable Subordinated Notes As from 15/11/2010

13 Core Capabilities Strategy - Main Focus Conservative capitalization levels: capital adequacy ratio of 12.78%; 1st tier adequacy ratio of 8.31%; deposit/credit ratio of 126.8% Improved credit mix: steps taken to diversify portfolio through increased penetration of middle market and more consumer credit Conservatively managed foreign proprietary trading book Upgraded scoring model and processes in anticipation of Basel II, including development of advanced credit-scoring models for risk-based pricing Top class reputation in private banking services, especially dealing room, specialized investment advice center and TASE futures and operations index, where FIBI is a market leader Distinctive professional standards in global capital markets, currency exchange, structured products and foreign trade Strong traditional position in corporate banking Risk Profile

14 New ProductsClients Strategy - Main Focus Corporate finance: decrease concentration of credit portfolio, increase penetration of middle market Private banking: increase market and wallet share through advisory services extend presence in affluent and mass-affluent segments Retail banking: broaden overall footprint Measures taken to increase group efficiency, including implementation of a shared- services model State-of-the-art pension-planning advice offering Other Client-centric vs. product-oriented banking

15 Group Consolidation Objective: to realize synergies from three bank acquisitions Implement shared-services model, including IT systems (UBank IT systems converted in 2008, Massad and Otsar-Hahayal converted on 2010; HQ units unified: logistics, severance pay fund operations, regulatory units and parts of training and human resources operations; process to be accelerated in 2010) Cross-sell products (mortgages, structured products, advisory services, pension planning, trust, factoring) Create streamlined and effective branch network to meet growing competition in retail and private banking markets Oversee management: FIBI executive board members serve on the boards of the new subsidiaries

16 Net Operating Earnings and ROE NIS Millions Quarterly 5.6% 8.6% 11.5%

17 Ratio of Provision for Doubtful Debts to Credit to the Public Other 4 Leading BanksFIBI

18 Total Credit Risk in Respect of Problematic Debts (NIS millions) Change 30/09/10 Compared with 31/12/09 Balance for date 31/12/0631/12/0731/12/0831/12/0930/09/10 (34) Non income bearing debts (149) Restructured debts Debts scheduled for restructuring (3) Debts temporarily in arrears (381)2,3491,6962,4301,9281,547 Debts subject to special supervision Off-balance sheet credit risk (541)4,2633,0804,0683,2642,723 Total credit risk in respect of problematic debts

19 Composition of Total Proprietary Trading Book – Composition Amount NIS Million 66% 10,023 Government & Secured by Government bonds 19%2,912Commercial Banks bonds 5%5%842Shares 10%1,482Other 100%15,259Total Foreign Currency Proprietary Trading Book Total Proprietary Trading Book

20 Operating & Other Expenses (Group) (NIS Millions) 1-9 / / 2010

21 Operating Expenses & IncomeAdjusted * Operating Expenses & Income Financing Income excluding provisions for decline in value, clarification 8 position and fair value of derivative instruments, operating income excluding dividend, realization or decline in value of shares and severance pay fund gains; expenses excluding severance pay fund effects and special provisions 52.7%62.4%52.7%52.9% Operating Income and Expenses % Operating Expenses Operating Income Income / Cost Ratio Adjusted Income / Cost Ratio

% 14.57% 13.42% Capital Adequacy Ratio – Basel II Overall capital Capital Adequacy Core Capital Adequacy FIBI Core capital 4 top Banks * * * After adjustment **Without adjustment * * **

23 Changes in Assets, Deposits & Credit to the Public (NIS Billions) Credit to the public Deposits from the public Shareholders equity Assets

24 Financial Strength Ratios as of 30/09/2010 Doubtful debts / credit ratio Problematic debt / credit ratio Deposit / credit ratio Core capital adequacy ratio Capital adequacy ratio 0.16%4.4%126.8%8.31% 12.78% FIBI 0.56%7.3%98.6%8.07%13.92% POALIM 0.23%8.1%113.2%8.52%15.25% LEUMI 0.61%6.6%115.7%7.37%12.90% DISCOUNT 0.36%5.1%97.8%7.95%14.04% MIZRAHI TEFAHOT 0.41% 6.9%108.1%8.10%14.09% AVERAGE

25 Deposits from the Public 78.4 NIS Billion Deposits / Credit Ratio Liquid Assets Capital Adequacy – Bazel II Core capital – Bazel II Capital Investments Credit to the Public 61.8 NIS Billion Gov. & Bank Deposits 1.8 NIS Billion 8.31% 126.8% 31.7% 65.2% Of capital available for Investments Bonds-State of Israel: 8.4 NIS Billion Cash/Deposits-Bank of Israel: 11.7 NIS Billion Bonds-Foreign states: 1.6 NIS Billion Deposits in Banks: 3.1 NIS Billion Bonds-Banks: 2.9 NIS Billion NIS+Forex Corporate Bonds: 1.5 NIS Billion Structure Products, Hedge Funds & Stocks:0.9 NIS Billion Credit Risks in VAR Terms: (0.07) NIS Billion Capital Notes 4.6 NIS Billion Capital available for Investments 3.7 NIS Billion 12.78%

26 Changes in Net Profit - Subsidiaries (NIS Millions) Change1-9 / / (17.8) (26.0)

27 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. Banking Subsidiaries in Israel 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

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

29 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.