FIBI FIRST INTERNATIONAL BANK OF ISRAEL O verview

FIBI FIRST INTERNATIONAL BANK OF ISRAEL 2 Net Profit and ROE (NIS Millions) * Goodwill amortization amounts to 11 NIS Million and subtracts 0.7% of the ROE. ** The effect of the implementation of new accounting standard regarding employee privileges led to a decrease of approximately 193 NIS million in shareholders' equity. Average capital Equity capital (tier 1) to risk components ratio 6, % 6, %+ 7.5% 6.8% 7.4% ROE 6, % 9.60%

FIBI FIRST INTERNATIONAL BANK OF ISRAEL 3 Exceptional Macro-economic and accounting effects on the Statement of income this quarter (NIS Millions) Notes NetGross With the increase of CPI index an income will be written (21)(34) Negative index rate (1.6%) effect on the CPI position and the influence of the barrier against CPI index-linked liabilities Lower interest rates and currency fluctuations resulted in an increased expense for the fair value of derivatives - an accounting difference (11)(17) Fair value adjustments of derivatives On off actuarial provision was offset by a provision for accrued sick days 3862 Influence of the Leumi Bank work agreement adoption and the acceptance of US principles regarding employee privileges.

FIBI FIRST INTERNATIONAL BANK OF ISRAEL 4 Statements of income 1-3/2015 – 1-3/2014 ((NIS Millions Change in % Gross change 1-3/ /2015 (10.2%)(59) Interest and non Interest Incomes 20.0%21012 Expenses from credit losses (rate of 0.07%) (10.7%)(61) Interest income after Expenses from credit losses 10.3% Non interest income 2.9% Commissions (9.9%)(72) Total operating and other expenses (15.6%)(70) Salaries and related expenses (3.6%)(4)(4) Maintenance and depreciation of premises and equipment (8.8%)(3)3431 Amortization and impairment of intangible assets 3.9% Other expenses 8.9% Profit before taxes 88 The bank’s share in VISA CAL profit 5.0% Net profit 7.4% 7.5% ROE (0.72%)0.92% 0.20% Bank of Israel average interest rate (*)9.73%9.52% Equity capital (tier 1) to risk components ratio (end of period) * According to 31/12/14.

FIBI FIRST INTERNATIONAL BANK OF ISRAEL 5 השפעות חיוביות Net changeGross change 1-3/ / (446)(438) Decrease in Salaries and related expenses (excluding Leumi Bank agreement) The effect of change in discount rate on reserves Increase in commissions 67(145)(138) Decrease in amortizations and impairment of intangible assets and maintenance and depreciation of premises and equipment Main positive influences Explaining of the main changes in net profit ( 1-3/ /2014 (NIS Millions

FIBI FIRST INTERNATIONAL BANK OF ISRAEL 6 השפעות שליליות Net changeGross change 1-3/ /2015 (48) (25)(41) Decrease in interest income (13)(21)(13)(34) Of which: CPI index influences (10)(15)(2)(17) Increase in the reconciliations in fair value of derivative instruments Main Negative influences Explaining of the main changes in net profit ( 1-3/ /2014 (NIS Millions Total increase of 6 Nis Millions in net profit

FIBI FIRST INTERNATIONAL BANK OF ISRAEL 7 Statements of financing income ((NIS Millions 1-3/2015 – 1-3/2014 Net change Gross change 1-3/ /2015 (17.3%)(93) Total Interest income 82.9% Total non-interest financing income (10.2%)(59) Interest income and non-interest financing (15)(2)(17) Fair value of derivatives (7.6%)(44) Total income from financing (interest and non-interest) (2.9%) (2) Profits from the sale of bonds and trading portfolio (8.2%) *(42) Other financial income and financial intermediation free capital (0.72%) 0.92%0.20% Bank of Israel average interest rate (0.9%)(0.7%)(1.6%) Period Known CPI Index * Includes the negative effect of the CPI index decline (21 NIS million).

FIBI FIRST INTERNATIONAL BANK OF ISRAEL 8 Operating & Other Expenses (NIS Millions) 1-3/ / * % ** * Includes The effect of the continued implementation of the of Bank Leumi and the effect of Lower interest rates in the increase in reserves for employee rights in the amount of 62 NIS million. ** Includes amortization of initial difference in respect of subsidiaries in the amount of 11 NIS million.

FIBI FIRST INTERNATIONAL BANK OF ISRAEL Consolidated Operational Efficiency Ratio Total Operating Expenses to Total Income Total Income Total Operating Expenses % % Total Operating Expenses / Total Income (Before Expenses for credit losses) % 77.2%

FIBI FIRST INTERNATIONAL BANK OF ISRAEL 10 Credit to the public Deposits from the public Capital attributed to the shareholders of the Bank Balance sheet Growth compared to 12/14 Growth compared to Q1/14 2.6%4.2% Growth in credit 1.7%5.8% Growth in Clients assets The development in Balance sheet, Equity, Credit and Deposits - consolidated, end of ( period (NIS Billions

FIBI FIRST INTERNATIONAL BANK OF ISRAEL 11 Statement Of Changes in Equity 2014 ((NIS Millions 6,965 Balance At 31/12/14 Total Shareholders Equity (non-controlling interests ( Not including (144) The effect of the acceptance principles regarding to the US employee rights 6,821 (After The effect of the implementation) Balance At 31/12/14 125Net Earnings (49) A movement in other comprehensive income for employee rights 27 Change in capital reserve For securities available for sale 5 Net profit Attributed to non-controlling interests 6,929 Balance At 31/3/15 Total Shareholders Equity (non-controlling interests ( Not including 108 Total change in period Total effect of accounting updates on capital 188 NIS million in Q1/2015. Recall that in late 2014, following the capitalization of software costs a Decrease in the capital amount of approximately 106 NIS million. Equity capital to risk components ratio (Basel III) according to is 9.52% and in %.

FIBI FIRST INTERNATIONAL BANK OF ISRAEL 12 Credit to the Public by segments (NIS Millions) Rates of change in a balances compared to Rates of change in a balances compared to / / %3.3%16,35617,601 Private + Retail (Households) 7.0%2.0%17,67918,914Mortgage 7.3%2.6%34,03536,515 Total private clients 0.5% 3.9% 21,22321,328Corporate 4.9% 0.5% 7,5737,941Commercial (1.5%) 0.7% 5,0634,988Small Business 4.2%2.6%67,89470,772 Total Credit to the Public (24%) (26%) (31%) (19%) () –

FIBI FIRST INTERNATIONAL BANK OF ISRAEL 13 31/3/1531/3/14 Gross change Balance -sheet Off- balance- sheet Total Balance- sheet Off- balance- sheet Total Impaired credit risk ,082(146) Inferior credit risk (496) Credit under special supervision risk1, , , Total problem credit risk2, ,7612, ,853(92) Ratio of the provision for credit losses to impaired credit to the public not accruing interest income - NPL 114.0%95.7% Ratio of the provision for credit losses to impaired credit to the public not accruing interest income – NPL Without mortgages 100.3%79.5% A decrease in problem credit risk, mainly in inferior and impaired credit risk that are more problematic. Breakdown of the credit risk problem (NIS Millions)

FIBI FIRST INTERNATIONAL BANK OF ISRAEL 14 Deposits from the Public breakdown by segments (NIS Millions) Rates of change in balances compared to 31/3/14 Gross Change Compared to /3/14 31/3/15 4.4%2,110 47,84049,950 Total private clients 15.4%3,531 22,94626,477 Corporate 2.6%533 20,31720,850 Commercial + Small Business 6.8%6,174 91,10397,277 Total () – (22%) (53%) (25%)

FIBI FIRST INTERNATIONAL BANK OF ISRAEL 15 Client assets portfolio (deposits & securities) present Continued growth (average balances, NIS Billions) Increase of 6% (19 NIS Billions) in client assets portfolio, Continuing an increase of 12% in 2014 (34 NIS Billion) 11.5% % 23 6%

FIBI FIRST INTERNATIONAL BANK OF ISRAEL 13.42% * 14.30% 14.57% 13.42% * * * % -0.57% 0.63%- Equity capital (tier 1) ratio 16

FIBI FIRST INTERNATIONAL BANK OF ISRAEL.*In annual terms ** Calculated only on the balance sheet credit. 9.52% 9.43% 9.37% 9.40% 9.17% equity capital(tier 1) to riskcomponentsratio 137.5% 114.5% 121.9% 125.5% 101.5% Deposits from the public to credit to the public 73.6% 61.5% 57.2% 77.1% 63.9% Total operating expenses / Revenue (before credit losses expenses) Other 4 leading Banks Average 9.37%116.1%63.0% 67.2% 100.3% 59.9% 76.2% 61.2% 95.0% NPL-Provision for credit losses to total impaired credit (without mortgages)** 17 FIBI is demonstrating relative strength in main financial ratios 3/2015 (income) Expenses for credit losses to credit to the public* 0.07% 0.09% 0.13% 0.10% 0.09% 0.11%

FIBI FIRST INTERNATIONAL BANK OF ISRAEL 18 Subsidiaries net profit Growth centers equity capital (tier 1) to risk component s ratio ROE Net profit 1-3/2015 Nis Millions Specialization Extension of the agreement with Hever Renewal of activities with Small Business Fund Expansion of the factoring activity Joining the Fund in cooperation with the Manufacturers Association - together with the FIBI early May this year 9.7%7.5%20.7  Retail clients  Commercial/ Corporate  Defense forces personnel  Factoring Expansion activities with private and institutional clients Developing wealthy clients branches 15.2%7.9%9.0  Capital Markets, Trust & Custody services  Private & affluent banking Winning in the teachers loans tender during 2014 Growth at the Israeli-Arab sector 14.5%8.7%10.6  Retail clients  Teachers sector  Israeli-Arab sector Increasing network coverage in the ultra orthodox sector 12.0%12.8%11.2  Ultra orthodox sector

FIBI FIRST INTERNATIONAL BANK OF ISRAEL 19 Main Indicators - FIBI Group / %2.6% credit growth rate 9%6% Increase clients asset portfolio (deposits and securities) rate 100 Decrease Number of employees 3.7%2.9% An increase in commission income rate (*) (82)(41) A decrease in profit in the current financing rate (*/**) *Excluding the The effect of Fas 91 in ** The effect of negative index is about 21 million in the first quarter of 2015.

FIBI FIRST INTERNATIONAL BANK OF ISRAEL 20 Highlights for 1-3/2015 Continued growth in activities Leumi Bank agreement and discount rate n A reduction in the provision for salaries, acceptable provisions for accumulated sick days and a decline in the discount rate the reserves in salary expenses 62 million (39 million net) n Resulted in a decrease in financial income of the group between reporting periods of approximately 21 million financing income affected in approximately 34 million Growth in operating income n Lower interest rates in and currency changes Led to an expense in respect of the fair value of derivatives of 17 NIS million, an increase of 15 million compared to expenses Q1/2014. Negative inflation Main parameters Equity to risk components ratio Net profit n An increase of 5% in net profit to NIS, ROE - 7.5%. Equity to risk components ratio – 9.52% compared to 9.73% at the end of The decrease in the capital ratio was affected by growth in the credit portfolio and the implementation of the Directive for employee rights, Previous period there has been an implementation capitalization of software costs. Efficiency ratio The efficiency ratio (before provisions for credit losses) % compared with 77.2% in Q1/2014 (including partial impact of the implementation of the Bank Leumi). Capital Raising Successful bond issues During Q1/2015 the Bank carried out two successful issues of bonds totaling approximately 1.4 NIS billions. offerings demand were high.

FIBI FIRST INTERNATIONAL BANK OF ISRAEL 21 Highlights for 1-3/2015 Continued Growth in activities Expenses for credit losses 0.07% compare to 0.06% Q1/2014 and 0.13% in all Maintaining the quality of the loan portfolio and dispersion NPL (Without mortgage) Decrease in the Expenses for credit losses n Rate of expenses for credit damaged non-interest is the highest in the banking system (excluding mortgages) 100.3%, including mortgages 114.0%. Growth in credit to private and corporate clients Continued Growth in n An increase of about 7% private credit balances (including mortgages) in Q1/2015 compared to Q1/2014. n Growth in credit to corporate, particularly commercial clients - an increase of about 5% compared to Q1/2014. Operating expenses restraint Continuation of growth in the investment field Continued Growth in n An increase of - 29 NIS Billion (9%) in the amount of the Bank's clients portfolio amounting to approximately 350 NIS Billion. Growth in operating income Continued Growth in n An increase in operating commissions of 2.9% (10 NIS Million). Most of the increase is in capital market clients Continuation of budgetary restraint and efficiency measures n Continuous processes to reduce expenses in branches and in the headquarters of the group. (Including reduction of branches and staff areas), that expressed a decrease in expenses in all of the Bank fields of activity. n Further reduction in the number of Group employees.