31/03/2012 Overview

2 Net Operating Earnings and ROE NIS Millions

Statements of income I/2012- I/2011 NIS Millions The net change Gross change I/2011I/ Net interest income 4467 (36)31 Expenses (income) for credit losses (0.19% provision rate) (30)(47) Net interest income after expenses for credit losses (50)(77) Total non-interest income (19)(29) 8556 Of which: income (expenses) non-interest* (29)(45) Commissions (decrease stems mainly from decreses in customers activity in the capital markets) (2)(3)74 Other Income (26)(40) Total operating and other expenses (18)(29) Of which: salaries and related expenses (including losses appointed time compensation) Holding and depreciation on buildings and equipment Amortization and impairment of intangible assets (10)(14) Other expenses (54)(84) Profit before tax Provision for taxes on income (2)1513 Bank’s share of profit of associates (39) Net earnings 13.5%9.9% ROE 8.11%8.81% Core (Tier 1) capital ratio (end of period) * Including decrease in income from stock investments of 24 NIS Millions. 3

I/2012I/2011 Operating & Other Expenses (NIS Millions)

Efficiency Ratio: Total Income to Total Expenses Operating Expenses % Adjusted Operating Expenses / Total Income * *Expenses excluding severance pay fund effects, special provisions ; Net interest income excluding gains/losses from sale and writedown of available for sale bonds, hedging of volatility in provision for taxes, interest income charged on problem loans and effect of reconciliations to fair value of ALM derivatives ; Operating income excluding dividend, realization or decline in value of shares and severance pay fund gains. 5 Total income operating expenses % Operating Expenses / Total Income Total income

Deposits from the Public 81.7 NIS Billion Deposits to Credit Ratio Liquid Assets to Deposits Ratio Capital Adequacy Basel II Tier 1 Capital Adequacy מזה: עסקי ומסחרי 36.2 צרכני 15.1 משכנתאות 14.8 Credit to the Public 66.1 NIS Billion Gov. & Bank Deposits 1.75 NIS Billion 8.81% 123.7% 32.3% 42.1% Of capital available for Investments State of Israel Bonds: 8.5 NIS Billion Deposits-Bank of Israel: 15.5 NIS Billion Sovereigns Bonds: 0.75 NIS Billion Deposits in Banks: 2.4 NIS Billion Banks Bonds: 1.64 NIS Billion NIS+foreign Corporate Bonds: 0.9 NIS Billion Structure Products, Hedge Funds & Stocks:0.8 NIS Billion Market Risks in VAR Terms: (0.03) NIS Billion Capital Notes 5.16 NIS Billion Capital available for Investments 4.0 NIS Billion 13.58%  11.04% מסך האשראי, כנגד נכסים נזילים FIBI Strategic Assets & liabilities structure NIS Millions 6

Total Assets, Deposits & Credit NIS Billions Credit to the public Public Deposits Equity Assets 7

Credit to the public NIS Millions 8 Development of housing credit portfolio (end of period) Credit to the public by operating segments Development of the annual average in consumer credit (annual average) Change in % compared to Total private clients 29,47728,91227,6592.0%6.6% Of which: Mortgage 14,84714,70213,8061.0%7.5% Commercial + small business 13,35713,38712,561( (0.2%6.3% business 23,23822,67923,0312.5%0.9% Total Credit to the public 66,07364,97863,2511.7%4.5%

The average asset mix of the dominant group is personal and private sectors /I Personal and private sectors (including mortgages) are 45.9% in I/2012 from the total assets. compared to 43.3% in I/2011, and to 30.5% 2006.

Change compared to Total Damaged credit risk1,228 1,445((217 Low credit risk Credit risk under special supervision 994 1,02935)) Total credit risk problem 2,696 2,906(210) Breakdown of credit for problem debts NIS Millions

Provision for Doubtful Debts to Credit to the Public Ratio Other 4 Leading Banks FIBI 11 *Beginning in 2011, all collection on problem debts is shown as Expenses for credit losses instead of earnings from financing operations

Composition of Total Proprietary Trading Book Composition 2011/IV Composition 2012/I Volume IV/2011 Volume I/ %75% 9,2599,265 Government bonds & Secured by Government bonds 91%92% State of Israel bonds 10%14%1,2421,659 Commercial Banks bonds 5%4% Shares 7% Other Of which: Fx Corporate Bonds Of which: NIS Corporate Bonds 100% 11,87212,347 Total NIS Millions Government bonds & Secured by Government bonds 75% Total 86Spain 78Italy 0Portugal 0Greece 0Ireland NIS Millions 12 PIIGS proprietary trading book exposure

14.30% 14.57% 13.42% Capital Adequacy Ratio Basel II Tier 2 FIBI Tier 1 4 top Banks in Israel * * * * ** % Core capital adequacy target in accordance with the commissioner of banks

Changes in Net Profit - Subsidiaries NIS Millions Core (Tier 1) capital ratio ROE Percent change relative to I/2011 I/ %10.6%9.9% %11.9%(24.1%) %13.1%14.7% %11.3%8.4%