Overview 31/03/2011

* Forecast GDP Rate of Growth 2

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 ** Yearly basis - Forecast

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

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

Financial Reports 31/03/2011

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 7

-Retail /Commercial -Branches: 48 -Since Key Audience: Military Personnel -Retail -Branches: 19 -Since Key Audience: Teachers First International Bank 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 8

99 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 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’s 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). 10

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: 174 in Israel (including subsidiaries) Equity: NIS 5.7 Billion 5 th largest banking group in Israel 11

Bank Ratings Moody’s A3 prime-2 Bank Deposits – foreign & domestic, long & short term BFSR D+Financial Strength StableOutlook Midrug – Israel Aa1 Midrug Ma’a lot - S&P AA / Negative Issuer AA - / Negative Subordinated Notes 12

13 Net Operating Earnings and ROE NIS Millions 13.5% 9.7% 8.5%

Statements of income Q1/11 – Q1/10 NIS Millions Net change31/03/201031/03/ Earnings from financing operations before provision for doubtful debts (14) 22-Interest collection 32 (20)36Credit lost income (doubtful debts) Operating commissions Income from sales of shares (& dividend) (1) 42Other income Operating & other expenses Operating earnings before taxes Provision for taxes Operating earnings after taxes (6)2115 The banks net equity in operating results of investee companies 4(12)(8) Exterior share holders & extraordinary profit Net earnings 14

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

Change Balance for date 31/12/201031/03/2011 (89)1,3251,236Defective credit risk (51) Inferior credit risk ,009 Credit risk subject to special supervision Off-balance sheet credit risk * (58)3,2053,147 Total problematic credit risk according to the new orders Total Credit Risk according to the new orders (NIS millions) * After accounting deductions and before credit lost provision 16

17 Operating & Other Expenses NIS Millions Q1/2010 Q1/2011

18 Operating Expenses & IncomeAdjusted * Operating Expenses & Income Financing Income excluding provisions for decline in value, clarification 8 position, interest collection of problematic debts 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, special provisions, bonus and strike effects Operating Income and Expenses 54.4% % Operating Expenses Operating Income Income / Cost Ratio Adjusted Income / Cost Ratio % Total income after provision to doubtful debts / expenses adjusted Ratio Total income before provision to doubtful debts / expenses adjusted Ratio % 52.4% 54.4% 52.2% 125.5% 131.1% 136.2% 122.6%

% 14.57% 13.42% Capital Adequacy Ratio – Basel II Core 2 capital Capital Adequacy Core 1 Capital Adequacy FIBI Core 1 capital 4 top Banks * * * * ** * * * Poalim & Mizrahi average

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

21 Deposits from the Public 79.8 NIS Billion Deposits / Credit Ratio Liquid Assets Capital Adequacy – Bazel II Core capital – Bazel II Capital Investments Credit to the Public 63.3 NIS Billion Gov. & Bank Deposits 2.5 NIS Billion 8.19% 126.3% 35.0% 43.4% Of capital available for Investments Bonds-State of Israel: 9.1 NIS Billion Cash/Deposits-Bank of Israel: 14.1 NIS Billion Bonds-Foreign states: 0.6 NIS Billion Deposits in Banks: 4.7 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 4.9 NIS Billion Capital available for Investments 3.8 NIS Billion 12.70%

22 Changes in Net Profit - Subsidiaries NIS Millions ChangeQ1/2010Q1/

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. 23 Banking Subsidiaries in Israel

24 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. 24

25 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.