FIBI FIRST INTERNATIONAL BANK OF ISRAEL O verview

FIBI FIRST INTERNATIONAL BANK OF ISRAEL 2 Net Earnings and ROE NIS Millions 291 NIS Millions 449 NIS Millions * Assuming core capital ratio of (8.3%), (as the average core capital ratio of the Israeli banking industry at 30/06/2012) 10.1%

FIBI FIRST INTERNATIONAL BANK OF ISRAEL 3 Statements of income 1-9/ /2011 NIS Millions Gross change 1-9/ / ,6061,677Net interest income Expenses (income) with respect to credit loss (0.17% provision rate) 451,5471,592Net interest income after expenses for credit losses ,174Total non-interest income 266(129)137Of which: non-interest income (expenses) (86)1,1011,015 Operating commissions (decrease stems mainly from decreases in customers activity in the capital markets) (1)2322 Other Income (9)2,0872,078Total operating and other expenses 111,2071,218 Of which: salaries and related expenses (including losses appointed time compensation) (4)336332Holding and depreciation on buildings and equipment Amortization and impairment of intangible assets (24)426402Other expenses Profit before tax Provision for taxes on income (16)4630Bank’s share of profit of associates Net earnings 6.9%10.1%ROE 8.18%9.33%Core capital ratio (end of period)

FIBI FIRST INTERNATIONAL BANK OF ISRAEL 4 Statements of income 7-9/ /2011 NIS Millions Gross change 7-9/ / Net interest income (26)5933Expenses (income) for credit losses (0.20% provision rate) Net interest income after expenses for credit losses Total non-interest income 229(165)64Of which: non-interest income (expenses) (23) Operating commissions (decrease stems mainly from decreases in customers activity in the capital markets) Other Income Total operating and other expenses Of which: salaries and related expenses (including losses appointed time compensation) (3)115112Holding and depreciation on buildings and equipment 33942Amortization and impairment of intangible assets (3)139136Other expenses Profit before tax Provision for taxes on income (11)165Bank’s share of profit of associates Net earnings 0.7%11.0%ROE

FIBI FIRST INTERNATIONAL BANK OF ISRAEL 5 Income from Financing Activities (before Tax) 7-9/ /2011 NIS Millions Gross change 7-9/ / Net interest income 229(165)64income (expenses) Non-interest Total income from interest and non-interest 79(60)19Reconciliations to fair value of derivatives 94453Income from sale and reconciliations to fair value of bonds 17118Earnings investments from shares 95(96)(1)Provisions for impairment of securities 4(10)(6)Financial expenses arising from hedging investments abroad Total income from interest and non-interest-core activities 3.25%2.25%Average interest rate in bank of Israel

FIBI FIRST INTERNATIONAL BANK OF ISRAEL 6 Total Income to Total Weighted Risk Assets Ratio

FIBI FIRST INTERNATIONAL BANK OF ISRAEL 7 Operating & Other Expenses NIS Millions 1-6/ /

FIBI FIRST INTERNATIONAL BANK OF ISRAEL Improving Operational Efficiency Ratio (Consolidated) Total Operating Expenses to Total Income 8 Total Income % 1-9/2011 Total Operating Expenses Total Operating Expenses / Total Income

FIBI FIRST INTERNATIONAL BANK OF ISRAEL Credit to the Public 66.8 NIS Billion 9 FIBI Strategic Assets & Liabilities Structure NIS Millions Deposits to Credit Ratio Liquid Assets to Deposits Ratio Capital Adequacy Basel II Core Capital Adequacy :Of which Corporate and Commercial Consumer 16.0 Mortgage Gov. & Bank Deposits 1. 6 NIS Billion 9.33% 126.5% 34.3% 36.1% Of capital available for Investments State of Israel Bonds: 6.5 NIS Billion Deposits-Bank of Israel: 18.7 NIS Billion Sovereigns Bonds: 1.2 NIS Billion Deposits in Banks: 3.5 NIS Billion Banks Bonds: 1.7 NIS Billion NIS+foreign Corporate Bonds: 0.8 NIS Billion Structure Products, Hedge Funds & Stocks:0.7 NIS Billion Market Risks in VAR Terms: (0.04) NIS Billion Capital Notes 5.4 NIS Billion Capital available for Investments 4.4 NIS Billion 14.19%  10.02% Credit against liquid assets Deposits from the Public 83.8 NIS Billion Credit to the Public 66.2 NIS Billion

FIBI FIRST INTERNATIONAL BANK OF ISRAEL 10 Total Assets, Deposits & Credit to the public NIS Millions Credit to the Public Public Deposits Equity Assets

FIBI FIRST INTERNATIONAL BANK OF ISRAEL 11 Credit to the Public by segments NIS Millions Change in % Compared to %28,85528,91231,080 Total Private + Retail (Households) 9.35%14,62214,70215,989 Of which: Mortgage -1.35%13,51713,38713,335 Commercial + Small Business 0.34%21,71022,67921,784Corporate 3.30%64,08264,97866,199 Total Credit to the Public

FIBI FIRST INTERNATIONAL BANK OF ISRAEL 12 Provision for Credit Losses to Credit to the Public Ratio *Since 2011 all collection on Doubtful debts is shown as Expenses for credit losses instead of earnings from financing operations New measurement according to new B.O.I Regulation* Other 4 Leading Banks FIBI

FIRST INTERNATIONAL BANK OF ISRAEL 13 Deposits from the Public by segments Change in % Compared to %22,54523,57124,062 Private Banking 8.00%25,68726,36527,741 Retail (Households) 7.40%48,23249,93651,803 Total Private Deposits (0.64%)10,42811,13810,361 Commercial + Small Business 6.95%20,20620,31321,610Corporate 6.22%78,86681,38783,774 Total

FIBI FIRST INTERNATIONAL BANK OF ISRAEL 14 Composition of Total Proprietary Trading Book NIS Millions Composition Composition Volume Volume %71% 8,5307,393 Government bonds & Secured by Government bonds 90%88% State of Israel bonds 15%17%1,7091,756 Commercial Banks bonds 4% Shares 7%8% Other Of which: Fx Corporate Bonds Of which: NIS Corporate Bonds 100% 11,58310,437 Total NIS Millions Government bonds & Secured by Government bonds 71% Total 90Spain 83Italy 0Portugal 0Greece 0Ireland NIS Millions PIIGS proprietary trading book exposure

FIBI FIRST INTERNATIONAL BANK OF ISRAEL 13.42% 15 Core Capital Ratio Basel II * * ** % 14.57% 13.42% * * * * ** % - 0.7

FIBI FIRST INTERNATIONAL BANK OF ISRAEL 16 Changes in Net Profit - Subsidiaries NIS Millions Core Capital Ratio ROE Change Relative to 1-9/ / % 12.3% 36% % 11.6% 10% % 13.4% 10% % 11.2% 24%24%32.5

FIBI FIRST INTERNATIONAL BANK OF ISRAEL 17 Q3 Highlights  11% ROE at the third quarter and 10.1% ratio for the 9 month ended on September 30.  Continued increase in financing revenues from core banking activity.  Continued decrease in capital market operating commissions due to the decline in stock market activity volumes, while maintaining our share in the activity.  Continued decrease in operating expenses (including in expenses related to activity in the capital market).  Increase in revenues from bonds and shares. a relatively large positive movement in the capital reserve.  Improved profitability at subsidiaries.  Core capital ratio: 9.33%, the highest in the banking industry.