1. FIBI
FIRST INTERNATIONAL BANK OF ISRAEL
Overview
31/3/16

2. Net Profit and ROE (Millions NIS)
Average capital
7,119
4.2%+
6,833
Common Equity capital (tier 1) to risk weighted assets ratio
9.49%
9.92%
* Goodwill amortization amounts to 11 Million NIS In Q1/16 (44 Million NIS annually) and decreases ROE by 0.65% .

3. Statements of Income I/2016 –I/2015 ((Millions NIS
Change in %
Gross change
I/2015
I/2016
7.9% 41
519
560
Interest Income and Non-Interest Financing Income
(79) 12
(67)
(Income)/Expenses from Credit Losses
(8.4%)
(30)
357
327
Commissions (Includes 19 Million NIS decrease in capital market commissions)
11.0% 96
870
966
Total Income after (income)/Expenses from Credit Losses)

4. Statements of Income I/2016 –I/2015 ((Millions NIS
Change in %
Gross change
I/2015
I/2016
7.6% 49
649
698
Total Operating and Other Expenses
(3.1%)
(14)
448
434
Salaries and Related Expenses
(72) -
Decrease in Salaries due to Leumi Agreement- Previous year
(7.1%)
(6) 85 79
Maintenance of buildings and equipment
17.4% 4 23 27
Depreciation and amortization
(5.2%)
(7)
134
127
Other Expenses
21.2% 47
221
268
Profit before taxes 24 94
118
Provision for taxes on profit (including 16 Millions non-recurring expense in Q1/16)
17.6% 22
125
147
Net Profit
7.5%
8.5%
ROE
(0.10%)
0.20%
0.10%
Bank of Israel Average Interest Rate
73.6%
77.6%
Efficiency Ratio (Total Operating Expenses to Total Income)
81.8%
Efficiency Ratio (excluding the effect of Leumi agreement last year)

5. Operating & Other Expenses (Millions NIS)
Continuing decrease in all operating expenses
I/2016
I/2015
(23)
3.2%-
14-
3.1%- *
(Includes non recurring expense (of 16 millions NIS 3- 24 6-
*Excluding Leumi agreement affect in Q1/2015.
** Q1/16 tax expenses includes non-recurring expense of 16 Million NIS, due to the decrease in the corporate tax rate on deferred tax balances.

6. Deposits from the public
The Development in Balance Sheet, Equity, Credit and Deposits - end of period
((Billions NIS
Credit to the public
Deposits from the public
Capital attributed to the shareholders of the Bank
Balance sheet
Leverage ratio at 31/3/16 is 5.44%
0.9%+
0.6%+
2.7%+
2.0%+

7. Credit to the Public by Business Segments (Millions NIS)
Rates of Change compared to
31/3/15
31/12/15
31/3/16
8.8%
0.9%
18,093
Private Clients (excluding mortgage)
10.8%
2.6%
20,957
Mortgages
9.9%
1.8%
39,050
Credit to Private Clients
-1.7%
3.4%
21,339
Corporate
4.9%
4.2%
14,145
Commercial and Small Businesses
5.4%
2.7%
74,534
Total Credit to the Public
() – 31/12/15
Credit to private Clients to total credit- 52%

8. Expenses for Credit Losses to Credit to the Public Ratio
FIBI
Other 4 leading Banks
Includes an Implementation of Bank of Israel directives regarding group provision

9. Credit risk due to Problematic Debt (Millions NIS)
31/3/16
31/12/15
31/3/15
Gross
Change compared to 31/12/15
Change compared to 31/3/15
Impaired Credit Risk
971
922
910 49 61
Inferior Credit Risk
178
265
240
(87)
(62)
Credit Under Special Supervision Risk
986
1,032
1,585
(46)
(599)
Total Problematic Credit Risk
2,135
2,219
2,735
(84)
(600)
Ratio of the provision for credit losses to impaired credit to the public not accruing interest income (NPL coverage ratio)
103.8%
107.9%
A decrease of 4% in total Problematic Credit Risk in Q1/16 (22% decrease compared to Q1/15)

10. Equity Capital (core tier 1) Ratio- Capital Adequacy
Equity capital (core tier 1) ratio target at 31/12/17
10.75% *
10.50%
9.15%
9.8%
9.28% *
14.30%
14.57%
13.42%
13.42% * *
The data is updated to 31/3/16.

11. FIBI Strategic Assets & Liabilities composite (*)
FIBI Strategic Assets & Liabilities Structure
(NIS Billions)
FIBI Strategic Assets & Liabilities composite (*)
(NIS Billions)
Capital to Risk Assets Total Ratio
equity capital (tier 1) to risk components ratio
Deposits to Credit Ratio
Liquid Assets to Deposits Ratio
12.92%
9.92%
139.3%
41.1%
Liquidity Ratio (LCR)
105%
13.26%
9.81%
142.3%
42.0%
104%
Public
Deposits
103.9
Credit to the Public
74.5
State of Israel Bonds 9.2
Bank of Israel Deposits 26.5
Gov. & Bank deposits
2.3
Capital Notes 5.7
Capital Available for Investment 5.6
Corporate and banks Bonds (foreign & Israel currency) 1.1
Bonds of foreign countries 3.8
Structures, Hedge Funds &Stocks 0.3
Market Risk in VAR(0.2)
(*) For iIllustration only – not to scale

12. Main events in the last year – The merger of UBANK & PAGI with FIBI
UBANK merging
The merger of UBANK ended successfully on 30/9/15, while maintaining the brand name – a leading brand in private banking
PAGI merging
The merger of PAGI ended successfully on 31/12/15, while maintaining the brand name – a leading brand in ultra-orthodox sector
Dealing with regulatory barriers
Done
Reducing employees in the headquarters- the main part was done in Q4/16 following the merger of UBANK
Done
Improving the group synergy on the revenue side
In process
Following the mergers an increase in client activities with PAGI & UBANK clients in Q1/2016 and is expected to grow on next quarters
In process
Improving the group synergy on branch network
In process
Reducing group’s real estate space
In process

13. Highlights for Q1/2016
Net Profit
Group Net Profit in Q1/16 was 147 Millions NIS compared to 125 Millions NIS in Q1/15, an increase of 17%.
The ROE in Q1/16 is 8.5%, compared to 7.5% in Q1/15, and 6.5% in 2015.
Goodwill amortization of about 44 Millions NIS detracts about 0.65% from the ROE. In 2016 an amount of approximately 36 Millions NIS (0.5% ROE) from the goodwill amortization will end on Q3/16.
The provision for taxes on profit includes a non-recurring expense of 16 Millions NIS regarding corporate tax decline.
Equity Capital
(tier 1) Ratio
Increase in equity capital ratio (tier 1) 9.92% vs. a ratio of 9.81% in 12/2015.
A 3.2% decrease in
total group expenses compared to Q1/15
(excluding non-recurring income regarding leumi
Agreement)
Continuing trend of decrease in the bank expenses, in scale of 23 Million NIS. A reduction in all of the expenses sections.
Salary expenses decreased by 14 Million NIS.

14. Highlights for Q1/2016
Credit Growth and also growth in the client’s investment portfolios
An annually growth of 5.4% in credit balances and 2.7% on Q1/16. Growth in all customers segments:
8.8% annually increase in credit balances to private sector (excluding mortgages loans)
Continuing growth in mortgages – 10.8% annually increase
5% annually increase in credit balances to commercial and small business (Middle Market) credit
1.7% annually decrease in corporate credit. Increase of 3.4% in Q1/16.
An increase of 2 Billion NIS in client’s investment portfolios, Despite the negative trend in the capital markets.
Decrease in expenses for credit losses
Income from credit losses of 67 Million NIS in Q1/16 versus an expenses of 12 Millions NIS in Q1/15. The Income this quarter is primarily a result of a decrease in the expenses for credit losses on a collective basis.
High NPL ratio and decline in problematic credit risk
High Ratio of provision for doubtful accounts versus non-performing credit (including mortgages) 103.8%.
Decrease of 4% in total problematic credit risk in Q1/16 (22% decrease compared to Q1/15).

15. Disclaimer
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.
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.
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.
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.
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.