1. Overview
31/12/2010

2. GDP Rate of Growth
* Forecast 2

3. Bank of Israel Interest Rate * and the Rate of Inflation
* Bank of Israel Interest rate for the last month of the Year / Period
** Forecast

4. Country Ratings S & P FITCH MOODY’S A A1 Long Term F1 P1 Short Term
Stable
Outlook 4

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

6. Financial Reports
31/12/2010

7. Ownership Structure Bino/Liberman Group The Public
E , V
E , V
E - 0, V – 0 (stocks dormant)
The Public
FIBI Holding Company Ltd.
FIBI Investment House Ltd.
E + V
E + V
E + V – 20.02
Israel Discount Bank
E – 73.79
V – 73.33
E – 100
V – 100
E - 51
V - 51
E - 100
V - 100
E - 100
V - 100
E - 100
V - 100
E - 75
V - 75
E - 100
V - 100
E - 100
V - 100 E
V - 21
E - 100
V - 100
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 - % Share in Equity
V - % Voting Rights 7

8. First International Bank Group
Corporate + middle market banking
Private + affluent banking
Capital & Money Markets
80 branches
Capital Markets,
Trust & Custody
Private + affluent banking
7 branches
Since 2004
Retail Bank
Cluster
International
Retail/Commercial
Branches: 20 (as for 20/01/2011)
Since 1977
Key Audience: Ultra Orthodox
Business / Corporate Banking
Since 1982
Private Banking
Since 1984
Retail
Branches: 18
Since 2008
Key Audience: Teachers
Retail /Commercial
Branches: 48
Since 2006
Key Audience: Military Personnel 8

9. FIBI’s Multi-Annual Strategic Road Map Focus on PB and Retail while Realizing Synergies
Mergers and Acquisitions
Multi banking group
Unique group services model to control expences
Increasing group branches to 174
Integrated computer system
Realizing synergies, restraining expenses
Market share in private banking increased
Number of retail customers doubled * * *
2003
2004
2005
2006
2007
2008
2009
2010
02/2011
* Acquisition 9

10. Purchasing 3 new banks: to increase market share in private & commercial banking
174 branches 80 48 20 7 19 10

11. 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. 11 11

12. 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 42.6% 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. The controlling interest in FIBI and in the Bank is held by the Bino Family (Mr. Zadik Bino and his three children). 12 12

13. 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 5,787 Million (USD 1,630 Million*)
5th largest banking group in Israel
* $/NIS = as of Dec. 31, 2010 13

14. Bank Ratings Moody’s A 2 Bank Deposits (Long Term) P-1
Bank Deposits (Short Term) C-
Financial Strength
Negative
Outlook
Midrug – Israel
Aa1
Midrug
Ma’a lot - S&P
AA / Negative
Issuer
AA - / Negative
Subordinated Notes 14

15. Strategy - Main Focus Risk Profile Core Capabilities
Conservative capitalization levels: capital adequacy ratio of 12.50%; Core tier one adequacy ratio of 8.08%; deposit/credit ratio of 126.3%
Improved credit mix: steps taken to diversify portfolio through increased penetration of middle market and more consumer credit
Conservatively managed foreign proprietary trading book
Upgraded scoring model and processes in anticipation of Basel II, including development of advanced credit-scoring models for risk-based pricing
Top class reputation in private banking services, especially dealing room, specialized investment advice center and TASE futures and operations index, where FIBI is a market leader
Distinctive professional standards in global capital markets, currency exchange, structured products and foreign trade
Strong traditional position in corporate banking 15

16. Strategy - Main Focus Clients Other
Client-centric vs. product-oriented banking
Measures taken to increase group efficiency, including implementation of a shared-services model
Corporate finance: decrease concentration of credit portfolio, increase penetration of middle market
Private banking: increase market and wallet share through advisory services
Extend presence in affluent and mass-affluent segments
Retail banking: broaden overall footprint 16

17. Group Consolidation
Objective: to realize synergies from three bank acquisitions
Implement shared-services model, including IT systems (UBank IT systems converted in 2008, Massad and Otsar-Hahayal converted on 2010; HQ units unified: logistics, severance pay fund operations, regulatory units and parts of training and human resources operations; process to be accelerated in 2011)
Cross-sell products (mortgages, structured products, advisory services, pension planning, trust, factoring)
Create streamlined and effective branch network to meet growing competition in retail and private banking markets
Oversee management: FIBI executive board members serve on the boards of the new subsidiaries 17

18. Net Operating Earnings and ROE NIS Millions
Yearly
9.7%
8.0%
568
450 *
* Without Bezeq & Hot shares sale 18

19. Net Operating Earnings and ROE NIS Millions
Quarterly
10.3%
9.7%
8.5%
8.6%
152
5.6%
84 *
* Without Bezeq & Hot shares sale 19

20. Statements of income 2010 – 2009 NIS Millions
change
2009
2010 41
2,164
2,205
Earnings from financing operations before provision for doubtful debts
153
(268)
(115)
Doubtful debts 18
1,419
1,437
Operating commissions
(210)
223 13
Income from sales of shares
(84)
120 36
Other income
(33)
(2,741)
(2,774)
Operating & other expenses
917
802
Operating earnings before taxes 35
(371)
(336)
Provision for taxes
(80)
546
466
Operating earnings after taxes
(19) 64 45
The banks net equity in operating results of investee companies 16
(44)
(28)
Exterior share holders
568
484
Net earnings
9.7%
8.0%
Return on equity

21. Changes in Net Operating Earnings
Negative influences
(millions NIS, after tax)
Positive influences
(millions NIS, after tax) 14
Dividends from Bezeq 7
Others 21
Total negative influences 20
Earnings from financing operations before provision for doubtful debts 5
Decrease in provision for doubtful debts 2
Operating income 39
Decrease in operating & other expenses 11
others 77
Total positive influences
Total change: 56 Million NIS 21

22. Ratio of Provision for Doubtful Debts to Credit to the Public
Other 4 Leading Banks
FIBI 22

23. Total Credit Risk in Respect of Problematic Debts (NIS millions)
Change
31/12/10
Compared
with
31/12/09
Balance for date
31/12/06
31/12/07
31/12/08
(98)
815
662
713
643
545
Non income bearing debts
(106)
236
281
324
215
109
Restructured debts
(26)
348 - 3 26
Debts scheduled for restructuring
(14)
224
172
153
106 92
Debts temporarily in arrears
(425)
2,349
1,696
2,430
1,928
1,503
Debts subject to special supervision 66
291
269
445
346
412
Off-balance sheet credit risk
(603)
4,263
3,080
4,068
3,264
2,661
Total credit risk in respect of
problematic debts
Total problematic debts out of total credit ratio: in 2010 – 4.07% ; in 2009 – 5.45% 23

24. Income by banking segments
2006
2010 24

25. Assets according to banking segments
2006
2010
Small business 1% 25

26. Composition of Total Proprietary Trading Book – 31.12.2010
Foreign Currency Proprietary Trading Book
Total Proprietary Trading Book
Composition
Amount NIS Million
67%
10,616
Government & Secured by Government bonds
17%
2,695
Commercial Banks bonds 6%
947
Shares
10%
1,544
Other
100%
15,802
Total 26

27. Operating & Other Expenses NIS Millions
2009
2010 27

28. Operating Income and Expenses
Total income after provision to doubtful debts / expenses adjusted Ratio %
Operating
Expenses
Operating
Income
Income /
Cost Ratio
Adjusted Income /
Cost Ratio % %
Total income before provision to doubtful debts / expenses adjusted Ratio %
Operating Expenses & Income
Adjusted * Operating Expenses & Income
Financing Income excluding provisions for decline in value, clarification 8 position 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 and special provisions
64.3%
53.6%
56.2%
108.7%
119.7%
126.9%
133.1%
118.7%
123.9%
52.9%
55.0%
52.7% 28

29. Capital Adequacy Ratio – Basel II
Core capital
Overall capital
FIBI
4 top Banks * * **
14.30%
Capital Adequacy
14.57%
13.42% * *
Core Capital Adequacy ** 29

30. Changes in Assets, Deposits & Credit to the Public (NIS Billions)
Shareholders equity
Credit to the public
Deposits from the public
Assets 30

31. Deposits from the Public 80.2 NIS Billion Credit to
Capital Adequacy – Bazel II
12.50%
Core capital – Bazel II
8.08%
Deposits / Credit Ratio
126.3%
Bonds-State of Israel: 9.0 NIS Billion
Liquid Assets
32.6%
Gov. & Bank Deposits
2.3 NIS Billion
Cash/Deposits-Bank of Israel: 11.7 NIS Billion
Bonds-Foreign states: 1.6 NIS Billion
Deposits in Banks: 3.8 NIS Billion
Capital Investments
Capital Notes
4.8 NIS Billion
Bonds-Banks: 2.7 NIS Billion
65.8%
NIS+Forex Corporate Bonds: 1.5 NIS Billion
Capital available for Investments 3.8 NIS Billion
Of capital available for Investments
Structure Products, Hedge Funds & Stocks:1.0 NIS Billion
Credit Risks in VAR Terms: (0.03) NIS Billion 31

32. Private banking & capital market
Expanding retail banking
Business focus
Private banking & capital market
Corporate & commercial banking
Controlling group expenses 32

33. Banking Subsidiaries in Israel
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.

34. Banking Subsidiaries in Israel
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.
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. 34 34

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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. 35