1. FIBI
FIRST INTERNATIONAL BANK OF ISRAEL
Overview

2. Core capital adequacy ratio
Net Profit and ROE NIS Millions
ROE **
NIS Millions
Average capital
6,418
6.0%+
6,806
6,056
6,649
9.8%+
Core capital adequacy ratio
9.65%
10.04%
9.65%
10.04%
* Assuming core capital ratio of (9.33%), (the Israeli banking industry average core capital ratio as of ), the ROE is 9.18% in FY2013 and 9.42% in Q
** The Net profits include amortization of 51 NIS Millions, inflicting a 0.8% reduction in the year’s ROE.

3. Statements of income 2013-2012 NIS Millions
Change in %
Gross change
2012
2013
(2.8%)
(63)
2,250
2,187
Interest income, net
(27.6%)
(37)
134 97
Expenses from credit losses (0.14% provision rate) (*)
(1.2%)
(26)
2,116
2,090
Net interest income after expenses from credit losses
8.7%
135
1,547
1,682
Total non-interest income
33.3% 50
150
200
Of which: non-interest financing
4.1% 56
1,362
1,418
Commissions
82.9% 29 35 64
Other Income
3.0%
109
3,663
3,772
Total income (after expenses from credit losses)
1.2% 34
2,791
2,825
Total operating and other expenses
8.6% 75
872
947
Profit before taxes
19.1% 62
324
386
Provision for taxes on profit
(41.2%)
(21) 51 30
The bank’s share in profit of equity-basis investees, after taxes
(7)
577
570
Net profit
9.5%
ROE
9.65%
10.04%
Core capital ratio (end of period)
(0.96%)
2.35%
1.39%
Bank of Israel average interest rate
(13)
* Excluding a one time regulatory provision for mortgages - the provision rate is 0.11%

4. An increase in customers activity resulted in a 4
An increase in customers activity resulted in a 4.1% increase in Operating commissions income (NIS Millions)
2013 56
2012
4.1%
Excluding fees from capital markets activity we maintain a 11 NIS Millions growth 45 24
13-
An increase of 8.6% in capital markets fees (linked to an increase in customers activity)

5. Total Income to Total Weighted Risk Assets Ratio

6. An increase of 1.2% in Operating & Other Expenses (NIS Millions)
1-12/2013
1-12/2012
1.2% 54
3.3%
26- 6
1.0%
(4.7%) *
The operating expenses increase resulted mainly by the VAT increase on salaries and other expenses
* Including amortization of 51 NIS Millions

7. Improved Operational Efficiency Ratio (Consolidated)
Total Operating Expenses to Total Income
Total Income
Total Operating Expenses %
Total Operating Expenses / Total Income (Before Expenses from credit losses)
Total Operating Expenses / Total Income (After Expenses from credit losses)
76.2%

8. FIBI Strategic Assets & Liabilities Structure
NIS Billions
FIBI Strategic Assets & Liabilities composite*
(NIS Billions)
Public
Deposits
89.1
Credit to the Public
68.7
Capital Adequacy
Basel II
14.94%
14.96%
Core Capital Adequacy
Basel II
9.65%
10.04%
Estimate Core Capital Adequacy
Basel III
10.11%
State of Israel Bonds 6.9
Deposits to Credit Ratio
124.3%
129.7%
Bank of Israel Deposits 23.1
Gov. & Bank Bonds
2.0
Liquid Assets to Deposits Ratio
35.4%
38.4%
Sovereigns Bonds 1.2
Deposits in Banks 3.0
Capital Notes 5.7
Capital Available for Investment 5.0
Banks Bonds 1.5
NIS, Corporate Bonds 0.8
Structures, Hedge funds &Stocks 0.6
Market risk in VAR(0.04)
* illustration – not to scale

9. An increase of 5% in balance sheet NIS Billions
5.1%
4.1%

10. Continued Growth in Equity
Shareholders` equity to total balance ratio is stable despite of the substantial growth in the total balance
Shareholders` equity to total balance ratio 5%
13%
6.2%
6.2%
5.7%
The presented growth in equity is after dividend distribution of 200 Nis Millions in june Additional dividend of 100 Nis Millions was distributed in Q1/13.

11. Statement Of Changes in Equity NIS Millions
6,563
Balance At 31/12/12 Total Shareholders Equity
570
2013 Net Earnings for the year
(200)
Dividend Paid 2013
(41)
Other Comprehensive loss and others
6,892
Balance At 31/12/13 Total Shareholders Equity 5%
Increase in Equity 8%
Increase in
Equity Excluding Dividend Paid

12. Credit to the Public by segments 31.12.2013 NIS Millions
Change in % Average Balance Compared to
2012
Gross Change in Average Balance Compared to
Gross Change Compared to 2012
6.1%
912
1,055
15,335
16,390
Private + Retail (Households)
13.4%
2,061
1,167
16,260
17,427
Mortgage
9.8%
2,973
2,222
31,595
33,817
Total private clients
(2.2%)
(290)
(331)
13,274
12,943
Commercial * + Small Business
(5.9%)
(1,344)
(1,064)
23,010
21,946
Corporate
2.0%
1,339
827
67,879
67,706
Total Credit to the Public
(19%)
(23%)
(34%)
(24%)
() –
* The decrease is due to the closure proceedings of FIBI London.

13. Provisions for Credit losses 2007-2013
Expenses for Credit Losses to Credit to the Public Ratio
Provisions for Credit losses **
*In Q1 the Bank has implemented a one time regulatory provision on mortgage portfolio in order to set the expenses for credit losses ratio to 0.35% of the mortgage credit balance (24 NIS million). Excluding this one time provision, the bank’s ratio is about 0.08% and the group’s ratio is 0.11% in 2013.
** In Q4 Expenses for Credit Losses to Credit to the Public Ratio is 0.19%

14. Gross Change Compared to
An increase of Total Client Assets
NIS Millions
Change in % Compared to
Gross Change Compared to
5.6%
4,757
84,365
89,122
Total Deposits
16.8%
32,420
192,678
225,098
Securities clients portfolio
13.4%
37,177
277,043
314,220
Total Client Assets
Breakdown of deposits portfolio
(23%)
(32%)
(30%)
(13%)
() –

15. The highest Core Capital Ratio compare to other 4 leading banks
Basel III
10.11%
8.73%
8.80%
9.20%
9.15% * **
Basel lII
Minimal Regulatory
Requirement For
HAPOALIM&LEUMI *
Basel II
14.30%
Minimal
Regulatory
requirement
14.57%
Basel II**
13.42%
13.42% * *
Gap * **
-1.3
-0.67
-0.63
0.57- % % %

16. FIBI is demonstrating relative strength in main financial ratios
Core capital ratio and principal financial ratios
Dividend yield
2013
Expenses for credit losses to credit to the public*
Provision for credit losses, to impaired credit (excluding mortgage)
Deposits from the public to credit to the public
Ratio of core capital to risk assets
Shareholders` equity to total balance ratio
3.53%**
0.14%
73.9%
129.7%
10.04%
6.20%
1.17%
0.34%
48.7%
109.9%
9.37%
7.64% -
0.11%
59.3%
118.7%
9.43%
7.06%
0.50%
56.8%
128.5%
9.30%
6.10%
0.87%
0.21%
59.7%
101.9%
9.01%
5.49%
0.27%
57.0%
114.2%
9.33%
6.84%
Other 4 leading Banks Average
*In annual terms . Financial ratios are as of
** In Q1/14 additional dividend of 100 Nis Millions was distributed, hence dividend yield as of 30/6/13 is 5.3%. 16

17. Subsidiaries net profit
Core Capital Ratio
ROE
Net profit
Nis Millions
Specialization
9.6%
9.65%
103.1
Retail customers
Defense forces personnel
Commercial/ Corporate
Factoring
15.5%
9.5%
42.0
Capital Markets, Trust & Custody services
Private& affluent banking
15.1%
42.1
Teachers sector
Israeli-Arab segment
12.4%
11.1%
38.5
Ultra orthodox segment

18. 2013 Highlights Stable net profit The highest Core capital ratio
Net profit of 570 NIS Million in 2013 similarly to 2012, despite of substantially decrease in interest rate and regulatory reforms inflicting reductions in commissions
The Profit before taxes increased by 8.6%.
The highest Core capital ratio
The highest Core capital ratio in the Israeli banking system (also according to Basel III regulation ) – 10.04%.
The Highest dividend yield in the Israeli banking system
In 2013 the bank distributed a dividend of 200 NIS Million, additional dividend of 100 Nis Millions was distributed in Q1/2013.

19. 2013 Highlights Improve in Operational Efficiency Ratio
Total income increased by 3% while Operating & Other Expenses increased by only 1.2% (despite of an increase of salaries).
Most of the increase in the operating expenses is related to the VAT increase
Continued growth in retail core activity
A yearly increase of 5% in total balance over the last two years
2.0% increase in the average credit balance, and 9.8% in private clients credit balance
Total client assets (deposits & securities) increased by about 23 Nis Billion (13.4%), including an increase of 8.6% in capital markets fees
An increase of 4.1% in commissions due to growth in customers activity particularly in capital markets
Maintaining quality and spreading of credit portfolio
Decrease in credit losses Provisions % compared to 0.2% in 2012.

20. FIBI’s Main Strategic Objectives for the next years
Operational improvement
Continued efforts to Improve income per employee and per account
Maximizing group’s synergies and economies of scale
Continued on going process to utilize the groups real estate including reduction of HQ areas & effective planning of branches format
Commercial & Corporate Banking
Capital and money market Services
Maintaining quality and diversified credit portfolio
Increasing the Bank`s market share in the commercial sector
Strategy
Maintain market leader position and professional reputation in capital and money markets
Retail Customers
Continued development of online and mobile banking
Maintain market position in private banking & investment consultancy
Customer base growth via subsidiaries and organic growth