1. Overview 31/12/2009

2. 2 GDP Rate of Growth (%) * Forecast

3. 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 ** Forecast

4. 4 Country Ratings S & P FITCHMOODY’S AAA1A1 Bank Deposits (Long Term) A1A1F1F1P1P1 Bank Deposits (Short Term) Stable Outlook

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

6. Financial Reports 31/12/2009

7. 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 - 79.06, V - 79.06 E - 20.94, V - 20.94 E - 100, V - 100 E - 0, V - 0 (Stocks Dormant) E - 54.33, V - 74.9 E - 19.22, V - 14.01 E - 26.45, V - 11.09 E - 68 V - 66 E - 68.7 V - 68.7 E - 51 V - 51 E - 100 V - 100 E - 100 V - 100 E - 100 V - 100 E - 100 V - 100 E - 100 V - 100 E - 28.2 V - 21 E - 100 V - 100 E - 75 V - 75 E - % Share in Equity V - % Voting Right 7

8. -Retail /Commercial -Branches: 47 -Since 2006 -Key Audience: Security -Retail -Branches: 17 -Since 2008 -Key Audience: Teachers First International Bank Group First International Bank - Corporate + middle market banking - Private + affluent banking - Capital & Finance Markets - 80 branches Retail Bank Cluster International - Capital, Trust & Custody Markets - Private + affluent banking - 6 branches - Since 2004 - Private Banking - Since 1984 - Business Banking - Private Banking - Since 1982 -Retail/Commercial -Branches: 19 -Since 1977 -Key Audience: Ultra Orthodox 8

9. 9 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. 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 General Manager 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, as well as of the Bank's. The controlling interest in FIBI and in the Bank is held by the Bino Family (Mr. Zadik Bino and his three Children). 10

11. 11 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: 169 in Israel (including subsidiaries) Employees: 4,987 (including subsidiaries) Equity: NIS 6,165 Million (USD 1,633 Million*) 5 th largest banking group in Israel * $/NIS = 3.775 as of Dec. 31, 2009

12. 12 Bank Ratings MOODY’S A 2 Bank Deposits (Long Term) P-1 Bank Deposits (Short Term) C-Financial Strength NegativeOutlook Midrug – MOODY’S BBB+ Midrug Ma’a lot - S&P AA / Negative Issuer AA - / Negative Subordinated Notes

13. 13 Core Capabilities Strategy - Main Focus Conservative capitalization levels: capital adequacy ratio of 14.18%; 1st tier adequacy ratio of 9.9%; deposit/credit ratio of 137.0% 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 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 activities, 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 Subsidiaries specializing in growth retail markets (PAGI-ultra orthodox, UBank-affluent, Otzar Hahayal-military personnel, Massad-teachers) Risk Profile

14. 14 Clients Strategy - Main Focus 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, state-of-the-art pension planning advise offering Retail banking: broaden overall footprint organically and via newly acquired subsidiaries Measures taken to increase group efficiency, including implementation of a shared- services model Decision taken to withdraw from computer infrastructure outsourcing agreement Other Client-centric vs. product-oriented banking

15. 15 Group Consolidation Objective: to realize synergies from three bank acquisitions Implement shared-services model, including IT systems (UBank IT systems converted in 2008, Massad converted in 2010 and Otsar-Hahayal planned for 2010; HQ units unified: logistics, severance pay fund operations, regulatory units and parts of training and human resources operations, process to be accelerated in 2010) 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

16. 16 Net Operating Earnings and ROE NIS Millions QuarterlyAccumulated 9.7% 2.9% (5.6(% 10.3% 11.5%

17. 17 Ratio of Provision for Doubtful Debts to Credit to the Public 4 Other Leading BanksFIBI

18. 18 Total Credit Risk in Respect of Problematic Debts (NIS millions) Change 31/12/09 Compared with 31/12/08 Balance for date 31/12/0531/12/0631/12/0731/12/0831/12/09 (70) 1,188815 662 713 643 Non income bearing debts (109) 221 236 281324215 Restructured debts 23227348-326 Debts scheduled for restructuring (47) 285224172153 106 Debts temporarily in arrears (502)3,2812,3491,6962,4301,928 Debts subject to special supervision (99)345291 269 445 346 Off-balance sheet credit risk (804)5,5974,2633,0804,0683,264 Total credit risk in respect of problematic debts

19. 19 Composition of Total Proprietary Trading Book Composition Amount NIS M 61% 8,654 Government & Secured by Government bonds 24%24%3,464Commercial Banks bonds 1%1%214Shares 14%14%1,977Other 100%14,309Total Foreign Currency Proprietary Trading Book Total Proprietary Trading Book

20. 20 Operating Commissions – (FIBI only) (NIS Millions) 2008 2009

21. 21 Operating Commissions – (Group) (NIS Millions) 21 20092008 1,419 1,320 Total Operating Commissions 1,3281,256Without Massad 2009 2008 Including Massad

22. 22 Operating & Other Expenses (Group) (NIS Millions) 2009 2008 Including Massad

23. 23 Operating Expenses & IncomeAdjusted * Operating Expenses & Income * Income excluding dividends, provisions for decline in value of proprietary trading book and severance pay fund gains; expenses excluding severance pay fund effects 64.3%51.5%51.9%52.3% Operating Income and Expenses % Operating Income Operating Expenses Cost / Income Ratio Adjusted Cost / Income Ratio

24. 24 14.30% 14.18% 13.42% 7.65%8.19% 9.80% 8.40% 9.9% 11.40% 11.48% Capital Adequacy Ratio Second Tier 4 Bank Groups Capital Adequacy First Tier Capital Adequacy 13.65% 8.41% Bazel II: Capital Adequacy - 14.03% First Tier Capital Adequacy - 9.31% FIBIFirst Tier

25. 25 Changes in Assets, Deposits & Credit to the Public (NIS Billions) Credit to the public Deposits from the public Shareholders equity Assets Deposits / Credit Ratio 137% *

26. 26 Financial Strength Ratios as of 31.12.2009 The Five Leading Banking Groups by Rank Doubtful debts / Credit Ratio Problematic debt / Credit Ratio Deposit / Credit Ratio First tier Capital Adequacy Ratio* Capital Adequacy Ratio* 0.44% 2 5.4% 1 137.4% 1 9.86% (9.31%) 1 14.18% (14.03%) 2 FIBI 0.93% 5 7.7% 3 107.5% 4 8.60% (8.52%) 3 13.68% (13.67%) 3 POALIM 0.74% 3 9.8% 5 122.4% 3 8.52% (8.33%) 4 14.31% (14.09%) 1 LEUMI 0.87% 4 8.1% 4 123.9% 2 8.79% (7.51%) 2 13.12% (12.06%) 4 DISCOUNT 0.39% 1 5.6% 2 99.8% 5 7.07% (8.01%) 5 12.57% (14.25%) 5 MIZRAHI TEFAHOT 0.75% 7.9%116.2%8.53%13.69% AVERAGE * Bazel I (Bazel II)

27. 27 Deposits from the Public 82.8 NIS Billion Deposits / Credit Ratio Liquid Assets Capital Adequacy: Bazel I Bazel II First Tier: Bazel I Bazel II Deposits from the Public Capital Investments 31.1% Is secured under liquid assets (Deposits / State Bonds) Credit to the Public 60.3 NIS Billion Gov. & Bank Deposits 3.0 NIS Billion 14.18% 9.31% 137% 36.4% 53% Of capital available for Investments Bonds-State of Israel: 7.0 NIS Billion Cash/Deposits-Bank of Israel: 19.7 NIS Billion Bonds-Foreign states: 1.6 NIS Billion Deposits in Banks: 3.5 NIS Billion Bonds-Banks: 3.5 NIS Billion NIS+Forex Corporate Bonds: 1.8 NIS Billion Structure Products, Hedge Funds & Stocks:0.5 NIS Billion Credit Risks in VAR Terms: (0.05) NIS Billion Capital Notes 4.9 NIS Billion Capital available for Investments 4.3 NIS Billion 14.03% 9.9%

28. 28 Changes in Net Profit - Subsidiaries (NIS Millions) Change20082009 (4.1)37.133.0 0.3 65.3 65.6 7.9 52.2 60.1 8.3 21.1 * 29.4 1,283 (450) 833 1,6082,1103,718 CHF K GBP K * Excluding the sale grant

29. 29 PAGI, in which FIBI has a 68% equity holding is a commercial bank with 19 branches, and 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 segment has grown significantly. PAGI’s strategy is to aggressively grow its client base, while focusing on target segments with intensive financial activity in personal, business, and institutional banking. Banking Subsidiaries in Israel UBANK - FIBI acquired 100% of share capital of UBANK (formerly Investec Bank (Israel) Ltd.) in December 2004. It is maintained as an independent subsidiary. 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. 29

30. 30 OTSAR HAHAYAL - FIBI acquired 68% of the share capital of Otsar Hahayal in August, 2006. Bank Otsar Hahayal specializes in retail and small to medium-sized businesses (SMEs) and has a high proportion of current and former 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 activity and earning base. FIBI is currently in the process of integrating Otsar Hahayal’s IT systems and coordinating across headquarters support functions. Banking Subsidiaries in Israel MASSAD - FIBI acquired 51% of the share capital of Massad in May 2008.Massad, as a sectorial bank, specializes in teaching personnel as its client base. FIBI completed the process of integrating Massad’s IT System and coordinating 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. 30

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