1. First International Bank of Israel Ltd. - FIBI

2. Ownership Structure Bino-Liberman Group FIBI Investment House Ltd.
As of
Bino-Liberman Group
FIBI Investment House Ltd.
E %
V. 0%
The Public
E %
V %
E %
V %
FIBI Holding Company Ltd.
E. 100%
V.100%
Israel Discount Bank
The Public
E %
V %
The First International Bank of Israel Ltd.
E %
V %
E %
V. 11.1%
E. 68%
V.66%
E %
V.68.68%
E. 51%
V.51%
E. 100%
V.100%
E. 100%
V.100%
E. 100%
V.100%
Otsar
Hahayal
PAGI
Poalei Agudat Israel
Bank Ltd.
Bank
Massad
UBank Ltd.
FIBI Bank
(UK) Plc
FIBI Bank
(Suisse)
Ltd.
E. 75%
V. 25%
E.50%
V. 60%
E. 100%
V.100%
The First Int’l
& Co.
Underwriting and
Investments Ltd.
Modus-Selective
Investments
Portfolio Ltd.
Kidma –
Provident Funds
Management Ltd.
E. Percentage of equity share capital ownership
V. Percentage of voting power exercised at any general meeting

3. First International Bank Group
FIBI
Corporate + middle market banking
Private + affluent banking
85 branches
Retail bank
cluster
U - Bank
International
Capital markets
Trust and custody
Private and
affluent banking
6 branches (unique
branches)
Massad
PAGI
Otsar
Hahayal
FIBI Bank (UK)
FIBI Bank
(Suisse)
Focus:
retail
retail/commercial
retail/commercial
Business
banking
Private
Private
banking
Branches: 17 20 47
Since:
2008
1977
2006
Key audience:
teachers
ultra-orthodox
defense + military

4. 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), defense sector - retail banking (Otsar Hahayal), ultra-orthodox Jews (PAGI), and teachers (Massad)
Foreign subsidiaries in London (commercial banking) and Zurich
(private banking)
Branches: 175 in Israel (including subsidiaries)
Employees: 4,829
Equity: NIS 5,491 Million (US$ Million *)
5th largest banking group in Israel
* $/NIS =

5. Financial Strength Ratios as of 31.12.2008
The Five Leading Banking Groups by Rank
First Tier Capital Adequacy Ratio
Capital Adequacy Ratio
Deposit to Credit Ratio
Problem Debt to Credit Ratio
Provisions to Credit Ratio 1
8.71%
12.32%
130.5%
6.6%
0.39%
FIBI 2
7.60% 4
11.15%
102.2%
7.3%
0.68%
Hapoalim 3
7.51%
11.52%
114.8% 5
10.7%
1.01%
Leumi
7.44%
10.27%
119.2%
8.1%
0.67%
Discount
6.64%
11.31%
104.2%
8.0%
0.45%
MIzrahi
11.6%1
8.5%
0.72%
Total

6. Deposits from the Public (25% Deposits from the Public)
Pre - Tax
Provisions
Credit to the Public
NIS 61 Billion
Deposits from the Public
NIS 79.9 Billion
Deposits / Credit Ratio 131%
12.3% is secured under
liquid Assets
(Deposits / State Bonds)
NIS 238 M
Liquid Assets
(25% Deposits from the Public)
Bonds – State of Israel NIS 9.3 Billion
Bonds OECD NIS 617 Million
Cash/Deposits-Bank of Israel NIS 10 Billion
Deposits in Banks NIS 5.2 B
Bonds – Banks NIS 4 B
Capital Notes NIS 4.5 B
NIS 86 M
NIS 57 M
NIS 173 M
NIS 20 M
No Provision
NIS 42 M
Gov. & Bank Deposits NIS 1.9 B
NIS Corporate Bonds, NIS 1 B
MBS Prime+AltA NIS 282 M
Hedge Funds & Stocks NIS 168 M
Credit Risks in VAR Terms NIS 125 M
Structure Products NIS 259 M
FOREX Corporate Bonds NIS 655 M
BEZEQ+HOT NIS 536 M
Capital Investments
81.7% of capital available for Investments
Capital available for Investments*
NIS 3.7 B
* Shareholder’s Equity less Liquid Assets

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

8. Total Credit Risk in Respect of
Problematic Debts (Consolidated, NIS millions)

9. Ratio of Deposits to Credit 131%*
Changes in Assets, Deposits and Credit to the Public (Consolidated, NIS Billions) 69 . 6 72 7 98 9 92 5 86 58 61 2 79 75 8 44 3 52 55
2008
2007
2006
2005
2004
Ratio of Deposits to Credit 131%*
Total assets
Credit to the Public
Deposits from the Public
(*) The average deposits/credit ratio in the five leading banking groups: 112%

10. Capital Adequacy Ratio - FIBI (%)
8,043
7,828
7,806
7,164
7,163
Capital Adequacy *
12.3%
11.4%
11.6%
11.7%
11.4% 5 ,
402 5 ,
507 5 ,
677 5 ,
740 5 ,
690
First Tier Capital Adequacy
8.6%
8.9%
8.5%
8.4%
8.7% IV / 07 I / 08 II / 08
III / 08 IV / 08
First Tier Capital Ratio (NIS Millions)
Second Tier Capital Ratio (NIS Millions)
(*) Realization of the full potential for raising tier 2 capital would bring the capital adequacy ratio to 12.6%; following the report date, the Bank raised an addition NIS 355 million in capital notes

11. Composition of Proprietary Trading Book (Consolidated, NIS Millions)
* Including 456 Million NIS investment in BEZEQ Shares and 80 M NIS in HOT shares
both used as collateral for credit granted

12. Net Operating Earnings and ROE - Consolidated
453
503
161
587
2008
2007
2006
2005
2.9%
12.0%
11.4%
11.5%
* Including tax returns on previous years in 2007 and revocation of the Adjustment to Inflation Law and a tax rate reduction in 2008

13. Income by Customer Segments *
SMALL
BUSINESS
PRIVATE
COMMERCIAL
CORPORATE
HOUSEHOLD
* Not including the “Financial Management” & “Other” Segments

14. Income to Risk Assets
(*) Includes Household, private banking and SME segments; segmentation of customers and expense allocations differ from bank to bank

15. Banking Subsidiaries in Israel
PAGI, in which FIBI has a 68% equity holding is a commercial bank with 20 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.
UBANK - FIBI acquired 100% of share capital of UBANK (formerly Investec Bank (Israel) Ltd.) in December 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. UBank’s IT systems were fully integrated into FIBI’s at end 2008.
In 2007 UBANK launched an innovation in Israeli banking – dedicated branches for affluent clients. This premium service comprises distinctive branch design and hours of operation, along with other attractive features.

16. OTSAR HAHAYAL - FIBI acquired 68% of the share capital of Otsar Hahayal in August, Bank Otsar Hahayal specializes in retail and small to medium-sized businesses (SMEs) and has a high proportion of current and former Defence 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.
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 is currently in 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. .

17. Changes in Net Profit - Subsidiaries
Comments
% change
2007
2008
Strong growth in income
(0.9)
38.0
37.1
Decrease in income from Capital Markets
(13.4)
78.7
65.3
Increase in doubtful debts provisions, one-time incomes and earnings in 2007
(62.5)
144.7
52.2
Increase in doubtful debts provisions
(13.0)
36.4
23.4 *
Provisions for decline in value of securities
(2,976)
2,526
(450)
FIBI Bank (UK) (GBP K)
Proprietary trading book losses
(598)
6,286
5,688
FIBI Bank (Switzerland) (CHF K)
* Excluding employee grant paid following the sale of the bank in 2008