FIBI FIRST INTERNATIONAL BANK OF ISRAEL O verview

FIBI FIRST INTERNATIONAL BANK OF ISRAEL 2 Net Profit and ROE (Millions NIS) * Goodwill amortization amounts to 44 Million NIS and decreases ROE by 0.65%. ** excluding Non-recurring events Average capital Common Equity capital (tier 1) to risk weighted assets ratio 6,9256, %+ ROE 6, % 9.73% 6,652 6, %+ 3.1%+ * ** Non-recurring events during the reporting period: “ZE’EVI” lawsuit affected the 3 rd quarter profit by 37 million NIS (23 million NIS net profit). Compensation Provision for merger of U-Bank –31 million NIS (19 million NIS net profit). The effect in the 3 rd quarter - 15 million NIS (9 million NIS net profit). Non-recurring events during the reporting period: “ZE’EVI” lawsuit affected the 3 rd quarter profit by 37 million NIS (23 million NIS net profit). Compensation Provision for merger of U-Bank –31 million NIS (19 million NIS net profit). The effect in the 3 rd quarter - 15 million NIS (9 million NIS net profit).

FIBI FIRST INTERNATIONAL BANK OF ISRAEL 3 Statements of Income 1-9/2015 – 1-9/2014 ((Millions NIS Change in % Gross change 1-9/ /2015 (9%)(149)1,6031,454 Interest Income 43(8)35 Expenses from Credit Losses (12%)(192)1,6111,419 Interest Income after Expenses from Credit Losses (5%)(67)1,2381,171 Non-Interest Income (25%)(39) Non-Interest Financing Income (including the influence of “ZE’EVI” lawsuit - 37 million NIS) 2%191,0221,041 Commissions 4% Of which: Commissions from Activity in Capital Markets (78%)(47)6013 Other income (2014 year sale of FIBI LONDON for 31 millions NIS) (9%)(259)2,8492,590 Total Income (7%)(159)2,1692,010 Total Operating and Other Expenses (9%)(123)1,3281,205 Salaries and Related Expenses (3%)(11) Maintenance and Depreciation of Property and Equipment (6%)(5)(5)1049 Amortization and Impairment of Intangible Assets (5%)(20) Other Expenses (15%)(100) Profit Before Taxes --28 The bank’s share in VISA CAL profit (19%)(75) Net Profit 8.2%6.4% ROE (0.59%) 0.72% 0.13% Bank of Israel Average Interest Rate (*)9.69% 9.73% Equity Capital (tier 1) to risk components ratio (end of period) * As of 31/12/14.

FIBI FIRST INTERNATIONAL BANK OF ISRAEL 4 השפעות חיוביות Net ChangeGross Change 1-9/ / (1,328)(1250,) Decrease in Salaries and Related Expenses ( excluding compensation provision for the merger of Pagi and U-Bank) Decrease in Salaries due to Bank Leumi Agreement 1721 (443)(422) Decrease in Amortizations, Maintenance and Depreciation of Property and Equipment (11) 10 Increase in the Reconciliations in Fair Value of Derivative Instruments 1220(403)(383) Decrease in Operating and Other Expenses (excluding Salaries) Increase in Capital Markets Commissions Main Positive Influences Main Changes in Net Profit ( 1-9/ /2014 (Millions NIS

FIBI FIRST INTERNATIONAL BANK OF ISRAEL 5 השפעות שליליות Net ChangeGross Change 1-9/ /2015 (223) (65)(104)1,5731,469 Decrease in Net Interest Income (45)(73) Decrease in Profit Realized from Bonds and Equity Portfolios (31)(43)8(35)Growth in Expenses from Credit Losses (23)(37)- Outcome due to “ZE’EAVI” Lawsuit (26)(31)31-Capital Gain from the Sale of FIBI London (17)(27)- Compensation Provision for the merger of Pagi and U-Bank ( in Q3/15 10 million NIS gross, and 6 million NIS net) Main Negative Influences Total Decrease of 75 million NIS in Net Profit Main Changes in Net Profit ( 1-9/ /2014 (Millions NIS

FIBI FIRST INTERNATIONAL BANK OF ISRAEL 6 Operating & Other Expenses (Millions NIS) 1-9/ /2014 * * Includes amortization of goodwill in 1-9/15 in respect of subsidiaries in the amount of NIS 33 million largely expected to be completed in % % Excluding the effect of LEUMI Agreement – reduced by of 51 million NIS 5-

FIBI FIRST INTERNATIONAL BANK OF ISRAEL Improvement in Operational Efficiency Ratio Total Operating Expenses to Total Income Total Income Total Operating Expenses % % Total Operating Expenses / Total Income (Before Expenses for Credit Losses) % 77.3%

FIBI FIRST INTERNATIONAL BANK OF ISRAEL Capital Notes 6.0 Capital Available for Investment 5.4 Public Deposits Gov. & Bank Bonds 1.3 Credit to the Public 69.9 State of Israel Bonds 8.0 Bank of Israel Deposits 29.0 Corporate Bonds (foreign & Israel currency) 2.3 Structures, Hedge Funds &Stocks 0.3 Market Risk in VAR(0.02) (*) For iIllustration only – not to scale 8 FIBI Strategic Assets & Liabilities composite (*) (NIS Billions) FIBI Strategic Assets & Liabilities Structure (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 13.24%14.24% 9.69% 9.73% 144.0%138.0% 42.8%40.2% Capital Available for Investments to Investment Capital Ratio 34.5%31.5% Liquidity Ratio (LCR) 99% Bonds of foreign countries 1.6

FIBI FIRST INTERNATIONAL BANK OF ISRAEL 13.42% * 14.30% 14.57% 13.42% * * * Equity Capital (tier 1) Ratio- Capital Adequacy %

FIBI FIRST INTERNATIONAL BANK OF ISRAEL 3.5% 10 Credit to the public Deposits from the public Capital attributed to the shareholders of the Bank Balance sheet The Development in Balance Sheet, Equity, Credit and Deposits - consolidated, end of ( period (Billions NIS Leverage ratio at 30/9/15 is 5.46% Dividend yield rate Including dividend distribution of 70 million NIS which was declared on %6%5%4% * Before the effect of the implementation of new accounting standard regarding employee privileges. *

FIBI FIRST INTERNATIONAL BANK OF ISRAEL 11 Credit to the Public by Segment (Millions NIS) Rates of Change in Average Balances compared to Average 1-9/ % 18, % 20,216 Mortgages 7.9%38,260 Credit to Private Clients (8.5%) 18,522 Corporate 3.7% 13,096 Commercial and Small Businesses 2.0%69,878 Total Credit to the Public () –

FIBI FIRST INTERNATIONAL BANK OF ISRAEL 12 30/9/1530/9/14 Gross Change Balance -Sheet Off- Balance- SheetTotal Balance- Sheet Off- Balance- SheetTotal Impaired Credit Risk , Inferior Credit Risk (521) Credit Under Special Supervision Risk ,1581, ,401(243) Total Problematic Credit Risk 1, ,3622, ,979(617) Ratio of the provision for credit losses to impaired credit to the public not accruing interest income accruing NPL coverage ratio % % Average of 4 other leading banks (30/9/15) 90.9% A decline in the problematic debt segment Breakdown of the Problematic Debt (Millions NIS)

FIBI FIRST INTERNATIONAL BANK OF ISRAEL 13 Deposits from the Public Breakdown by Segment (Millions NIS) Rates of Change in Average Balances Compared to Average 1-9/ %53,256 Total Private Clients 17.0%32,491 Corporate 7.2% 14,905 Commercial + Small Businesses 13.7% 47,396 Total Business Clients 8.9%100,652 Total 42,819 Of which: Positive Current Account Balance ( ) (15%) (53%) (32%)

FIBI FIRST INTERNATIONAL BANK OF ISRAEL 14 Client Assets Portfolio (Deposits & Securities) present continued growth (average balances, Billions NIS) An increase of 12% (41 Billion NIS) in client assets portfolio, further similar increase for year % % %

FIBI FIRST INTERNATIONAL BANK OF ISRAEL 15 Subsidiaries Net Profit Growth Centers Equity Capital (tier 1) to Risk Components Ratio ROE Net profit 1-9/2015 Millions NIS Specialization Winning the tender for the Ministry of Defense for the provision of loans and banking services to entitled cutomers in the coming years Extension of the agreement with Hever Renewal of activities with Small Business Fund Expansion of the factoring activity Joining the Fund in cooperation with the Manufacturers Association - together with FIBI May %5.7%48.2  Retail Clients  Commercial/ Corporate  Defense Forces Personnel  Factoring Winning in the teachers loans tender during 2014 Growth in the Israeli-Arab sector 14.2%7.0%26.7  Retail Clients  Teachers Sector  Israeli-Arab Sector Increasing network coverage in the ultra-orthodox sector 12.5% 10.7 % 29.2  Ultra-Orthodox Sector Will merge into FIBI On 31/12/15 while maintaining the brand name

FIBI FIRST INTERNATIONAL BANK OF ISRAEL 16 Highlights for 1-9/2015 Merging U- BANK and PAGI Cessation of a labor dispute n In 30/9/15 U-Bank merged into FIBI. Immediate and future effects of the merger :  A one-time increase in expenses reflected in current expenditure - 31 million NIS (of which :15 million NIS in Q3 2015)  Saving in expenses as a result of voluntary retirement of 120 employees.  Vacating of Real Estate areas in central Tel Aviv and additional savings.  Accelerating growth especially in credit among U-Bank customers, a brand that will continue to operate under FIBI, thanks to removal of regulatory barriers. n During the fourth quarter PAGI is expected to be merged into FIBI, while preserving the brand PAGI – a leading brand in the ultra-religious sector n A labor agreement has been signed in which the Clerks Representative Committee is committed to a three year period of “industrial peace” Winning OSTAR HA-HAYAL the tender for the Ministry of Defense Winning the tender for the provision of loans and banking services to entitled customers in the coming years

FIBI FIRST INTERNATIONAL BANK OF ISRAEL 17 Highlights for 1-9/2015 Main parameters Equity to risk components ratio Net profit During the reporting period there were two one-time effects: 1. ZE’EVI lawsuit affected third quarter results by 37 million NIS (23 million NIS net). 2. Compensation Provisions for Mergers n Excluding those effects, the ROE in 1-9/15 is 7.0% and 6.8% Q3/15. Equity to risk components ratio – 9.73%, stable compared to 9.69% in the end of Efficiency ratio efficiency ratio (before provisions for credit losses) – 76.6% compared with 77.3% in Declaration of another dividend - 70 million NIS. The highest dividend yield in the banking sector. Dividend yield Continued growth in activities Growth in main focus of FIBI:  Increase of 6.6% in credit balances to private sector (excluding mortgage loans). Increase of 9.2% in mortgage balances. Increase of 6% in credit balances to commercial sector.. Growth in operating income  An increase of approximately 2% (19 million NIS) in operating bank fees the result of an increase in fees from capital markets activity Growth in credit to private clients Growth continuation in the investment field  An increase of 46 billion NIS (14%) in the clients investment portfolios Amounting to 371 billion NIS.

FIBI FIRST INTERNATIONAL BANK OF ISRAEL 18 Highlights for 1-9/2015  Expenses for credit losses 0.07% (0.05% in Q3/15) compared to income from credit losses 0.02% in 1-9/14 and 0.13% in all Maintaining the quality of the loan portfolio and dispersion NPL coverage ratio (excluding mortgages) Decrease in the expenses for credit losses  Ratio of provision for doubtful accounts versus non-performing credit 99.8% Operating expenses restraint Continuation of budgetary restraint and efficiency measures  Ongoing moves to reduce expenses in branches and in headquarters Reduction of 7% in expenses Decrease of 7% in all expenses in the bank (160 million NIS):  Decrease in salaries of 123 million NIS, based on implementation of LEUMI Agreement and a decrease in number of employees in the Group (excluding the mergers influence)  Decrease in the other expenses due to efficiency measures implemented in the branches and headquarters.

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