Overview 31.03.14

*Net Profit and ROE NIS Millions Average capitalCore capital adequacy ratio Basel III6,8589.73%6,603ROE141 NIS Millions

1

136

120

136NIS Millions

120NIS Millions

8.5%

7.2%

7.2%

8.6%*

*8.6%

Sheet1

I/2013I/2014

net earnings136120

*Statements of income Q1/2014 Q1/2013 NIS Millions

*Income from Financing Activities (before Tax) Q1/2014 - Q1/2013 NIS Millions

*Operating & Other Expenses(NIS Millions)** Including amortization of 13 NIS Millions in Q1/14.Continued budgetary restraint trend - significant decrease (2.6%) in operating expenses in comparison to Q1/117.5%

1

430438

108112

4642

120129

1-3/2013

1-3/2014

Sheet1

Salaries & Related ExpensesMaintenance, Depreciation, PremisesEquipment and Amortization Of Tangible AssetsOther Expenses

1-3/201343010846120

1-3/201443811242129

I/10I/11

383447

-15-1

14.8

616.3

392416.9

1

721

704

"

Total Operating & Other Expenses

1

1-3/20141-3/2013IV/10

" 721704

2.4%

, .

Consolidated Operational Efficiency Ratio Total Operating Expenses to Total Income*75.0%

1

704971

721934

72.5%

78.0%

77.2%

1

1-3/20131-3/2014

704721

971934

72.5%77.2%

-110

4218

3455

2314

22

10099

808840

Public Deposits91.1Gov. & Bank Bonds2.1 Credit to the Public67.9State of Israel Bonds 6.9Bank of Israel Deposits 24.8 Corporate Bonds (foreign & Israel currency) 0.7 Structures, Hedge funds &Stocks 0.7Market risk in VAR(0.03)(*) illustration not to scale* FIBI Strategic Assets & Liabilities composite (*) 31.3.14 (NIS Billions) FIBI Strategic Assets & Liabilities Structure NIS Billions

*An increase in total balance sheet NIS Billions

1

112.5

111.103

105.685

101.493

Sheet1

I/2014112.5

2013111.1

2012105.69

2011101

I/2012101.981.766.16.043

*Statement Of Changes in Equity Q1/2014 NIS MillionsCore capital ratio (Basel III, 31/3/14) was 9.73%, compared to -10.11% (31.12.13) following dividend distribution.The Highest dividend yield in the Israeli banking system Dividend yield of 3.5% in 2013, 4% in 2014 and 7.51% for the past 12 months

*Credit to the Public by segments NIS Millions () 31.3.13(23%)(19%)(33%)(25%)

1

16560

17527

20993

12814

1

Private + Retail (Households)16,56024%

Mortgage17,52726%

Corporate20,99331%

Commercial + Small Business12,81419%

100%

, .

67894

*Provisions for Credit losses 2007-I/2014*In Q1/2013 the Bank has implemented a one time regulatory provision on its 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 groups ratio in 2013 was 0.11%.Expenses for Credit Losses to Credit to the Public Ratio*

1

0.00330.0028

0.00390.0076

0.00440.0076

0.00180.0043

0.00140.0042

0.0020.0044

0.00140.0027

0.00060

FIBIOther 4 leading Banks

FIBI

Other 4 leading Banks

Sheet1

2007200820092010201120122013I/2014

FIBI0.33%0.39%0.44%0.18%0.14%0.20%0.14%0.06%

Other 4 leading Banks0.28%0.76%0.76%0.43%0.42%0.44%0.27%0.00%

78.9

*Breakdown of credit for problematic debts 31.3.14 NIS Millions

*Deposits from the Public breakdown by segments NIS Millions() 31.3.13(13%)(33%)(28%)(26%)

1

25917

23848

30103

11235

1

Private25,91728%

Retail (Households)23,84826%

Corporate30,10333%

Commercial + Small Business11,23512%

100%

, .

91103

*Continued growth in client assets portfolio (deposits and securities) average balances NIS Millions

13.42%*14.30%14.57%13.42%*****Minimal Regulatory Requirement For HAPOALIM&LEUMIMinimal Regulatory requirementCore Capital Ratio 31.3.14*%%% Note: The core capital ratio in banks is according to Basel III.

1

9.29

9.44

9.41

9.1

8.87

9.73

%

%

%

%

%

%

%

1

1

1

THE OTHER FOUR BANKS9.29

HAPOALIM BANK9.44

LEUMI BANK9.41

DISCOUNT BANK9.10

MIZRAHI TEFAHOT BANK8.87

FIRST INTERNATINAL BANK OF ISRAEL9.73

, .

7.72

7.89

8.48

7.6

7.7

*Subsidiaries net profit

*Highlights for the first quarter of 2014Fair Value of derivativesIncome from interest & inflationSubstantial Macro & AccountingeffectContinued investment growthContinued growth in client assets portfolio (deposits and securities) of 40 NIS billion (14%)Innovation in capital marketsNew product and services launch (i.e. the investment radar, Duchifat trading platform, etc.)Growth in the other operating incomeAn increase of 9.4% in income from commissions (excluding the impact of FAS 91), related to growth in client activity (especially in capital markets)Continued growth in activitySubsidiariesContinuing development of corporate clients through the Small Business Fund Focus in growth segments

*Highlights for the first quarter of 2014Dividend of 230 NIS million in the first quarter of 2014Dividend yield Dividend yield of 3.5% in 2013, 4% in 2014 and 7.51% for the past 12 monthsThe Highest dividend yield in the Israeli banking system Operating expenses growth rate of only 2.4% in comparison to Q1/13Mainly resulted by an increase in salaries and in capital markets related commissionscredit portfolio quality and diversificationModerate increase in operating expenses Decrease in provisions for credit losses - 0.06% (0.14% on 2013). Ratio of credit loss allowance to total impaired credit is the highest in the system - 79.5%Decrease in provisions for credit lossesNPL (excluding mortgages)consistent budgetary restraintModerate increase in operating expenses Continued budgetary restraint trend - significant decrease (2.6%) in operating expenses in comparison to Q1/11High financial stability

******