31/03/2012 Overview

2

Net Operating Earnings and ROENIS Millions

Statements of income I/2012- I/2011 NIS Millions

I/2012I/2011Gross change

The net change

Net interest income5355152015

Expenses (income) for credit losses (0.19% provision rate)31(36)6744

Net interest income after expenses for credit losses504551(47)(30)

Total non-interest income403480(77)(50)

Of which: income (expenses) non-interest*5685(29)(19)

Commissions (decrease stems mainly from decreses in customers activity in the capital markets)

343388(45)(29)

Other Income 47(3)(2)

Total operating and other expenses700740(40)(26)

Of which: salaries and related expenses (including losses appointed time compensation)

418447(29)(18)

Holding and depreciation on buildings and equipment 11110921

Amortization and impairment of intangible assets414011

Other expenses130144(14)(10)

Profit before tax207291(84)(54)

Provision for taxes on income73120

Bank’s share of profit of associates1315(2)

Net earnings142181(39)

ROE9.9%13.5%

Core (Tier 1) capital ratio (end of period)8.81%8.11%

* Including decrease in income from stock investments of 24 NIS Millions.

3

I/2012I/2011

Operating & Other Expenses (NIS Millions)

29-

2+

14-

40-

4

Efficiency Ratio: Total Income to Total Expenses

Operating Expenses

%Adjusted Operating Expenses / Total Income*

*Expenses excluding severance pay fund effects, special provisions ; Net interest income excluding gains/losses from sale and writedown of available for sale bonds, hedging of volatility in provision for taxes , interest income charged on problem loans and effect of reconciliations to fair value of ALM derivatives ; Operating income excluding dividend, realization or decline in value of shares and severance pay fund gains. 5

Total income

operating expenses

%Operating Expenses / Total Income

Total income

Deposits from the Public81.7 NIS Billion

Deposits to Credit Ratio

Liquid Assets to Deposits Ratio

Capital Adequacy Basel II

Tier 1 Capital Adequacy36.2מזה: עסקי ומסחרי 15.1 צרכני 14.8 משכנתאות

Credit tothe Public66.1 NIS Billion

Gov. & Bank Deposits1.75 NIS Billion

8.81%

123.7%

32.3%

42.1%Of capital available for Investments

State of Israel Bonds: 8.5 NIS Billion

Deposits-Bank of Israel:15.5 NIS Billion

Sovereigns Bonds: 0.75 NIS Billion

Deposits in Banks: 2.4 NIS Billion

Banks Bonds: 1.64 NIS Billion

NIS+foreign Corporate Bonds:0.9 NIS BillionStructure Products, Hedge Funds & Stocks:0.8 NIS Billion

Market Risks in VAR Terms: (0.03) NIS Billion

Capital Notes5.16 NIS Billion

Capital available for Investments4.0 NIS Billion

13.58%

11.04% ,מסך האשראיכנגד נכסים נזילים

FIBI Strategic Assets & liabilities structure NIS Millions

6

Total Assets, Deposits & Credit NIS Billions

Credit to the public

Public Deposits

EquityAssets

7

Credit to the public NIS Millions

8

Development of housing credit portfolio (end of period)

Credit to the public by operating segmentsDevelopment of the annual average in consumer credit (annual average)

Change in % compared to

31.03.11 31.12.1131.03.12   31.03.1131.12.11

6.6%2.0%27,65928,91229,477Total private clients

7.5%1.0%13,80614,70214,847Of which: Mortgage

6.3%( (0.2%12,56113,38713,357Commercial + small business

0.9%2.5%23,03122,67923,238business

4.5%1.7%63,25164,97866,073Total Credit to the public

The average asset mix of the dominant

group is personal and private sectors

9

20062012/I

Personal and private sectors (including mortgages) are 45.9% in I/2012 from the total assets .

compared to 43.3% in I/2011, and to 30.5% 2006.

Change compared to

31.12.11

31.12.1131.03.12

 

Total Total

((2171,4451,228Damaged credit risk

42432474Low credit risk 

35))1,029994Credit risk under special supervision 

(210)2,9062,696Total credit risk problem 

Breakdown of credit for problem debts NIS Millions 31.03.12

10

Provision for Doubtful Debts to Credit to the Public Ratio

Other 4 Leading Banks FIBI

11* Beginning in 2011, all collection on problem debts is shown as Expenses for credit losses instead of earnings

from financing operations

Composition of Total Proprietary Trading Book

VolumeI/2012

VolumeIV/2011

Composition 2012/I

Composition 2011/IV

Government bonds & Secured by Government bonds

9,2659,25975%78%

State of Israel bonds92%91%

Commercial Banks bonds1,6591,24214%10%

Shares5425564%5%

Other 8818157%7%

Of which: Fx Corporate Bonds

180137

Of which: NIS Corporate Bonds

701678

Total12,34711,872100%100%

NIS Millions

NIS Millions

Government bonds & Secured by Government bonds

75%

Total

Spain86

Italy78

Portugal0

Greece0

Ireland0

NIS Millions

12

PIIGS proprietary trading book exposure

14.30%14.57%

13.42%

Capital Adequacy Ratio Basel II

Tier 2

FIBI Tier 1

4 top Banks in Israel*

*

*

***

**

-1.3

-1.8 -1.8

1.06-

1.72-

0.75-

%

13

-0.8 0.19-

Core capital adequacy target in accordance with the commissioner of banks

Changes in Net Profit - Subsidiaries NIS Millions

I/2012

Percent change

relative to I/2011

ROECore (Tier 1) capital ratio

23.49.9%10.6%8.77%

12.6(24.1%)11.9%14.5%

10.914.7%13.1%12.4%

10.38.4%11.3%13.59%

14