Mizrahi Tefahot Bank Ltd.

  Established in 1923, Mizrahi Tefahot Bank is one of Israel's four largest banks. The Bank offers its private and commercial banking customers in Israel and around the world an extensive range of financial products and services at the highest professional level. The Mizrahi Tefahot Group operates over 165 branches and business centers in Israel and around the world. In addition to branch operations, the Bank offers sophisticated and advanced direct banking services via the Internet, telephone or cell phone. Standard & Poor's Maalot, The Israel Credit Rating Company, has rated the Bank's obligations at AA+.
   Retail Dominance - Mizrahi Tefahot provides "comprehensive service" at the highest level to the household and private customer sector. These services include advanced account management services with attractive commission rates, credit facilities at advantageous interest rates, various mortgages and loans for any purpose, and a variety of rewarding investment options. The Bank provides high net worth individuals with personal and professional services, which are tailored to meet their own particular requirements.
  Mizrahi Tefahot "Live" - Mizrahi Tefahot is the only bank in Israel that operates "LIVE" virtual branches that offer full banking services provided by a personal banker.  

  Hybrid Banking – Mizrahi Tefahot launched hybrid banking in 2011. It is an innovative service concept, integrating personal and digital banking. The Bank is continuing to develop this new banking concept in 2012.

  Mortgage Leader - Mizrahi-Tefahot is the No. 1 mortgage lender in Israel, through "Tefahot," with a 34% market share of the domestic market. The combination between commercial-retail activities and mortgage activities creates a "positive link" between checking accounts and mortgage loans, enabling clients of the Bank to utilize unique products and services.    
  Control of Bank Yahav (50%) - Bank Yahav was for many years a niche bank serving government and public sector employees. Today it offers services to all retail clients and has "Tefahot" mortgage representatives in its main branches.
  Corporate Banking and Trading Rooms - The Bank offers corporate and business customers personal and professional services tailored to each corporation or business. Mizrahi Tefahot operates a sophisticated and advanced trading room and offers its private and business customers a wide range of foreign currency, financial instruments and capital markets operations. 
  International Presence - The Bank has subsidiaries in Switzerland and the Netherlands, plus branches and representatives in UK, the US, Germany, Mexico, Uruguay and Panama.
  Investment and Pension Advisory Services - Mizrahi-Tefahot provides personal advisory services to suit customer needs and objectives and advanced pension advisory services to both self-employed and salaried employees.
  Community Involvement - Mizrahi-Tefahot is deeply committed to contributing to the community. The Bank has shifted from a policy of donations to active social involvement. Currently, the Bank is focusing on assisting children with special needs.

	Three Months Ended December 31
Income Statement Data ($m)	2011	2010
Interest Income	214	230
Total Revenues	198	180
Pretax Income	105	92
Net Income	78	58
Diluted Earnings Per Share ($)	0.34	0.25
Data translated at the NIS/$ exchange rate of 12/31/11

	Year Ended December 31
Income Statement Data ($m)	2011	2010	2009
Interest Income	774	624	599
Total Revenues	1,132	1,007	921
Pretax Income	337	218	254
Net Income	210	139	158
Diluted Earnings Per Share ($)	0.93	0.62	0.70
Data translated at the NIS/$ exchange rate of 12/31/11

Balance Sheet Data ($m)	12/31/11	12/31/10
Cash & Deposits at Banks	4,180	3,301
Net Loans	31,230	28,014
Total Assets	39,321	34,887
Total Equity	2,108	1,962
Data translated at the NIS/$ exchange rate of 12/31/11

Key Financial Ratios	12/31/11	12/31/10
Gross Loans/Total Deposits	98.5%	98.7%
Return on Equity	14.6%	11.7%
Avg. Total Equity/Avg. Assets	5.5%	5.5%
Return on Assets	0.7%	0.6%

Dividend Policy

At least 40% of annual net operating profits and 80% of extraordinary income are distributed as dividends.