Private Banking and Wealth Management Services

Capital Market Specialist

TABLEOFCONTENTS

CHAPTER 01 | A niche bank 03

CHAPTER 02 | History& Structure 08

CHAPTER 03 | Private Banking philosophy and services 19

CHAPTER 04 | Capital Market Services 21

CHAPTER 01

A Niche Bank

3

A Niche Bank

U-Bank has for 80 years a tradition of excellence in serving HNW clients

with banking and wealth management services. U-Bank is a niche bank,

specializing in two major business areas:

Private banking services for high net worth and also affluent clients

U-Bank is considered one of Israel’s leading experts in financial markets,

and serves the leading financial institutions, including insurance

companies, mutual funds, institutional managers and more

U-Bank’s share in its specialized markets exceeds by far its share of the

Israeli banking industry

4

Activity in Global MarketsWithin the field of foreign securities we operate in the following markets:

5

In addition we give our

clients the full range of

services in the following

currencies:AUD

CAD

CHF

CZK

DKK

EUR

GBP

HKD

HUF

ILS

INR

JPY

MXN

NOK

NZD

PLN

RMB

RUB

SEK

SGD

TRY

USD

ZAR

Expert Services

Some of U-Bank’s specialized services:

6

Private banking and wealth management services

Trustees International banking services

Advanced shekel and FX dealing rooms

Brokerage activity Custodianship Operation and trusteeship of mutual funds

Management of investment portfolios

Rating

MIDROOG*

7

Short Term Long Term

P-1 Aa3

*Midroog was established in Israel un affiliation with the worldwide rating company, Moody’s Investors Services.

CHAPTER 02

History & Structure

8

History

9

Bank Eretz Yisrael le’Toelet Ha’ashrai Ltd.

Owned by Baron

Rothschild

Owned by

Investec Group

Owned by The First

International Bank of

Israel Ltd. 100%

1934-1965 1965-1997 1978 1997-2004 2004-Today

Israel General Bank Ltd.

Bank shares areIssued to public

InvestecBank U-Bank

Structure

10

Internal AuditBank Secretary

Michal Raviv

CEO

Avi Sternschuss

Financial Division

Central Services

Division

Jacob Garten

Capital Market

Division

Avi Basson

Credit Division

Roni t Uziel

Chief Accountant

Division

Orit Itzcovitch

Personal Banking

Division

Banking ServicesMalka Fuks

Foreign Security Trading DeskAmi Toledano

Back Office &Administration

Eti Rachmani

Israeli Security Trading DeskEitan Shlomi

DerivativesDesk

Shahar Weisman

OperationMichal Avni

U-Bank Trust Company

Int’l Department& Correspondent

BankingGal Steiger

AccountingKlara Weis

Assets & Liabilities ManagementMichael Navot

Currency Dealing Room

Amir Levi

Back OfficeYfat Tal Bachar

ComplianceMichal Tilo

Risk Management

Nir Nagad

Marketing & StrategyIdit Fogel

U-Bank Branches

Investment AdvisoryAvigdor Avni

LegalAya Ashtar

Financials

11

2013 2012 2011 2010 2009

42.0 49.6 40.9 49.0 65.6 Net Profit

9.5% 11.3% 9.8% 9.7% 13.1% Net return on equity

145.3 141.6 122.8 136.2 124.0 Non interest income

76.4% 74% 66.6% 79.3% 69.5%The percentage of cover of operating and other expenses by non-interest income

(Millions NIS)

Financials

12

Net profit Net return to equity

(Millions NIS)

לעדכן

Financials

13

2013 2012 2011 2010 2009

8,378.9 7,751.9 7,506.0 7,629.0 9,124.1 Balance sheet total

2,070.9 2,127.6 1,773.3 1,751.4 2,021.8 Credit to the public

7,414.5 6,532.7 5,715.1 6,908.1 7,084.0 Deposit from the public

416.8 439.4 431.9 421.1 541.7 The bank’s shareholders’ equity

19.3% 19.8% 19.2% 18.4%

16.7%(bazel II)

20.2%(bazel I)

Capital to risk assets ratio

60.0 60.0 none 175 none Dividends paid

(Millions NIS)

Financials

14

Deposits from the public

(Millions NIS)

Credit to the public

Financials

15

Balance sheet total

(Millions NIS)

Financials

16

The bank’s shareholders’ equity

The bank’s shareholders’ equity Dividends paid

(Millions NIS)

Financials

Capital to risk assets ratio.

The highest in the Israeli Banking area.

17

Branch Network

18

Tel-Aviv

(2 branches)

Jerusalem Ra’anana Ramat

Hasharon

Rishon Le Zion Rehovot Herzliya

Pituach

CHAPTER 03Private Banking and Wealth management Services

19

The private banking experience

U-Bank has a long standing tradition of exclusive private banking services along with wealth management for

High Net Worth clients who require personalized, comprehensive and strategic services at a level which is

commensurate with private banking services throughout the world.

Clients have chosen us as their bankers and investment advisors because our value proposition is perfectly

suited to High Net Worth clients and we are able to provide unique service and objective wealth management

while taking into consideration their assets as well as the risks involved.

20

Wealth management concept

U- Bank has developed a unique advisory method n which the goal is to present the customer with a

comprehensive picture of all of his investments within the full range of his assets, whether they are through

advisory services, portfolio management or trust services, by taking a holistic view of the family’s assets.

Advisory services are carried out by strictly supervising the customer’s assets, and by taking into

consideration available investment products, cost to the client and, of course, results.

In addition to guiding the client strategically by taking into account his assets as a whole and managing the

risks, he bank advisor works objectively, locating and identifying experts in various areas of investment who

match the client’s profile, both in Israel and abroad. Within the framework of open architecture for wealth

management, the bank offers specialized solutions through its trust company or through portfolio

management, which are tailor- made for each specific client according to his needs and desires.

21

Dedication and customer experience

The private banking concept which has been guiding U- Bank for over 80 years is evident in each meeting and

with every customer. At U- Bank, e understand that each customer has a distinct and different set of needs

and expectations which make him or her unique, and as such, are not taken for granted. We are committed to

provide you with a banking experience at the level you deserve

We are here for you, at the time and place which is most convenient for you. Our goal is to continually

maintain the highest standards of service for clients of your caliber. We believe that once you meet us you will

appreciate the unique experience we are offering you.

22

CHAPTER 04

Capital Market Specialist

23

Capital Market Specialist

A CAPITAL MARKET EXPERT: In addition to our activities in private banking for

High Net Worth clients, U-Bank is a major service provider for leading institutions including the most prominent insurance companies, investment houses, trust funds and pension funds.

U-Bank known for its range of tailor made services (domestic and overseas), volume of business and level of expertise.

With a market share of 5% of the daily trading volume of the Tel Aviv Stock Exchange, U-Bank is ranked among the 10 leading banks in securities activity in Israel, thus exceeding its share in the Israeli banking sector by far.

U-Bank serves as a “one stop shop” of personal banking for institutional customers.

CAPITAL MARKET ACTIVITY: Israeli and Foreign securities trading.

Back office services for mutual funds and hedge funds and operation of securities.

Banking services for the capital market division’s customers.

Additional activities include options and futures trading as well as securities lending.

Custodian.

U-Trade: unique trading system.

Subsidiaries’ activity: U-Bank trust company,U-Bank assets management.

24

53,500

63,20073,300 73,313 70,153

Custodian ServicesCUSTODIAN SERVICES: Among the largest custodian services providers in Israel Over NIS 93 billion in securities deposits (July 2014)

25

(Millions NIS)

Market Share of TASE Activity

26

Total

U-Bank’s Ranks

amongst the 27 TASE Members

% U-Bank’s Ranks

amongst the 27 TASE Members

(Millions NIS)

FX Dealing room

U-Bank operates a full FX service dealing room providing an array of services to Institutional, Corporations and

High Net Worth clients. Our offering includes diversify financial instruments and derivatives: Spot, Options,

Swap, IRS and more. U-Bank prices FX derivatives and multifaceted structures.

U-Bank is a leading Market Maker in the Israeli Government Bond arena (Shahar, Galil).

U-Bank is an active player in the Eurobond Fixed Income.

U-Bank is reputable for providing high end professional outlook on the market as well as first class Private

Banking services.

U-Bank is a Capital Market specialist thus it maintains a

unique and high ratio of Liquidity/Credit.

U-Bank is a member of the CLS system using

JP Morgan Chase as its CLS provider.

27

Trust ServicesTRUST SERVICES TO MUTUAL FUNDS: The largest Leading provider of trust services to mutual funds Services over 48% of the Israeli mutual fund industry Total assets in trust of 112.5 Billion NIS (July 2014)

28

43.4%41.0%

36.8%36.9% 37.1%

48.0%

Thank You

www.u-bank.net