Annual Reports to Customers of the Banking Corporations

Bank of Israel Banking Supervision Department Bank–Customer Division Regulation (Bank–Customer) Unit November 19, 2014 Circular Number C-06-2440 To: The banking corporations Issue: Annual Reports to Customers of the Banking Corporations (Proper Conduct of Banking Business Directive 425) Introduction

1. Sending collected information to the customer, regarding all of his assets and liabilities at the banking corporation, including total income and expenses during the year in respect of assets, liabilities and current activity in the account, can assist the customer in making informed consumer decisions, improve his ability to track his activity in the account, and increase his ability to compare between various banking products and services.
2. In view of the foregoing, and following consultations with the Advisory Committee on Banking Business, and with the approval of the Governor, I have set out this directive. Main points of the directive
3. A banking corporation is required to display a short-form report and a detailed report in a separate tab in the online account of each customer, in accordance with the formula and structure set out in the addenda to the Directive, while maintaining the form of presentation as much as possible in the relevant circumstances. The reports shall be displayed by February 28, and will relate to data from the preceding calendar year. Explanation To clarify, it is possible that due to the multiplicity of data, the information will be spread over a greater number of columns than that which appears in the addenda.
4. A banking corporation is required to notify the customer that the annual reports are displayed in the online account. The notice shall be sent to the customer in the

Bank of Israel Banking Supervision Department Bank–Customer Division Regulation (Bank–Customer) Unit manner he has selected to receive notices. In addition, the banking corporation shall publish the notice to all of its customers in a prominent place on the bank’s marketing website for a period that shall be no less than 30 days from the date the reports are displayed. 5. A banking corporation is required to send the short-form report to a customer who does not manage an online account, by February 28, while the detailed report shall be sent to a customer who does not manage an online account, at his request. The detailed report shall be sent to the customer within 7 business days from the date of the request, except for a case in which his request is submitted during the period between January 1 and February 28. In such a case, the detailed report shall be sent within 7 business days following February 28. To clarify, being sent, in this Section, means the report having left the bank. 6. The annual reports in respect of the calendar year preceding the report date, and the annual reports relating to, at the very least, the two years prior to that, shall be accessible to the customer in his online account. The banking corporation shall display an explanatory note to the customer, in the tab in which the reports are displayed, stating that at all times, at least the last three reports will be accessible. Explanation In order to enable a customer to track his activity in the account and to compare it to previous years, it has been set out that at all times, at least the last three reports in the account will be available to the customer for independent download. Applicability 7. This Directive will apply to a customer, as defined in Section 9i(f) of the Banking (Service to the Customer) Law, 5741–1981. Effective date 8. This Directive will become effective on February 28, 2016, relating to annual reports in respect of 2015. 9. The data required in Part D of the First Addendum will not be displayed until there is an explicit directive from the Supervisor of Banks. However, the banking

Bank of Israel Banking Supervision Department Bank–Customer Division Regulation (Bank–Customer) Unit corporations must be operationally prepared to display those data as of the date stated in Section 8. 10. The banking corporations are required to send to the Supervisor of Banks details of the formulae used as the basis for calculating the cells in the annual reports in which various calculations are required, as well as an initial display of the reports, no later than July 1, 2015. File update 11. Update pages for the Proper Conduct of Banking Business Directives file are attached. The following are the update instructions: Remove page ------- Insert page 425-1-23 [1] (11/14) Sincerely, David Zaken Supervisor of Banks

Supervisor of Banks: Proper Conduct of Banking Business 1 Annual Reports to Customers of the Banking Corporations Page 425-1

Directive 425 – Annual Reports to Customers of the Banking Corporations

Introduction

1. This Directive regulates the banking corporation’s reporting requirement to its customers regarding all assets and liabilities of the customer at the banking corporation, at the account level, including total income and expenses during the year, in respect of assets, liabilities, and current activities in the account. The annual reports are intended to improve the customers’ ability to track the activity in their account, and to increase their ability to compare between various banking products and services. Definitions
2. “Online account”— An account through which banking services are provided via the Internet in accordance with Proper Conduct of Banking Business Directive number 357. “Customer”— As defined in Section 9i(f) of the Banking (Service to the Customer) Law, 5741–1981. “Banking corporation”— As defined in the Banking (Licensing) Law, 5741–1981. Annual Reports
3. The banking corporation shall display, in a separate tab in the customer’s online account, a short-form report and a detailed report (in this Directive—the annual reports), which shall be prepared in accordance with the formula and structure set forth in the First Addendum and the Second Addendum, respectively, while maintaining the form of presentation as much as possible in the relevant circumstances. The reports shall be displayed by February 28 (hereinafter: the report date), and will relate to data from the preceding calendar year.
4. On the day on which the annual reports are displayed in the online account, the banking corporation shall notify each customer, by way of the means the customer has selected to receive notices. In addition, the banking corporation shall publish the notice to all of its customers in a prominent place on the bank’s marketing website, for a period of no less than 30 days from the date the reports are presented.
5. A banking corporation shall send the short-form report to a customer who does not manage an online account, by the report date. The detailed report shall be sent to a customer who does not manage an online account, at his request, within 7 business days from the date of the request. Should a request be submitted during the period between January 1 and the report date, the detailed report shall be sent within 7 business days from the report date.

Supervisor of Banks: Proper Conduct of Banking Business 1 Annual Reports to Customers of the Banking Corporations Page 425-2 Accessibility of the reports 6. The annual reports in respect of the calendar year preceding the report date, and the annual reports relating to, at the very least, the two years prior to that, shall be accessible to the customer in his online account. The banking corporation shall display an explanatory note to the customer, in the tab in which the reports are displayed, stating that at all times, at least the last three reports will be accessible. Foreign bank 7. In exceptional cases, a foreign bank that believes that it cannot implement the Directive, may enquire with the Supervisor of Banks in order to coordinate its applicability and/or method of implementation.

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Updates Circular 06 no. Version Details Date 2440 1 Original directive 19/11/14

Supervisor of Banks: Proper Conduct of Banking Business 1 Annual Reports to Customers of the Banking Corporations Page 425-3 First Addendum – Short-form report

For your attention - this document is personal and is intended for your private use only.

Short-form report for xxxx (All of the data are correct to xx/xx/xx)1, 2 Part A - General

1. Names of account holders + ID / passport / Corporate ID number + country code
2. Account details (Bank number, branch number, account number)
3. Names of those authorized to act in the account / powers of attorney + ID/passport number + country code
4. Type of account
5. Date account was opened
6. Transfers salary (yes/no)

Part B - Balances to date xx/xx/xx

• The value of the total quantity of securities held according to the closing price set on the last trading day of the year. ** If there is foreign exchange activity in the account, it is presented in the table with the relevant currency noted. The total is presented in shekels according to the representative exchange rate for xx/xx/xx, which is xxxx Part C - Transactions in the account

Average monthly Total Interest and Linkage income/Expenses interest rate Average monthly balance* (principal only) 1. Current Account Utilized Credit Facilities Average monthly balance* (principal only) Total Interest and Linkage income/Expenses Total Deposits/Savings Total Housing Loans Total Other Loans Average monthly balance* Profit/loss** Securities Portfolio

• The balance is calculated by the simple average (annual cumulative balance divided by 12 months in the year). ** Profit/loss as a result of actual sales, including receipts from dividends and interest, after payment of fees and before withholding of taxes. Annual arithmetical total. The data above are aggregates. If there is foreign exchange activity in the account, it is translated into shekels at the representative exchange rate for xx/xx/xx, which is xxxx. Assets Liabilities Current Account Balance Utilized Credit Facilities Debt Balance Excluding Credit Deposits and Savings Facility/ Exceeding Credit Facility Housing Loans Securities Portfolio* Stocks Other Loans Bonds Makam Bank Guarantees Other Other Assets Other Liabilities

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Total Assets in NIS** Total Liabilities in NIS**

Supervisor of Banks: Proper Conduct of Banking Business 1 Annual Reports to Customers of the Banking Corporations Page 425-4

2. Deposits and Savings

Value to date xx/xx/xx Adjusted interest rate4 Nominal interest rate3 Method of calculating interest Type of Interest Currency Indexation Date of Repayment Next Exit Point Date of Deposit Principal amount on date of deposit Deposit Number

• Includes, principal, interest and indexation.

3. Credit Housing Loans Of which: amount in arrears Value to date xx/xx/xx Adjusted interest rate4 Nominal interest rate3 Method of calculating interest Type of Interest Currency Indexation Date of Repayment Next Exit of change of interest rate Date loan was made available Principal amount on date loan was made available Loan Number

• Includes, principal, interest and indexation. For your attention, these figures relate only to housing loans where the borrowers are the same as the account holders. Detailed information regarding housing loans will be sent to you in parallel in a separate report Other Loans

Of which: amount in arrears Value to date xx/xx/xx Adjusted interest rate4 Nominal interest rate3 Method of calculating interest Type of Interest Currency Indexation Date of Repayment Next Exit of change of interest rate Date loan was made available Principal amount on date loan was made available Loan Number

• Includes, principal, interest and indexation. Credit Facilities Utilization to date xx/xx/xx Adjusted interest rate4 Nominal interest rate3 Term of credit facility Amount of credit facility Type of facility/plan/track

4. Fees Name of Fee Total yearly amount paid for fees Number of transactions made / transaction amount Yearly fee average (amount/rate) Current Account Fees

Credit Fees Securities Fees

Other Fees

5. Additional current account data Interest on credit balances in the account Type of interest Up to amount Nominal interest rate3 Adjusted interest rate4 Part D – Credit Rating Credit Rating Rating scale used by the bank Notes
6. All of the figures are presented in shekels, unless otherwise noted.
7. All of the figures are before withholding of tax.
8. The figures in the report do not include transactions on nonbank credit & debit cards.
9. Nominal interest rate - the interest rate listed in the transaction documents.
10. Adjusted interest rate - the interest rate obtained by attributing the interest rate for a period of one year, based on a calculation of 365 days per year, taking into account the compound interest component if interest is paid periodically.

For explanation about the form, please scan the barcode or enter to the BOI web-site at www.boi.org.il For more information, see the detailed annual report in your account on our website at _______________, or contact the call center at ____________________ or your branch.

Supervisor of Banks: Proper Conduct of Banking Business 1 Annual Reports to Customers of the Banking Corporations Page 425-5

Guidelines for preparing the short-form report General:

1. The short-form report (hereinafter: the report) will be displayed in the customer’s online account, in a prominent and accessible manner, in a format that will enable the customer to save and print it easily (such as PDF, HTML, and so forth).
2. The data displayed shall be correct as of December 31 of the year ended.
3. Chapters or parts thereof that are not relevant regarding the customer shall not be displayed in the report, unless stated otherwise.
4. Numeric data shall be displayed to two decimals.
5. Negative amounts or transactions shall be labeled with a minus-sign to the left of the number.
6. Amounts in foreign currency that are not aggregate shall be displayed in a separate line by type of currency. Aggregate data shall be displayed in shekels by the representative rate to the report date.
7. “Housing loans” in this report—as defined in Proper Conduct of Banking Business Directive number 451, “Procedures for granting housing loans”.
8. A banking corporation shall display the details of the housing loan in this report only to the extent that the account holders and the housing loan holders are fully identical. In a case where the current account is managed only for the purpose of a housing loan, the banking corporation is not required to send the report. Detailed information regarding the housing loans shall be provided in accordance with the Banking (Customer Service) (Due Disclosure and Provision of Documents) Rules, 5752–1992. Part A – General
9. Regarding the display of the company number as required in Section 1, when the corporation is not registered in Israel, the registration number in the country of incorporation must be listed.
10. “Type of account”—the banking corporation will display the type of account as per its definitions (youth/student/soldier and so forth). Should an account be defined as “inactive account”, the banking corporation shall note this in the field.
11. “Transfers salary (yes/no)”—the banking corporation shall note whether the customer transfers a salary, as per its definitions. Part B – Balances
12. “Current account balance”—A credit balance in the current account shall be listed in the assets column, in the “current account balance” cell. A debit balance in the current account, derived from the utilization of credit, shall be listed on the liabilities side, under the name “credit facility in the current account”. If the customer does not have a credit facility, or if he exceeds the facility, the balance shall be listed in the “Debt balance excluding credit facility / exceeding credit facility” cell.
13. The current account balance shall be displayed as of the report date, excluding future transactions, other than future transactions the date of which is December 31 of the report year.
14. “Securities portfolio”—The banking corporation shall display the value of holdings as of the report date according to the following calculation—the value of the total

Supervisor of Banks: Proper Conduct of Banking Business 1 Annual Reports to Customers of the Banking Corporations Page 425-6 amount of securities held in accordance with the closing price set on the last trading day of the year. 4. Foreign securities shall be displayed in shekels. Total assets and liabilities shall be displayed in shekels, according to the relevant representative rate on the report date, which will be displayed at the bottom of the table. 5. “Bank guarantees”—The banking corporation shall display the total amount of the bank guarantees that exist in the account. 6. “Other assets and other liabilities”—The banking corporation shall detail the type of asset or liability. 7. If there is a pledged asset in the account, the banking corporation shall note this in a comment alongside it, with the words “pledged asset / some of the assets are pledged”, as relevant. 8. “Utilized credit facilities”—The banking corporation shall list, in a separate line, each type of credit facility that exists in the account (such as a credit facility in a current account, credit facility on a bank card, discount, etc.) Part C – Transactions in the account

1. Table 1— 1.1 “Utilized credit facility”—The banking corporation shall detail, on a separate line, each type of credit facility that exists and is utilized in the account (such as a credit facility in the current account, a credit facility on a bank credit card, discount, etc.) 1.2 “Average monthly balance”—For current account balances, deposits / savings, and loans, the average shall be calculated on the principal only. The average shall be the simple average of total balances at the end of each month divided by 12 months in the year. In relation to the securities portfolio, a simple average of the balances at the end of each month shall be displayed. 1.3 “Total interest income/expenses”—The banking corporation shall display an annual summation of income and expenses registered during the year. The result shall be displayed with a plus or minus sign included, as relevant. 1.4 “Profit/Loss”—A simple yearly arithmetic sum. 1.5 “Graphs”—The income and expenses relevant to the current account shall be displayed, at least by the breakdown that appears in the graph. The banking corporation is permitted to display additional breakdowns.
2. Table 2—Deposits and savings 2.1 Periodic deposits shall be displayed in a consolidated manner. The figures regarding the date of making the deposit and the principal amount on the date of deposit shall relate to the first deposit. 2.2 “Indexation”—If there is an indexation mechanism in the deposit, the banking corporation shall list what it is (indexation base, base rate, and whether the indexation also applies to the interest). In cases where the deposit is not indexed, this shall be noted with the words, “not indexed”. 2.3 Should the interest rate be variable, the banking corporation shall note in the “type of interest” column that the interest rate is variable. In the “method of calculating interest”, the type of anchor and the spread, or other mechanism of calculation shall be noted, should any be set. (It is not necessary to fill in the “nominal interest rate” and “adjusted interest rate” columns.)

Supervisor of Banks: Proper Conduct of Banking Business 1 Annual Reports to Customers of the Banking Corporations Page 425-7 2.4 Should the interest rate be fixed, the banking corporation shall note in the “type of interest” column that the interest rate is fixed, and shall also fill in the “nominal interest rate” and “adjusted interest rate” columns. (It is not necessary to fill in the “method of calculating interest” column.) 2.5 “Balance to date xx/xx/xx—The principal, interest and indexation components shall be included. 3. Table 3—Credit 3.1 On loans that include a number of components, each component shall be displayed on a separate line. 3.2 “Next date of change of interest rate”—On a variable interest rate loan, in which the date of change is known in advance, the banking corporation shall note the next date of change in the interest rate in this column. On loans where the date of change in the interest rate is not known in advance, this column should not be filled in. 3.3 “Indexation”—The banking corporation shall note whether there is an indexation mechanism in the loan, and shall detail what it is (indexation base, base rate, on what components does it apply). On a loan that is not indexed, the banking corporation shall note this with the words, “not indexed”. 3.4 Should the interest rate be variable, the banking corporation shall note in the “type of interest” column that the interest rate is variable. In the “method of calculating interest”, the type of anchor and the spread, or other mechanism of calculation shall be noted, should any be set. (It is not necessary to fill in the “nominal interest rate” and “adjusted interest rate” columns.) 3.5 Should the interest rate be fixed, the banking corporation shall note in the “type of interest” column that the interest rate is fixed, and shall also fill in the “nominal interest rate” and “adjusted interest rate” columns. (It is not necessary to fill in the “method of calculating interest” column.) 3.6 “Balance to date xx/xx/xx—The principal, interest and indexation components shall be included. 3.7 “Credit facilities” table—The banking corporation shall detail all of the types of credit facilities, plans or tracks, as relevant, that exist in the account (including facilities that are not utilized on the report date), including a credit facility in the current account, a credit facility on the credit card, a bank guarantee facility, discount, and so forth. 4. Table 4—Fees 4.1 The banking corporation shall display the figures in the table in accordance with the following topics: 4.1.1 “Current account fees”—The fees included in Part 1 and Part 2 of the First Addendum and the Second Addendum to the Banking (Customer Service)(Fees) Rules, 5768–2008 (hereinafter—the Fees Rules) shall be included. 4.1.2 “Credit fees”—The fees included in Part 3 of the First Addendum to the Fees Rules shall be included. 4.1.3 “Securities Fees”—The fees included in Part 4 of the First Addendum to the Fees Rules shall be included. 4.1.4 “Other Fees”—The other fees included in the Fees Rules shall be included.

Supervisor of Banks: Proper Conduct of Banking Business 1 Annual Reports to Customers of the Banking Corporations Page 425-8 4.2 “Name of fee”—In this column, the banking corporation shall note the name of the service for which the fee is charged, as it appears in the “Service” column on the fee schedule displayed in the Fees Rules, while provided details on separate lines in accordance with the breakdown that appears in the “Price” column in the Fees Rules, and with the comments that appear in the bank’s fee schedule. 4.3 In case of a customer that has joined one of the tracks, the banking corporation shall note, under the “current account fees” heading, in the “name of fee” column, the name of the relevant track, and shall fill in the “total yearly amount paid for fees” column. It is not necessary to present additional information regarding the transactions included in the track, unless the customer has exceeded the track. 4.4 “Number of transactions made / transaction amount”—In this column, the banking corporation shall display the figure in accordance with the relevant calculation base for that fee. 4.5 “Yearly fee average (amount/rate)”—In this column, the banking corporation shall display the simple average calculation (total yearly charge divided by the number of transactions made during the year). 4.6 Should a completion be made to reach the minimum, the banking corporation shall note this in the “amount paid for fees” column, with the words, “completion to minimum fee”. Part D – Credit rating This part will not be displayed until there is an explicit directive from the Supervisor of Banks.

Supervisor of Banks: Proper Conduct of Banking Business 1 Annual Reports to Customers of the Banking Corporations Page 425-9 Second Addendum—Detailed Report

Detailed Annual Report All of the figures are correct as of xx/xx/xx, and are before withholding of taxes. All of the figures are displayed in shekels, unless otherwise indicated. Chapter A – Current Account Chapter B – Deposits and Savings Chapter C – Credit Chapter D – Credits and Debits in the Account Chapter E – Other Assets and Liabilities Chapter F – Fees Chapter G – Debit Cards Issued by the Bank Chapter H – Index of Terms For your attention, This document is personal and is intended only for your private use.

For more information, please contact the call center at _______________ or your branch.

Supervisor of Banks: Proper Conduct of Banking Business 1 Annual Reports to Customers of the Banking Corporations Page 425-10 Chapter A – Current Account Names of account holders ID / Passport / Corporate ID number + country code Account details (bank number, branch number, account number) Powers of attorney / authorized to operate in the account (name + ID / passport number + country code) Composition of signatures (individual / individual or joint) Type of account Date of opening the account Transfers salary (yes/not) Survivors item (yes/no) Contact details for the account Current account balance to report date Average monthly balance Average monthly interest rate Total interest income/expenses

• For details about the credit facility in your account, see Chapter C - Credit Interest on credit balances in the account: Type of interest Up to amount Nominal interest rate* Adjusted Interest Rate* Total interest received in respect of credit balance in account Credit
• Please see definitions in Chapter H. Legal proceedings: Has the bank initiated legal proceedings against the customer: _________________ Restrictions and liens on the account: Type of restriction/lien: _________________________ The party imposing the restriction/lien: _________________________ End of the restriction/lien period: ___________________________ The information presented in this section is in accordance with the information provided to the banking corporation from the party instructing to impose the lien or restriction.

Supervisor of Banks: Proper Conduct of Banking Business 1 Annual Reports to Customers of the Banking Corporations Page 425-11 Chapter B – Deposits and Savings Total value of deposits in the account

List of Deposits Deposit 1 out of x Details of deposit: Deposit number Type of deposit Date deposit was made Date of next exit point Date of repayment Currency Does the deposit serve as collateral for credit

Value: Amount of principal on date of deposit Amount of periodic deposit Value to the next exit point date Value to the date of repayment For your information, insofar as withdrawal is permitted other than on the above dates, it may involve an early withdrawal penalty in accordance with the agreement. Interest and indexation: Indexation Type of interest Method of calculating the interest Nominal interest rate Adjusted interest rate

Supervisor of Banks: Proper Conduct of Banking Business 1 Annual Reports to Customers of the Banking Corporations Page 425-12 Chapter C – Credit Total utilization of credit facility

Total balance of other loans in the account (including principal, interest and indexation)

Total balance of housing loans in the account* (including principal, interest and indexation)

*For your information, this amount relates only to housing loans where the loan holders and the account holders are fully identical. Detailed information regarding housing loans will be sent to you in parallel in a separate report. General collateral

(Excluding collateral posted to ensure a specific loan, which are noted later in the chapter)

Details of non-housing loans

Loan 1 out of x Loan details: Loan number Amount of principal on date the loan was made available Date the loan was made available Next date of change in the interest rate Repayment date Currency Indexation Type of interest Method of calculating the interest Nominal interest rate Adjusted interest rate Collateral Guarantors Method of loan repayment Balances: Total balance Of which: amounts in arrears** Loan principal Interest Indexation differentials Total balances ** Amounts in arrears, if there are any, include accumulated late payment interest and do not include legal expenses. For your information, repayment of the loan other than on the above dates may involve an early payment penalty in accordance with the agreement.

Supervisor of Banks: Proper Conduct of Banking Business 1 Annual Reports to Customers of the Banking Corporations Page 425-13 Details of credit facilities

Credit facilities in the current account Expiry date of the facility Total interest paid during the year on facility utilization Average monthly utilization of the facility Utilization of facility to date xx.xx.xx Effective Interest Nominal Interest To amount From amount Type of Facility

First ranked line of credit

Second ranked line of credit

Credit facility (including plan/track) on the Bank Credit card Expiry date of the facility Total interest paid during the year on facility utilization Average monthly utilization of the facility Utilization of facility to date xx.xx.xx Effective Interest Nominal Interest Facility limit Type of Facility

Name of plan/track 1

Name of plan/track 2 Other credit facilities Expiry date of the facility Total interest paid during the year on facility utilization Average monthly utilization of the facility Utilization of facility to date xx.xx.xx Effective Interest Nominal Interest Facility limit Type of Facility

Facility 1

Facility 2

Supervisor of Banks: Proper Conduct of Banking Business 1 Annual Reports to Customers of the Banking Corporations Page 425-14 Chapter D – Credits and Debits in the Account

Credits in the account: Institution code Entities/institutions that transferred credits to the account during the report period. Last credit date of the report period Last credit amount of the report date

Authorized debits: Beneficiary details Details of the last debit made to the account Institution code Name of institution Beneficiary's identifying number Date of opening the authorization Debit amount ceiling* Expiry date of the authorization* Last debit date Amount of last debit Details of the collecting bank**

• These columns should be filled in only if the customer chose an authorization that includes these restrictions ** "Collecting bank": The bank that represents the beneficiary to which the customer granted the authorization to debit the account, according to the details of the last debit made in the customer's account.

Standing bank orders: Details of the credited account Date of creating the standing bank order Date of the last debit in the report period Debit amount

Supervisor of Banks: Proper Conduct of Banking Business 1 Annual Reports to Customers of the Banking Corporations Page 425-15 Chapter E – Other Assets and Liabilities Securities:

Average monthly securities balance* Profit/Loss*

• See definitions in Chapter H

Balance of the tradable security portfolio to date xx.xx.xx: Change in %* Value of holdings* Price to date xx.xx.xx Cost Value* Purchase price/ Average purchase price* Amount of holdings 31.12.xx Purchase date Name of Security Stocks Total stocks Bonds Total bonds Makam Total Makam Other Total other Total portfolio

• See definitions in Chapter H

Other transactions in the capital market (deposit of nontradable securities (OTC)/hedging/options/futures/other): Date of transaction Type/nature of transaction Expiry date Transaction amount Collateral

Bank guarantees: Type of guarantee Name of beneficiary Amount of principal Expiry date

Total Other assets: Nature of the asset Value to the report date Other liabilities: Nature of the liability Value to the report date

Supervisor of Banks: Proper Conduct of Banking Business 1 Annual Reports to Customers of the Banking Corporations Page 425-16 Chapter F – Fees Fees—General (excluding securities transactions): Name of fee Fee amount (amount / rate) First half Second half Yearly Number of transactions made / transaction amount Amount paid for fee Number of transactions made / transaction amount Amount paid for fee Number of transactions made / transaction amount Total yearly amount paid for fees Current account fees

Credit fees Other fees Total for the period Securities fees: Details of securities purchase, sale and redemption transactions (Israeli and foreign) fees collected from your account during the months xx/xx/xx to xx/xx/xx: Date Name of security Type of transaction (purchase/sale/redemption) Quantity Transaction amount (NIS) Fee amount (NIS) Fee rate 1

First half total

Second half total Yearly total 1 Actual fee rate

Details of securities management fees (Israeli and foreign) collected from your account during the months xx/xx/xx to xx/xx/xx: Name of security Security value (NIS) by which management fees were calculated Holding period 1 (dates) Number of holding days Fee amount (NIS) Fee rate 2

First half total

Second half total Yearly total 1 Relating to securities held during various holding periods, the method of calculating the number of holding days for setting the fee amount is as detailed below: … (to be completed by the banking corporation). 2 Actual yearly fee rate.

Supervisor of Banks: Proper Conduct of Banking Business 1 Annual Reports to Customers of the Banking Corporations Page 425-17 Chapter G – Credit and Debit Cards Issued by the Bank Credit or Debit card number (last four digits of the card): Name of card holder:____________________ Name of credit card company:____________________________ Type of credit or debit card:____________________________ For more information regarding your transactions on the card, please review the monthly statements or contact the credit card company.

Supervisor of Banks: Proper Conduct of Banking Business 1 Annual Reports to Customers of the Banking Corporations Page 425-18

Chapter H – Index of Terms

Term Explanation Average monthly securities portfolio balance The balance calculated according to a simple average. Securities – profit/loss A profit/loss as a result of the actual sale, including receipts from dividends and interest, after payment of fees and before withholding of taxes, by arithmetic sum over the year. Survivors item An item that appears on the form for opening an account, that states that if one of the account holders dies, the surviving account holder is entitled to continue making current transactions in the stated account. Nominal interest rate The interest rate noted in the transaction documents. Adjusted interest rate The interest rate obtained by attributing an interest rate for a one-year period, based on a calculation of 365 days per year, taking into account the compound interest component if the interest payments are made periodically. Purchase price / average purchase price When a securities holding is made with one purchase, the price set on the date of the purchase is displayed. If a security is purchased in a number of purchases on different dates, the average purchase price is displayed. Cost value The value of the quantity of the holding by the purchase price / average purchase price Holding value The value of the quantity of the holding by the price to date 31.12.xx Percent change The difference between the holding value and the cost value, divided by the cost value.

Supervisor of Banks: Proper Conduct of Banking Business 1 Annual Reports to Customers of the Banking Corporations Page 425-19

Guidelines for preparing the detailed report This section details the guidelines for banking corporations for filling in the report. General:

1. The detailed report shall be displayed in the customer’s online account, in a prominent and accessible manner, in a format that will enable it to be saved and printed easily by the customer (such as PDF, HTML, and so forth), both by chapters and in a consolidated format.
2. The data displayed shall be correct as of the 31 st of December of the year ending.
3. Chapters, or parts thereof, which are not relevant regarding the customer, shall not be displayed in the report, unless stated otherwise.
4. Numerical data shall be displayed to two positions following the decimal point.
5. Negative transactions or amounts shall be labeled with a minus sign to the left of the number.
6. Amounts in foreign currency that are not aggregate shall be displayed on a separate line by type of currency. Aggregate data shall be displayed in shekels by the representative rate to the report date.
7. “Housing loans” in this report are as defined in Proper Conduct of Banking Business Directive number 451—Procedures for Extending Housing Loans.
8. A banking corporation shall display the balance of housing loans in this report only if the account holders are completely identical to the housing loan holders. If the current account is managed only for the purpose of the housing loan, the banking corporation is not required to send a detailed report. Detailed information regarding housing loans will be provided according to the Banking (Customer Service) (Due Disclosure and Provision of Documents) Rules, 5752–1992. Chapters of the report: Chapter A – Current Account This chapter is intended to include general data regarding the customer’s current account. The following are guidelines and points of emphasis for filling in the required details:
9. Regarding the display of the corporate ID number as required, when the banking corporation is not registered in Israel, the registration number in the country of incorporation should be used.
10. “Composition of signatures (joint/joint or separate)”—This item shall be displayed only in a joint account. It should be noted whether it is “joint or separate” or “joint”.
11. “Type of account”—The banking corporation shall display the type of account as it is defined (youth/student/soldier, and so forth). Should an account be defined as an “inactive account”, the banking corporation shall note this in this field.
12. “Transfers salary (yes/no)”—The banking corporation shall note whether the customer transfers a salary, as it is defined.
13. “Survivor’s item”—It should be noted whether the customer has signed the survivor’s item, in accordance with Section 13a of the Banking Ordinance, 1941.

Supervisor of Banks: Proper Conduct of Banking Business 1 Annual Reports to Customers of the Banking Corporations Page 425-20 6. “Account owners’ contact details”—With the objective of checking the veracity of the contact details with the customer, the banking corporation shall display the phone number, postal address, and electronic mail address of the account holders, as they appear in the banking corporation’s records. 7. The current account balance shall be displayed, as of the report date, without future transactions, other than future transactions with a settlement date of December 31 of the reporting year. 8. “Legal proceedings in the account”—The banking corporation shall note whether it has initiated legal proceedings against the customer. In this regard, “legal proceedings” includes filing a lawsuit against the customer or opening a State Bailiff’s file against the customer. 9. “Restrictions and liens in the account”—The banking corporation shall note the type of restriction (regular, aggravated, special) in accordance with the definitions in the Checks Without Cover Law, 5741–1981, and the party imposing the restriction. Information on liens shall be displayed in accordance with the information provided to the banking corporation by the party instructing to impose the lien or the restriction. Chapter B – Deposits and Savings This chapter is intended to include data regarding the customer’s deposits. The following are guidelines and points of emphasis for filling in the required details:

1. Periodic deposits shall be displayed in consolidated form; the data regarding the date of the deposit and the principal amount on the date of deposit shall relate to the first deposit.
2. “Amount of periodic deposit”—shall note one of the following options, as relevant: a. Should the amount of the periodic deposit be fixed, the banking corporation shall note the amount. b. Should one deposit be made, the bank shall note this with the words “one￾time deposit”.
3. “Value to date”—shall include the principal, interest and indexation components.
4. “Indexation”—If there is an indexation mechanism in the deposit, the banking corporation shall detail what it is (indexation base, base rate, and whether the indexation also applies to the interest). In cases where the deposit is not indexed, this shall be noted with the words “not indexed”.
5. Should the interest rate be variable, the banking corporation shall note in the “type of interest” line that the interest rate is variable. In the “method of calculating interest” line, the type of anchor and the spread, or other mechanism of calculation shall be noted, should any be set. (It is not necessary to fill in the “nominal interest rate” and “adjusted interest rate” lines.)
6. Should the interest rate be fixed, the banking corporation shall note in the “type of interest” line that the interest rate is fixed, and shall also fill in the “nominal interest rate” and “adjusted interest rate” lines. (It is not necessary to fill in the “method of calculating interest” line.)

Supervisor of Banks: Proper Conduct of Banking Business 1 Annual Reports to Customers of the Banking Corporations Page 425-21 Chapter C – Credit This chapter is intended to include data regarding the customer’s loans and the credit facility available to him. The following are guidelines and points of emphasis for filling in the required details:

1. At the beginning of this chapter, the total utilization of the credit facility, and the total balances of all loans existing in the account, shall be noted, with a separation made between housing loans and other loans. The balance displayed shall include the principal, interest and indexation components.
2. “Details of non-housing loans”—Under this heading, the banking corporation shall display details of loans attributed to the account that are not housing loans, in accordance with the displayed tables.
3. “Total balance of loans in the account”—The balance displayed shall include the principal, interest and indexation components.
4. In the “loan details” table—On loans that include a number of years, each year shall be displayed on a separate line.
5. “Next date of change of interest rate”—On a variable interest rate loan, in which the date of change is known in advance, the banking corporation shall note the next date of change in the interest rate in this column. On loans where the date of change in the interest rate is not known in advance, this column should not be filled in.
6. “Indexation”—The banking corporation shall note whether there is an indexation mechanism in the loan, and shall detail what it is (indexation base, base rate, on what components does it apply). On a loan that is not indexed, the banking corporation shall note this with the words, “not indexed”.
7. Should the interest rate be variable, the banking corporation shall note in the “type of interest” line that the interest rate is variable. In the “method of calculating interest” line, the type of anchor and the spread, or other mechanism of calculation shall be noted, should any be set. (It is not necessary to fill in the “nominal interest rate” and “adjusted interest rate” lines.)
8. Should the interest rate be fixed, the banking corporation shall note in the “type of interest” line that the interest rate is fixed, and shall also fill in the “nominal interest rate” and “adjusted interest rate” lines. (It is not necessary to fill in the “method of calculating interest” line.)
9. “Collateral”—In a case where there is collateral, the banking corporation shall note this with the words “collateral exists”. It is not necessary to detail the collateral. If there is no collateral, the words “no collateral exists” shall be noted. If the banking corporation is aware of collateral that has been received to ensure credit but that has not yet been inputted into the system, the banking corporation is permitted to add a verbal clarification of this. When there is a collateral that is not pledged specifically for any loan, the banking corporation shall note this in the upper portion of the chapter in the “general collateral” line.
10. “Guarantors”—It shall be noted whether there are guarantors for the loan, with the words “yes/no”. It is not necessary to list the identity of the guarantors.
11. “Method of paying off the loan”—In this field, the method relevant to the loan (such as: Shpitzer, Equal principal, Balloon, and so forth) shall be displayed.
12. “List of credit facilities”—The banking corporation shall list all types of credit facilities, plans or tracks, as relevant, that exist in the account (including facilities that are not utilized on the report date), including the current account facility, a facility on

Supervisor of Banks: Proper Conduct of Banking Business 1 Annual Reports to Customers of the Banking Corporations Page 425-22 a bank credit card, and other facilities such as bank guarantees, discounts, and so forth. Chapter D – Credits and Debits in the Account This chapter is intended to include data regarding credits in the customer’s account, and authorized charges and standing bank orders in the account. The following are guidelines and points of emphasis for filling in the required details:

1. “Credits in the account” table—The table shall display credits made by an entity with an institution code.
2. “Standing bank orders” table—“Details of the credited account”—The banking corporation shall display the details of the credited account, as provided to it. Internal transfers between the customer’s accounts in the banking corporation shall not be displayed. Chapter E – Other Assets and Liabilities This chapter is intended to include the other assets and liabilities existing in the customer’s account.
3. “Average monthly balance of the securities portfolio”—The balance shall be calculated by simple average.
4. “Profit/Loss”—The banking corporation shall display the profit or loss as a result of actual sales, including receipts from dividends and interest, after payment of fees and before withholding of tax, by arithmetic equation over the course of the year.
5. “Average Purchase/Sale price”—When a holding of a security has been executed in one purchase, the price set on the purchase date shall be displayed. If the security was purchased in a number of purchases on different dates, the average purchase price shall be displayed.
6. “Cost value”—The value of the quantity of the holding by the purchase price or average purchase price.
7. “Holding value”—The value of the quantity of the holding by the price on December 31 of the year ended.
8. “Percent change”—The difference between the holding value and the cost value, divided by the cost value. Chapter F – Fees In this chapter, data for fees collected from the customer during the report period are displayed. The following are guidelines and points of emphasis for filling in the required details: 'General Fees (other than securities transactions)' table
9. The banking corporation shall display the figures in the table in accordance with the following topics:

Supervisor of Banks: Proper Conduct of Banking Business 1 Annual Reports to Customers of the Banking Corporations Page 425-23 a. “Current account fees”—The fees contained in Part 1 and Part 2 of the First Addendum and the Second Addendum to the Banking (Customer Service)(Fees) Rules, 5768–2008 (hereinafter—the Fees Rules) shall be included. b. “Credit fees”—The fees contained in Part 3 of the First Addendum to the Fees Rules shall be included. c. “Other Fees”—The other fees contained in the Fees Rules shall be included (other than securities fees, which are included in Part 4 of the First Addendum to the Fees Rules, and which are detailed in a separate table). 2. If the fee amount or rate actually charged to the client changed was over the year, the banking corporation shall display the data on separate lines. 3. “Name of fee”—In this column, the banking corporation shall note the name of the service for which the fee is charged, as it appears in the “Service” column on the fee schedule displayed in the Fees Rules, while provided details on separate lines in accordance with the breakdown that appears in the “Price” column in the Fees Rules, and with the comments that appear in the bank’s fee schedule. 4. In case of a customer that has joined one of the tracks, the banking corporation shall note, under the “current account fees” heading, in the “name of fee” column, the name of the relevant track, and shall fill in the “total amount paid for fees” and “total yearly amount paid for fees” columns. It is not necessary to present additional information regarding the transactions included in the track, unless the customer has exceeded the track. 5. “Number of transactions made / transaction amount”—In this column, the banking corporation shall display the figure in accordance with the relevant calculation base for that fee. 6. Should a completion be made to reach the minimum, the banking corporation shall note this in the “amount paid for fees” column, with the words, “completion to minimum fee”. 'Securities fees' table The tables that appear under the “Securities fees” heading shall be filled out in accordance with the guidelines in Proper Conduct of Banking Business Directive 414. Chapter G – Credit and Debit Cards Issued by the Bank In this chapter, the banking corporation shall display data for credit and debit cards issued to the customer. This chapter provides information that complements the monthly report sent to customers by the credit card companies. “Type of debit or credit card”—This item shall include the type of card, in accordance with the definitions in the Debits Cards Law, 5746–1986. Chapter H – Index of Terms In this chapter, the customer is shown a list of terms with clarifications alongside them. The banking corporation is permitted to display additional terms that it thinks require clarification.