Bringing Forward the Dates for Publishing Reports to the Public

Bank of Israel Supervision of Banks, its Business and Insurance Fax: 03-5661110 Tel: 03-5640520 528 P.O.B, Tel Aviv-Yafo 61004

29 September 2013 20 Tishrei 5774

Circular 2397 - 06 -ח

To: Banking Institutions and Credit Card Companies

Subject: Bringing Forward the Dates for Publishing Reports to the Public (Instructions for Reporting to the Public)

Introduction

1. Banking institutions required to publish their financial reports in accordance with the Instructions for Reporting to the Public must publish their annual report no later than three months from the balance sheet date, whereas the quarterly report must be published within two months from the balance sheet date.

2. In accordance with the instructions of the Securities and Exchange Commission (SEC) in the USA, large accelerated filers must publish their annual report no later than 60 days from the balance sheet date, and their quarterly report no later than 40 days from the balance sheet date.

3. In order to align the publication dates of financial reports of banking institutions in Israel with those customary in the USA, and to allow readers of the financial reports to obtain information on the financial position and results of the bank sooner, there is a need to update the Instructions for Reporting to the Public.

4. After consulting with the Accountants' Association and the Committee for Consulting on Banking Matters, I have amended the Instructions for Reporting to the Public as detailed below.

Amendments to the Instructions

5. The provision that a banking institution at the head of a banking group may publish its annual report no later than three months from the balance sheet date (including any banking institution) is deleted. A banking institution at the head of a banking group will be required to publish its annual report no later than two months from the balance sheet date.

6. It is determined that a quarterly report of a banking institution of a credit card company will be published no later than 45 days from the balance sheet date.

Explanatory Remarks

The new publication dates were determined in order to align with the commitments customary in the USA and to improve the availability of information to readers of the financial reports.

7. The provision in Chapter 610 of the Instructions for Reporting to the Public, which requires keeping the reports available to the public, is replaced with a requirement to keep the reports at the head office of the banking institution, in its branch or office, only. Additionally, the similar provision relating to the quarterly report was updated.

Explanation of the Amendment to the Instructions for Reporting to the Public in our letter 138S3683/308: Effective from 11.3.2013

8. The provisions of this circular will be implemented as follows:

8.1 Publication of Annual Reports by Banking Institutions at the Head of a Banking Group The annual report for the year 2013 will be published no later than 20.3.2014, and the annual report for the year 2014 will be published no later than 20.3.2015. Thereafter, the annual report for the year 2015 and subsequent years will be published no later than two months from the balance sheet date.

8.2 Publication of Quarterly Reports by Banking Institutions and Credit Card Companies Quarterly reports for the year 2014 will be published no later than 55 days from the balance sheet date. In 2015, quarterly reports will be published no later than 50 days from the balance sheet date, and from 2016 onwards, quarterly reports will be published no later than 45 days from the balance sheet date.

8.3 Keeping Reports at the Head Office of the Banking Institution in light of letter 138S3683/308 Banking institutions may implement the provision in section 7 of this circular from 11.3.2013, applicable to the annual report for the year 2012 onwards.

9. Attached are the updated pages of the Instructions for Reporting to the Public.

Page to Insert | Page to Remove (9/13) [8] 610-1 | (8/94) [7] 610-1 *(8/13) [3] 611-1 | (8/13) [3] 611-1 (9/13) [16] 680-1 | (3/08) [15] 680-1 (9/13) [3] 699-108 | (9/13) [2] 699-108 *This page was reprinted following the transition to double-sided printing. The text in this update is identical to the existing version.

With respect,

David Zaken Supervisor of Banks

Instructions for Reporting to the Public: Supervision of Banks, its Business and Insurance Page 610-1 Presentation of the Annual Report and its Publication

Page 611-1 Presentation of the Annual Financial Report and its Publication

1. The audited annual financial report of a banking institution shall be available for review at the head office of the banking institution.

2. In addition to the above, a banking institution shall: (1) Publish the audited annual financial report in at least one daily newspaper published in Israel; (2) Publish the summary of the audited annual financial report in at least one daily newspaper published in Israel, in the form approved by the Supervisor, and submit a copy of the full audited annual financial report to any person requesting it.

3. Even though the provisions of sections 1 and 2 apply, if a banking institution is a joint service company, it shall publish the summary of its audited annual financial report in at least one daily newspaper, in the form approved by the Supervisor.

4. The summary of the audited annual financial report shall be published close to the date of the auditor's opinion, but no later than one week before the date of the General Assembly of the banking institution, or the submission of the audited annual financial report, whichever is earlier. (b) Deleted.

Instructions for Reporting to the Public: Supervision of Banks, its Business and Insurance Page 680-1 Quarterly Report of a Banking Institution

Page 680-1.1 Quarterly Report of a Banking Institution

Introduction

1. A banking institution shall publish a quarterly report as detailed below.

Definitions

a1. In these instructions: "Report Date" - the last day of the first, second, or third quarter; "Quarter" - a period of three months ending on the last day of the first, second, or third month of the first, second, or third quarter (the ninth, sixth, or third month) of the banking institution's fiscal year (the fourth quarter being the tenth); "Reporting Year" - the last fiscal year of the banking institution that ended before the Report Date; "Report Date" - the date on which the periodic report was signed.

b. The meaning of the terms in these instructions shall be as defined in the instructions for preparing financial reports, unless otherwise stated, annual.

Content of the Quarterly Report

2. The quarterly report shall include: a. A quarterly board report; b. A quarterly management review; c. A disclosure statement; d. A summary of the quarterly financial report.

Publication

3. The quarterly board report, quarterly management review, disclosure statement, and summary of the quarterly financial report, along with their accompanying notes and appendices, constitute the quarterly report as a single unit.

b. The full quarterly report shall be sent to the Secretariat of the Supervision of Banks, Tel Aviv-Yafo, on the day of its publication, and shall be available for review at the Registrar of Companies or the Registrar of Associations, as applicable, and a copy shall be submitted to any person requesting it from the head office of the banking institution.

c. The summary of the quarterly financial report shall include at least a summary of the balance sheet, a summary of the profit and loss statement, and a statement of changes in equity. It shall be published in a daily newspaper widely circulated in Israel. A copy of the full quarterly report shall be available for review at the head office of the banking institution and submitted to any person requesting it.

d. A banking institution that publishes a summary of its quarterly financial report in any publication shall ensure that the letters in the summary published in the newspaper are smaller than the letters in the main publication in the newspaper.

d. The quarterly report shall be published no later than 45 days from the date of the report. Within 3 days from the date of the auditor's signature on the management review of the banking institution, the summary of the quarterly financial report shall bear the signature of the auditor of the banking institution on the quarterly report. The quarterly report shall be published no more than three days after the date of the report.

Instructions for Reporting to the Public: Supervision of Banks, its Business and Insurance Page 699-108 Updates Index

Updates to Circular 2399-06-ח dated 30/09/2013 (Assets and Liabilities according to basic index and according to maturity period)

Page to Insert | Page to Remove *(4/11) [4] 663-15.1 | (4/11) [4] 663-15.1 (9/13) [10] 663-16 | (10/02) [9] 663-16 (9/13) [3] 663-16.1 | (3/10) [2] 663-16.1 *(4/11) [16] 669-47 | (4/11) [16] 669-47 (9/13) [17] 669-48 | (1/13) [16] 669-48 (9/13) [17] 669-49 | (1/13) [16] 669-49 (9/13) [17] 669-50 | (1/13) [16] 669-50 (9/13) [17] 669-51 | (1/13) [16] 669-51 *(4/11) [4] 669-51.1 | (4/11) [4] 669-51.1 (9/13) [1] 699-108 | ----- *This page was reprinted following the transition to double-sided printing. The text in this update is identical to the existing version.

Updates to Circular 2400-06-ח dated 30/09/2013 (Reporting on amounts reclassified outside) (Cumulative other comprehensive income)

Page to Insert | Page to Remove (9/13) [18] 669-58 | (12/11) [17] 669-58 *(12/11) [4] 669-58.1 | (12/11) [4] 669-58.1 *(12/12) [3] 669-67.2 | (12/12) [3] 669-67.2 (9/13) [2] 669-67.3 | (12/12) [1] 669-67.3 *(3/12) [4] 680-23 | (3/12) [4] 680-23 (9/13) [5] 680-23.1 | (3/12) [4] 680-23.1 *(12/12) [1] 680-26 | (12/12) [1] 680-26 (9/13) [2] 680-27 | (12/12) [1] 680-27 (9/13) [1] 680-28 | ----- (9/13) [2] 699-108 | (9/13) [1] 699-108 *This page was reprinted following the transition to double-sided printing. The text in this update is identical to the existing version.

Updates to Circular 2397-06-ח dated 29/09/2013 ("Bringing Forward the Dates for Publishing Reports to the Public")

Page to Insert | Page to Remove (9/13) [8] 610-1 | (8/94) [7] 610-1 *(8/13) [3] 611-1 | (8/13) [3] 611-1 (9/13) [16] 680-1 | (3/08) [15] 680-1 (9/13) [3] 699-108 | (9/13) [2] 699-108 *This page was reprinted following the transition to double-sided printing. The text in this update is identical to the existing version.