Circular 2371/06 - Amendment to Reporting Directive 855 Profit and Loss

Bank of Israel Supervision of Banks Policy Department

Fax: 02-6524590 Tel: 02-6552475 P.O.B. 780, Jerusalem 91007

Jerusalem, 7 Adar II, 5773 February 26, 2013

Circular 2371/06

To: Banking Corporations and Credit Card Companies

Subject: Profit and Loss

(Reporting Directive 855 'Profit and Loss' of the Supervision of Banks)

Introduction

1. Further to Circular 2331 dated March 25, 2012, which introduced an updated format for the reporting under Reporting Directive 855 'Profit and Loss' (annual), this directive amends the reporting directive to incorporate the following corrections:

Reporting Directive 855 'Profit and Loss'

2. In Appendix 2, the alignment between Schedule 23 (operating commissions) and the full tariff schedule (between) is amended by deleting the phrase "and sales" in Section 4(a)2.

Explanatory Notes

3. The explanation for "provisions for credit losses" in Schedule 3 of the reporting directive has been adjusted to exclude Israeli activities.

Effective Date

4. The amendments to this directive take effect as of December 31, 2012.

Inquiries and Questions

5. Regarding the tables in Reporting Directive 803 'Reporting', inquiries and questions should be directed to the Reporting Department at the Supervision of Banks.

Sincerely,

Auriv Super Deputy Superintendent of Banks

(2/13) [24] Reporting Directives: Update of Files

The following updates apply to the Reporting Directives for the Supervision of Banks. Enter page / Remove page:

(2/13) [24] 855-3 (5/12) [23] 855-3 *(5/12) [23] 855-4 (5/12) [23] 855-4 (2/13) [24] 855-23 (5/12) [23] 855-23 *(5/12) [23] 855-24 (5/12) [23] 855-24 (2/13) [1] 897-53 - --- -- -- --- -- --- ---

• This page was not updated but reprinted following the transition to double-sided printing.

(2/13) [24] Reporting Directives: Supervision of Banks 855-3 'Profit and Loss

Appendix Alignment between Schedule 23 (operating commissions) and the full tariff schedule

Schedule 23: Operating Commissions (Full Tariff Schedule)

1(a) Account management fees - IIB 1(b) Direct channel operations 1(c) Teller operations 1(d) See note in tariff schedule - Minimum fee completion 1(e) IIB fees (excluding exchange differences) 1(f) Checkbooks 1(g) Bounced checks 1(h) Cancellations and returns of charges (1(a), 2(a), 3(a), 4(a)) 1(i) Information messages and alerts - Commission Division 2 1(j) Other commissions - Commission Division 1

4(a) Credit card fees 4(b) Income from other businesses 4(c) Other commissions - Commission Division 6 4(d) Income from customer activities (purchases and sales) 4(e) Management fees (excluding derivatives) 4(f) Other commissions - Commission Division 4

3(a) Income from financial instruments (NIS and USD) 3(b) Mortgage loan processing fees 3(c) Other mortgage loan processing fees 3(d) Mortgage loan collection fees 3(e) Other fees 3(f) Other commissions - Commission Division 3 (excluding 5(a))

7(a) Foreign trade activities and services 7(b) Import activity income - Special 7(c) Export activity income - NIS 7(d) Other income - NIS

9(a) Charges for authorization "P" for beneficiaries 9(b) Other sections 9, 10, 11

7(c) Financing business commissions from acceptances 7(d) Credit certificates

3(a) Guarantees for credit protection 3(b) Guarantees for home buyers 3(c) Other guarantees and commitments