Directive 425: Annual Reports to Customers of the Banking Corporations

Supervisor of Banks: Proper Conduct of Banking Business 5 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 annual 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 5 Annual Reports to Customers of the Banking Corporations Page 425-2
6. A banking corporation may, in a case in which the report is longer than 50 pages, send the
reports to a customer who does not manage an online account via common and usable electronic means of data storage. Accessibility of the reports
7. 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
8. 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
2471 2 Revision 21/06/15
2490 3 Revision 01/02/16
2717 4 Revision 13/6/22
2789 5 Revision 29/7/24

Supervisor of Banks: Proper Conduct of Banking Business 5 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 This section presents aggregate data of account balances

• The value of the total quantity of securities held according to the closing price set on the last trading day of the year.
  The data above are aggregate. If there is foreign currency activity in the account, it is converted to shekels. The total is presented in shekels according to the representative exchange rate for xx/xx/xx, which is xxxx. For details regarding foreign currency activity in the account, see the Detailed Report.
  Part C - Transactions in the account
  Total Interest and Indexation
  Income/Expenses
  Average annual interest rate
  Average monthly balance*
  (principal only)
  1.
  Current Account
  Utilized Credit Facilities
  Total Interest and Indexation income/Expenses
  Average monthly balance* (principal only)
  Total Deposits/Savings
  Total Housing Loans
  Total Other Loans
  Average monthly balance* Annual rate of return Securities Portfolio
• The balance is calculated by the simple average (annual cumulative balance divided by 12 months in the year).
  The rate of return is calculated using TWR, where tax expenses are not taken into account, and net of fees. Please note! The rate of return calculation may include other assets, such as structured deposits. For further details, see the report on “Data on activity and rate of return on securities deposit”. This data shall not be presented to a customer holding a securities deposit that is intended for receipt of investment management services. The rate of return in the managed portfolio is reported to the customer by the portfolio manager. The data above are aggregates. If there is foreign currency activity in the account, it is translated into shekels at the representative exchange rate for xx/xx/xx, which is
  xxxx. For details regarding foreign currency activity in the account, see the Detailed Report.
  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 -------------------------- ----------------------- ------------------------------------------ ------------------------ Total Assets in NIS Total Liabilities in NIS

Supervisor of Banks: Proper Conduct of Banking Business 5 Annual Reports to Customers of the Banking Corporations Page 425-4 0 50 100 150 200 250 Total yearly expenses Total yearly income Wages, 87% Cash, Checks, Other, Bank payment cards, 33% Mortgage, 29% Cash, 17% Other, 12% Checks, 9% NIS thousand (This figure shows a breakdown of expenses and income relevant to the current account.

Supervisor of Banks: Proper Conduct of Banking Business 5 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 first deposit
Accumulated principal amount as of date of report Deposit Number

• Includes, principal, interest and indexation.
  3. Credit
  Housing Loans
  Value to date xx/xx/xx
  Adjusted interest rate4
  Nominal interest rate3
  Method of calculating interest
  Type of
  Interest Currency Indexation Date of
  Repayment
  Date of next change of interest rate
  Date loan was made available
  Principal amount on date loan was made available Loan Number
• Includes, principal, interest and indexation.
  Amounts in arrears, if there are any, include accrued interest on arrears, and do not include legal expenses. 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 Value to date xx/xx/xx Adjusted interest rate4 Nominal interest rate3 Method of calculating interest Type of Interest Currency Indexation Date of Repayment Date of next change of interest rate Date loan was made available Principal amount on date loan was made available Loan Number
• Includes, principal, interest and indexation.
  Amounts in arrears, if there are any, include accrued interest on arrears, and do not include legal expenses. 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 Total
  5. Additional current account data
  Interest on credit balances in the account
  Type of interest Up to amount Nominal interest rate3 Adjusted interest rate4 Credit Notes
  1. All of the figures are presented in shekels, unless otherwise noted.
  2. All of the figures are before withholding of tax.
  3. The figures in the report do not include transactions on nonbank credit & debit cards.
  4. Nominal interest rate - the interest rate listed in the transaction documents.
  5. 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 go to the BOI website 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 5 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 decimal places, except for representative rates and
interest rates, which will be displayed as generally accepted at the bank.
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. As long as there is no specific cell to note the currency type, it is to be presented in the cell with the amount. Aggregate data shall be displayed in shekels by the representative rate as of the report date.
7. “Housing loans” in this report—as defined in Proper Conduct of Banking Business
Directive number 451, “Procedures for extending 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.
9. The minimum size of the letters and numbers, except for the Hebrew letter “yud” shall be
2 millimeters.
Part A – General
1. 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.
2. “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.
3. “Transfers salary (yes/no)”—the banking corporation shall note whether the customer
transfers a salary, as per its definitions.
Part B – Balances
This part presents aggregate account-balance data.
1. “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

Supervisor of Banks: Proper Conduct of Banking Business 5 Annual Reports to Customers of the Banking Corporations Page 425-6 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.
2. 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.
3. “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 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. 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.
7. “Utilized credit facilities”—The banking corporation shall present the total amount of
existing utilized credit facilities in the account. A credit facility for loans is not to be presented in this table; loans utilized from the facility shall be presented under the heading, “other loans” or “housing loans”, as the case may be.
Part C – Account activity

1. Table 1—
   1.1 “Current account”—The credit balance in a current account shall be listed under
   this heading. A debit balance in a current account, deriving from the utilization of credit, shall be listed under the heading, “Utilized credit facilities”, In a case where a customer does not have a credit facility, or has deviated from the credit facility, such information shall not be reflected in this table.
   1.2 “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, and shall list its name (such as a credit facility in the current account, a credit facility on regular transactions on a bank credit card, credit transaction facility on a bank credit card, discount, etc.) A credit facility for loans is not to be presented in this table; loans utilized from the facility shall be presented under the heading, “other loans” or “housing loans”, as the case may be.
   1.3 “Average monthly balance (principal only)”—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 the 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. The term “principal only” is significant in cases where there is interest on credit balances. In such cases, the accrued amount in respect of interest shall appear in the column, “total interest and indexation income/expenses”.
   1.4 “Average annual interest rate”—In this cell, the banking corporation is to present
   the adjusted average annual interest rate.
   1.5 “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.

Supervisor of Banks: Proper Conduct of Banking Business 5 Annual Reports to Customers of the Banking Corporations Page 425-7
1.6 “Annual rate of return”—The rate of return is calculated using TWR, in
accordance with the provisions of Proper Conduct of Banking Business Directive no. 460. An explanation to the customer will be presented in the Detailed Report. This figure will not be presented to a customer holding a securities deposit that is intended for receipt of investment portfolio management service. The rate of return in the managed portfolio is reported to the customer by the portfolio manager in the quarterly report, in accordance with the Regulation of Engagement in Investment Advice, Investment Marketing and Management of Investment Portfolios Regulations (Reports), 5772-2012.
1.7 “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 When the columns in the table are not wide enough, the table should be divided
into two lines, while merging the cells displaying the deposit number, in a manner that makes it clear that the cells that were moved refer to the relevant deposit.
2.2 Periodic deposits shall be displayed in a consolidated manner.
2.3 “Indexation”—If there is an indexation mechanism in the deposit, the banking
corporation shall list what it is (indexation base). In cases where the deposit is not indexed, this shall be noted with the words, “unindexed”.
2.4 Should the interest rate be variable, the banking corporation shall note in the “type
of interest” column that the interest rate is variable, and note the frequency of changes. 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.)
2.5 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.)
2.6 “Value on date xx/xx/xx—The principal, interest and indexation components shall
be included. Should there be additional components included in the value of the deposit/saving (such as bonuses), the nature of those components are to be noted in words in a continuation of the note appearing at the bottom of the table.
3. Table 3—Credit
3.1 When the columns in the table are not wide enough, the table should be divided
into two lines, while merging the cells displaying the loan number, in a manner that makes it clear that the cells that were moved refer to the relevant loan.
3.2 On loans that include a number of components, each component shall be displayed
on a separate line. When there is an amount in arrears, it is to be presented in one merged cell combing all the components, under the heading, “of which: amount in arrears”.
3.3 “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.

Supervisor of Banks: Proper Conduct of Banking Business 5 Annual Reports to Customers of the Banking Corporations Page 425-8
3.4 “Indexation”—The banking corporation shall note whether there is an indexation
mechanism in the loan, and shall detail what it is (indexation base). On a loan that is not indexed, the banking corporation shall note this with the words, “not indexed”.
3.5 Should the interest rate be variable, the banking corporation shall note in the “type
of interest” column that the interest rate is variable and note the frequency of changes. 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.)
3.6 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.)
3.7 “Balance to date xx/xx/xx—The principal, interest and indexation components
shall be included.
3.8 “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. A credit facility for loans shall be presented in this table, and adjacent to it, the amount utilized, to the extent that there is any, and a note is to be added, “see details in table on loans”. In cases where the amount of the facility is defined as a range, the banking corporation shall note the range in the relevant cell in the “facility amount” column.
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 (Service to the Customer) (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, except for commissions for the purchase, sale, redemption and management of securities (Israeli and foreign), for which a total annual amount charged is to be shown.
4.1.4 “Other Fees”—The other fees included in the Fees Rules shall be included.
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. It is clarified that the goal of the text appearing in the name of the fee is to provide maximum detail to the customer, while maintaining, to the extent possible, simplicity and clarity. Thus, to the extent there are various transactions of the same

Supervisor of Banks: Proper Conduct of Banking Business 5 Annual Reports to Customers of the Banking Corporations Page 425-9 service, for which different prices apply, the name of the fee is to reflect the characteristics of the activity.
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”.
4.7 In cases where the customer received a complete exemption from paying a fee, the
name of the fee and the number of transactions carried out/amount of transaction are to be listed. Under the heading “total annual amount paid in respect of the fee”, record “0”.

Supervisor of Banks: Proper Conduct of Banking Business 5 Annual Reports to Customers of the Banking Corporations Page 425-10 Second Addendum—Detailed Report Detailed Annual Report All of the figures are correct as of xx/xx/xx, and are before deducting 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 – Payment 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 5 Annual Reports to Customers of the Banking Corporations Page 425-11
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) Survivorship clause (yes/no) Contact details for the account Current account balance as of report date Average monthly balance (principal only) Average annual interest rate Total interest and indexation 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 first deposit was made
Date of next exit point
Date of repayment
Currency
Does the deposit serve as collateral for credit Value:
Amount of accumulated principal as of report date Frequency of deposit Amount of periodic deposit Value as of the next exit point date Value as of 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 5 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 collaterals posted to secure 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 5 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 Adjusted 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 Adjusted 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 Adjusted Interest Nominal Interest Facility limit Type of Facility Facility 1 Facility 2

Supervisor of Banks: Proper Conduct of Banking Business 5 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 5 Annual Reports to Customers of the Banking Corporations Page 425-15
Chapter E – Other Assets and Liabilities
Securities:
Average monthly securities balance* Annual rate of return

• See definitions in Chapter H. This data shall not be presented in regard to a securities deposit that is intended for
  the receipt of investment portfolio management service. In such case, the rate of return shall be reported to the customer by the portfolio manager. 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
• If a security was purchased in several lots on different dates, the average purchase price is to be listed, without
  details of purchase dates.
  See definitions in Chapter H. This data shall not be presented in regard to a securities deposit that is intended for receipt of investment portfolio management service. In such case, the rate of return is reported to the customer by the portfolio manager. Other transactions in the capital market (deposit of nontradable securities (OTC)/hedging/options/futures/other):
  Date of transaction Type/nature of transaction Expiry date Value of transaction 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

Supervisor of Banks: Proper Conduct of Banking Business 5 Annual Reports to Customers of the Banking Corporations Page 425-16 Other liabilities:
Nature of the liability Value to the report date
Chapter F – Fees
Fees—General (except for the purchase, sale, redemption and management of (Israeli and foreign) securities):
Name of fee
Actual 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 Securities fees Other fees Total for the period Purchase, sale, redemption and management fees for (Israeli and foreign) securities:
Details of commissions on the purchase, sale, and redemption of (Israeli and foreign) securities 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 rate1
First half total
Second half total
Yearly total
1 Actual fee rate
Details of securities (Israeli and foreign) management fees 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 period1 (dates) Number of holding days Fee amount (NIS) Fee rate2 First half total

Supervisor of Banks: Proper Conduct of Banking Business 5 Annual Reports to Customers of the Banking Corporations Page 425-17 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 5 Annual reports to customers of the banking corporations Page 425- 18
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 5 Annual reports to customers of the banking corporations Page 425- 19
Chapter H – Index of Terms
Term Explanation
Average monthly securities portfolio balance The balance calculated according to a simple average. Securities – average annual rate of return The rate of return is calculated using the TWR method, where tax expenses are not taken into account, and net of fees. The rate of return calculation may include other assets, such as structured deposits. For further details, see the report on “Data on activity and rate of return on securities deposit”. This data shall not be presented to a customer holding a securities deposit that is intended for receipt of investment management service. The rate of return in the managed portfolio is reported to the customer by the portfolio manager in the quarterly report, in accordance with the Regulation of Engagement in Investment Advice, Investment Marketing and Management of Investment Portfolios Regulations (reports), 5772 – 2012. Survivorship clause 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

Supervisor of Banks: Proper Conduct of Banking Business 5 Annual reports to customers of the banking corporations Page 425- 20 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 5 Annual reports to customers of the banking corporations Page 425- 21 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 31st 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 digits following the decimal point, except for
representative rates and interest rates, which are to be listed in accordance with the number of decimal places generally accepted at the bank.
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. To the extent that there is no specific cell to mark the currency type, it should recorded in the cell in which the amount is presented. 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.
9. The minimum size of the letter and numbers, except for the Hebrew letter “yud” is to be 2
millimeters.
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:
1. 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.
2. “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”.
3. “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.
4. “Transfers salary (yes/no)”—The banking corporation shall note whether the customer transfers
a salary, as it is defined.
5. “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.
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,

Supervisor of Banks: Proper Conduct of Banking Business 5 Annual reports to customers of the banking corporations Page 425- 22 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. “Average monthly balance (principal only)”—The average is to be calculated for the principal
only. The average is to be the simple average of the balances at the end of each month, divided by 12 months in the year. The term “principal only” is significant in cases where there is interest on credit balances. In such cases, the amount of interest accrued is to appear in the column “total income/expenses from interest and indexation”.
9. “Average annual interest rate”—In this cell, the banking corporation is to list the average adjusted
monthly interest rate.
10. “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.
11. “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.
2. “Frequency of deposit”—If there is a set frequency of deposit, the banking corporation is to note
   the frequency of deposit (for example, “monthly frequency”). In any other case, the notation “- - “ should be made in the cell.
3. “Amount of periodic deposit”—If there is a fixed amount of the periodic deposit, the banking
   corporation is to record it here. In any other case, the notation “- -“ should be made in the cell.
4. “Value to date”—Shall include the principal, interest and indexation components.
5. “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”.
6. Should the interest rate be variable, the banking corporation shall note in the “type of interest”
   line that the interest rate is variable, and also note the frequency with which it is changed. 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.)
7. 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.)
   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:

Supervisor of Banks: Proper Conduct of Banking Business 5 Annual reports to customers of the banking corporations Page 425- 23

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. In loans made up of various components, each component should be listed separately.
4. “Total balance of loans in the account”—The balance displayed shall include the principal,
   interest and indexation components.
5. In the “loan details” table—On loans that include a number of years, each year shall be displayed
   on a separate line.
6. “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.
7. “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”.
8. Should the interest rate be variable, the banking corporation shall note in the “type of interest”
   line that the interest rate is variable and also note the frequency with which it is changed. 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.)
9. 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.)
10. “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.
11. “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.
12. “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.
13. “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 as of the report date), including the current account facility, a facility on a bank credit card, and other facilities such as bank guarantees, discounts, and so forth. If the customer has a credit facility for loans, the amount of the approved facility and amount utilized is to be noted in the table named “Other credit facilities”. Next to the amount utilized, to the extent that there is any, add the note “see details in Loans table”. In cases where the amount of the facility is delineated as a range, the banking corporation is to note the range in the relevant cell of the “amount of facility” column.
    Chapter D – Credits and Debits in the Account

Supervisor of Banks: Proper Conduct of Banking Business 5 Annual reports to customers of the banking corporations Page 425- 24 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. “Balance of the tradable security portfolio to date xx.xx.xx” table
1. “Average monthly balance of the securities portfolio”—The balance shall be calculated by simple
average.
2. “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.
3. “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, and in the column named “Purchase date”, the words “multiple purchases” are to appear.
4. “Cost value”—The value of the quantity of the holding by the purchase price or average purchase
price.
5. “Holding value”—The value of the quantity of the holding by the price on December 31 of the
year ended.
6. “Percent change”—The difference between the holding value and the cost value, divided by the
cost value.
Other capital market transactions table
1. “Date of transaction”—If a transaction is executed in one purchase the transaction date is to be
presented. If the transaction was carried out via several purchases on various dates, the words “several purchases” should be recorded in the date of transaction column and the cell called “expiry date” should be empty.
2. “Value of transaction”—The value of the transaction on December 31 of the year ended.
3. “Collaterals”—In a case where there is a collateral, “Collateral exists” should be listed.
Otherwise, “No collateral exists” should be listed. When there is collateral that is not specifically pledged for the benefit of a specific transaction, it may be presented in a consolidated manner for all the transactions in the account as “General collateral in account”. (If there is a general collateral as well as a specific collateral for the benefit of any transaction, they should both be presented in the relevant transaction row.)
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:

Supervisor of Banks: Proper Conduct of Banking Business 5 Annual reports to customers of the banking corporations Page 425- 25 ‘Fees—General (except for the purchase, sale, redemption and management of (Israeli and foreign) securities)’ table

1. The banking corporation shall display the figures in the table in accordance with the following
   topics:
   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. “Securities fees”—Note here the fees included in Part 4 of the First Addendum to the Fees
   Rules, except fees for the purchase, sale, redemption and management of (Israeli and foreign) securities, which are shown in separate tables. d. “Other Fees”—The other fees contained in the Fees Rules shall be included.
2. If the fee amount or rate actually charged to the client was changed over the year, the banking
   corporation shall display the data on separate lines.
3. In cases where the customer received a quantity discount, the bank is to calculate the amount of
   the actual fee such that it reflects the quantity discount.
4. “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. It is clarified that the goal of the text that appears in the name of the fee is to provide the maximum detail to the customer, while maintaining, to the extent possible, simplicity and clarity. Thus, to the extent that there are various transactions under the same service, for which a different price is charged, the name of the fee is to reflect the characteristics of the activity.
5. 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.
6. “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.
7. 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”.
8. In cases in which a customer was granted a full exemption from paying a fee, the name of the fee
   and number of transactions/amount of transaction are to be displayed. Under the heading “Actual fee amount (amount/rate)”, “0” is to be recorded. '’Purchase, sale, redemption and management fees for (Israeli and foreign) securities” tables 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.

Supervisor of Banks: Proper Conduct of Banking Business 5 Annual reports to customers of the banking corporations Page 425- 26 “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.