First Int�l Bank expanding activity in Switzerland

First International Bank of Israel (TASE: FTIN1;FTIN5) wants to acquire a Swiss bank and merge its activities into Zurich-based FIBI Bank (Switzerland) Ltd. First International Bank wants to acquire a bank that focuses on asset management, and has 1-2 billion Swiss franc under management. First International Bank has its eye on specific banks.

FIBI Bank Switzerland currently manages about 1 billion Swiss francs. Ofer Chaimi was appointed general manager in March. He previously was a senior executive at Bank Leumi Switzerland and UBS (NYSE; SWX) UBS).

First International Bank plans to expand the activities of FIBI Bank (Switzerland) in the coming years, in order to turn it into the group�s center of international private banking. First International Bank has set a target for FIBI Bank (Switzerland) to manage 3-4 billion Swiss francs in assets, and for it to contribute 10% of First International Bank�s consolidated net profit. FIBI Bank (Switzerland) opened a representative office in Tel Aviv a few months ago, managed by Mody Kenigsberg, the former general manager of FIBI Bank (Switzerland).

First International Bank deputy general manager, head of capital markets and foreign currency division Zeev Gutman was appointed chairman of FIBI Bank (Switzerland) on Thursday. �The change in investment in Israel will lead to a large capital outflow. FIBI Bank (Switzerland) will be the arm that will compete in absorbing Israelis� overseas investment,� he said.

In 2005, Bank Hapoalim (LSE: BKHD; TASE: POLI) acquired Bank of New York - InterMaritime Bank Geneva, which manages 2.4 billion Swiss francs in customers� assets, for 102 million Swiss francs. On the basis of this figure, it is believed that First International Bank will invest NIS 200-300 million in acquiring a Swiss bank.

Gutman replaced First International Bank CEO David Granot as chairman of FIBI Bank (Switzerland), because Granot will be appointed chairman of Bank Otsar Hahayal Ltd.. Granot will therefore be unable to devote the necessary administrative attention to FIBI Bank (Switzerland). The closing of the acquisition of Bank Otsar Hahayal is now in the final stages.

Published by Globes [online], Israel business news - www.globes.co.il - on May 14, 2006

First Int�l Bank expanding activity in Switzerland

First International Bank wants to acquired a Swiss bank.