Bank Leumi le-Israel Ltd. : Leumi Board of Directors approves Bank Management’s recommendation to merge Leumi Mortgage Bank with Bank Leumi

In their discussions of the 2012-2014 work plan, the Board of Directors of Bank Leumi have reached a final decision to approve the recommendation of Bank Management, headed by President and CEO, Ms. Galia Maor, to merge Leumi Mortgage Bank (Leumi Mortgage) with Bank Leumi.

Following the decision of the Board of Directors, Ms. Galia Maor, President and CEO of Leumi, said that the expected merger is essential in view of the state of the banking system at the beginning of 2012. "The merger will enable the Group as a whole to enhance its level of synergy and the level of the product it offers the customer, while relying on the professionalism and the many achievements made by Leumi Mortgage in its 90 years of existence. We aspire to provide our customers in every area with a wide variety of products, at an attractive price, and at a high level of service. Merging the two banks will enable us to give retail customers the most suitable value offer for their requirements", said Ms. Maor.

Ms. Maor further noted that the step is expected to lead to a reduction in Group expenses, and a more effective utilization of the sales floor, while maintaining the high level of professionalism and service typical of the Leumi Group.

The merger is expected to be completed by the end of 2012, and will be lead by Mr. Shuki Bornstein, CEO of Leumi Mortgage Bank. Leumi will set up a mortgage division, which will report to the Head of the Banking Division and Deputy CEO, Mr. Baruch Lederman. The division's operations will be based on the existing organizational structure and will be responsible for the activities of 110 representative offices and about 500 Leumi Mortgage employees.