The First International Bank (hereinafter – "the Bank") was established in 1972, in accordance with the decision of the then Minister of Finance, Mr. Pinchas Sapir. The business basis for the operation of the Bank was the merger of the operations of two banks – Export Bank Ltd. and the Foreign Trade Bank Ltd., which had owned Mortgage and Savings Bank Ltd. (which name was changed to First International Mortgage Bank Ltd.).
In 1976, the Bank also acquired control of the Israeli Industrial Bank Ltd., which name was changed in 1985 to the First International Industrial Finance Bank Ltd., which in 1994 merged with the Bank.
In 1977, Poalei Agudat Israel Bank Ltd. (hereinafter – "PAGI) was established, jointly owned by the Bank (65%) and by the Agudat Israel Federation of Labor in Israel (35%). In 2010, the Bank completed the acquisition of the balance of the shares in PAGI held by all other shareholders, and in 2015 PAGI merged with the Bank while maintaining the brand name PAGI – a leading brand in its field.
In 1978 the Bank acquired control of Lemelacha Bank Ltd., the business of which including its branches, were merged proximate to the acquisition, with the business of the Bank and its employees were absorbed by the Bank.
In 1981, FIBI-London was incorporated in London as a wholly owned subsidiary of the Bank having a banking license in England. FIBI-London was sold in 2014.
At the beginning of 1983, the First International Mortgage Bank acquired 50.5% of the control and ownership of Atzmaut Mortgage and Development Bank Ltd. hereinafter – "Atzmaut Bank"). Since this acquisition and until the end of 2004, the First International Mortgage Bank acquired additional shares resulting in the holding of 88% of the shares in Atzmaut Bank. At the end of 2005, the First International Mortgage Bank acquired the balance of the shares in Atzmaut Bank, and at the beginning of 2006, the Bank acquired the balance of the shares in the First International Mortgage Bank. In 2006, both First International Mortgage Bank and Atzmaut Bank were merged with and into the Bank.
In 1984, FIBI Bank (Switzerland) Ltd. was incorporated in Switzerland as a wholly owned subsidiary of the Bank having a banking license in Switzerland. In 2017, the Bank sold FIBI Bank (Switzerland).
In 2000, the Bank acquired approximately 20% of the capital and 15% of the voting rights in Israel Credit Cards (hereinafter – "ICC"). Following additional acquisitions of ICC shares in the years 2006 and 2007, the rate of holdings of the Bank in ICC increased to 28.2% of the capital and to 21.0% in the voting rights.
In 2004, the bank acquired full ownership of UBank Ltd., and in 2015 UBank was merged with the Bank, while maintaining the brand name UBank – a leading brand in its field.
In 2006, the Bank acquired 68% of the capital rights and 66% of the voting rights in Otzar Hachayal Bank Ltd. Following additional acquisitions in the years 2010, 2012 and 2014, the rate of holdings of the Bank in Otzar Hachayal Bank Ltd. increased to 78.0% of the capital and of the voting eights. In 2018, the Bank acquired the balance of the shares in Otzar Hachayal Bank and in 2019, Otzar Hachayal Bank was merged into the Bank, while maintaining brand name of Otzar Hachayal together with all its values and the unique service offered by it to the defense forces personnel in Israel.
In 2008, the Bank acquired 51% of the issued and paid share capital of Massad Bank Ltd.
In 2010, the Bank consolidated its share capital in a way that every five ordinary shares of the Bank of a par value of NIS 0.01 were consolidated into one ordinary share of a par value of NIS 0.05 of the Bank, and as from September 20, 2010, only the ordinary shares of a par value of NIS 0.05 were traded on the market.