Information and Reporing Unit, Banking Supervision Division					03/06/2002
Statement for the first quarter - consolidated
Mercantile Discount Bank Ltd. and its subsidiaries, Main data, NIS million
Taken from the quarterly report to 31.03.2002. Adjusted to the CPI for  03.2002.
Summary consolidated balance sheet	31.03.2002	31.12.2001	Bank's share of the banking system
			31.03.2002	31.12.2001
Cash and deposits in banks	1,529	1,782	1.6%	1.6%
Securities	982	987	1.0%	1.0%
Credit to the public	11,761	11,821	2.1%	2.1%
Credit to the government	4	4	0.0%	0.0%
Investments in companies included on an equity basis	5	5	0.1%	0.1%
Buildings and equipment	248	245	2.5%	2.5%
Other assets	351	215	2.0%	1.3%
Total assets	14,878	15,058	1.9%	1.8%
Deposits of the public	12,580	13,033	1.9%	1.9%
Deposits of banks	670	535	2.8%	2.5%
Deposits of the government	50	48	0.3%	0.2%
Bonds and subordinated notes	457	447	1.3%	1.3%
Other liabilities	381	265	1.7%	1.2%
Total liabilities	14,138	14,328	1.9%	1.9%
Quasi-capital items	0	0	0.0%	0.0%
Minority shareholders' rights	0	0
Equity	741	731	1.8%	1.8%
Summary consolidated profit and loss statement	Three months to		Bank's share of the banking system
			Three months to
	31.03.2002	31.03.2001	31.03.2002	31.03.2001
Net interest profit before loan-loss provision	109.4	97.7	2.7%	2.3%
Loan-loss provision	21.3	11.1	1.6%	1.7%
Operating and other income	58.8	50.0	2.3%	2.1%
Of which: Operating income	54.4	46.3	2.6%	2.3%
Operating and other expenses	115.1	122.7	2.7%	2.7%
Of which: Salaries and related expenses	69.1	73.6	2.6%	2.5%
Ordinary before-tax provision	31.8	13.9	3.1%	1.0%
Provision for taxes on ordinary profit	15.0	8.5	2.7%	1.2%
Ordinary after-tax profit	16.8	5.4	3.7%	0.7%
Bank's share in the profit of subsidiaries	0.0	-0.4
Share of minority shareholders in profit of consolidated companies	0.0	0.0
Extraordinary after-tax profit	0.0	0.0
Net profit	16.8	5.0	4.2%	0.8%
Profit after the effect of the difference between the known index and the "in lieu" index	19.3	6.3	3.5%	0.9%
Balances and rates of return on financial items by indexation base on 31.03.2002	Unindexed NIS	CPI-indexed  NIS	Foreign Currency (1)	Total financial items
Balance of financial assets on balance-sheet date	7,402	3,733	3,458	14,593
Balance of financial liabilities on balance-sheet date	7,521	3,404	3,205	14,129
Excess of financial assets over financial liabilities	-119	329	254	464
Total indexation balance (incl.forwards and options in term of basis assets) 2	53	329	81	464
Rate of income on assets (percent) 3	-2.41	3.43	19.67	3.22
Rate of expenditure on liabilities (percent) 3	6.16	-2.48	-18.23	-0.47
Interest-rate differential	3.75	0.95	1.44	2.75
Problem borrowers	31.03.2002	31.12.2001
Total credit risk dew to problem borrowers	783.90	830.30
Total credit  to problem borrowers	740.20	801.90
Main financial ratios - consolidated (percent)	31.03.2002	31.12.2001
Equity/balance-sheet ratio	4.98	4.85
Finanancial capital/equity ratio	62.66	63.00
Equity/risk-weighted-assets ratio	9.41	9.20
Return on equity (net profit/gross weighted-capital ratio) 4	9.50	1.90
Operating income/operating expenses ratio 5	51.09	43.59
1 Including foreign-currency indexed NIS.
2 Forwards transactions.
3 Three-month rate of income (expenses), on annual basis including ALM derivatives.
4 Annual basis.
5 For three months. Comparative data are annual.
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