Information and Reporing Unit, Banking Supervision Division					03/06/2002
Statement for the first quarter - bank
Arab Israel Bank Ltd., 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
Summary consolidated balance sheet	31.03.2002	31.12.2001	31.03.2002	31.12.2001
Cash and deposits in banks	1,296	3,582	1.3%	3.1%
Securities	193	171	0.2%	0.2%
Credit to the public	1,363	1,394	0.2%	0.2%
Credit to the government	0	0	0.0%	0.0%
Investments in companies included on an equity basis	0	0	0.0%	0.0%
Buildings and equipment	22	23	0.2%	0.2%
Other assets	30	28	0.2%	0.2%
Total assets	2,904	5,198	0.4%	0.6%
Deposits of the public	2,543	2,594	0.4%	0.4%
Deposits of banks	17	2,275	0.1%	10.6%
Deposits of the government	0	0	0.0%	0.0%
Bonds and subordinated notes	0	0	0.0%	0.0%
Other liabilities	44	42	0.2%	0.2%
Total liabilities	2,604	4,911	0.3%	0.6%
Quasi-capital items	0	0	0.0%	0.0%
Equity	300	287	0.7%	0.7%

Summary consolidated profit and loss statement	Three months to		Bank's share of the banking system
	Three months to		Three months to
	31.03.2002	31.03.2001	31.03.2002	31.03.2001
Net interest profit before loan-loss provision	34.7	33.3	0.8%	0.8%
Loan-loss provision	2.9	1.0	0.2%	0.2%
Operating and other income	20.6	20.1	0.8%	0.8%
Of which: Operating income	19.9	19.5	0.9%	1.0%
Operating and other expenses	24.2	25.5	0.6%	0.6%
Of which: Salaries and related expenses	17.1	17.2	0.6%	0.6%
Ordinary before-tax provision	28.2	26.9	2.8%	1.8%
Provision for taxes on ordinary profit	13.9	12.9	2.5%	1.8%
Ordinary after-tax profit	14.3	14.0	3.2%	1.9%
Bank's share in the profit of subsidiaries	0.0	0.0
Share of minority shareholders in profit of consolidated companies
Extraordinary after-tax profit	0.0	0.0
Net profit	14.3	14.0	3.6%	2.2%
Profit after the effect of the difference between the known index and the "in lieu" index	16.0	14.8	2.9%	2.1%

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	1,834	1,001	46	2,882
Balance of financial liabilities on balance-sheet date	1,796	762	47	2,604
Excess of financial assets over financial liabilities	39	240	-1	277
Total indexation balance (incl.forwards and options in term of basis assets) 2	39	240	-1	277
Rate of income on assets (percent) 3	-2.85	1.92	15.99	-1.44
Rate of expenditure on liabilities (percent) 3	6.53	-1.51	-13.67	4.67
Interest-rate differential	3.68	0.41	2.32	3.24

Problem borrowers	31.03.2002	31.12.2001
Total credit risk dew to problem borrowers	89.87	97.62
Total credit to problem borrowers	83.66	83.25

Main financial ratios - consolidated (percent)	31.03.2002	31.12.2001
Equity/balance-sheet ratio	10.32	5.51
Finanancial capital/equity ratio	92.56	92.04
Equity/risk-weighted-assets ratio	25.06	23.77
Return on equity (net profit/gross weighted-capital ratio) 4	21.50	19.60
Operating income/operating expenses ratio 5	85.12	75.97

^{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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