Information and Reporing Unit, Banking Supervision Division					09/09/2002
Statement for the second quarter - consolidated
Union Bank of Israel Ltd. and its subsidiaries, Main data, NIS million
Taken from the quarterly report to 30.06.2002. Adjusted to the CPI for  06.2002.
Summary consolidated balance sheet	30.06.2002	31.12.2001	Bank's share of the banking system
			30.06.2002	31.12.2001
Cash and deposits in banks	1,261	1,769	1.4%	1.5%
Securities	3,627	2,990	3.3%	2.8%
Credit to the public	16,241	17,230	2.8%	3.0%
Credit to the government	63	62	0.7%	0.6%
Investments in companies included on an equity basis	36	42	0.9%	1.0%
Buildings and equipment	353	347	3.4%	3.4%
Other assets	1,347	1,054	6.2%	6.0%
Total assets	22,928	23,494	2.8%	2.8%
Deposits of the public	19,028	19,851	2.8%	2.8%
Deposits of banks	706	757	3.0%	3.4%
Deposits of the government	19	23	0.1%	0.1%
Bonds and subordinated notes	638	572	1.7%	1.6%
Other liabilities	1,432	1,094	5.7%	4.9%
Total liabilities	21,823	22,297	2.8%	2.8%
Quasi-capital items	0	0	0.0%	0.0%
Minority shareholders' rights	0	0
Equity	1,105	1,197	2.7%	2.9%
Summary consolidated profit and loss statement	Six months to		Bank's share of the banking system		Three months to
			Six months to
	30.06.2002	30.06.2001	30.06.2002	30.06.2001	30.06.2002
Net interest profit before loan-loss provision	228.0	261.0	3.8%	2.9%	94.0
Loan-loss provision	92.0	47.0	5.6%	3.4%	54.0
Operating and other income	119.0	95.0	3.0%	1.8%	57.0
Of which: Operating income	111.0	88.0	3.4%	2.1%	52.0
Operating and other expenses	232.0	246.0	3.6%	2.7%	110.0
Of which: Salaries and related expenses	140.0	154.0	3.6%	2.7%	63.0
Ordinary before-tax provision	23.0	63.0	1.2%	1.7%	-13.0
Provision for taxes on ordinary profit	16.0	34.0	1.8%	1.8%	2.0
Ordinary after-tax profit	7.0	29.0	0.7%	1.7%	-15.0
Bank's share in the profit of subsidiaries	0.0	2.0			0.0
Share of minority shareholders in profit of consolidated companies	0.0	0.0			0.0
Extraordinary after-tax profit	-6.0	0.0			-6.0
Net profit	1.0	31.0	0.1%	2.0%	-21.0
Profit after the effect of the difference between the known index and the "in lieu" index	16.0	34.0	1.3%	2.0%
Balances and rates of return on financial items by indexation base on 30.06.2002	Unindexed NIS	CPI-indexed  NIS	Foreign Currency (1)	Total financial items
Balance of financial assets on balance-sheet date	8,888	4,434	9,131	22,453
Balance of financial liabilities on balance-sheet date	10,024	3,466	8,282	21,772
Excess of financial assets over financial liabilities	-1,136	968	849	681
Total indexation balance (incl.forwards and options in term of basis assets) 2	-180	853	8	681
Rate of income on assets (percent) 3	-5.84	2.47	14.76	2.78
Rate of expenditure on liabilities (percent) 3	8.24	-2.72	-13.19	-1.04
Interest-rate differential	2.40	-0.24	1.58	1.75
Problem borrowers	30.06.2002	31.12.2001
Total credit risk dew to problem borrowers	1,521	1,447
Total credit  to problem borrowers	1,451	1,413
Main financial ratios - consolidated (percent)	30.06.2002	31.12.2001
Equity/balance-sheet ratio	4.82	5.09
Finanancial capital/equity ratio	61.63	58.40
Equity/risk-weighted-assets ratio	9.70	8.60
Return on equity (net profit/gross weighted-capital ratio) 4	0.18	0.40
Operating income/operating expenses ratio 5	51.29	38.15
1 Including foreign-currency indexed NIS.
2 Forwards transactions.
3 Six-month rate of income (expenses), on annual basis including ALM derivatives.
4 Annual basis.
5 For six months. Comparative data are annual.
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