Information and Reporing Unit, Banking Supervision Division					09/09/2002
Statement for the second quarter - consolidated
United Mizrahi Bank 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	10,765	15,819	11.7%	13.3%
Securities	3,444	2,706	3.1%	2.6%
Credit to the public	58,883	59,176	10.2%	10.2%
Credit to the government	148	160	1.6%	1.7%
Investments in companies included on an equity basis	145	144	3.4%	3.3%
Buildings and equipment	917	907	8.9%	8.8%
Other assets	1,179	902	5.4%	5.1%
Total assets	75,481	79,814	9.1%	9.4%
Deposits of the public	62,936	68,029	9.3%	9.7%
Deposits of banks	3,810	3,315	16.2%	14.9%
Deposits of the government	1,110	1,166	5.9%	5.8%
Bonds and subordinated notes	2,508	2,404	6.7%	6.7%
Other liabilities	1,498	1,373	5.9%	6.2%
Total liabilities	71,862	76,287	9.2%	9.5%
Quasi-capital items	0	0	0.0%	0.0%
Minority shareholders' rights	260	248
Equity	3,359	3,279	8.1%	7.8%
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	673.0	666.0	11.2%	7.4%	332.0
Loan-loss provision	114.0	82.0	6.9%	5.9%	58.0
Operating and other income	447.0	428.0	11.4%	8.3%	223.0
Of which: Operating income	400.0	379.0	12.1%	9.0%	198.0
Operating and other expenses	680.0	670.0	10.6%	7.4%	338.0
Of which: Salaries and related expenses	444.0	443.0	11.4%	7.7%	218.0
Ordinary before-tax provision	326.0	342.0	17.5%	9.4%	159.0
Provision for taxes on ordinary profit	165.0	166.0	18.4%	8.9%	82.0
Ordinary after-tax profit	161.0	176.0	16.7%	10.0%	77.0
Bank's share in the profit of subsidiaries	-2.0	2.0			0.0
Share of minority shareholders in profit of consolidated companies	-12.0	-15.0			-6.0
Extraordinary after-tax profit	-1.0	-1.0			-1.0
Net profit	146.0	162.0	16.0%	10.3%	70.0
Profit after the effect of the difference between the known index and the "in lieu" index	181.0	171.0	14.8%	10.3%
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	22,392	34,592	17,322	74,306
Balance of financial liabilities on balance-sheet date	24,362	31,773	15,663	71,798
Excess of financial assets over financial liabilities	-1,970	2,819	1,659	2,508
Total indexation balance (incl.forwards and options in term of basis assets) 2	-434	2,988	-46	2,508
Rate of income on assets (percent) 3	-5.69	3.00	12.29	2.12
Rate of expenditure on liabilities (percent) 3	8.25	-2.20	-10.58	-0.39
Interest-rate differential	2.56	0.80	1.71	1.73
Problem borrowers	30.06.2002	31.12.2001
Total credit risk dew to problem borrowers	4,893	5,325
Total credit  to problem borrowers	4,224	4,515
Main financial ratios - consolidated (percent)	30.06.2002	31.12.2001
Equity/balance-sheet ratio	4.45	4.11
Finanancial capital/equity ratio	74.67	73.74
Equity/risk-weighted-assets ratio	9.44	9.11
Return on equity (net profit/gross weighted-capital ratio) 4	9.10	8.10
Operating income/operating expenses ratio 5	65.74	63.87
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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