Information and Reporing Unit, Banking Supervision Division					09/09/2002
Statement for the second quarter - bank
Arab Israel Bank Ltd., 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	1,603	3,720	1.7%	3.1%
Securities	286	178	0.3%	0.2%
Credit to the public	1,361	1,447	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	23	24	0.2%	0.2%
Other assets	30	30	0.1%	0.2%
Total assets	3,303	5,398	0.4%	0.6%
Deposits of the public	2,587	2,694	0.4%	0.4%
Deposits of banks	353	2,362	1.5%	10.6%
Deposits of the government	0	0	0.0%	0.0%
Bonds and subordinated notes	0	0	0.0%	0.0%
Other liabilities	41	44	0.2%	0.2%
Total liabilities	2,981	5,100	0.4%	0.6%
Quasi-capital items	0	0	0.0%	0.0%
Equity	322	298	0.8%	0.7%
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	67.8	69.6	1.1%	0.8%	31.7
Loan-loss provision	4.9	2.2	0.3%	0.2%	1.9
Operating and other income	41.9	41.3	1.1%	0.8%	20.4
Of which: Operating income	40.5	40.0	1.2%	0.9%	19.8
Operating and other expenses	48.4	52.3	0.8%	0.6%	23.2
Of which: Salaries and related expenses	32.8	34.7	0.8%	0.6%	15.0
Ordinary before-tax provision	56.4	56.4	3.0%	1.6%	27.0
Provision for taxes on ordinary profit	28.8	27.0	3.2%	1.4%	14.3
Ordinary after-tax profit	27.6	29.4	2.9%	1.7%	12.7
Bank's share in the profit of subsidiaries	0.0	0.0			0.0
Share of minority shareholders in profit of consolidated companies					0.0
Extraordinary after-tax profit	0.0	0.0			0.0
Net profit	27.6	29.4	3.0%	1.9%	12.7
Profit after the effect of the difference between the known index and the "in lieu" index	31.5	30.6	2.6%	1.8%
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	2,228	994	58	3,280
Balance of financial liabilities on balance-sheet date	2,190	738	54	2,981
Excess of financial assets over financial liabilities	38	257	5	299
Total indexation balance (incl.forwards and options in term of basis assets) 2	38	257	5	299
Rate of income on assets (percent) 3	-4.01	1.40	6.45	-2.35
Rate of expenditure on liabilities (percent) 3	8.29	-0.99	-6.31	5.98
Interest-rate differential	4.29	0.41	0.14	3.62
Problem borrowers	30.06.2002	31.12.2001
Total credit risk dew to problem borrowers	102	101
Total credit  to problem borrowers	95	87
Main financial ratios - consolidated (percent)	30.06.2002	31.12.2001
Equity/balance-sheet ratio	9.76	5.51
Finanancial capital/equity ratio	92.80	92.04
Equity/risk-weighted-assets ratio	27.04	23.77
Return on equity (net profit/gross weighted-capital ratio) 4	19.40	18.20
Operating income/operating expenses ratio 5	86.57	75.98
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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