Information and Reporing Unit, Banking Supervision Division					09/09/2002
Statement for the second quarter - bank
Bank Polska Kasa Opieki Tel Aviv (Bank Pekao) 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	83	92	0.1%	0.1%
Securities	2	2	0.0%	0.0%
Credit to the public	178	179	0.0%	0.0%
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	11	11	0.1%	0.1%
Other assets	0	0	0.0%	0.0%
Total assets	275	285	0.0%	0.0%
Deposits of the public	124	126	0.0%	0.0%
Deposits of banks	78	80	0.3%	0.4%
Deposits of the government	0	0	0.0%	0.0%
Bonds and subordinated notes	0	0	0.0%	0.0%
Other liabilities	6	6	0.0%	0.0%
Total liabilities	207	212	0.0%	0.0%
Quasi-capital items	0	0	0.0%	0.0%
Equity	68	72	0.2%	0.2%
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	9.7	7.3	0.0%	0.1%	3.6
Loan-loss provision	10.6	0.6	0.0%	0.0%	4.8
Operating and other income	2.2	2.6	0.0%	0.1%	1.1
Of which: Operating income	2.1	1.8	0.0%	0.0%	1.1
Operating and other expenses	6.4	7.0	0.0%	0.1%	3.3
Of which: Salaries and related expenses	3.3	4.0	0.0%	0.1%	1.7
Ordinary before-tax provision	-5.1	2.3	0.0%	0.1%	-3.4
Provision for taxes on ordinary profit	-0.4	0.0	0.0%	0.0%	0.0
Ordinary after-tax profit	-4.7	2.3	0.0%	0.1%	-3.4
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	-4.7	2.3	0.0%	0.1%	-3.4
Profit after the effect of the difference between the known index and the "in lieu" index	-4.7	2.3	0.0%	0.1%
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	92	0	171	263
Balance of financial liabilities on balance-sheet date	33	0	174	207
Excess of financial assets over financial liabilities	59	0	-3	56
Total indexation balance (incl.forwards and options in term of basis assets) 2	59	0	-3	56
Rate of income on assets (percent) 3	-6.49	0.00	23.02	12.38
Rate of expenditure on liabilities (percent) 3	9.85	0.00	-10.11	-7.11
Interest-rate differential	3.35	0.00	12.91	5.28
Problem borrowers	30.06.2002	31.12.2001
Total credit risk dew to problem borrowers	37	44
Total credit  to problem borrowers	34	42
Main financial ratios - consolidated (percent)	30.06.2002	31.12.2001
Equity/balance-sheet ratio	24.58	25.38
Finanancial capital/equity ratio	83.26	85.18
Equity/risk-weighted-assets ratio	53.70	54.80
Return on equity (net profit/gross weighted-capital ratio) 4	-13.20	1.96
Operating income/operating expenses ratio 5	34.38	38.41
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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