Information and Reporing Unit, Banking Supervision Division					09/09/2002
Statement for the second quarter - consolidated
Bank of Jerusalem 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	415	505	0.4%	0.4%
Securities	241	282	0.2%	0.3%
Credit to the public	5,546	5,513	1.0%	0.9%
Credit to the government	0	0	0.0%	0.0%
Investments in companies included on an equity basis	5	3	0.1%	0.1%
Buildings and equipment	59	63	0.6%	0.6%
Other assets	32	21	0.1%	0.1%
Total assets	6,297	6,387	0.8%	0.8%
Deposits of the public	5,171	5,218	0.8%	0.7%
Deposits of banks	441	461	1.9%	2.1%
Deposits of the government	70	79	0.4%	0.4%
Bonds and subordinated notes	244	267	0.7%	0.7%
Other liabilities	41	44	0.2%	0.2%
Total liabilities	5,967	6,067	0.8%	0.8%
Quasi-capital items	0	0	0.0%	0.0%
Minority shareholders' rights	0	0
Equity	330	320	0.8%	0.8%
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	42.9	45.4	0.7%	0.5%	20.6
Loan-loss provision	7.3	1.1	0.4%	0.1%	1.0
Operating and other income	46.2	48.6	1.2%	0.9%	22.7
Of which: Operating income	47.5	46.2	1.4%	1.1%	23.5
Operating and other expenses	64.2	67.0	1.0%	0.7%	31.0
Of which: Salaries and related expenses	38.4	41.2	1.0%	0.7%	18.9
Ordinary before-tax provision	17.6	25.9	0.9%	0.7%	11.3
Provision for taxes on ordinary profit	8.6	11.7	1.0%	0.6%	6.5
Ordinary after-tax profit	9.0	14.2	0.9%	0.8%	4.8
Bank's share in the profit of subsidiaries	1.7	-0.1			0.7
Share of minority shareholders in profit of consolidated companies	0.0	0.0			0.0
Extraordinary after-tax profit	0.0	0.0			0.0
Net profit	10.7	14.1	1.2%	0.9%	5.5
Profit after the effect of the difference between the known index and the "in lieu" index	12.9	14.7	1.1%	0.9%
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	1,031	4,119	1,028	6,177
Balance of financial liabilities on balance-sheet date	1,182	3,837	945	5,963
Excess of financial assets over financial liabilities	-151	282	83	214
Total indexation balance (incl.forwards and options in term of basis assets) 2	-96	283	27	214
Rate of income on assets (percent) 3	-4.88	2.85	7.46	1.87
Rate of expenditure on liabilities (percent) 3	7.42	-2.24	-5.62	-0.72
Interest-rate differential	2.54	0.61	1.84	1.15
Problem borrowers	30.06.2002	31.12.2001
Total credit risk dew to problem borrowers	348	321
Total credit  to problem borrowers	293	257
Main financial ratios - consolidated (percent)	30.06.2002	31.12.2001
Equity/balance-sheet ratio	5.24	5.01
Finanancial capital/equity ratio	64.87	58.81
Equity/risk-weighted-assets ratio	11.10	10.90
Return on equity (net profit/gross weighted-capital ratio) 4	6.80	7.80
Operating income/operating expenses ratio 5	71.96	72.81
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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