Information and Reporing Unit, Banking Supervision Division					03/12/2002
Statement for the third quarter - consolidated
Mercantile Discount Bank Ltd. and its subsidiaries, Main data, NIS million
Taken from the quarterly report to 30.09.2002. Adjusted to the CPI for  09.2002.
Summary consolidated balance sheet	30.09.2002	31.12.2001	Bank's share of the banking system
			30.09.2002	31.12.2001
Cash and deposits in banks	1,019	1,862	1.0%	1.6%
Securities	1,082	1,031	1.0%	1.0%
Credit to the public	12,366	12,355	2.1%	2.1%
Credit to the government	3	4	0.0%	0.0%
Investments in companies included on an equity basis	4	5	0.1%	0.1%
Buildings and equipment	255	256	2.5%	2.5%
Other assets	168	225	0.9%	1.3%
Total assets	14,895	15,739	1.8%	1.8%
Deposits of the public	13,029	13,622	1.9%	1.9%
Deposits of banks	346	559	1.3%	2.5%
Deposits of the government	52	50	0.3%	0.2%
Bonds and subordinated notes	483	467	1.3%	1.3%
Other liabilities	212	277	0.9%	1.2%
Total liabilities	14,121	14,975	1.8%	1.9%
Quasi-capital items	0	0	0.0%	0.0%
Minority shareholders' rights	0	0
Equity	774	764	1.9%	1.8%
Summary consolidated profit and loss statement	Nine months to		Bank's share of the banking system		Three months to
			Nine months to
	30.09.2002	30.09.2001	30.09.2002	30.09.2001	30.09.2002
Net interest profit before loan-loss provision	344.3	316.4	3.2%	2.8%	121.2
Loan-loss provision	70.3	65.4	1.8%	3.0%	29.0
Operating and other income	186.3	162.7	2.9%	2.6%	62.1
Of which: Operating income	173.0	150.0	3.2%	2.9%	59.4
Operating and other expenses	368.4	382.7	3.5%	3.5%	127.9
Of which: Salaries and related expenses	219.1	224.6	3.4%	3.3%	77.8
Ordinary before-tax provision	91.9	31.0	3.4%	0.7%	26.4
Provision for taxes on ordinary profit	50.1	18.5	3.6%	0.9%	12.3
Ordinary after-tax profit	41.8	12.5	3.2%	0.5%	14.1
Bank's share in the profit of subsidiaries	-0.8	-0.4			-0.3
Share of minority shareholders in profit of consolidated companies	0.0	0.0			0.0
Extraordinary after-tax profit	2.1	-0.3			1.6
Net profit	43.1	11.8	3.9%	0.6%	15.4
Profit after the effect of the difference between the known index and the "in lieu" index	45.7	12.9	3.8%	0.6%
Balances and rates of return on financial items by indexation base on 30.09.2002	Unindexed NIS	CPI-indexed  NIS	Foreign Currency (1)	Total financial items
Balance of financial assets on balance-sheet date	7,231	3,838	3,538	14,607
Balance of financial liabilities on balance-sheet date	7,413	3,694	3,006	14,112
Excess of financial assets over financial liabilities	-181	144	532	495
Total indexation balance (incl.forwards and options in term of basis assets) 2	336	144	15	495
Rate of income on assets (percent) 3	0.05	5.11	12.23	3.74
Rate of expenditure on liabilities (percent) 3	4.13	-4.15	-10.08	-0.77
Interest-rate differential	4.18	0.96	2.15	2.97
Problem borrowers	30.09.2002	31.12.2001
Total credit risk dew to problem borrowers	901	855
Total credit  to problem borrowers	864	825
Main financial ratios - consolidated (percent)	30.09.2002	31.12.2001
Equity/balance-sheet ratio	5.20	4.85
Finanancial capital/equity ratio	63.91	62.99
Equity/risk-weighted-assets ratio	9.88	9.20
Return on equity (net profit/gross weighted-capital ratio) 4	7.60	1.90
Operating income/operating expenses ratio 5	50.57	43.58
1 Including foreign-currency indexed NIS.
2 Forwards transactions.
3 Nine-month rate of income (expenses), on annual basis including ALM derivatives.
4 Annual basis.
5 For nine months. Comparative data are annual.
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