Information and Reporing Unit, Banking Supervision Division					03/12/2002
Statement for the third quarter - bank
Arab Israel Bank Ltd., 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	1,338	3,744	1.3%	3.1%
Securities	205	179	0.2%	0.2%
Credit to the public	1,408	1,457	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	24	24	0.2%	0.2%
Other assets	30	30	0.2%	0.2%
Total assets	3,005	5,433	0.4%	0.6%
Deposits of the public	2,613	2,711	0.4%	0.4%
Deposits of banks	10	2,378	0.0%	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	2,664	5,133	0.3%	0.6%
Quasi-capital items	0	0	0.0%	0.0%
Equity	340	300	0.8%	0.7%
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	108.1	107.3	1.0%	1.0%	39.9
Loan-loss provision	7.5	4.2	0.2%	0.2%	2.6
Operating and other income	64.3	63.1	1.0%	1.0%	22.1
Of which: Operating income	62.3	61.2	1.1%	1.2%	21.5
Operating and other expenses	74.8	78.8	0.7%	0.7%	26.1
Of which: Salaries and related expenses	48.9	52.3	0.8%	0.8%	15.9
Ordinary before-tax provision	90.1	87.4	3.3%	2.0%	33.3
Provision for taxes on ordinary profit	43.2	41.7	3.1%	2.1%	14.2
Ordinary after-tax profit	46.9	45.7	3.6%	2.0%	19.1
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	46.9	45.7	4.3%	2.2%	19.1
Profit after the effect of the difference between the known index and the "in lieu" index	48.2	46.5	4.0%	2.2%
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	2,033	897	51	2,981
Balance of financial liabilities on balance-sheet date	1,958	666	41	2,664
Excess of financial assets over financial liabilities	75	232	10	316
Total indexation balance (incl.forwards and options in term of basis assets) 2	75	232	10	316
Rate of income on assets (percent) 3	-0.21	3.57	6.21	1.00
Rate of expenditure on liabilities (percent) 3	5.18	-3.13	-5.25	3.01
Interest-rate differential	4.97	0.44	0.97	4.01
Problem borrowers	30.09.2002	31.12.2001
Total credit risk dew to problem borrowers	103	102
Total credit  to problem borrowers	91	87
Main financial ratios - consolidated (percent)	30.09.2002	31.12.2001
Equity/balance-sheet ratio	11.33	5.51
Finanancial capital/equity ratio	92.95	92.02
Equity/risk-weighted-assets ratio	26.94	23.77
Return on equity (net profit/gross weighted-capital ratio) 4	21.40	18.20
Operating income/operating expenses ratio 5	85.96	75.95
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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