Information and Reporing Unit, Banking Supervision Division					6/8/2003
Statement for the first quarter - consolidated
Bank Hapoalim B.M and its subsidiaries, Main data, NIS million
Taken from the quarterly report to 31.03.2003. Adjusted to the CPI for  03.2003.
Summary consolidated balance sheet	31.03.2003	31.12.2002	Bank's share of the banking system
			31.03.2003	31.12.2002
Cash and deposits in banks	30,477	28,539	31.4%	29.1%
Securities	27,050	26,960	23.2%	23.5%
Credit to the public	190,799	193,195	32.8%	32.7%
Credit to the government	4,307	4,612	55.7%	57.1%
Investments in companies included on an equity basis	818	812	22.9%	21.9%
Buildings and equipment	3,608	3,643	33.7%	34.3%
Other assets	7,187	6,691	33.6%	31.4%
Total assets	264,246	264,452	31.5%	31.2%
Deposits of the public	210,017	212,920	30.5%	30.4%
Deposits of banks	7,970	6,919	33.3%	30.2%
Deposits of the government	5,317	5,430	29.3%	29.1%
Bonds and subordinated notes	17,728	17,362	46.2%	46.2%
Other liabilities	8,931	7,926	33.9%	31.6%
Total liabilities	249,963	250,557	31.4%	31.1%
Quasi-capital items	0	0	0.0%	0.0%
Minority shareholders' rights	481	475
Equity	13,802	13,420	32.8%	32.4%
Summary consolidated profit and loss statement	Three months to		Bank's share of the banking system
			Three months to
	31.03.2003	31.03.2002	31.03.2003	31.03.2002
Net interest profit before loan-loss provision	1,690.0	1,330.0	42.5%	41.6%
Loan-loss provision	527.0	327.0	47.3%	40.5%
Operating and other income	914.0	908.0	43.0%	44.7%
Of which: Operating income	748.0	731.0	41.3%	43.4%
Operating and other expenses	1,454.0	1,444.0	38.8%	43.9%
Of which: Salaries and related expenses	860.0	878.0	37.2%	42.8%
Ordinary before-tax provision	623.0	467.0	50.5%	41.1%
Provision for taxes on ordinary profit	295.0	240.0	45.9%	45.1%
Ordinary after-tax profit	328.0	227.0	55.5%	37.6%
Bank's share in the profit of subsidiaries	7.0	-10.0
Share of minority shareholders in profit of consolidated companies	-7.0	-1.0
Extraordinary after-tax profit	-27.0	6.0
Net profit	301.0	222.0	51.5%	39.5%
Profit after the effect of the difference between the known index and the "in lieu" index	345.0	262.0	49.7%	38.5%
Balances and rates of return on financial items by indexation base on 31.03.2003	Unindexed NIS	CPI-indexed  NIS	Foreign Currency (1)	Total financial items
Balance of financial assets on balance-sheet date	73,452	71,425	114,409	259,286
Balance of financial liabilities on balance-sheet date	81,585	61,218	106,883	249,686
Excess of financial assets over financial liabilities	-8,133	10,207	7,526	9,600
Total indexation balance (incl.forwards and options in term of basis assets) 2	-178	8,517	1,261	9,600
Rate of income on assets (percent) 3	6.95	3.68	-1.34	2.07
Rate of expenditure on liabilities (percent) 3	-4.01	-2.77	2.52	-0.37
Interest-rate differential	2.93	0.91	1.18	1.71
Problem borrowers	31.03.2003	31.12.2002
Total credit risk dew to problem borrowers	22,330.00	22,583.00
Total credit  to problem borrowers	20,306.00	20,108.00
Main financial ratios - consolidated (percent)	31.03.2003	31.12.2002
Equity/balance-sheet ratio	5.22	5.07
Finanancial capital/equity ratio	69.56	68.06
Equity/risk-weighted-assets ratio	10.10	9.90
Return on equity (net profit/gross weighted-capital ratio) 4	9.30	2.70
Operating income/operating expenses ratio 5	62.86	60.28
1 Including foreign-currency indexed NIS.
2 Forwards transactions.
3 Three-month rate of income (expenses), on annual basis including hedging, embedded and ALM derivatives.
4 Annual basis.
5 For three months. Comparative data are annual.
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