Information and Reporing Unit, Banking Supervision Division					6/8/2003
Statement for the first quarter - consolidated
Union Bank of Israel Ltd. 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	1,159	1,816	1.2%	1.8%
Securities	2,690	3,295	2.3%	2.9%
Credit to the public	15,056	15,394	2.6%	2.6%
Credit to the government	61	63	0.8%	0.8%
Investments in companies included on an equity basis	32	31	0.9%	0.8%
Buildings and equipment	349	352	3.3%	3.3%
Other assets	1,073	1,283	5.0%	6.0%
Total assets	20,420	22,234	2.4%	2.6%
Deposits of the public	17,277	18,841	2.5%	2.7%
Deposits of banks	203	329	0.8%	1.4%
Deposits of the government	16	19	0.1%	0.1%
Bonds and subordinated notes	746	678	1.9%	1.8%
Other liabilities	1,079	1,297	4.1%	5.2%
Total liabilities	19,321	21,164	2.4%	2.6%
Quasi-capital items	0	0	0.0%	0.0%
Minority shareholders' rights	0	0
Equity	1,099	1,070	2.6%	2.6%
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	107.0	133.0	2.7%	4.2%
Loan-loss provision	38.0	39.0	3.4%	4.8%
Operating and other income	54.0	64.0	2.5%	3.2%
Of which: Operating income	50.0	60.0	2.8%	3.6%
Operating and other expenses	113.0	121.0	3.0%	3.7%
Of which: Salaries and related expenses	66.0	76.0	2.9%	3.7%
Ordinary before-tax provision	10.0	37.0	0.8%	3.3%
Provision for taxes on ordinary profit	9.0	15.0	1.4%	2.8%
Ordinary after-tax profit	1.0	22.0	0.2%	3.6%
Bank's share in the profit of subsidiaries	0.0	0.0
Share of minority shareholders in profit of consolidated companies	0.0	0.0
Extraordinary after-tax profit	0.0	0.0
Net profit	1.0	22.0	0.2%	3.9%
Profit after the effect of the difference between the known index and the "in lieu" index	5.0	28.0	0.7%	4.1%
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	8,570	4,026	7,337	19,933
Balance of financial liabilities on balance-sheet date	8,878	3,352	7,055	19,285
Excess of financial assets over financial liabilities	-308	674	282	648
Total indexation balance (incl.forwards and options in term of basis assets) 2	1	654	-7	648
Rate of income on assets (percent) 3	5.95	3.66	0.98	2.79
Rate of expenditure on liabilities (percent) 3	-4.20	-2.83	-0.57	-1.92
Interest-rate differential	1.75	0.82	0.41	0.86
Problem borrowers	31.03.2003	31.12.2002
Total credit risk dew to problem borrowers	1,680.00	1,600.00
Total credit  to problem borrowers	1,429.00	1,452.00
Main financial ratios - consolidated (percent)	31.03.2003	31.12.2002
Equity/balance-sheet ratio	5.38	4.81
Finanancial capital/equity ratio	58.96	62.90
Equity/risk-weighted-assets ratio	10.70	10.10
Return on equity (net profit/gross weighted-capital ratio) 4	0.40	-1.60
Operating income/operating expenses ratio 5	47.79	48.54
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.
					8