Information and Reporing Unit, Banking Supervision Division					6/8/2003
Statement for the first quarter - consolidated
Mercantile Discount Bank 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	1,388	1,230	1.4%	1.3%
Securities	1,138	1,161	1.0%	1.0%
Credit to the public	12,213	12,504	2.1%	2.1%
Credit to the government	3	3	0.0%	0.0%
Investments in companies included on an equity basis	4	4	0.1%	0.1%
Buildings and equipment	261	260	2.4%	2.4%
Other assets	136	128	0.6%	0.6%
Total assets	15,142	15,289	1.8%	1.8%
Deposits of the public	13,325	13,419	1.9%	1.9%
Deposits of banks	202	356	0.8%	1.6%
Deposits of the government	51	50	0.3%	0.3%
Bonds and subordinated notes	559	481	1.5%	1.3%
Other liabilities	180	181	0.7%	0.7%
Total liabilities	14,317	14,486	1.8%	1.8%
Quasi-capital items	0	0	0.0%	0.0%
Minority shareholders' rights	0	0
Equity	825	802	2.0%	1.9%
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	115.3	114.7	2.9%	3.6%
Loan-loss provision	21.2	22.3	1.9%	2.8%
Operating and other income	66.1	61.6	3.1%	3.0%
Of which: Operating income	55.9	57.0	3.1%	3.4%
Operating and other expenses	125.1	120.6	3.3%	3.7%
Of which: Salaries and related expenses	76.3	72.4	3.3%	3.5%
Ordinary before-tax provision	35.1	33.4	2.8%	2.9%
Provision for taxes on ordinary profit	20.0	15.8	3.1%	3.0%
Ordinary after-tax profit	15.1	17.6	2.6%	2.9%
Bank's share in the profit of subsidiaries	-0.1	0.0
Share of minority shareholders in profit of consolidated companies	0.0	0.0
Extraordinary after-tax profit	-0.3	0.0
Net profit	14.7	17.6	2.5%	3.1%
Profit after the effect of the difference between the known index and the "in lieu" index	16.5	20.2	2.4%	3.0%
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	7,284	4,102	3,447	14,833
Balance of financial liabilities on balance-sheet date	7,750	3,685	2,872	14,308
Excess of financial assets over financial liabilities	-466	417	574	525
Total indexation balance (incl.forwards and options in term of basis assets) 2	-13	418	118	524
Rate of income on assets (percent) 3	8.52	3.71	-2.41	3.90
Rate of expenditure on liabilities (percent) 3	-4.51	-2.33	3.27	-1.49
Interest-rate differential	4.01	1.38	0.86	2.41
Problem borrowers	31.03.2003	31.12.2002
Total credit risk dew to problem borrowers	1,072.00	1,049.00
Total credit  to problem borrowers	1,026.00	996.00
Main financial ratios - consolidated (percent)	31.03.2003	31.12.2002
Equity/balance-sheet ratio	5.45	5.25
Finanancial capital/equity ratio	63.64	65.38
Equity/risk-weighted-assets ratio	10.60	10.00
Return on equity (net profit/gross weighted-capital ratio) 4	7.50	8.30
Operating income/operating expenses ratio 5	52.84	51.04
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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