Information and Reporing Unit, Banking Supervision Division					6/8/2003
Statement for the first quarter - bank
Leumi Mortgage Bank Ltd., 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	19	25	6.3%	7.9%
Securities	0	271	0.0%	94.1%
Credit to the public	31,149	31,203	28.1%	28.1%
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	38	39	14.5%	14.9%
Other assets	222	218	50.6%	55.8%
Total assets	31,428	31,756	28.1%	28.2%
Deposits of the public	7,375	7,497	16.6%	16.6%
Deposits of banks	20,610	20,817	37.6%	37.9%
Deposits of the government	582	581	35.4%	34.5%
Bonds and subordinated notes	1,231	1,252	33.4%	33.1%
Other liabilities	90	91	18.1%	18.6%
Total liabilities	29,888	30,238	28.5%	28.6%
Quasi-capital items	0	0	0.0%	0.0%
Equity	1,540	1,518	23.1%	23.1%
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	84.0	50.0	26.0%	18.7%
Loan-loss provision	31.0	16.0	29.9%	25.8%
Operating and other income	38.0	53.0	18.7%	23.1%
Of which: Operating income	38.0	53.0	19.0%	23.6%
Operating and other expenses	44.0	40.0	22.5%	22.7%
Of which: Salaries and related expenses	25.0	19.0	21.8%	20.4%
Ordinary before-tax provision	47.0	47.0	20.7%	18.2%
Provision for taxes on ordinary profit	25.0	25.0	21.1%	20.7%
Ordinary after-tax profit	22.0	22.0	20.3%	16.0%
Bank's share in the profit of subsidiaries	0.0	0.0
Share of minority shareholders in profit of consolidated companies
Extraordinary after-tax profit	0.0	0.0
Net profit	22.0	22.0	20.4%	16.0%
Profit after the effect of the difference between the known index and the "in lieu" index	29.0	27.0	21.1%	16.0%
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	1,131	27,651	2,595	31,377
Balance of financial liabilities on balance-sheet date	906	26,325	2,617	29,848
Total indexation balance (incl.forwards and options in term of basis assets) 2	174	1,377	-22	1,529
Additional information on the CPI-indexed sector for the three months to 31.03.2003	Average balance for three months	Net three monthly interest income (expenses)		Rate of income  (expenditure) (2)
Total financial assets(3)	27,832	260.0		3.79
Total financial liabilities(3)	26,616	-209.0		-3.18
Interest-rate differential				0.61
Problem borrowers	31.03.2003	31.12.2002
Total credit risk dew to problem borrowers	1,107.00	977.00
Total credit  to problem borrowers	1,088.00	977.00
Main financial ratios - consolidated (percent)	31.03.2003	31.12.2002
Equity/balance-sheet ratio	4.90	4.78
Finanancial capital/equity ratio	99.29	99.34
Equity/risk-weighted-assets ratio	9.34	9.30
Return on equity (net profit/gross weighted-capital ratio) (4)	5.80	8.70
Operating income/operating expenses ratio (5)	86.36	106.29
1 Including foreign-currency indexed NIS.
2 Three-month rate of income (expenses), on annual basis including hedging, embedded and ALM derivatives.
3 Including hedging, embedded and ALM derivatives.
4 Annual basis.
5 For three months. Comparative data are annual.					28