Information and Reporing Unit, Banking Supervision Division					6/8/2003
Statement for the first quarter - consolidated
"Tefahot" Israel Mortgage 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	86	87	28.3%	27.5%
Securities	1	16	50.0%	5.6%
Credit to the public	32,305	32,475	29.2%	29.2%
Credit to the government	4	4	100.0%	100.0%
Investments in companies included on an equity basis	0	0	0.0%	0.0%
Buildings and equipment	95	92	36.2%	35.2%
Other assets	128	94	29.2%	24.1%
Total assets	32,619	32,768	29.2%	29.1%
Deposits of the public	20,621	20,636	46.4%	45.8%
Deposits of banks	7,957	8,068	14.5%	14.7%
Deposits of the government	434	436	26.4%	25.9%
Bonds and subordinated notes	1,420	1,464	38.6%	38.7%
Other liabilities	151	175	30.4%	35.8%
Total liabilities	30,583	30,779	29.1%	29.1%
Quasi-capital items	0	0	0.0%	0.0%
Minority shareholders' rights	0	0	0.0%	0.0%
Equity	2,036	1,989	30.5%	30.3%
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	91.0	33.2%	34.0%
Loan-loss provision	39.0	23.0	37.6%	37.1%
Operating and other income	79.0	83.0	38.8%	36.1%
Of which: Operating income	76.0	79.0	38.1%	35.2%
Operating and other expenses	56.0	60.0	28.6%	34.1%
Of which: Salaries and related expenses	34.0	36.0	29.7%	38.7%
Ordinary before-tax provision	91.0	91.0	40.1%	35.2%
Provision for taxes on ordinary profit	45.0	45.0	37.9%	37.2%
Ordinary after-tax profit	46.0	46.0	42.5%	33.4%
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	46.0	46.0	42.6%	33.5%
Profit after the effect of the difference between the known index and the "in lieu" index	55.0	57.0	39.9%	33.8%
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	2,685	27,502	2,332	32,519
Balance of financial liabilities on balance-sheet date	3,162	26,161	1,230	30,553
Total indexation balance (incl.forwards and options in term of basis assets) 2	-56	2,021	1	1,966
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)	28,270	279.0		4.01
Total financial liabilities(3)	26,342	-210.0		-3.23
Interest-rate differential				0.78
Problem borrowers	31.03.2003	31.12.2002
Total credit risk dew to problem borrowers	1802.00	1818.00
Total credit  to problem borrowers	1667.00	1601.00
Main financial ratios - consolidated (percent)	31.03.2003	31.12.2002
Equity/balance-sheet ratio	6.24	6.07
Finanancial capital/equity ratio	96.56	96.73
Equity/risk-weighted-assets ratio	10.60	10.50
Return on equity (net profit/gross weighted-capital ratio) (4)	9.60	12.00
Operating income/operating expenses ratio (5)	141.07	131.15
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.					25