Information and Reporing Unit, Banking Supervision Division					6/8/2003
Statement for the first quarter - bank
Discount Mortgage Bank, 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	123	102	40.5%	32.2%
Securities	1	1	50.0%	0.3%
Credit to the public	9,523	9,567	8.6%	8.6%
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	13	13	5.0%	5.0%
Other assets	22	23	5.0%	5.9%
Total assets	9,682	9,706	8.7%	8.6%
Deposits of the public	2,552	2,629	5.7%	5.8%
Deposits of banks	5,988	5,945	10.9%	10.8%
Deposits of the government	51	52	3.1%	3.1%
Bonds and subordinated notes	223	227	6.1%	6.0%
Other liabilities	49	40	9.9%	8.2%
Total liabilities	8,863	8,893	8.4%	8.4%
Quasi-capital items	0	0	0.0%	0.0%
Equity	819	813	12.3%	12.4%
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	27.0	26.0	8.4%	9.7%
Loan-loss provision	11.0	8.0	10.6%	12.9%
Operating and other income	15.0	16.0	7.4%	7.0%
Of which: Operating income	15.0	16.0	7.5%	7.1%
Operating and other expenses	16.0	15.0	8.2%	8.5%
Of which: Salaries and related expenses	9.0	9.0	7.9%	9.7%
Ordinary before-tax provision	15.0	19.0	6.6%	7.3%
Provision for taxes on ordinary profit	9.0	7.0	7.6%	5.8%
Ordinary after-tax profit	6.0	12.0	5.5%	8.7%
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	6.0	12.0	5.6%	8.7%
Profit after the effect of the difference between the known index and the "in lieu" index	10.0	17.0	7.3%	10.1%
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	636	8,000	1,033	9,669
Balance of financial liabilities on balance-sheet date	477	7,350	1,029	8,856
Excess of financial assets over financial liabilities	159	650	4	813
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	8,011	78.0		3.95
Total financial liabilities	7,379	-57.0		-3.13
Interest-rate differential				0.82
Problem borrowers	31.03.2003	31.12.2002
Total credit risk dew to problem borrowers	1,020.00	985.00
Total credit  to problem borrowers	899.00	866.00
Main financial ratios - consolidated (percent)	31.03.2003	31.12.2002
Equity/balance-sheet ratio	8.46	8.38
Finanancial capital/equity ratio	99.27	99.38
Equity/risk-weighted-assets ratio	11.70	11.90
Return on equity (net profit/gross weighted-capital ratio) (3)	3.20	5.60
Operating income/operating expenses ratio (4)	93.75	109.68
1 Including foreign-currency indexed NIS.
2 Three-month rate of income (expenses), on annual basis including hedging, embedded and ALM derivatives.
3 Annual basis.
4 For three months. Comparative data are annual.
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