Information and Reporing Unit, Banking Supervision Division					07/09/2003
Statement for the second quarter - consolidated
Bank Leumi Le-Israel B.M. and its subsidiaries, Main data, NIS million
Taken from the quarterly report to 30.06.2003. Adjusted to the CPI for  06.2003.
Summary consolidated balance sheet	30.06.2003	31.12.2002	Bank's share of the banking system
			30.06.2003	31.12.2002
Cash and deposits in banks	22,802	24,106	23.1%	24.9%
Securities	38,429	36,652	33.0%	32.3%
Credit to the public	167,311	174,180	29.8%	29.9%
Credit to the government	1,147	1,446	17.3%	18.1%
Investments in companies included on an equity basis	1,320	1,369	37.1%	37.5%
Buildings and equipment	2,598	2,588	24.6%	24.7%
Other assets	6,697	6,608	28.6%	31.5%
Total assets	240,304	246,949	29.3%	29.5%
Deposits of the public	200,326	207,888	29.9%	30.1%
Deposits of banks	3,317	3,723	14.5%	16.6%
Deposits of the government	2,980	2,974	17.2%	16.1%
Bonds and subordinated notes	10,514	10,369	27.6%	27.9%
Other liabilities	8,849	8,244	32.5%	33.4%
Total liabilities	225,986	233,198	29.2%	29.4%
Quasi-capital items	0	0	0.0%	0.0%
Minority shareholders' rights	247	419
Equity	14,071	13,332	32.2%	32.7%
Summary consolidated profit and loss statement	six months to		Bank's share of the banking system		three months to
			six months to
	30.06.2003	30.06.2002	30.06.2003	30.06.2002	30.06.2003
Net interest profit before loan-loss provision	3,023.0	2,289.0	30.9%	29.4%	1,602.0
Loan-loss provision	889.0	693.0	29.3%	24.6%	519.0
Operating and other income	1,607.0	1,513.0	29.2%	28.8%	882.0
Of which: Operating income	1,239.0	1,246.0	27.8%	28.3%	629.0
Operating and other expenses	2,727.0	2,518.0	30.1%	28.8%	1,295.0
Of which: Salaries and related expenses	1,672.0	1,575.0	30.3%	29.5%	752.0
Ordinary before-tax provision	1,014.0	591.0	30.8%	31.2%	670.0
Provision for taxes on ordinary profit	579.0	249.0	32.8%	23.5%	377.0
Ordinary after-tax profit	435.0	342.0	28.5%	35.6%	293.0
Bank's share in the profit of subsidiaries	75.0	6.0			39.0
Share of minority shareholders in profit of consolidated companies	15.0	-43.0			16.0
Extraordinary after-tax profit	-24.0	-2.0			-21.0
Net profit	501.0	303.0	34.7%	33.5%	327.0
Profit after the effect of the difference between the known index and the "in lieu" index	461.0	425.0	33.9%	35.1%
Balances and rates of return on financial items by indexation base on 30.06.2003	Unindexed NIS	CPI-indexed  NIS	Foreign Currency (1)	Total financial items
Balance of financial assets on balance-sheet date	73,067	61,605	98,710	233,382
Balance of financial liabilities on balance-sheet date	76,298	54,635	93,495	224,428
Excess of financial assets over financial liabilities	-3,231	6,970	5,215	8,954
Total indexation balance (incl.forwards and options in term of basis assets) 2	1,465	6,233	1,256	8,954
Rate of income on assets (percent) 3	11.33	6.46	-5.49	1.26
Rate of expenditure on liabilities (percent) 3	-7.99	-5.53	6.35	0.39
Interest-rate differential	3.34	0.93	0.86	1.65
Problem borrowers	30.06.2003	31.12.2002
Total credit risk dew to problem borrowers	18,396	18,719
Total credit  to problem borrowers	16,471	16,825
Main financial ratios - consolidated (percent)	30.06.2003	31.12.2002
Equity/balance-sheet ratio	5.86	5.40
Finanancial capital/equity ratio	63.63	67.06
Equity/risk-weighted-assets ratio	11.10	10.30
Return on equity (net profit/gross weighted-capital ratio) 4	7.70	3.30
Operating income/operating expenses ratio 5	58.93	55.13
1 Including foreign-currency indexed NIS.
2 Forwards transactions.
3 Six-month rate of income (expenses), on annual basis including hedging, embedded and ALM derivatives.
4 Annual basis.
5 For six months. Comparative data are annual.
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