Information and Reporing Unit, Banking Supervision Division					07/09/2003
Statement for the second quarter - consolidated
Bank Hapoalim 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	31,318	28,175	31.8%	29.1%
Securities	28,098	26,617	24.2%	23.5%
Credit to the public	182,472	190,735	32.5%	32.7%
Credit to the government	3,658	4,553	55.1%	57.1%
Investments in companies included on an equity basis	815	802	22.9%	22.0%
Buildings and equipment	3,551	3,597	33.6%	34.3%
Other assets	7,832	6,606	33.4%	31.5%
Total assets	257,744	261,085	31.4%	31.2%
Deposits of the public	203,165	210,209	30.3%	30.4%
Deposits of banks	7,792	6,831	34.1%	30.4%
Deposits of the government	5,108	5,361	29.4%	29.1%
Bonds and subordinated notes	17,629	17,141	46.3%	46.2%
Other liabilities	9,333	7,825	34.2%	31.7%
Total liabilities	243,027	247,367	31.4%	31.2%
Quasi-capital items	0	0	0.0%	0.0%
Minority shareholders' rights	549	469
Equity	14,168	13,249	32.5%	32.5%
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	3,435.0	2,633.0	35.1%	33.8%	1,767.0
Loan-loss provision	1,166.0	722.0	38.4%	25.6%	646.0
Operating and other income	1,843.0	1,787.0	33.5%	34.0%	940.0
Of which: Operating income	1,508.0	1,442.0	33.9%	32.8%	770.0
Operating and other expenses	2,831.0	2,809.0	31.3%	32.1%	1,395.0
Of which: Salaries and related expenses	1,666.0	1,651.0	30.2%	30.9%	817.0
Ordinary before-tax provision	1,281.0	889.0	39.0%	46.9%	666.0
Provision for taxes on ordinary profit	629.0	452.0	35.7%	42.6%	338.0
Ordinary after-tax profit	652.0	437.0	42.8%	45.6%	328.0
Bank's share in the profit of subsidiaries	37.0	-18.0			30.0
Share of minority shareholders in profit of consolidated companies	-23.0	24.0			-16.0
Extraordinary after-tax profit	-16.0	-2.0			11.0
Net profit	650.0	441.0	45.1%	48.8%	353.0
Profit after the effect of the difference between the known index and the "in lieu" index	633.0	567.0	46.6%	46.8%
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	78,948	67,527	106,340	252,815
Balance of financial liabilities on balance-sheet date	83,543	59,544	99,687	242,774
Excess of financial assets over financial liabilities	-4,595	7,983	6,653	10,041
Total indexation balance (incl.forwards and options in term of basis assets) 2	2,261	6,738	1,042	10,041
Rate of income on assets (percent) 3	12.55	6.49	-7.02	0.74
Rate of expenditure on liabilities (percent) 3	-9.47	-5.47	7.94	0.97
Interest-rate differential	3.07	1.02	0.92	1.71
Problem borrowers	30.06.2003	31.12.2002
Total credit risk dew to problem borrowers	22,301	22,296
Total credit  to problem borrowers	19,958	19,853
Main financial ratios - consolidated (percent)	30.06.2003	31.12.2002
Equity/balance-sheet ratio	5.50	5.07
Finanancial capital/equity ratio	70.87	68.04
Equity/risk-weighted-assets ratio	10.37	9.89
Return on equity (net profit/gross weighted-capital ratio) 4	10.10	2.70
Operating income/operating expenses ratio 5	65.10	60.27
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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