Information and Reporing Unit, Banking Supervision Division					07/09/2003
Statement for the second quarter - consolidated
Union Bank of Israel Ltd. 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	1,324	1,793	1.3%	1.9%
Securities	2,634	3,253	2.3%	2.9%
Credit to the public	14,617	15,198	2.6%	2.6%
Credit to the government	56	62	0.8%	0.8%
Investments in companies included on an equity basis	31	31	0.9%	0.8%
Buildings and equipment	347	347	3.3%	3.3%
Other assets	1,031	1,267	4.4%	6.0%
Total assets	20,040	21,951	2.4%	2.6%
Deposits of the public	16,642	18,601	2.5%	2.7%
Deposits of banks	293	324	1.3%	1.4%
Deposits of the government	17	19	0.1%	0.1%
Bonds and subordinated notes	744	670	2.0%	1.8%
Other liabilities	1,211	1,281	4.4%	5.2%
Total liabilities	18,907	20,895	2.4%	2.6%
Quasi-capital items	0	0	0.0%	0.0%
Minority shareholders' rights	0	0
Equity	1,133	1,056	2.6%	2.6%
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	219.0	227.0	2.2%	2.9%	112.0
Loan-loss provision	82.0	92.0	2.7%	3.3%	44.0
Operating and other income	110.0	119.0	2.0%	2.3%	57.0
Of which: Operating income	98.0	111.0	2.2%	2.5%	49.0
Operating and other expenses	234.0	231.0	2.6%	2.6%	122.0
Of which: Salaries and related expenses	136.0	139.0	2.5%	2.6%	71.0
Ordinary before-tax provision	13.0	23.0	0.4%	1.2%	3.0
Provision for taxes on ordinary profit	8.0	16.0	0.5%	1.5%	-1.0
Ordinary after-tax profit	5.0	7.0	0.3%	0.7%	4.0
Bank's share in the profit of subsidiaries	0.0	0.0			0.0
Share of minority shareholders in profit of consolidated companies	0.0	0.0			0.0
Extraordinary after-tax profit	-1.0	-6.0			-1.0
Net profit	4.0	1.0	0.3%	0.1%	3.0
Profit after the effect of the difference between the known index and the "in lieu" index	1.0	16.0	0.1%	1.3%
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	8,899	3,913	6,597	19,409
Balance of financial liabilities on balance-sheet date	8,778	3,502	6,579	18,859
Excess of financial assets over financial liabilities	121	411	18	550
Total indexation balance (incl.forwards and options in term of basis assets) 2	240	411	-101	550
Rate of income on assets (percent) 3	9.30	6.11	-1.18	2.91
Rate of expenditure on liabilities (percent) 3	-7.34	-5.70	1.57	-1.97
Interest-rate differential	1.96	0.40	0.40	0.95
Problem borrowers	30.06.2003	31.12.2002
Total credit risk dew to problem borrowers	1,530	1,580
Total credit  to problem borrowers	1,356	1,434
Main financial ratios - consolidated (percent)	30.06.2003	31.12.2002
Equity/balance-sheet ratio	5.65	4.81
Finanancial capital/equity ratio	48.54	62.78
Equity/risk-weighted-assets ratio	10.60	10.10
Return on equity (net profit/gross weighted-capital ratio) 4	0.80	-1.60
Operating income/operating expenses ratio 5	47.01	48.52
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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