Information and Reporing Unit, Banking Supervision Division					07/09/2003
Statement for the second quarter - consolidated
United Mizrahi Bank 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	10,675	10,746	10.8%	11.1%
Securities	3,913	3,986	3.4%	3.5%
Credit to the public	59,858	60,111	10.7%	10.3%
Credit to the government	121	137	1.8%	1.7%
Investments in companies included on an equity basis	164	143	4.6%	3.9%
Buildings and equipment	1,085	1,023	10.3%	9.8%
Other assets	1,427	796	6.1%	3.8%
Total assets	77,243	76,942	9.4%	9.2%
Deposits of the public	64,473	64,673	9.6%	9.4%
Deposits of banks	3,287	3,290	14.4%	14.6%
Deposits of the government	1,280	1,359	7.4%	7.4%
Bonds and subordinated notes	2,504	2,569	6.6%	6.9%
Other liabilities	1,676	1,281	6.1%	5.2%
Total liabilities	73,220	73,172	9.4%	9.2%
Quasi-capital items	0	0	0.0%	0.0%
Minority shareholders' rights	292	277
Equity	3,731	3,493	8.5%	8.6%
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	761.0	671.0	7.8%	8.6%	398.0
Loan-loss provision	170.0	114.0	5.6%	4.0%	84.0
Operating and other income	457.0	454.0	8.3%	8.6%	235.0
Of which: Operating income	413.0	399.0	9.3%	9.1%	212.0
Operating and other expenses	692.0	685.0	7.6%	7.8%	344.0
Of which: Salaries and related expenses	446.0	442.0	8.1%	8.3%	221.0
Ordinary before-tax provision	356.0	326.0	10.8%	17.2%	205.0
Provision for taxes on ordinary profit	177.0	165.0	10.0%	15.6%	97.0
Ordinary after-tax profit	179.0	161.0	11.7%	16.8%	108.0
Bank's share in the profit of subsidiaries	5.0	-3.0			2.0
Share of minority shareholders in profit of consolidated companies	-15.0	-12.0			-9.0
Extraordinary after-tax profit	-4.0	-1.0			1.0
Net profit	165.0	145.0	11.4%	16.0%	102.0
Profit after the effect of the difference between the known index and the "in lieu" index	159.0	180.0	11.7%	14.9%
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	24,954	34,258	16,432	75,644
Balance of financial liabilities on balance-sheet date	27,228	31,547	14,378	73,153
Excess of financial assets over financial liabilities	-2,274	2,711	2,054	2,491
Total indexation balance (incl.forwards and options in term of basis assets) 2	-278	2,803	-34	2,491
Rate of income on assets (percent) 3	10.87	6.60	-13.21	1.47
Rate of expenditure on liabilities (percent) 3	-8.86	-5.74	14.24	-0.05
Interest-rate differential	2.01	0.86	1.03	1.41
Problem borrowers	30.06.2003	31.12.2002
Total credit risk dew to problem borrowers	4,706	5,238
Total credit  to problem borrowers	4,260	4,522
Main financial ratios - consolidated (percent)	30.06.2003	31.12.2002
Equity/balance-sheet ratio	4.83	4.54
Finanancial capital/equity ratio	66.76	73.52
Equity/risk-weighted-assets ratio	9.50	9.52
Return on equity (net profit/gross weighted-capital ratio) 4	9.70	8.30
Operating income/operating expenses ratio 5	66.04	62.30
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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