Information and Reporing Unit, Banking Supervision Division					07/09/2003
Statement for the second quarter - consolidated
The First International 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	10,613	9,573	10.8%	9.9%
Securities	4,685	4,123	4.0%	3.6%
Credit to the public	46,958	48,983	8.4%	8.4%
Credit to the government	196	168	3.0%	2.1%
Investments in companies included on an equity basis	11	10	0.3%	0.3%
Buildings and equipment	732	746	6.9%	7.1%
Other assets	1,976	1,610	8.4%	7.7%
Total assets	65,171	65,213	7.9%	7.8%
Deposits of the public	55,637	56,009	8.3%	8.1%
Deposits of banks	967	1,235	4.2%	5.5%
Deposits of the government	612	654	3.5%	3.6%
Bonds and subordinated notes	2,522	2,237	6.6%	6.0%
Other liabilities	1,765	1,623	6.5%	6.6%
Total liabilities	61,503	61,758	7.9%	7.8%
Quasi-capital items	0	0	0.0%	0.0%
Minority shareholders' rights	183	172
Equity	3,485	3,283	8.0%	8.1%
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	689.0	518.0	7.0%	6.6%	370.0
Loan-loss provision	247.0	526.0	8.1%	18.7%	146.0
Operating and other income	388.0	378.0	7.0%	7.2%	212.0
Of which: Operating income	314.0	338.0	7.1%	7.7%	163.0
Operating and other expenses	628.0	613.0	6.9%	7.0%	318.0
Of which: Salaries and related expenses	387.0	390.0	7.0%	7.3%	197.0
Ordinary before-tax provision	202.0	-243.0	6.1%	not calculated	118.0
Provision for taxes on ordinary profit	94.0	-103.0	5.3%	not calculated	49.0
Ordinary after-tax profit	108.0	-140.0	7.1%	not calculated	69.0
Bank's share in the profit of subsidiaries	1.0	-1.0			1.0
Share of minority shareholders in profit of consolidated companies	-11.0	-6.0			-7.0
Extraordinary after-tax profit	0.0	0.0			-1.0
Net profit	98.0	-147.0	6.8%	not calculated	62.0
Profit after the effect of the difference between the known index and the "in lieu" index	86.0	-105.0	6.3%	not calculated
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	24,781	17,656	21,317	63,754
Balance of financial liabilities on balance-sheet date	27,373	15,391	18,719	61,483
Excess of financial assets over financial liabilities	-2,592	2,265	2,598	2,271
Total indexation balance (incl.forwards and options in term of basis assets) 2	45	2,453	-227	2,271
Rate of income on assets (percent) 3	10.52	6.45	-10.33	-1.39
Rate of expenditure on liabilities (percent) 3	-8.91	-5.44	10.80	2.54
Interest-rate differential	1.61	1.00	0.47	1.15
Problem borrowers	30.06.2003	31.12.2002
Total credit risk dew to problem borrowers	5,255	5,054
Total credit  to problem borrowers	4,848	4,473
Main financial ratios - consolidated (percent)	30.06.2003	31.12.2002
Equity/balance-sheet ratio	5.35	5.03
Finanancial capital/equity ratio	65.16	73.93
Equity/risk-weighted-assets ratio	10.50	9.80
Return on equity (net profit/gross weighted-capital ratio) 4	6.10	-1.90
Operating income/operating expenses ratio 5	61.78	61.42
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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