Information and Reporing Unit, Banking Supervision Division					07/09/2003
Statement for the second quarter - bank
Bank Massad Ltd., 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	801	762	0.8%	0.8%
Securities	911	795	0.8%	0.7%
Credit to the public	925	933	0.2%	0.2%
Credit to the government	0	0	0.0%	0.0%
Investments in companies included on an equity basis	0	0	0.0%	0.0%
Buildings and equipment	61	62	0.6%	0.6%
Other assets	7	18	0.0%	0.1%
Total assets	2,705	2,570	0.3%	0.3%
Deposits of the public	2,415	2,362	0.4%	0.3%
Deposits of banks	57	8	0.3%	0.0%
Deposits of the government	0	0	0.0%	0.0%
Bonds and subordinated notes	0	0	0.0%	0.0%
Other liabilities	18	16	0.1%	0.1%
Total liabilities	2,491	2,386	0.3%	0.3%
Quasi-capital items	0	0	0.0%	0.0%
Equity	215	184	0.5%	0.5%
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	51.5	17.0	0.5%	0.2%	27.4
Loan-loss provision	5.0	2.6	0.2%	0.1%	2.4
Operating and other income	30.8	30.2	0.6%	0.6%	15.6
Of which: Operating income	23.0	22.4	0.5%	0.5%	11.4
Operating and other expenses	53.7	47.8	0.6%	0.5%	26.8
Of which: Salaries and related expenses	27.6	24.7	0.5%	0.5%	12.6
Ordinary before-tax provision	23.6	-3.2	0.7%	not calculated	13.8
Provision for taxes on ordinary profit	11.1	-1.4	0.6%	not calculated	5.7
Ordinary after-tax profit	12.5	-1.8	0.8%	not calculated	8.1
Bank's share in the profit of subsidiaries	0.0	0.0			0.0
Share of minority shareholders in profit of consolidated companies
Extraordinary after-tax profit	0.3	0.0			0.0
Net profit	12.8	-1.8	0.9%	not calculated	8.1
Profit after the effect of the difference between the known index and the "in lieu" index	12.4	-0.4	0.9%	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	1,446	1,016	183	2,645
Balance of financial liabilities on balance-sheet date	1,369	958	164	2,491
Excess of financial assets over financial liabilities	76	58	20	154
Total indexation balance (incl.forwards and options in term of basis assets) 2	33	100	21	154
Rate of income on assets (percent) 3	13.16	6.36	-8.02	8.21
Rate of expenditure on liabilities (percent) 3	-6.81	-4.68	9.22	-4.61
Interest-rate differential	6.36	1.68	1.20	3.60
Problem borrowers	30.06.2003	31.12.2002
Total credit risk dew to problem borrowers	128	132
Total credit  to problem borrowers	127	130
Main financial ratios - consolidated (percent)	30.06.2003	31.12.2002
Equity/balance-sheet ratio	7.94	7.17
Finanancial capital/equity ratio	71.66	66.30
Equity/risk-weighted-assets ratio	16.67	15.73
Return on equity (net profit/gross weighted-capital ratio)  4	14.40	4.10
Operating income/operating expenses ratio 5	57.36	55.82
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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