Information and Reporing Unit, Banking Supervision Division					07/09/2003
Statement for the second quarter - bank
Poalei Agudat Israel Bank 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	1,183	1,234	1.2%	1.3%
Securities	197	157	0.2%	0.1%
Credit to the public	887	882	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	27	27	0.3%	0.3%
Other assets	6	9	0.0%	0.0%
Total assets	2,299	2,308	0.3%	0.3%
Deposits of the public	2,028	2,001	0.3%	0.3%
Deposits of banks	12	70	0.1%	0.3%
Deposits of the government	0	0	0.0%	0.0%
Bonds and subordinated notes	0	0	0.0%	0.0%
Other liabilities	22	20	0.1%	0.1%
Total liabilities	2,062	2,090	0.3%	0.3%
Quasi-capital items	0	0	0.0%	0.0%
Equity	237	219	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	41.2	31.3	0.4%	0.4%	22.8
Loan-loss provision	5.9	5.7	0.2%	0.2%	3.9
Operating and other income	34.7	31.4	0.6%	0.6%	17.9
Of which: Operating income	33.9	31.4	0.8%	0.7%	17.1
Operating and other expenses	37.5	34.8	0.4%	0.4%	18.8
Of which: Salaries and related expenses	17.7	16.2	0.3%	0.3%	8.9
Ordinary before-tax provision	32.5	22.2	1.0%	1.2%	18.0
Provision for taxes on ordinary profit	15.6	11.0	0.9%	1.0%	8.2
Ordinary after-tax profit	16.9	11.2	1.1%	1.2%	9.8
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	0.0	0.0			0.0
Net profit	16.9	11.2	1.2%	1.2%	9.8
Profit after the effect of the difference between the known index and the "in lieu" index	16.0	13.3	1.2%	1.1%
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	1,538	528	207	2,272
Balance of financial liabilities on balance-sheet date	1,496	359	207	2,062
Excess of financial assets over financial liabilities	42	168	0	211
Total indexation balance (incl.forwards and options in term of basis assets) 2	42	168	0	211
Rate of income on assets (percent) 3	11.33	6.35	-15.69	8.43
Rate of expenditure on liabilities (percent) 3	-8.52	-5.35	15.67	-6.24
Interest-rate differential	2.82	1.00	-0.02	2.20
Problem borrowers	30.06.2003	31.12.2002
Total credit risk dew to problem borrowers	90	71
Total credit  to problem borrowers	90	63
Main financial ratios - consolidated (percent)	30.06.2003	31.12.2002
Equity/balance-sheet ratio	10.31	9.47
Finanancial capital/equity ratio	88.78	87.70
Equity/risk-weighted-assets ratio	18.80	17.40
Return on equity (net profit/gross weighted-capital ratio)  4	16.10	14.20
Operating income/operating expenses ratio 5	92.53	91.94
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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