Information and Reporing Unit, Banking Supervision Division					07/09/2003
Statement for the second quarter - consolidated
Bank of Jerusalem 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	527	378	0.5%	0.4%
Securities	275	228	0.2%	0.2%
Credit to the public	5,634	5,671	1.0%	1.0%
Credit to the government	0	0	0.0%	0.0%
Investments in companies included on an equity basis	6	5	0.2%	0.1%
Buildings and equipment	56	59	0.5%	0.6%
Other assets	37	29	0.2%	0.1%
Total assets	6,534	6,370	0.8%	0.8%
Deposits of the public	5,496	5,250	0.8%	0.8%
Deposits of banks	336	425	1.5%	1.9%
Deposits of the government	60	65	0.3%	0.4%
Bonds and subordinated notes	243	246	0.6%	0.7%
Other liabilities	36	39	0.1%	0.2%
Total liabilities	6,172	6,023	0.8%	0.8%
Quasi-capital items	0	0	0.0%	0.0%
Minority shareholders' rights	0	0
Equity	362	347	0.8%	0.9%
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	56.8	42.8	0.6%	0.5%	29.9
Loan-loss provision	11.3	7.3	0.4%	0.3%	6.7
Operating and other income	46.1	46.0	0.8%	0.9%	23.2
Of which: Operating income	45.3	47.3	1.0%	1.1%	22.8
Operating and other expenses	67.7	64.0	0.7%	0.7%	34.0
Of which: Salaries and related expenses	41.7	38.2	0.8%	0.7%	20.7
Ordinary before-tax provision	23.9	17.5	0.7%	0.9%	12.4
Provision for taxes on ordinary profit	8.5	8.6	0.5%	0.8%	4.1
Ordinary after-tax profit	15.4	8.9	1.0%	0.9%	8.3
Bank's share in the profit of subsidiaries	0.5	1.7			0.2
Share of minority shareholders in profit of consolidated companies	0.0	0.0			0.0
Extraordinary after-tax profit	-2.2	0.0			0.0
Net profit	13.7	10.6	0.9%	1.2%	8.5
Profit after the effect of the difference between the known index and the "in lieu" index	13.3	12.8	1.0%	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	1,273	3,933	1,225	6,430
Balance of financial liabilities on balance-sheet date	1,325	3,844	1,000	6,168
Excess of financial assets over financial liabilities	-51	89	225	263
Total indexation balance (incl.forwards and options in term of basis assets) 2	-2	183	81	263
Rate of income on assets (percent) 3	11.16	6.40	-12.22	4.15
Rate of expenditure on liabilities (percent) 3	-9.31	-5.73	14.48	-2.94
Interest-rate differential	1.85	0.67	2.26	1.21
Problem borrowers	30.06.2003	31.12.2002
Total credit risk dew to problem borrowers	313	286
Total credit  to problem borrowers	287	252
Main financial ratios - consolidated (percent)	30.06.2003	31.12.2002
Equity/balance-sheet ratio	5.54	5.44
Finanancial capital/equity ratio	72.54	70.56
Equity/risk-weighted-assets ratio	11.10	10.60
Return on equity (net profit/gross weighted-capital ratio) 4	9.30	6.80
Operating income/operating expenses ratio 5	68.09	70.87
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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