Information and Reporing Unit, Banking Supervision Division					07/09/2003
Statement for the second quarter - consolidated
"Adanim" Mortgage 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	17	70	5.8%	22.4%
Securities	0	0	0.0%	0.0%
Credit to the public	2,702	2,700	2.5%	2.5%
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	17	18	6.6%	6.8%
Other assets	18	17	3.3%	4.4%
Total assets	2,754	2,805	2.5%	2.5%
Deposits of the public	2,288	2,353	5.2%	5.3%
Deposits of banks	125	105	0.2%	0.2%
Deposits of the government	32	35	1.9%	2.1%
Bonds and subordinated notes	118	125	3.2%	3.3%
Other liabilities	46	48	9.4%	9.9%
Total liabilities	2,608	2,665	2.5%	2.6%
Quasi-capital items	0	0	0.0%	0.0%
Minority shareholders' rights	0	0	0.0%	0.0%
Equity	147	140	2.2%	2.2%
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	20.2	13.7	2.8%	2.7%	10.6
Loan-loss provision	5.2	1.5	2.4%	1.2%	3.5
Operating and other income	14.1	14.2	3.5%	3.3%	7.1
Of which: Operating income	14.1	14.2	3.6%	3.3%	7.1
Operating and other expenses	16.2	17.0	4.4%	4.9%	8.1
Of which: Salaries and related expenses	9.3	9.3	4.5%	5.2%	4.9
Ordinary before-tax provision	12.9	9.4	2.4%	2.0%	6.1
Provision for taxes on ordinary profit	5.9	5.4	2.5%	2.2%	2.4
Ordinary after-tax profit	7.0	4.0	2.4%	1.7%	3.7
Bank's share in the profit of subsidiaries	0.0	0.0			0.0
Share of minority shareholders in profit of consolidated companies	0.0	0.0			0.0
Extraordinary after-tax profit	0.0	0.0			0.0
Net profit	7.0	4.0	2.4%	1.7%	3.7
Profit after the effect of the difference between the known index and the "in lieu" index	6.5	5.8	2.4%	1.9%
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	174	2,563	0	2,736
Balance of financial liabilities on balance-sheet date	166	2,420	0	2,586
Excess of financial assets over financial liabilities	8	143	0	151
Total indexation balance (incl.forwards and options in term of basis assets) 2	8	143	0	151
Additional information on the CPI-indexed sector for the six months to 30.06.2003	Average balance for six months	Net six monthly interest income (expenses)		Rate of income  (expenditure) (3)
Total financial assets	2,543	81.3		6.50
Total financial liabilities	2,453	-70.4		-5.82
Interest-rate differential				0.68
Problem borrowers	30.06.2003	31.12.2002
Total credit risk dew to problem borrowers	137	107
Total credit  to problem borrowers	98	77
Main financial ratios - consolidated (percent)	30.06.2003	31.12.2002
Equity/balance-sheet ratio	5.32	4.97
Finanancial capital/equity ratio	102.87	103.30
Equity/risk-weighted-assets ratio	10.27	10.11
Return on equity (net profit/gross weighted-capital ratio) (4)	10.30	9.60
Operating income/operating expenses ratio (5)	87.04	80.35
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.					24