Information and Reporing Unit, Banking Supervision Division					07/09/2003
Statement for the second quarter - bank
Industrial Dev. 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	116	247	0.1%	0.3%
Securities	100	73	0.1%	0.1%
Credit to the public	9,679	11,062	1.7%	1.9%
Credit to the government	950	1,002	14.3%	12.6%
Investments in companies included on an equity basis	1	1	0.0%	0.0%
Buildings and equipment	7	10	0.1%	0.1%
Other assets	47	53	0.2%	0.3%
Total assets	10,900	12,447	1.3%	1.5%
Deposits of the public	768	1,309	0.1%	0.2%
Deposits of banks	2,347	2,505	10.3%	11.1%
Deposits of the government	7,129	7,820	41.1%	42.5%
Bonds and subordinated notes	28	36	0.1%	0.1%
Other liabilities	77	158	0.3%	0.6%
Total liabilities	10,348	11,829	1.3%	1.5%
Quasi-capital items	309	338	100.0%	100.0%
Equity	242	280	0.6%	0.7%
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	13.5	47.6	0.1%	0.6%	5.5
Loan-loss provision	67.4	176.8	2.2%	6.3%	48.8
Operating and other income	9.9	6.8	0.2%	0.1%	6.6
Of which: Operating income	5.9	9.0	0.1%	0.2%	2.9
Operating and other expenses	31.4	43.7	0.3%	0.5%	14.2
Of which: Salaries and related expenses	16.1	28.2	0.3%	0.5%	6.8
Ordinary before-tax provision	-75.4	-166.1	not calculated	not calculated	-50.9
Provision for taxes on ordinary profit	-2.7	0.2	not calculated	0.0%	-2.7
Ordinary after-tax profit	-72.7	-166.3	not calculated	not calculated	-48.2
Bank's share in the profit of subsidiaries	0.0	-0.5			0.0
Share of minority shareholders in profit of consolidated companies
Extraordinary after-tax profit	0.1	6.5			0.0
Net profit	-72.6	-160.3	not calculated	not calculated	-48.2
Profit after the effect of the difference between the known index and the "in lieu" index	-74.0	-157.0	not calculated	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	1,320	2,097	7,407	10,823
Balance of financial liabilities on balance-sheet date	2,402	1,103	6,839	10,344
Excess of financial assets over financial liabilities	-1,083	994	568	479
Total indexation balance (incl.forwards and options in term of basis assets) 2	-419	899	-1	479
Rate of income on assets (percent) 3	10.42	4.64	-9.47	-4.46
Rate of expenditure on liabilities (percent) 3	-11.10	-3.05	9.87	4.42
Interest-rate differential	-0.68	1.59	0.40	-0.04
Problem borrowers	30.06.2003	31.12.2002
Total credit risk dew to problem borrowers	1,473	1,472
Total credit  to problem borrowers	1,308	1,281
Main financial ratios - consolidated (percent)	30.06.2003	31.12.2002
Equity/balance-sheet ratio	2.22	2.25
Finanancial capital/equity ratio	197.48	205.61
Equity/risk-weighted-assets ratio	2.23	2.86
Return on equity (net profit/gross weighted-capital ratio)  4	-45.18	-59.95
Operating income/operating expenses ratio 5	31.53	10.05
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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