Information and Reporing Unit, Banking Supervision Division					07/09/2003
Statement for the second quarter - bank
Leumi Mortgage 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	19	25	6.6%	8.0%
Securities	0	267	0.0%	94.0%
Credit to the public	30,981	30,806	28.2%	28.1%
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	38	38	14.7%	14.8%
Other assets	233	216	43.0%	55.9%
Total assets	31,271	31,352	28.2%	28.2%
Deposits of the public	7,495	7,401	17.0%	16.6%
Deposits of banks	20,200	20,552	37.2%	37.9%
Deposits of the government	586	574	36.3%	34.6%
Bonds and subordinated notes	1,334	1,236	35.8%	33.1%
Other liabilities	88	91	18.2%	18.8%
Total liabilities	29,703	29,854	28.5%	28.6%
Quasi-capital items	0	0	0.0%	0.0%
Equity	1,568	1,498	23.2%	23.1%
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	181.0	88.0	25.4%	17.4%	99.0
Loan-loss provision	53.0	26.0	24.0%	21.3%	23.0
Operating and other income	79.0	88.0	19.6%	20.2%	42.0
Of which: Operating income	77.0	88.0	19.6%	20.7%	40.0
Operating and other expenses	81.0	77.0	22.0%	22.3%	39.0
Of which: Salaries and related expenses	42.0	36.0	20.2%	20.0%	18.0
Ordinary before-tax provision	126.0	73.0	23.9%	15.4%	79.0
Provision for taxes on ordinary profit	56.0	43.0	23.9%	17.7%	31.0
Ordinary after-tax profit	70.0	30.0	23.9%	13.0%	48.0
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	70.0	30.0	23.9%	13.1%	48.0
Profit after the effect of the difference between the known index and the "in lieu" index	65.0	43.0	23.8%	14.0%
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	1,110	27,502	2,609	31,221
Balance of financial liabilities on balance-sheet date	1,079	25,973	2,612	29,664
Excess of financial assets over financial liabilities	31	1,529	-3	1,557
Total indexation balance (incl.forwards and options in term of basis assets) 2	31	1,529	-3	1,557
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	27,394	872.0		6.47
Total financial liabilities	26,110	-750.0		-5.83
Interest-rate differential				0.64
Problem borrowers	30.06.2003	31.12.2002
Total credit risk dew to problem borrowers	1,183	966
Total credit  to problem borrowers	1,159	966
Main financial ratios - consolidated (percent)	30.06.2003	31.12.2002
Equity/balance-sheet ratio	5.01	4.78
Finanancial capital/equity ratio	99.30	99.47
Equity/risk-weighted-assets ratio	9.62	9.30
Return on equity (net profit/gross weighted-capital ratio) (4)	9.50	8.70
Operating income/operating expenses ratio (5)	97.53	105.70
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.					28