Information and Reporing Unit, Banking Supervision Division					07/09/2003
Statement for the second quarter - consolidated
"Tefahot" Israel 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	89	86	31.1%	27.5%
Securities	1	16	50.0%	5.6%
Credit to the public	31,998	32,061	29.1%	29.2%
Credit to the government	3	4	100.0%	100.0%
Investments in companies included on an equity basis	0	0	0.0%	0.0%
Buildings and equipment	95	90	36.8%	35.0%
Other assets	216	93	39.8%	24.1%
Total assets	32,402	32,350	29.2%	29.1%
Deposits of the public	20,554	20,373	46.5%	45.8%
Deposits of banks	7,811	7,965	14.4%	14.7%
Deposits of the government	429	430	26.5%	25.9%
Bonds and subordinated notes	1,378	1,445	37.0%	38.7%
Other liabilities	155	173	32.1%	35.7%
Total liabilities	30,327	30,386	29.1%	29.1%
Quasi-capital items	0	0	0.0%	0.0%
Minority shareholders' rights	0	0	0.0%	0.0%
Equity	2,075	1,964	30.7%	30.3%
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	232.0	176.0	32.6%	34.9%	126.0
Loan-loss provision	77.0	49.0	34.9%	40.1%	39.0
Operating and other income	155.0	162.0	38.4%	37.2%	77.0
Of which: Operating income	149.0	153.0	37.9%	36.0%	74.0
Operating and other expenses	111.0	118.0	30.2%	34.2%	55.0
Of which: Salaries and related expenses	67.0	70.0	32.2%	38.8%	33.0
Ordinary before-tax provision	199.0	171.0	37.7%	36.1%	109.0
Provision for taxes on ordinary profit	89.0	87.0	37.9%	35.7%	45.0
Ordinary after-tax profit	110.0	84.0	37.6%	36.5%	64.0
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	1.0	-1.0			1.0
Net profit	111.0	83.0	37.9%	36.3%	65.0
Profit after the effect of the difference between the known index and the "in lieu" index	106.0	109.0	38.8%	35.5%
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	2,809	27,034	2,459	32,302
Balance of financial liabilities on balance-sheet date	3,515	25,646	1,136	30,297
Excess of financial assets over financial liabilities	-706	1,388	1,323	2,005
Total indexation balance (incl.forwards and options in term of basis assets) 2	42	1,960	3	2,005
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	27,893	908.0		6.62
Total financial liabilities	25,908	-753.0		-5.90
Interest-rate differential				0.72
Problem borrowers	30.06.2003	31.12.2002
Total credit risk dew to problem borrowers	1851	1794
Total credit  to problem borrowers	1738	1580
Main financial ratios - consolidated (percent)	30.06.2003	31.12.2002
Equity/balance-sheet ratio	6.40	6.07
Finanancial capital/equity ratio	96.63	96.79
Equity/risk-weighted-assets ratio	10.54	10.50
Return on equity (net profit/gross weighted-capital ratio) (4)	11.60	12.00
Operating income/operating expenses ratio (5)	139.64	131.12
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.					25