Information and Reporing Unit, Banking Supervision Division					07/09/2003
Statement for the second quarter - bank
Discount Mortgage Bank, 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	127	101	44.4%	32.3%
Securities	1	1	50.0%	0.4%
Credit to the public	9,407	9,445	8.6%	8.6%
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	12	13	4.6%	5.1%
Other assets	29	22	5.3%	5.7%
Total assets	9,576	9,582	8.6%	8.6%
Deposits of the public	2,464	2,596	5.6%	5.8%
Deposits of banks	5,982	5,869	11.0%	10.8%
Deposits of the government	50	51	3.1%	3.1%
Bonds and subordinated notes	216	224	5.8%	6.0%
Other liabilities	45	40	9.3%	8.3%
Total liabilities	8,757	8,780	8.4%	8.4%
Quasi-capital items	0	0	0.0%	0.0%
Equity	819	802	12.1%	12.4%
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	62.0	44.0	8.7%	8.7%	34.0
Loan-loss provision	30.0	15.0	13.6%	12.3%	19.0
Operating and other income	29.0	36.0	7.2%	8.3%	15.0
Of which: Operating income	29.0	36.0	7.4%	8.5%	15.0
Operating and other expenses	32.0	31.0	8.7%	9.0%	16.0
Of which: Salaries and related expenses	18.0	17.0	8.7%	9.4%	9.0
Ordinary before-tax provision	29.0	34.0	5.5%	7.2%	14.0
Provision for taxes on ordinary profit	12.0	17.0	5.1%	7.0%	3.0
Ordinary after-tax profit	17.0	17.0	5.8%	7.4%	11.0
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	17.0	17.0	5.8%	7.4%	11.0
Profit after the effect of the difference between the known index and the "in lieu" index	15.0	28.0	5.5%	9.1%
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	645	7,894	1,025	9,564
Balance of financial liabilities on balance-sheet date	464	7,288	997	8,749
Excess of financial assets over financial liabilities	181	606	28	815
Total indexation balance (incl.forwards and options in term of basis assets) 2	157	609	49	815
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	7,871	254.0		6.56
Total financial liabilities	7,257	-207.0		-5.79
Interest-rate differential				0.77
Problem borrowers	30.06.2003	31.12.2002
Total credit risk dew to problem borrowers	1,053	972
Total credit  to problem borrowers	950	855
Main financial ratios - consolidated (percent)	30.06.2003	31.12.2002
Equity/balance-sheet ratio	8.55	8.37
Finanancial capital/equity ratio	99.51	99.38
Equity/risk-weighted-assets ratio	11.80	11.90
Return on equity (net profit/gross weighted-capital ratio) (4)	4.30	5.60
Operating income/operating expenses ratio (5)	90.63	109.84
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.					29