Information and Reporing Unit, Banking Supervision Division					07/09/2003
Statement for the second quarter - consolidated
Mishkan Bank Hapoalim Lemashkantaot 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	34	26	11.9%	8.3%
Securities	0	0	0.0%	0.0%
Credit to the public	26,941	26,847	24.5%	24.5%
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	82	84	31.7%	32.7%
Other assets	35	29	6.5%	7.5%
Total assets	27,092	26,986	24.4%	24.3%
Deposits of the public	10,237	10,579	23.2%	23.8%
Deposits of banks	14,174	13,740	26.1%	25.4%
Deposits of the government	409	451	25.3%	27.2%
Bonds and subordinated notes	532	559	14.3%	15.0%
Other liabilities	132	112	27.3%	23.1%
Total liabilities	25,484	25,441	24.5%	24.3%
Quasi-capital items	0	0	0.0%	0.0%
Minority shareholders' rights	0	0	0.0%	0.0%
Equity	1,608	1,545	23.8%	23.9%
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	167.0	146.0	23.4%	28.9%	93.0
Loan-loss provision	48.0	27.0	21.8%	22.1%	31.0
Operating and other income	99.0	108.0	24.5%	24.8%	49.0
Of which: Operating income	99.0	108.0	25.2%	25.4%	49.0
Operating and other expenses	103.0	79.0	28.0%	22.9%	44.0
Of which: Salaries and related expenses	60.0	37.0	28.9%	20.5%	24.0
Ordinary before-tax provision	115.0	148.0	21.8%	31.3%	67.0
Provision for taxes on ordinary profit	52.0	70.0	22.1%	28.8%	26.0
Ordinary after-tax profit	63.0	78.0	21.5%	33.9%	41.0
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	0.0	0.0			0.0
Net profit	63.0	78.0	21.5%	34.1%	41.0
Profit after the effect of the difference between the known index and the "in lieu" index	58.0	98.0	21.2%	31.9%
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	1,024	24,399	1,585	27,008
Balance of financial liabilities on balance-sheet date	1,048	22,861	1,564	25,473
Excess of financial assets over financial liabilities	-24	1,538	21	1,535
Total indexation balance (incl.forwards and options in term of basis assets) 2	250	1,538	-253	1,535
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	24,624	775.0		6.39
Total financial liabilities	22,902	-660.0		-5.85
Interest-rate differential				0.54
Problem borrowers	30.06.2003	31.12.2002
Total credit risk dew to problem borrowers	1153	1000
Total credit  to problem borrowers	1153	1000
Main financial ratios - consolidated (percent)	30.06.2003	31.12.2002
Equity/balance-sheet ratio	5.94	5.73
Finanancial capital/equity ratio	95.46	95.08
Equity/risk-weighted-assets ratio	9.53	9.48
Return on equity (net profit/gross weighted-capital ratio) (4)	8.30	12.20
Operating income/operating expenses ratio (5)	96.12	132.28
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.					26