| 1. |
The format adopted in this publication gives the main data relating to banks' activities on one page, to enable their profitability, balance-sheet balances, financial ratios and main development trends for the relevant period to be reviewed at a glance. |
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This is not intended to make a thorough reading of the financial statements unnecessary, as a banking corporation's activities may include very significant data or events, which are not reflected in this format. |
| 2. |
All the data are included explicitly in the financial statements, or can be derived from them via simple calculations, as will be explained below. |
| Presentation of the data |
| 3. |
The data is divided into two chapters: |
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The commercial banks. |
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The mortgage banks. |
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In each chapter the data are further divided into two groups according to the basis of their published financial statements, i.e.: |
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Data on a consolidated basis. |
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Data on an individual bank basis (unconsolidated). |
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For a banking corporation which published data on a consolidated basis, no data on an individual bank basis (unconsolidated) are shown. Despite this generalization, however, data on an individual bank basis (unconsolidated) for the five large banks are shown, in a shorter format. |
| Legend |
| 4. |
The terms used in this publication have the same meaning as in the Guidelines for Preparing Reports for the Public determined by the Supervisor of Banks. |
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The definitions included herein relate to the relevant concepts defined in the Guidelines for Preparing Reports for the Public, as well as concepts related to specific calculations performed for this publication. |
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The concepts are arranged in the order of their appearance under the chapter headings in this publication: |
| The bank's share in the whole system |
| Total Banking System |
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4.1 |
a) Two systems are referred to |
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(1) The commercial banks (see section 4.1.1 below) |
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(2) The mortgage banks (see section 4.1.2 below) |
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b) Banks whose data are shown on a consolidated basis are included |
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in the whole system on a consolidated basis, and banks whose data are shown on an individual bank basis are included in the whole system on an individual bank basis. |
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4.1.1 |
The commercial banks' whole system is defined as the sum of all the commercial banks which appear in the tables from page 2 to page 23, excluding: |
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Maritime Bank of Israel Ltd |
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Arab Israel Bank Ltd |
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Bank Massad Ltd |
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Bank "Yahav" Le-Ovdei Hamdina Ltd |
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Israel Continental Bank Ltd |
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Mercantile Discount Bank Ltd |
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Poalei Agudat Israel Bank Ltd |
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The data of these banks are not included, because those of the parent bank in each case are shown on a consolidated basis, so that they are included indirectly in the summary. |
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Note: Data on these banks are also shown in this publication, as a result of the system adopted, if the balances ;separately of all the banks covered in the publication were included, balances exceeding that of the whole system would be obtained. |
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For the same reason, the following mortgage banks are also included indirectly: |
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Atzmauth Mortgage and Development Bank Ltd |
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Discount Mortgage Bank Ltd |
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Leumi Mortgage Bank Ltd |
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Mishkan - Bank Hapoalim Lemalhkantaot Ltd |
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"Tefahot" Israel Mortgage Bank Ltd
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The First International Mortgage Bank Ltd |
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4.1.2 |
The mortgage banks' whole system is defined as the sum of all the commercial banks which appear in the tables from page 25 to page 32, excluding the Atzmauth Mortgage andDevelopment BANK Ltd, whose data are included in those of The First International Mortgage Bank Ltd and are shown on a consolidated basis (see note to section 4.1.1 above). |
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4.2 |
Profit after the effect of the difference between the known index and "in lieu" index Profit is calculated as described in Appendices A and B to the provisional directives in the Guidelines for Preparing Reports to the Public, p.691-2-7. |
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4.3 |
Rate of income from (expenses on) assets (liabilities); The balances used to calculate the rate of income (expenses) are averages of opening monthly balances of assets (liabilities) on which the income was earned (financing expenses were incurred). |
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In the unindexed local-currency segment the average balances are based on daily balances. |
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4.4 |
Excess of financial assets over financial liabilities; The excess (deficiency) of assets over liabilities on the balance-sheet date in each of the indexation segments, excluding the effect of ALM derivatives and financial options. If liabilities exceed assets ina particular indexation segment, the difference is shown as a negative amount. |
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4.5 |
Total balance-sheet credit risk: credit minus the special loan-loss provision plus bonds. |
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Total off-balance-sheet credit risk: guarantees and other commitments on the customers' account and futures as calculated for purposes of the limitation on the indebtedness of a borrower and a group of borrowers (Proper Conduct of Banking Business, regulation no. 313). |
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Total credit risk: the sum of the balance-sheet and off-balance-sheet credit risks. |
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4.6 |
Problem debt Defined as "indebtedness under special supervision, an overdue debt, a rescheduled debt or one which it has been decided to reschedule but the rescheduling has not yet been implemented, a non-performing debt, or a debt which is considered doubtful, either in part or in total." Credit covered by recognized collateral for the purposes of the limitation on a borrower is not deducted from problem debts. The data for the mortgage banks include loans for which a special loan-loss provision was made according to the depth of the arrears. |
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4.7 |
Main financial ration in annual terms Gross weighted equity: equity at the beginning of the year, plus stock issues weighted according to the time in the year they were issued. |
