Information and Reporing Unit, Banking Supervision Division					02/12/2003
Statement for the third quarter - consolidated
Bank Hapoalim B.M and its subsidiaries, Main data, NIS million
Taken from the quarterly report to 30.09.2003. Adjusted to the CPI for  09.2003.
Summary consolidated balance sheet	30.09.2003	31.12.2002	Banking group's share of the banking system
			30.09.2003	31.12.2002
Cash and deposits in banks	31,007	27,896	32.2%	29.1%
Securities	27,524	26,353	23.5%	23.5%
Credit to the public	183,449	188,843	32.4%	32.7%
Credit to the government	3,396	4,508	52.6%	57.1%
Investments in companies included on an equity basis	784	794	22.3%	22.0%
Buildings and equipment	3,519	3,561	33.4%	34.3%
Other assets	7,377	6,540	32.4%	31.5%
Total assets	257,056	258,495	31.2%	31.2%
Deposits of the public	202,634	208,123	30.2%	30.4%
Deposits of banks	6,777	6,764	29.9%	30.4%
Deposits of the government	4,878	5,308	28.1%	29.1%
Bonds and subordinated notes	18,216	16,971	46.9%	46.2%
Other liabilities	9,598	7,748	35.7%	31.7%
Total liabilities	242,103	244,914	31.2%	31.2%
Quasi-capital items	0	0	0.0%	0.0%
Minority shareholders' rights	562	464
Equity	14,391	13,117	32.7%	32.5%
Summary consolidated profit and loss statement	nine months to		Banking group's share of the banking system		three months to
			nine months to
	30.09.2003	30.09.2002	30.09.2003	30.09.2002	30.09.2003
Net interest profit before loan-loss provision	5,009.0	4,519.0	34.5%	35.5%	1,608.0
Loan-loss provision	1,728.0	1,259.0	38.3%	27.8%	573.0
Operating and other income	2,799.0	2,626.0	34.1%	34.1%	974.0
Of which: Operating income	2,276.0	2,155.0	34.0%	33.1%	783.0
Operating and other expenses	4,283.0	4,174.0	31.6%	31.8%	1,481.0
Of which: Salaries and related expenses	2,501.0	2,436.0	30.3%	30.4%	851.0
Ordinary profit before-tax provision	1,797.0	1,712.0	37.8%	54.0%	528.0
Provision for taxes on ordinary profit	806.0	844.0	35.2%	51.3%	183.0
Ordinary after-tax profit	991.0	868.0	40.1%	53.3%	345.0
Bank's share in the profit of subsidiaries	53.0	-48.0			16.0
Share of minority shareholders in profit of consolidated companies	-35.0	17.0			-12.0
Extraordinary after-tax profit	7.0	-94.0			22.0
Net profit	1,016.0	743.0	42.0%	52.1%	371.0
Profit after the effect of the difference between the known index and the "in lieu" index	1,010.0	786.0	43.0%	51.4%
Balances and rates of return on financial items by indexation base on 30.09.2003 consolidated	Unindexed NIS	CPI-indexed  NIS	Foreign Currency (1)	Total financial items
Balance of financial assets on balance-sheet date	74,384	67,667	109,907	251,958
Balance of financial liabilities on balance-sheet date	84,316	56,564	100,967	241,847
Excess of financial assets over financial liabilities	-9,932	11,103	8,940	10,111
Total indexation balance (incl.forwards and options in term of basis assets)	-2,180	11,073	1,218	10,111
Rate of income on assets (percent) 2	12.36	6.29	3.89	6.60
Rate of expenditure on liabilities (percent) 2	-9.37	-5.37	-3.06	-5.16
Interest-rate differential	2.99	0.92	0.83	1.44
Problem borrowers	30.09.2003	31.12.2002
Total credit risk dew to problem borrowers	22,932	22,076
Total credit  to problem borrowers	20,848	19,656
Main financial ratios - consolidated (percent)	30.09.2003	31.12.2002
Equity/balance-sheet ratio	5.60	5.07
Finanancial capital/equity ratio	70.26	68.05
Equity/risk-weighted-assets ratio	10.54	9.89
Return on equity (net profit/gross weighted-capital ratio) 3	10.50	2.70
Operating income/operating expenses ratio 4	65.35	60.28
1 Including foreign-currency indexed NIS.
2 Nine-month rate of income (expenses), on annual basis including hedging, embedded and ALM derivatives.
3 Annual basis.
4 For nine months. Comparative data are annual.
					6