Information and Reporing Unit, Banking Supervision Division					02/12/2003
Statement for the third quarter - consolidated
Union Bank of Israel Ltd. 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	1,551	1,775	1.6%	1.9%
Securities	2,540	3,221	2.2%	2.9%
Credit to the public	14,381	15,047	2.5%	2.6%
Credit to the government	58	61	0.9%	0.8%
Investments in companies included on an equity basis	29	31	0.8%	0.9%
Buildings and equipment	337	344	3.2%	3.3%
Other assets	1,027	1,254	4.5%	6.0%
Total assets	19,923	21,733	2.4%	2.6%
Deposits of the public	16,774	18,416	2.5%	2.7%
Deposits of banks	127	321	0.6%	1.4%
Deposits of the government	15	19	0.1%	0.1%
Bonds and subordinated notes	713	663	1.8%	1.8%
Other liabilities	1,173	1,268	4.4%	5.2%
Total liabilities	18,802	20,687	2.4%	2.6%
Quasi-capital items	0	0	0.0%	0.0%
Minority shareholders' rights	0	0
Equity	1,121	1,046	2.5%	2.6%
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	325.0	337.0	2.2%	2.6%	109.0
Loan-loss provision	123.0	155.0	2.7%	3.4%	42.0
Operating and other income	161.0	177.0	2.0%	2.3%	52.0
Of which: Operating income	149.0	164.0	2.2%	2.5%	51.0
Operating and other expenses	358.0	339.0	2.6%	2.6%	126.0
Of which: Salaries and related expenses	210.0	200.0	2.5%	2.5%	75.0
Ordinary profit before-tax provision	5.0	20.0	0.1%	0.6%	-7.0
Provision for taxes on ordinary profit	9.0	17.0	0.4%	1.0%	1.0
Ordinary after-tax profit	-4.0	3.0	not calculated	0.2%	-8.0
Bank's share in the profit of subsidiaries	0.0	-1.0			0.0
Share of minority shareholders in profit of consolidated companies	0.0	0.0			0.0
Extraordinary after-tax profit	-2.0	-6.0			-2.0
Net profit	-6.0	-4.0	not calculated	not calculated	-10.0
Profit after the effect of the difference between the known index and the "in lieu" index	-9.0	1.0	not calculated	0.1%
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	8,029	3,958	7,342	19,329
Balance of financial liabilities on balance-sheet date	8,893	3,183	6,697	18,773
Excess of financial assets over financial liabilities	-864	775	645	556
Total indexation balance (incl.forwards and options in term of basis assets)	-257	755	58	556
Rate of income on assets (percent) 2	9.08	5.92	1.62	4.47
Rate of expenditure on liabilities (percent) 2	-7.49	-5.68	-1.02	-3.55
Interest-rate differential	1.59	0.24	0.60	0.92
Problem borrowers	30.09.2003	31.12.2002
Total credit risk dew to problem borrowers	1,531	1,565
Total credit  to problem borrowers	1,319	1,420
Main financial ratios - consolidated (percent)	30.09.2003	31.12.2002
Equity/balance-sheet ratio	5.63	4.81
Finanancial capital/equity ratio	49.60	62.72
Equity/risk-weighted-assets ratio	10.30	10.10
Return on equity (net profit/gross weighted-capital ratio) 3	-0.80	-1.60
Operating income/operating expenses ratio 4	44.97	48.61
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.
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