Information and Reporing Unit, Banking Supervision Division					02/12/2003
Statement for the third quarter - consolidated
Mercantile Discount Bank 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	1,561	1,202	1.6%	1.3%
Securities	998	1,134	0.9%	1.0%
Credit to the public	12,091	12,222	2.1%	2.1%
Credit to the government	2	3	0.0%	0.0%
Investments in companies included on an equity basis	3	4	0.1%	0.1%
Buildings and equipment	280	254	2.7%	2.4%
Other assets	123	125	0.5%	0.6%
Total assets	15,058	14,944	1.8%	1.8%
Deposits of the public	13,198	13,117	2.0%	1.9%
Deposits of banks	179	347	0.8%	1.6%
Deposits of the government	47	49	0.3%	0.3%
Bonds and subordinated notes	545	470	1.4%	1.3%
Other liabilities	215	177	0.8%	0.7%
Total liabilities	14,185	14,160	1.8%	1.8%
Quasi-capital items	0	0	0.0%	0.0%
Minority shareholders' rights	0	0
Equity	873	784	2.0%	1.9%
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	360.5	337.6	2.5%	2.7%	126.8
Loan-loss provision	63.2	69.0	1.4%	1.5%	27.0
Operating and other income	202.9	182.7	2.5%	2.4%	70.2
Of which: Operating income	172.2	169.6	2.6%	2.6%	61.1
Operating and other expenses	366.4	361.2	2.7%	2.8%	120.5
Of which: Salaries and related expenses	219.0	214.9	2.7%	2.7%	71.6
Ordinary profit before-tax provision	133.8	90.1	2.8%	2.8%	49.5
Provision for taxes on ordinary profit	65.6	49.1	2.9%	3.0%	25.2
Ordinary after-tax profit	68.2	41.0	2.8%	2.5%	24.3
Bank's share in the profit of subsidiaries	-0.2	-0.8			0.0
Share of minority shareholders in profit of consolidated companies	0.0	0.0			0.0
Extraordinary after-tax profit	-0.4	2.0			-0.1
Net profit	67.6	42.2	2.8%	3.0%	24.2
Profit after the effect of the difference between the known index and the "in lieu" index	66.3	44.8	2.8%	2.9%
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	7,944	3,741	2,976	14,660
Balance of financial liabilities on balance-sheet date	7,942	3,394	2,841	14,176
Excess of financial assets over financial liabilities	2	347	135	484
Total indexation balance (incl.forwards and options in term of basis assets)	109	347	28	484
Rate of income on assets (percent) 2	13.11	6.22	-1.12	7.23
Rate of expenditure on liabilities (percent) 2	-8.93	-5.06	2.05	-4.73
Interest-rate differential	4.18	1.16	0.93	2.50
Problem borrowers	30.09.2003	31.12.2002
Total credit risk dew to problem borrowers	1,001	1,068
Total credit  to problem borrowers	967	1,016
Main financial ratios - consolidated (percent)	30.09.2003	31.12.2002
Equity/balance-sheet ratio	5.80	5.25
Finanancial capital/equity ratio	55.42	65.39
Equity/risk-weighted-assets ratio	11.00	10.00
Return on equity (net profit/gross weighted-capital ratio) 3	11.70	8.30
Operating income/operating expenses ratio 4	55.38	51.03
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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