Information and Reporing Unit, Banking Supervision Division					02/12/2003
Statement for the third quarter - consolidated
Bank of Jerusalem 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	609	375	0.6%	0.4%
Securities	226	225	0.2%	0.2%
Credit to the public	5,677	5,615	1.0%	1.0%
Credit to the government	0	0	0.0%	0.0%
Investments in companies included on an equity basis	6	5	0.2%	0.1%
Buildings and equipment	54	58	0.5%	0.6%
Other assets	35	29	0.2%	0.1%
Total assets	6,607	6,307	0.8%	0.8%
Deposits of the public	5,595	5,197	0.8%	0.8%
Deposits of banks	307	420	1.4%	1.9%
Deposits of the government	54	64	0.3%	0.3%
Bonds and subordinated notes	252	244	0.6%	0.7%
Other liabilities	35	38	0.1%	0.2%
Total liabilities	6,243	5,963	0.8%	0.8%
Quasi-capital items	0	0	0.0%	0.0%
Minority shareholders' rights	0	0
Equity	364	343	0.8%	0.9%
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	81.2	66.7	0.6%	0.5%	25.0
Loan-loss provision	15.4	8.3	0.3%	0.2%	4.2
Operating and other income	70.0	68.1	0.9%	0.9%	24.3
Of which: Operating income	68.8	69.1	1.0%	1.1%	23.9
Operating and other expenses	102.5	94.0	0.8%	0.7%	35.4
Of which: Salaries and related expenses	62.9	56.6	0.8%	0.7%	21.6
Ordinary profit before-tax provision	33.3	32.5	0.7%	1.0%	9.7
Provision for taxes on ordinary profit	12.6	14.9	0.5%	0.9%	4.2
Ordinary after-tax profit	20.7	17.6	0.8%	1.1%	5.5
Bank's share in the profit of subsidiaries	1.0	2.2			0.5
Share of minority shareholders in profit of consolidated companies	0.0	0.0			0.0
Extraordinary after-tax profit	-2.2	0.0			0.0
Net profit	19.5	19.8	0.8%	1.4%	6.0
Profit after the effect of the difference between the known index and the "in lieu" index	19.0	20.7	0.8%	1.4%
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	1,392	3,871	1,242	6,505
Balance of financial liabilities on balance-sheet date	1,447	3,765	1,028	6,239
Excess of financial assets over financial liabilities	-55	106	215	266
Total indexation balance (incl.forwards and options in term of basis assets)	-21	203	84	266
Rate of income on assets (percent) 2	11.32	6.23	-1.53	5.95
Rate of expenditure on liabilities (percent) 2	-9.75	-5.60	3.92	-4.86
Interest-rate differential	1.57	0.62	2.39	1.09
Problem borrowers	30.09.2003	31.12.2002
Total credit risk dew to problem borrowers	305	282
Total credit  to problem borrowers	283	249
Main financial ratios - consolidated (percent)	30.09.2003	31.12.2002
Equity/balance-sheet ratio	5.50	5.44
Finanancial capital/equity ratio	73.13	70.56
Equity/risk-weighted-assets ratio	11.10	11.40
Return on equity (net profit/gross weighted-capital ratio) 3	9.30	9.00
Operating income/operating expenses ratio 4	68.29	70.89
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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