Information and Reporing Unit, Banking Supervision Division					02/12/2003
Statement for the third quarter - bank
Leumi Mortgage Bank Ltd., Main data, NIS million
Taken from the quarterly report to 30.09.2003. Adjusted to the CPI for  09.2003.
Summary  balance sheet	30.09.2003	31.12.2002	Bank's share of the banking system
			30.09.2003	31.12.2002
Cash and deposits in banks	20	25	6.8%	8.1%
Securities	0	265	0.0%	94.0%
Credit to the public	31,174	30,500	28.3%	28.1%
Credit to the government	0	0	0.0%	0.0%
Investments in companies included on an equity basis	0	0	0.0%	0.0%
Buildings and equipment	37	38	14.6%	14.9%
Other assets	256	213	45.2%	55.9%
Total assets	31,487	31,041	28.3%	28.2%
Deposits of the public	7,585	7,328	17.3%	16.6%
Deposits of banks	20,306	20,348	37.0%	37.9%
Deposits of the government	595	569	37.3%	34.6%
Bonds and subordinated notes	1,328	1,224	36.5%	33.1%
Other liabilities	97	88	19.8%	18.4%
Total liabilities	29,911	29,557	28.6%	28.6%
Quasi-capital items	0	0	0.0%	0.0%
Equity	1,576	1,484	23.1%	23.1%
Summary  profit and loss statement	nine months to		Bank'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	270.0	170.0	26.5%	19.7%	90.0
Loan-loss provision	89.0	36.0	27.1%	18.0%	36.0
Operating and other income	108.0	129.0	18.2%	20.3%	29.0
Of which: Operating income	105.0	129.0	18.2%	20.8%	28.0
Operating and other expenses	119.0	118.0	22.0%	22.7%	37.0
Of which: Salaries and related expenses	60.0	57.0	20.3%	20.7%	18.0
Ordinary profit before-tax provision	170.0	145.0	22.9%	18.6%	46.0
Provision for taxes on ordinary profit	78.0	70.0	23.0%	19.4%	23.0
Ordinary after-tax profit	92.0	75.0	22.8%	17.9%	23.0
Bank's share in the profit of subsidiaries	0.0	0.0			0.0
Share of minority shareholders in profit of consolidated companies
Extraordinary after-tax profit	0.0	0.0			0.0
Net profit	92.0	75.0	22.8%	18.0%	23.0
Profit after the effect of the difference between the known index and the "in lieu" index	89.0	81.0	22.9%	18.2%
Balances and rates of return on financial items by indexation base on 30.09.2003	Unindexed NIS	CPI-indexed  NIS	Foreign Currency (1)	Total financial items
Balance of financial assets on balance-sheet date	1,073	27,386	2,979	31,438
Balance of financial liabilities on balance-sheet date	967	25,920	2,982	29,869
Excess of financial assets over financial liabilities	106	1,466	-3	1,569
Total indexation balance (incl.forwards and options in term of basis assets)	106	1,466	-3	1,569
Additional information on the CPI-indexed sector for the nine months to 30.09.2003	Average balance for nine months 2	Net nine monthly interest income (expenses)  2		Rate of income  (expenditure) (3)
Total financial assets	27,164	1,258.0		6.22
Total financial liabilities	25,813	-1,072.0		-5.58
Interest-rate differential				0.64
Problem borrowers	30.09.2003	31.12.2002
Total credit risk dew to problem borrowers	1,242	955
Total credit  to problem borrowers	1,226	955
Main financial ratios - consolidated (percent)	30.09.2003	31.12.2002
Equity/balance-sheet ratio	5.01	4.78
Finanancial capital/equity ratio	99.56	99.33
Equity/risk-weighted-assets ratio	9.43	9.30
Return on equity (net profit/gross weighted-capital ratio) (4)	8.30	8.70
Operating income/operating expenses ratio (5)	90.76	106.45
1 Including foreign-currency indexed NIS.
2 Including hedging, embedded and ALM derivatives.
3 Nine-month rate of income (expenses), on annual basis including hedging, embedded and ALM derivatives.
4 Annual basis.
5 For nine months. Comparative data are annual.					27