Information and Reporing Unit, Banking Supervision Division					02/12/2003
Statement for the third quarter - consolidated
"Tefahot" Israel Mortgage 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	98	85	33.6%	27.4%
Securities	1	16	50.0%	5.7%
Credit to the public	31,995	31,743	29.0%	29.2%
Credit to the government	3	4	100.0%	100.0%
Investments in companies included on an equity basis	0	0	0.0%	0.0%
Buildings and equipment	95	90	37.4%	35.2%
Other assets	194	92	34.2%	24.1%
Total assets	32,386	32,030	29.1%	29.1%
Deposits of the public	20,638	20,171	47.1%	45.8%
Deposits of banks	7,712	7,886	14.0%	14.7%
Deposits of the government	434	426	27.2%	25.9%
Bonds and subordinated notes	1,353	1,431	37.2%	38.7%
Other liabilities	145	171	29.6%	35.8%
Total liabilities	30,282	30,085	29.0%	29.1%
Quasi-capital items	0	0	0.0%	0.0%
Minority shareholders' rights	0	0	0.0%	0.0%
Equity	2,104	1,945	30.9%	30.3%
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	330.0	294.0	32.3%	34.1%	100.0
Loan-loss provision	105.0	77.0	32.0%	38.5%	28.0
Operating and other income	231.0	237.0	39.0%	37.2%	77.0
Of which: Operating income	221.0	224.0	38.4%	36.1%	73.0
Operating and other expenses	168.0	177.0	31.1%	34.1%	58.0
Of which: Salaries and related expenses	99.0	106.0	33.4%	38.4%	33.0
Ordinary prpfit before-tax provision	288.0	277.0	38.7%	35.5%	91.0
Provision for taxes on ordinary profit	130.0	129.0	38.3%	35.8%	42.0
Ordinary after-tax profit	158.0	148.0	39.1%	35.3%	49.0
Bank's share in the profit of subsidiaries	0.0	0.0			0.0
Share of minority shareholders in profit of consolidated companies	0.0	0.0			0.0
Extraordinary after-tax profit	1.0	-1.0			0.0
Net profit	159.0	147.0	39.4%	35.3%	49.0
Profit after the effect of the difference between the known index and the "in lieu" index	155.0	157.0	40.0%	35.2%
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	2,811	26,497	2,978	32,286
Balance of financial liabilities on balance-sheet date	3,764	25,249	1,236	30,249
Excess of financial assets over financial liabilities	-953	1,248	1,742	2,037
Total indexation balance (incl.forwards and options in term of basis assets)	163	1,855	19	2,037
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	27,463	1,296.0		6.34
Total financial liabilities	25,534	-1,095.0		-5.76
Interest-rate differential				0.58
Problem borrowers	30.09.2003	31.12.2002
Total credit risk dew to problem borrowers	2082	1777
Total credit  to problem borrowers	1874	1565
Main financial ratios - consolidated (percent)	30.09.2003	31.12.2002
Equity/balance-sheet ratio	6.50	6.07
Finanancial capital/equity ratio	96.82	96.71
Equity/risk-weighted-assets ratio	10.44	10.50
Return on equity (net profit/gross weighted-capital ratio) (4)	11.10	12.00
Operating income/operating expenses ratio (5)	137.50	131.51
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.					24