Information and Reporing Unit, Banking Supervision Division					02/12/2003
Statement for the third quarter - bank
Discount Mortgage Bank, 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	125	100	42.8%	32.3%
Securities	1	1	50.0%	0.4%
Credit to the public	9,363	9,351	8.5%	8.6%
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	12	13	4.7%	5.1%
Other assets	36	22	6.4%	5.8%
Total assets	9,537	9,487	8.6%	8.6%
Deposits of the public	2,350	2,570	5.4%	5.8%
Deposits of banks	6,068	5,811	11.0%	10.8%
Deposits of the government	47	50	2.9%	3.0%
Bonds and subordinated notes	210	222	5.8%	6.0%
Other liabilities	45	40	9.2%	8.4%
Total liabilities	8,720	8,693	8.4%	8.4%
Quasi-capital items	0	0	0.0%	0.0%
Equity	817	794	12.0%	12.4%
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	94.0	80.0	9.2%	9.3%	32.0
Loan-loss provision	49.0	29.0	14.9%	14.5%	19.0
Operating and other income	44.0	51.0	7.4%	8.0%	15.0
Of which: Operating income	44.0	51.0	7.6%	8.2%	15.0
Operating and other expenses	47.0	46.0	8.7%	8.9%	15.0
Of which: Salaries and related expenses	27.0	26.0	9.1%	9.4%	9.0
Ordinary profit before-tax provision	42.0	56.0	5.7%	7.2%	13.0
Provision for taxes on ordinary profit	19.0	25.0	5.6%	6.9%	7.0
Ordinary after-tax profit	23.0	31.0	5.7%	7.4%	6.0
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	23.0	31.0	5.7%	7.4%	6.0
Profit after the effect of the difference between the known index and the "in lieu" index	22.0	35.0	5.7%	7.9%
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	613	7,753	1,159	9,525
Balance of financial liabilities on balance-sheet date	426	7,144	1,142	8,712
Excess of financial assets over financial liabilities	187	609	17	813
Total indexation balance (incl.forwards and options in term of basis assets)	178	609	26	813
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	7,775	363.0		6.27
Total financial liabilities	7,177	-300.0		-5.61
Interest-rate differential				0.66
Problem borrowers	30.09.2003	31.12.2002
Total credit risk dew to problem borrowers	1,070	963
Total credit  to problem borrowers	943	847
Main financial ratios - consolidated (percent)	30.09.2003	31.12.2002
Equity/balance-sheet ratio	8.57	8.37
Finanancial capital/equity ratio	99.51	99.37
Equity/risk-weighted-assets ratio	11.60	11.90
Return on equity (net profit/gross weighted-capital ratio) (4)	3.90	5.60
Operating income/operating expenses ratio (5)	93.62	110.00
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.					28