| General |
| 1. |
The format adopted in this publication gives the main data relating to banks’ activities on one page, to enable their profitability, balance-sheets, financial ratios and main development trends for the relevant period to be reviewed at a glance. |
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This is not intended to make a thorough reading of the financial statements unnecessary, as a banking corporation’s activities may include very significant data or events which are not reflected in this format. |
| 2. |
All the data are included explicitly in the financial statements, or can be derived from them via simple calculations, as will be explained below. |
| Presentation of the data |
| 3. |
The data are divided into two chapters: |
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Banks (i.e., the commercial banks); |
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mortgage banks. |
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In each chapter the data are further divided into two groups according to the basis of their published financial statements, i.e.: |
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data on a consolidated basis |
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data on an individual bank basis (unconsolidated). |
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For a banking corporation which published data on a consolidated basis, no data on an individual bank basis (unconsolidated) are shown. Despite this generalization, however, data on an individual bank basis (unconsolidated) for the five large banks are shown, in a shorter format. |
| 4. |
Legend |
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The terms used in this publication have the same meaning as in the Guidelines for Preparing Reports for the Public issued by the Supervisor of Banks. |
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The definitions included herein relate to the items defined in the Guidelines for Preparing Reports for the Public, as well as items related to specific calculations performed for this publication. |
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The items are arranged in the order of their appearance under the headings in this publication. |
| 5. |
Summary balance sheet and profit and loss statement |
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5.1 |
The bank’s share in the whole system |
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a) Two systems are referred to |
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(1) Banks (see section 5.1.1 below) |
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(2) Mortgage banks (see section 5.1.3 below). |
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b) Banks whose data are shown on a consolidated basis are included in the whole system on a consolidated basis, and those whose data are shown on an individual bank basis are included in the whole system on an individual bank basis. |
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5.1.1 |
The banks’ whole system is defined as the sum of all the banks which appear in the tables above, excluding: |
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Arab Israel Bank Ltd |
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Bank Massad Ltd |
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Bank “Yahav” Le-Ovdei Hamdina Ltd |
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Israel Continental Bank Ltd |
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Mercantile Discount Bank Ltd |
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Otsar Hahayal Bank Ltd |
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Poalei Agudat Israel Bank Ltd |
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The data of these banks are not included, because those of the parent bank in each case are shown on a consolidated basis, so that they are included indirectly in the summary. |
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Note: Data on these banks are also shown in this publication, separately; as a result of the system adopted, if the balances of all the banks covered in the publication are added, balances exceeding that of the whole system would be obtained. |
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For the same reason, the following mortgage banks are also included indirectly: |
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Atzmauth Mortgage and Development Bank Ltd |
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Discount Mortgage Bank Ltd |
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Leumi Mortgage Bank Ltd |
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Mishkan-Bank Hapoalim Lemashkantaot Ltd |
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“Tefahot” Israel Mortgage Bank Ltd |
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The First International Mortgage Bank Ltd |
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5.1.2 |
The share of the bank or banking group in the summary profit and Loss Account is calculated only for banks which made a profit, as the "share in profit" of a bank which made a loss has no meaning. In calculating the total profit of the banking system only banks making a profit are included (in the denominator). The figure for total banking system profit on the table above, however, does include banks' losses. |
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5.1.3 |
The mortgage banks’ whole system is defined as the sum of all the mortgage banks which appear in the tables above, excluding the Atzmauth Mortgage and Development Bank Ltd, whose data are included in those of The First International Mortgage Bank Ltd which are shown on a consolidated basis (see note in section 5.1.1 above). |
| 6. |
Profit after the effect of the difference between the known index and the “in lieu” index |
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Profit is calculated as described in Appendices A and B to the provisional directives in the Guidelines for Preparing Reports to the Public, p. 691-2-7 (in Hebrew). |
| 7. |
Data of a banking corporation’s activity by indexation segment |
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Excess of financial assets over financial liabilities The excess (deficiency) of assets over liabilities on the balance-sheet date in each of the indexation segments, excluding the effect of ALM derivatives and financial options. If liabilities exceed assets in a particular indexation segment, the difference is shown as a negative amount. |
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Rate of income/expenses on assets/liabilities including hedging: these data match those in the table of financing income and expenses in Addendum C of the management review. |
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The balances used to calculate the rate of return are the average balances of the monthly opening balances of assets/liabilities for which the financing income/expenses were included. |
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In the unindexed local-currency segment the average balance is calculated on the basis of daily balances. |
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Internal rate of return: the rate of interest which discounts the expected flow of receipts from/payments on the total assets/liabilities in every segment to give the balance appearing in the balance sheet. |
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The flow of receipts/payments includes balances of principal and interest. |
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Average duration: calculated as the total assets/liabilities for an indexation segment by weighting the periods in the balances discounted at the internal rate of return, divided by the balance-sheet balance. |
| 8. |
Additional information and main financial ratios in annual terms |
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8.1 |
Additional data on credit risk and data contingent upon collection |
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Total balance-sheet credit risk: credit minus the special loan-loss provision plus bonds. |
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Total off-balance-sheet credit risk: guarantees and other commitments on the customers’ account and futures as calculated for purposes of the limitation on the indebtedness of a borrower and a group of borrowers (Proper Conduct of Banking Business, regulation no. 313). |
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Total credit risk: the sum of the balance-sheet and off-balance-sheet credit risks. |
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These data are reported in the management review. |
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Since 1997 the classification by industry is according the industry in which the borrower’s main activity is carried out. |
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Credit exposure through derivative financial instruments: the current credit exposure after offsetting agreements—the total exposure from guaranteed intermediation transactions, hedging transactions, and other transactions. |
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Data contingent upon collection: Since 1 January 1997 credit from earmarked deposits and that from earmarked deposits under the depositor’s responsibility are not included in the definitions of credit and deposits, respectively, but are off-balance-sheet data. |
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8.2 |
Branching and personnel |
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Number of employee posts: all employees, calculated on a full-time basis, whose pay is recorded under salaries and related expenses. Includes overtime when it is paid according to a specific report. |
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Branches: The number relates to the number of the bank’s branches. For the mortgage banks, service counters located in (commercial) banks are not included. |
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Overseas branches: including agencies; excluding representative offices. |
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8.3 |
Main financial ratios in annual terms |
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Financial capital: Surplus of financial assets over financial liabilities. |
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Problem debt: defined as “indebtedness under special supervision, an overdue debt, a rescheduled debt or one which it has been decided to reschedule but the rescheduling has not yet been implemented, a non-performing debt, or a debt which is considered doubtful, either in part or in total.” |
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Credit covered by recognized collateral for the purposes of the limitation on a borrower is not deducted from problem debts. |
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The data for the mortgage banks include loans for which a special loan-loss provision was made according to the depth of the arrears. |
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Gross weighted equity: equity at the beginning of the year, plus stock issues weighted according to the time in the year they were issued. |
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8.4 |
Summary financial statements classified according to main activity segment: the data in this table are shown after making all the adjustments needed to consolidate the financial statements. |
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8.5 |
Figures |
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Net interest income: interest income minus financing costs in the same segment. |
