
Information and Reporing Unit, Banking Supervision Division					09/06/2004
Statement for the first quarter - consolidated
Union Bank of Israel Ltd. and its subsidiaries , Main data, NIS million
Taken from the quarterly report to 31.03.2004, reported amounts at 31.03.2004 (2003 in adjusted amounts).

Summary consolidated balance sheet	31.03.2004	31.12.2003	Bank's share of the banking system
Summary consolidated balance sheet	31.03.2004	31.12.2003	31.03.2004	31.12.2003
Cash and deposits in banks	1,124	1,927	1.2%	1.9%
Securities	2,376	2,208	1.9%	1.8%
Credit to the public	15,384	14,900	2.7%	2.6%
Credit to the government	59	57	1.1%	1.0%
Investments in companies included on an equity basis	27	27	0.7%	0.8%
Buildings and equipment	337	336	3.2%	3.1%
Other assets	750	880	3.5%	3.6%
Total assets	20,057	20,335	2.4%	2.4%
Deposits of the public	16,984	17,312	2.5%	2.5%
Deposits of banks	271	155	1.1%	0.6%
Deposits of the government	13	15	0.1%	0.1%
Bonds and subordinated notes	798	787	2.0%	2.0%
Other liabilities	897	975	3.2%	3.4%
Total liabilities	18,963	19,244	2.4%	2.4%
Quasi-capital items	0	0	0.0%	0.0%
Minority shareholders' rights	0	0
Equity	1,094	1,091	2.4%	2.5%

Summary consolidated profit and loss statement	Three months to		Bank's share of the banking system
	Three months to		Three months to
	31.03.2004	31.03.2003	31.03.2004	31.03.2003
Net interest profit before loan-loss provision	112.0	112.0	2.2%	2.2%
Loan-loss provision	47.0	38.0	3.9%	2.8%
Operating and other income	63.0	54.0	2.1%	2.1%
Of which: Operating income	57.0	50.0	2.3%	2.3%
Operating and other expenses	103.0	114.0	2.1%	2.4%
Of which: Salaries and related expenses	51.0	67.0	1.6%	2.3%
Ordinary before-tax provision	25.0	10.0	1.3%	0.7%
Provision for taxes on ordinary profit	16.0	9.0	2.0%	1.2%
Ordinary after-tax profit	9.0	1.0	0.8%	0.2%
Bank's share in the profit of subsidiaries	0.0	0.0
Share of minority shareholders in profit of consolidated companies	0.0	0.0
Extraordinary after-tax profit	0.0	0.0
Net profit	9.0	1.0	0.7%	0.2%


Balances and rates of return on financial items by indexation base on 31.03.2004	Unindexed NIS	CPI-indexed NIS	Foreign Currency (1)	Total financial items
Balance of financial assets on balance-sheet date	8,596	3,867	6,972	19,435
Balance of financial liabilities on balance-sheet date	8,938	3,074	6,846	18,858
Excess of financial assets over financial liabilities	-342	793	126	577
Total indexation balance (incl.forwards and options in term of basis assets) 2	-140	613	104	577
Rate of income on assets (percent) 3	4.60	4.51	6.10	5.42
Rate of expenditure on liabilities (percent) 3	-3.41	-4.49	-5.16	-4.49
Interest-rate differential	1.19	0.01	0.94	0.93

Problem borrowers	31.03.2004	31.12.2003
Total credit risk dew to problem borrowers	1,535	1,585
Total credit to problem borrowers	1,298	1,325

Main financial ratios - consolidated (percent)	31.03.2004	31.12.2003
Equity/balance-sheet ratio	5.45	5.37
Finanancial capital/equity ratio	52.74	56.19
Equity/risk-weighted-assets ratio	9.90	10.60
Return on equity (net profit/gross weighted-capital ratio) 4	3.30	-4.80
Operating income/operating expenses ratio 5	61.17	44.25

^{1 Including foreign-currency indexed NIS.}
^{2 Forwards transactions.}
^{3 Three-month rate of income (expenses), on annual basis including hedging, embedded and ALM derivatives.}
^{4 Annual basis.}
^{5 For three months. Comparative data are annual.}
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