Information and Reporing Unit, Banking Supervision Division					09/06/2004
Statement for the first quarter - consolidated
Mercantile Discount Bank 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
			31.03.2004	31.12.2003
Cash and deposits in banks	1,545	1,313	1.6%	1.3%
Securities	1,051	1,052	0.8%	0.9%
Credit to the public	12,384	12,293	2.2%	2.2%
Credit to the government	1	2	0.0%	0.0%
Investments in companies included on an equity basis	3	3	0.1%	0.1%
Buildings and equipment	291	288	2.7%	2.7%
Other assets	112	116	0.5%	0.5%
Total assets	15,387	15,067	1.8%	1.8%
Deposits of the public	13,390	13,265	2.0%	1.9%
Deposits of banks	286	151	1.1%	0.6%
Deposits of the government	50	51	0.3%	0.3%
Bonds and subordinated notes	547	532	1.4%	1.4%
Other liabilities	197	171	0.7%	0.6%
Total liabilities	14,470	14,169	1.8%	1.8%
Quasi-capital items	0	0	0.0%	0.0%
Minority shareholders' rights	0	0
Equity	917	898	2.0%	2.0%
Summary consolidated profit and loss statement	Three months to		Bank's share of the banking system
			Three months to
	31.03.2004	31.03.2003	31.03.2004	31.03.2003
Net interest profit before loan-loss provision	126.4	120.3	2.5%	2.4%
Loan-loss provision	20.9	21.7	1.7%	1.6%
Operating and other income	70.1	66.1	2.3%	2.6%
Of which: Operating income	61.6	55.8	2.5%	2.6%
Operating and other expenses	129.4	125.6	2.6%	2.7%
Of which: Salaries and related expenses	77.9	76.8	2.5%	2.6%
Ordinary before-tax provision	46.2	34.1	2.5%	2.5%
Provision for taxes on ordinary profit	22.4	19.4	2.8%	2.6%
Ordinary after-tax profit	23.8	14.7	2.2%	2.4%
Bank's share in the profit of subsidiaries	0.0	-0.1
Share of minority shareholders in profit of consolidated companies	0.0	0.0
Extraordinary after-tax profit	-0.6	-0.3
Net profit	23.2	14.3	1.8%	2.5%
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	8,104	3,707	3,153	14,964
Balance of financial liabilities on balance-sheet date	8,472	3,290	2,699	14,460
Excess of financial assets over financial liabilities	-368	417	455	504
Total indexation balance (incl.forwards and options in term of basis assets) 2	31	417	56	504
Rate of income on assets (percent) 3	8.07	5.18	13.93	9.14
Rate of expenditure on liabilities (percent) 3	-3.89	-3.91	-12.33	-6.39
Interest-rate differential	4.17	1.27	1.60	2.75
Problem borrowers	31.03.2004	31.12.2003
Total credit risk dew to problem borrowers	1,035	1,116
Total credit  to problem borrowers	990	1,078
Main financial ratios - consolidated (percent)	31.03.2004	31.12.2003
Equity/balance-sheet ratio	5.96	5.96
Finanancial capital/equity ratio	54.93	55.08
Equity/risk-weighted-assets ratio	10.90	10.80
Return on equity (net profit/gross weighted-capital ratio) 4	10.70	11.00
Operating income/operating expenses ratio 5	54.17	54.64
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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