Information and Reporing Unit, Banking Supervision Division					09/06/2004
Statement for the first quarter - bank
Arab Israel Bank Ltd.  , 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	1,260	1,230	1.3%	1.2%
Securities	243	235	0.2%	0.2%
Credit to the public	1,528	1,497	0.3%	0.3%
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	29	28	0.3%	0.3%
Other assets	36	33	0.2%	0.1%
Total assets	3,095	3,023	0.4%	0.4%
Deposits of the public	2,469	2,527	0.4%	0.4%
Deposits of banks	251	133	1.0%	0.5%
Deposits of the government	0	0	0.0%	0.0%
Bonds and subordinated notes	0	0	0.0%	0.0%
Other liabilities	60	61	0.2%	0.2%
Total liabilities	2,779	2,720	0.4%	0.3%
Quasi-capital items	0	0	0.0%	0.0%
Minority shareholders' rights	0	0
Equity	317	302	0.7%	0.7%
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	40.1	38.1	0.8%	0.8%
Loan-loss provision	1.2	2.9	0.1%	0.2%
Operating and other income	20.9	21.4	0.7%	0.8%
Of which: Operating income	20.1	20.8	0.8%	1.0%
Operating and other expenses	30.6	26.2	0.6%	0.6%
Of which: Salaries and related expenses	20.1	17.9	0.6%	0.6%
Ordinary before-tax provision	29.2	27.6	1.6%	2.0%
Provision for taxes on ordinary profit	13.6	13.9	1.7%	1.9%
Ordinary after-tax profit	15.6	13.7	1.4%	2.2%
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	15.6	13.7	1.2%	2.4%
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	2,280	728	58	3,066
Balance of financial liabilities on balance-sheet date	2,224	515	41	2,779
Excess of financial assets over financial liabilities	57	213	17	287
Total indexation balance (incl.forwards and options in term of basis assets) 2	57	213	17	287
Rate of income on assets (percent) 3	7.17	3.98	12.71	6.77
Rate of expenditure on liabilities (percent) 3	-3.99	-3.54	-10.95	-4.00
Interest-rate differential	3.18	0.44	1.76	2.78
Problem borrowers	31.03.2004	31.12.2003
Total credit risk dew to problem borrowers	141	137
Total credit  to problem borrowers	133	129
Main financial ratios - consolidated (percent)	31.03.2004	31.12.2003
Equity/balance-sheet ratio	10.23	10.00
Finanancial capital/equity ratio	90.78	90.64
Equity/risk-weighted-assets ratio	23.70	23.11
Return on equity (net profit/gross weighted-capital ratio) 4	22.30	22.20
Operating income/operating expenses ratio 5	68.30	77.82
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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