Information and Reporing Unit, Banking Supervision Division					09/06/2004
Statement for the first quarter - consolidated
"Tefahot" Israel Mortgage 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	104	108	0.1%	0.1%
Securities	1	1	0.0%	0.0%
Credit to the public	31,921	31,792	5.6%	5.6%
Credit to the government	2	2	0.0%	0.0%
Investments in companies included on an equity basis	0	0	0.0%	0.0%
Buildings and equipment	106	104	1.0%	1.0%
Other assets	158	218	0.7%	0.9%
Total assets	32,292	32,225	3.9%	3.9%
Deposits of the public	20,148	20,380	3.0%	3.0%
Deposits of banks	8,204	7,806	31.9%	32.1%
Deposits of the government	420	427	2.5%	2.5%
Bonds and subordinated notes	1,275	1,300	3.2%	3.3%
Other liabilities	189	302	0.7%	1.1%
Total liabilities	30,236	30,215	3.8%	3.8%
Quasi-capital items	0	0	0.0%	0.0%
Minority shareholders' rights	0	0
Equity	2,056	2,010	4.6%	4.5%
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	102.0	123.0	2.0%	2.4%
Loan-loss provision	29.0	39.0	2.4%	2.9%
Operating and other income	72.0	79.0	2.4%	3.1%
Of which: Operating income	69.0	76.0	2.8%	3.5%
Operating and other expenses	57.0	57.0	1.1%	1.2%
Of which: Salaries and related expenses	34.0	34.0	1.1%	1.2%
Ordinary before-tax provision	88.0	89.0	4.7%	6.5%
Provision for taxes on ordinary profit	42.0	44.0	5.3%	5.9%
Ordinary after-tax profit	46.0	45.0	4.3%	7.4%
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	46.0	45.0	3.6%	7.9%
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	2,842	25,695	3,642	32,179
Balance of financial liabilities on balance-sheet date	4,296	24,600	1,295	30,191
Excess of financial assets over financial liabilities	-1,454	1,095	2,347	1,988
Total indexation balance (incl.forwards and options in term of basis assets) 2	245	1,731	12	1,988
Rate of income on assets (percent) 3	6.05	5.14	17.92	6.47
Rate of expenditure on liabilities (percent) 3	-4.51	-4.58	-16.18	-5.74
Interest-rate differential	1.54	0.56	1.74	0.72
Problem borrowers	31.03.2004	31.12.2003
Total credit risk dew to problem borrowers	1,968	1,864
Total credit  to problem borrowers	1,854	1,803
Main financial ratios - consolidated (percent)	31.03.2004	31.12.2003
Equity/balance-sheet ratio	6.37	6.24
Finanancial capital/equity ratio	96.69	96.22
Equity/risk-weighted-assets ratio	9.95	10.00
Return on equity (net profit/gross weighted-capital ratio) 4	9.50	10.00
Operating income/operating expenses ratio 5	126.32	131.49
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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