
Information and Reporing Unit, Banking Supervision Division					09/06/2004
Statement for the first quarter - bank
Discount Mortgage Bank , 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	100	121	0.1%	0.1%
Securities	1	1	0.0%	0.0%
Credit to the public	9,449	9,377	1.7%	1.6%
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	14	13	0.1%	0.1%
Other assets	23	22	0.1%	0.1%
Total assets	9,587	9,534	1.2%	1.1%
Deposits of the public	2,226	2,279	0.3%	0.3%
Deposits of banks	6,289	6,182	24.4%	25.5%
Deposits of the government	47	49	0.3%	0.3%
Bonds and subordinated notes	156	160	0.4%	0.4%
Other liabilities	49	46	0.2%	0.2%
Total liabilities	8,767	8,716	1.1%	1.1%
Quasi-capital items	0	0	0.0%	0.0%
Minority shareholders' rights	0	0
Equity	820	818	1.8%	1.9%

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	30.0	33.0	0.6%	0.7%
Loan-loss provision	22.0	11.0	1.8%	0.8%
Operating and other income	14.0	15.0	0.5%	0.6%
Of which: Operating income	0.0	0.0	0.0%	0.0%
Operating and other expenses	17.0	16.0	0.3%	0.3%
Of which: Salaries and related expenses	10.0	9.0	0.3%	0.3%
Ordinary before-tax provision	5.0	15.0	0.3%	1.1%
Provision for taxes on ordinary profit	3.0	9.0	0.4%	1.2%
Ordinary after-tax profit	2.0	6.0	0.2%	1.0%
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	2.0	6.0	0.2%	1.1%


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	562	7,683	1,328	9,573
Balance of financial liabilities on balance-sheet date	456	6,994	1,305	8,755
Excess of financial assets over financial liabilities	106	689	23	818
Total indexation balance (incl.forwards and options in term of basis assets) 2	43	689	86	818
Rate of income on assets (percent) 3	6.34	4.91	17.93	6.66
Rate of expenditure on liabilities (percent) 3	-4.55	-4.49	-17.26	-6.24
Interest-rate differential	1.79	0.42	0.67	0.42

Problem borrowers	31.03.2004	31.12.2003
Total credit risk dew to problem borrowers	1,081	1,092
Total credit to problem borrowers	952	958

Main financial ratios - consolidated (percent)	31.03.2004	31.12.2003
Equity/balance-sheet ratio	8.55	8.58
Finanancial capital/equity ratio	99.76	99.51
Equity/risk-weighted-assets ratio	11.30	11.60
Return on equity (net profit/gross weighted-capital ratio) 4	0.90	3.20
Operating income/operating expenses ratio 5	82.35	90.48

^{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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