
Information and Reporing Unit, Banking Supervision Division					14/12/2004
Statement for the second quarter - consolidated
Bank Leumi Le-Israel B.M. and its subsidiaries , Main data, NIS million
Taken from the quarterly report to 30.06.2004, reported amounts at 30.06.2004 (2003 in adjusted amounts).

Summary consolidated balance sheet	30.06.2004	31.12.2003	Banking group's share of the banking system
Summary consolidated balance sheet	30.06.2004	31.12.2003	30.06.2004	31.12.2003
Cash and deposits in banks (*)	25,715	23,763	25.9%	23.4%
Securities	40,881	40,262	31.0%	33.2%
Credit to the public	169,411	169,151	29.7%	29.7%
Credit to the government	1,020	1,129	20.4%	19.8%
Investments in companies included on an equity basis	1,531	1,361	41.1%	37.8%
Buildings and equipment	2,611	2,612	25.1%	24.5%
Other assets	6,975	8,307	34.1%	34.5%
Total assets	248,144	246,585	29.5%	29.5%
Deposits of the public	204,503	203,586	29.9%	29.9%
Deposits of banks (*)	5,071	4,557	20.2%	18.8%
Deposits of the government	2,967	2,903	18.0%	17.1%
Bonds and subordinated notes	10,857	10,613	26.5%	27.3%
Other liabilities	9,530	10,455	37.4%	36.7%
Total liabilities	232,928	232,114	29.4%	29.4%
Quasi-capital items	0	0	0.0%	0.0%
Minority shareholders' rights	263	258
Equity	14,953	14,213	32.8%	32.2%

Summary consolidated profit and loss statement	Six months to		Banking group's share of the banking system		Three months to
	Six months to		Six months to		Three months to
	30.06.2004	30.06.2003	30.06.2004	30.06.2003	30.06.2004
Net interest profit before loan-loss provision	3,168.0	2,988.0	30.2%	30.5%	1,623.0
Loan-loss provision	662.0	891.0	27.6%	29.3%	261.0
Operating and other income	1,691.0	1,613.0	28.1%	29.5%	846.0
Of which: Operating income	1,369.0	1,245.0	28.3%	28.4%	680.0
Operating and other expenses	2,662.0	2,732.0	27.3%	30.0%	1,302.0
Of which: Salaries and related expenses	1,581.0	1,669.0	26.6%	30.1%	747.0
Ordinary before-tax provision	1,535.0	1,000.0	35.1%	30.7%	906.0
Provision for taxes on ordinary profit	697.0	571.0	35.9%	32.7%	473.0
Ordinary after-tax profit	838.0	429.0	34.4%	28.5%	433.0
Bank's share in the profit of subsidiaries	183.0	74.0			122.0
Share of minority shareholders in profit of consolidated companies	-6.0	15.0			-3.0
Extraordinary after-tax profit	-23.0	-24.0			-21.0
Net profit	992.0	494.0	35.6%	34.7%	531.0


Balances and rates of return on financial items by indexation base on 30.06.2004	Unindexed NIS	CPI-indexed NIS	Foreign Currency (1)	Total financial items
Balance of financial assets on balance-sheet date	74,745	57,316	108,905	240,966
Balance of financial liabilities on balance-sheet date	77,055	51,151	102,960	231,166
Excess of financial assets over financial liabilities	-2,310	6,165	5,945	9,800
Total indexation balance (incl.forwards and options in term of basis assets) 2	4,153	4,884	763	9,800
Rate of income on assets (percent) 3	6.40	7.76	5.42	6.14
Rate of expenditure on liabilities (percent) 3	-3.30	-6.58	-4.28	-4.41
Interest-rate differential	3.10	1.18	1.14	1.73

Problem borrowers	30.06.2004	31.12.2003
Total credit risk dew to problem borrowers	20,842	18,282
Total credit to problem borrowers	18,665	16,502

Main financial ratios - consolidated (percent)	30.06.2004	31.12.2003
Equity/balance-sheet ratio	6.03	5.76
Finanancial capital/equity ratio	65.54	63.90
Equity/risk-weighted-assets ratio	10.96	10.79
Return on equity (net profit/gross weighted-capital ratio) 4	14.40	8.70
Operating income/operating expenses ratio 5	63.52	57.23

^{1 Including foreign-currency indexed NIS.}
^{2 Forwards transactions.}
^{3 Six-month rate of income (expenses), on annual basis including hedging, embedded and ALM derivatives.}
^{4 Annual basis.}
^{5 For six months. Comparative data are annual.}
					5
^{(*) See note no. 5.1.4 in the introduction.}