
Information and Reporing Unit, Banking Supervision Division					14/12/2004
Statement for the second quarter - consolidated
Bank Hapoalim 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 (*)	29,733	30,693	30.0%	30.2%
Securities	34,501	29,199	26.2%	24.1%
Credit to the public	184,149	184,087	32.3%	32.3%
Credit to the government	2,338	2,916	46.8%	51.1%
Investments in companies included on an equity basis	756	785	20.3%	21.8%
Buildings and equipment	3,499	3,554	33.7%	33.3%
Other assets	6,114	7,621	29.9%	31.7%
Total assets	261,090	258,855	31.1%	31.0%
Deposits of the public	205,492	204,207	30.0%	30.0%
Deposits of banks (*)	8,719	7,692	34.6%	31.7%
Deposits of the government	4,310	4,879	26.2%	28.8%
Bonds and subordinated notes	18,504	17,765	45.2%	45.6%
Other liabilities	8,538	9,555	33.5%	33.6%
Total liabilities	245,563	244,098	31.0%	30.9%
Quasi-capital items	0	0	0.0%	0.0%
Minority shareholders' rights	801	501
Equity	14,726	14,256	32.3%	32.3%

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	3,593.0	3,502.0	34.3%	35.8%	1,866.0
Loan-loss provision	888.0	1,169.0	37.0%	38.4%	476.0
Operating and other income	2,061.0	1,749.0	34.2%	32.0%	1,039.0
Of which: Operating income	1,593.0	1,411.0	32.9%	32.2%	797.0
Operating and other expenses	3,238.0	2,840.0	33.2%	31.2%	1,577.0
Of which: Salaries and related expenses	1,946.0	1,671.0	32.8%	30.2%	920.0
Ordinary before-tax provision	1,528.0	1,264.0	34.9%	38.9%	852.0
Provision for taxes on ordinary profit	638.0	621.0	32.9%	35.6%	339.0
Ordinary after-tax profit	890.0	643.0	36.5%	42.7%	513.0
Bank's share in the profit of subsidiaries	43.0	37.0			24.0
Share of minority shareholders in profit of consolidated companies	-38.0	-23.0			-26.0
Extraordinary after-tax profit	152.0	-15.0			23.0
Net profit	1,047.0	642.0	37.6%	45.1%	534.0


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	82,191	61,310	112,437	255,938
Balance of financial liabilities on balance-sheet date	87,272	51,362	106,659	245,293
Excess of financial assets over financial liabilities	-5,081	9,948	5,778	10,645
Total indexation balance (incl.forwards and options in term of basis assets) 2	263	8,842	1,540	10,645
Rate of income on assets (percent) 3	6.52	7.71	6.64	6.80
Rate of expenditure on liabilities (percent) 3	-3.53	-6.50	-5.75	-5.27
Interest-rate differential	2.98	1.21	0.89	1.53

Problem borrowers	30.06.2004	31.12.2003
Total credit risk dew to problem borrowers	22,314	22,673
Total credit to problem borrowers	20,499	20,765

Main financial ratios - consolidated (percent)	30.06.2004	31.12.2003
Equity/balance-sheet ratio	5.64	5.51
Finanancial capital/equity ratio	72.29	70.57
Equity/risk-weighted-assets ratio	10.89	10.40
Return on equity (net profit/gross weighted-capital ratio) 4	15.30	10.40
Operating income/operating expenses ratio 5	63.65	61.50

^{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.}
					7
^{(*) See note no. 5.1.4 in the introduction.}