
Information and Reporing Unit, Banking Supervision Division					14/12/2004
Statement for the second quarter - consolidated
Union Bank of Israel Ltd. 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 (*)	2,174	1,927	2.2%	1.9%
Securities	2,434	2,208	1.8%	1.8%
Credit to the public	15,623	14,900	2.7%	2.6%
Credit to the government	59	57	1.2%	1.0%
Investments in companies included on an equity basis	27	27	0.7%	0.8%
Buildings and equipment	338	336	3.3%	3.1%
Other assets	647	880	3.2%	3.7%
Total assets	21,302	20,335	2.5%	2.4%
Deposits of the public	18,385	17,312	2.7%	2.5%
Deposits of banks (*)	290	155	1.2%	0.6%
Deposits of the government	13	15	0.1%	0.1%
Bonds and subordinated notes	890	787	2.2%	2.0%
Other liabilities	636	975	2.5%	3.4%
Total liabilities	20,214	19,244	2.6%	2.4%
Quasi-capital items	0	0	0.0%	0.0%
Minority shareholders' rights	0	0
Equity	1,088	1,091	2.4%	2.5%

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	234.0	215.0	2.2%	2.2%	122.0
Loan-loss provision	100.0	82.0	4.2%	2.7%	53.0
Operating and other income	122.0	112.0	2.0%	2.0%	58.0
Of which: Operating income	109.0	100.0	2.3%	2.3%	52.0
Operating and other expenses	221.0	235.0	2.3%	2.6%	117.0
Of which: Salaries and related expenses	116.0	136.0	2.0%	2.5%	65.0
Ordinary before-tax provision	35.0	13.0	0.8%	0.4%	10.0
Provision for taxes on ordinary profit	23.0	8.0	1.2%	0.5%	7.0
Ordinary after-tax profit	12.0	5.0	0.5%	0.3%	3.0
Bank's share in the profit of subsidiaries	0.0	0.0			0.0
Share of minority shareholders in profit of consolidated companies	0.0	0.0			0.0
Extraordinary after-tax profit	0.0	-1.0			0.0
Net profit	12.0	4.0	0.4%	0.3%	3.0


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	9,155	3,896	7,619	20,670
Balance of financial liabilities on balance-sheet date	9,511	3,210	7,398	20,119
Excess of financial assets over financial liabilities	-356	686	221	551
Total indexation balance (incl.forwards and options in term of basis assets) 2	4	521	26	551
Rate of income on assets (percent) 3	5.13	7.30	4.16	4.80
Rate of expenditure on liabilities (percent) 3	-3.60	-6.74	-3.45	-3.78
Interest-rate differential	1.52	0.56	0.71	1.02

Problem borrowers	30.06.2004	31.12.2003
Total credit risk dew to problem borrowers	1,676	1,585
Total credit to problem borrowers	1,405	1,325

Main financial ratios - consolidated (percent)	30.06.2004	31.12.2003
Equity/balance-sheet ratio	5.11	5.37
Finanancial capital/equity ratio	50.64	56.19
Equity/risk-weighted-assets ratio	10.30	10.60
Return on equity (net profit/gross weighted-capital ratio) 4	2.20	-4.80
Operating income/operating expenses ratio 5	55.20	44.25

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