
Information and Reporing Unit, Banking Supervision Division					14/12/2004
Statement for the second quarter - consolidated
Otsar Hahayal Bank 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 (*)	2,105	1,986	1.5%	1.3%
Securities	524	551	0.4%	0.5%
Credit to the public	6,560	6,419	1.2%	1.1%
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	152	150	1.5%	1.4%
Other assets	60	63	0.3%	0.3%
Total assets	9,401	9,168	1.1%	1.1%
Deposits of the public	8,219	8,009	1.2%	1.2%
Deposits of banks (*)	114	43	0.2%	0.1%
Deposits of the government	22	36	0.1%	0.2%
Bonds and subordinated notes	352	414	0.9%	1.1%
Other liabilities	119	126	0.5%	0.4%
Total liabilities	8,827	8,627	1.1%	1.1%
Quasi-capital items	0	0	0.0%	0.0%
Minority shareholders' rights	1	1
Equity	574	540	1.3%	1.2%

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	166.8	156.0	1.6%	1.6%	92.2
Loan-loss provision	20.4	12.3	0.8%	0.4%	10.6
Operating and other income	88.1	79.9	1.5%	1.5%	44.5
Of which: Operating income	77.3	71.2	1.6%	1.6%	39.0
Operating and other expenses	170.3	159.3	1.7%	1.8%	85.4
Of which: Salaries and related expenses	97.8	89.4	1.6%	1.6%	47.3
Ordinary before-tax provision	64.2	65.5	1.5%	2.0%	40.7
Provision for taxes on ordinary profit	29.9	31.8	1.5%	1.8%	17.3
Ordinary after-tax profit	34.3	33.7	1.4%	2.2%	23.4
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	-0.2	0.0			-0.1
Net profit	34.1	33.7	1.2%	2.4%	23.3


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	4,997	2,473	1,774	9,244
Balance of financial liabilities on balance-sheet date	5,475	2,206	1,136	8,818
Excess of financial assets over financial liabilities	-479	266	639	426
Total indexation balance (incl.forwards and options in term of basis assets) 2	-74	435	65	426
Rate of income on assets (percent) 3	6.69	7.53	4.89	6.46
Rate of expenditure on liabilities (percent) 3	-3.10	-6.10	-4.29	-4.04
Interest-rate differential	3.59	1.43	0.60	2.42

Problem borrowers	30.06.2004	31.12.2003
Total credit risk dew to problem borrowers	402	376
Total credit to problem borrowers	372	359

Main financial ratios - consolidated (percent)	30.06.2004	31.12.2003
Equity/balance-sheet ratio	6.10	5.89
Finanancial capital/equity ratio	74.26	72.66
Equity/risk-weighted-assets ratio	11.30	11.44
Return on equity (net profit/gross weighted-capital ratio) 4	13.03	11.07
Operating income/operating expenses ratio 5	51.73	50.56

^{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.}