
Information and Reporing Unit, Banking Supervision Division					14/12/2004
Statement for the second quarter - consolidated
United Mizrahi 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 (*)	10,248	12,725	10.3%	12.5%
Securities	5,679	3,976	4.3%	3.3%
Credit to the public	61,089	59,909	10.7%	10.5%
Credit to the government	105	111	2.1%	1.9%
Investments in companies included on an equity basis	176	166	4.7%	4.6%
Buildings and equipment	1,101	1,107	10.6%	10.4%
Other assets	1,197	1,399	5.8%	5.8%
Total assets	79,595	79,393	9.5%	9.5%
Deposits of the public	66,324	66,221	9.7%	9.7%
Deposits of banks (*)	3,275	3,227	13.0%	13.3%
Deposits of the government	1,244	1,261	7.6%	7.4%
Bonds and subordinated notes	3,131	2,706	7.7%	7.0%
Other liabilities	1,365	1,820	5.4%	6.4%
Total liabilities	75,339	75,235	9.5%	9.5%
Quasi-capital items	0	0	0.0%	0.0%
Minority shareholders' rights	302	283
Equity	3,954	3,875	8.7%	8.8%

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	876.0	752.0	8.4%	7.7%	492.0
Loan-loss provision	168.0	170.0	7.0%	5.6%	92.0
Operating and other income	514.0	461.0	8.5%	8.4%	257.0
Of which: Operating income	435.0	416.0	9.0%	9.5%	216.0
Operating and other expenses	780.0	697.0	8.0%	7.7%	406.0
Of which: Salaries and related expenses	504.0	447.0	8.5%	8.1%	265.0
Ordinary before-tax provision	442.0	350.0	10.1%	10.8%	251.0
Provision for taxes on ordinary profit	194.0	174.0	10.0%	10.0%	104.0
Ordinary after-tax profit	248.0	176.0	10.2%	11.7%	147.0
Bank's share in the profit of subsidiaries	9.0	5.0			6.0
Share of minority shareholders in profit of consolidated companies	-19.0	-15.0			-13.0
Extraordinary after-tax profit	-1.0	-4.0			-1.0
Net profit	237.0	162.0	8.5%	11.4%	139.0


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	22,852	33,694	21,449	77,995
Balance of financial liabilities on balance-sheet date	29,967	29,014	16,276	75,257
Excess of financial assets over financial liabilities	-7,115	4,680	5,173	2,738
Total indexation balance (incl.forwards and options in term of basis assets) 2	-386	3,228	-104	2,738
Rate of income on assets (percent) 3	5.78	8.15	6.54	6.84
Rate of expenditure on liabilities (percent) 3	-3.83	-6.93	-5.85	-5.53
Interest-rate differential	1.95	1.23	0.69	1.31

Problem borrowers	30.06.2004	31.12.2003
Total credit risk dew to problem borrowers	4,597	4,948
Total credit to problem borrowers	4,153	4,549

Main financial ratios - consolidated (percent)	30.06.2004	31.12.2003
Equity/balance-sheet ratio	4.97	4.88
Finanancial capital/equity ratio	69.25	67.02
Equity/risk-weighted-assets ratio	10.17	9.81
Return on equity (net profit/gross weighted-capital ratio) 4	12.60	9.70
Operating income/operating expenses ratio 5	65.90	67.40

^{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.}