
Information and Reporing Unit, Banking Supervision Division					14/12/2004
Statement for the second quarter - consolidated
Israel Continental 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 (*)	54	69	0.0%	0.0%
Securities	319	3	0.2%	0.0%
Credit to the public	909	1,070	0.2%	0.2%
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	5	6	0.1%	0.1%
Other assets	28	30	0.1%	0.1%
Total assets	1,316	1,178	0.2%	0.1%
Deposits of the public	304	350	0.0%	0.1%
Deposits of banks (*)	556	375	0.9%	0.6%
Deposits of the government	0	0	0.0%	0.0%
Bonds and subordinated notes	0	0	0.0%	0.0%
Other liabilities	11	15	0.0%	0.1%
Total liabilities	870	740	0.1%	0.1%
Quasi-capital items	0	0	0.0%	0.0%
Minority shareholders' rights	0	0
Equity	446	438	1.0%	1.0%

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	22.9	18.4	0.2%	0.2%	11.7
Loan-loss provision	0.6	20.4	0.0%	0.7%	0.7
Operating and other income	2.4	3.3	0.0%	0.1%	1.2
Of which: Operating income	2.4	3.3	0.0%	0.1%	1.2
Operating and other expenses	16.8	15.6	0.2%	0.2%	7.9
Of which: Salaries and related expenses	11.1	9.8	0.2%	0.2%	5.1
Ordinary before-tax provision	7.9	-13.2	0.2%	not calculated	4.3
Provision for taxes on ordinary profit	0.0	-1.2	0.0%	not calculated	0.0
Ordinary after-tax profit	7.9	-12.0	0.3%	not calculated	4.3
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	0.0			0.0
Net profit	7.9	-12.0	0.3%	not calculated	4.3


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	667	218	424	1,310
Balance of financial liabilities on balance-sheet date	416	30	423	870
Excess of financial assets over financial liabilities	251	188	1	441
Total indexation balance (incl.forwards and options in term of basis assets) 2	251	188	1	441
Rate of income on assets (percent) 3	6.00	7.84	7.72	6.97
Rate of expenditure on liabilities (percent) 3	-3.93	-5.26	-6.05	-5.36
Interest-rate differential	2.06	2.58	1.67	1.61

Problem borrowers	30.06.2004	31.12.2003
Total credit risk dew to problem borrowers	109	114
Total credit to problem borrowers	103	108

Main financial ratios - consolidated (percent)	30.06.2004	31.12.2003
Equity/balance-sheet ratio	33.87	37.15
Finanancial capital/equity ratio	98.86	98.81
Equity/risk-weighted-assets ratio	44.10	34.50
Return on equity (net profit/gross weighted-capital ratio) 4	3.60	19.50
Operating income/operating expenses ratio 5	14.29	19.00

^{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.}