
Information and Reporing Unit, Banking Supervision Division					14/12/2004
Statement for the second quarter - consolidated
The First International 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 (*)	10,255	11,030	10.3%	10.9%
Securities	6,048	5,328	4.6%	4.4%
Credit to the public	44,077	45,591	7.7%	8.0%
Credit to the government	155	161	3.1%	2.8%
Investments in companies included on an equity basis	13	11	0.3%	0.3%
Buildings and equipment	739	742	7.1%	7.0%
Other assets	1,604	1,722	7.8%	7.2%
Total assets	62,891	64,585	7.5%	7.7%
Deposits of the public	53,904	55,336	7.9%	8.1%
Deposits of banks (*)	759	949	3.0%	3.9%
Deposits of the government	672	676	4.1%	4.0%
Bonds and subordinated notes	2,483	2,411	6.1%	6.2%
Other liabilities	1,301	1,531	5.1%	5.4%
Total liabilities	59,119	60,903	7.5%	7.7%
Quasi-capital items	0	0	0.0%	0.0%
Minority shareholders' rights	192	185
Equity	3,580	3,497	7.9%	7.9%

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	706.0	680.0	6.7%	6.9%	382.0
Loan-loss provision	183.0	249.0	7.6%	8.2%	89.0
Operating and other income	402.0	393.0	6.7%	7.2%	205.0
Of which: Operating income	355.0	318.0	7.3%	7.2%	177.0
Operating and other expenses	653.0	632.0	6.7%	6.9%	324.0
Of which: Salaries and related expenses	406.0	388.0	6.8%	7.0%	200.0
Ordinary before-tax provision	272.0	199.0	6.2%	6.1%	174.0
Provision for taxes on ordinary profit	128.0	93.0	6.6%	5.3%	83.0
Ordinary after-tax profit	144.0	106.0	5.9%	7.0%	91.0
Bank's share in the profit of subsidiaries	2.0	1.0			1.0
Share of minority shareholders in profit of consolidated companies	-8.0	-12.0			-4.0
Extraordinary after-tax profit	-1.0	1.0			0.0
Net profit	137.0	96.0	4.9%	6.7%	88.0


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	26,263	14,985	19,998	61,246
Balance of financial liabilities on balance-sheet date	27,901	13,139	17,801	58,841
Excess of financial assets over financial liabilities	-1,638	1,846	2,197	2,405
Total indexation balance (incl.forwards and options in term of basis assets) 2	1,809	1,034	-438	2,405
Rate of income on assets (percent) 3	5.90	7.50	1.42	3.76
Rate of expenditure on liabilities (percent) 3	-4.01	-6.35	-0.85	-2.62
Interest-rate differential	1.90	1.15	0.57	1.14

Problem borrowers	30.06.2004	31.12.2003
Total credit risk dew to problem borrowers	6,006	6,106
Total credit to problem borrowers	5,593	5,676

Main financial ratios - consolidated (percent)	30.06.2004	31.12.2003
Equity/balance-sheet ratio	5.69	5.41
Finanancial capital/equity ratio	67.18	65.28
Equity/risk-weighted-assets ratio	11.30	10.60
Return on equity (net profit/gross weighted-capital ratio) 4	8.00	4.80
Operating income/operating expenses ratio 5	61.56	63.21

^{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.}