
Information and Reporing Unit, Banking Supervision Division					14/12/2004
Statement for the second quarter - bank
Poalei Agudat Israel Bank Ltd. , Main data, NIS million
Taken from the quarterly report to 30.06.2004, reported amounts at 30.06.2004 (2003 in adjusted amounts).

Summary balance sheet	30.06.2004	31.12.2003	Bank's share of the banking system
Summary balance sheet	30.06.2004	31.12.2003	30.06.2004	31.12.2003
Cash and deposits in banks (*)	1,058	1,352	0.8%	0.9%
Securities	425	151	0.3%	0.1%
Credit to the public	862	886	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	25	26	0.2%	0.2%
Other assets	7	8	0.0%	0.0%
Total assets	2,378	2,423	0.3%	0.3%
Deposits of the public	2,012	2,108	0.3%	0.3%
Deposits of banks (*)	89	46	0.1%	0.1%
Deposits of the government	0	0	0.0%	0.0%
Bonds and subordinated notes	0	0	0.0%	0.0%
Other liabilities	24	23	0.1%	0.1%
Total liabilities	2,125	2,177	0.3%	0.3%
Quasi-capital items	0	0	0.0%	0.0%
Minority shareholders' rights	0	0
Equity	253	245	0.6%	0.6%

Summary profit and loss statement	Six months to		Bank'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	42.7	40.3	0.4%	0.4%	22.8
Loan-loss provision	5.1	5.9	0.2%	0.2%	2.5
Operating and other income	36.7	34.9	0.6%	0.6%	18.2
Of which: Operating income	36.7	34.1	0.8%	0.8%	18.2
Operating and other expenses	45.1	37.7	0.5%	0.4%	21.1
Of which: Salaries and related expenses	19.4	17.8	0.3%	0.3%	9.4
Ordinary before-tax provision	29.2	31.9	0.7%	1.0%	17.4
Provision for taxes on ordinary profit	13.6	15.4	0.7%	0.9%	7.3
Ordinary after-tax profit	15.6	16.5	0.6%	1.1%	10.1
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	15.6	16.5	0.6%	1.2%	10.1


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	1,721	432	200	2,353
Balance of financial liabilities on balance-sheet date	1,579	346	200	2,125
Excess of financial assets over financial liabilities	141	86	0	227
Total indexation balance (incl.forwards and options in term of basis assets) 2	141	86	0	227
Rate of income on assets (percent) 3	6.77	7.48	7.26	6.94
Rate of expenditure on liabilities (percent) 3	-3.59	-6.28	-5.67	-4.21
Interest-rate differential	3.18	1.20	1.59	2.73

Problem borrowers	30.06.2004	31.12.2003
Total credit risk dew to problem borrowers	123	108
Total credit to problem borrowers	123	108

Main financial ratios - percent	30.06.2004	31.12.2003
Equity/balance-sheet ratio	10.62	10.13
Finanancial capital/equity ratio	90.02	89.44
Equity/risk-weighted-assets ratio	20.00	19.10
Return on equity (net profit/gross weighted-capital ratio) 4	13.10	13.00
Operating income/operating expenses ratio 5	81.37	87.45

^{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.}