
Information and Reporing Unit, Banking Supervision Division					14/12/2004
Statement for the second quarter - consolidated
Bank of Jerusalem 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 (*)	662	578	0.7%	0.6%
Securities	239	317	0.2%	0.3%
Credit to the public	5,994	5,709	1.1%	1.0%
Credit to the government	0	0	0.0%	0.0%
Investments in companies included on an equity basis	5	6	0.1%	0.2%
Buildings and equipment	52	55	0.5%	0.5%
Other assets	26	33	0.1%	0.1%
Total assets	6,979	6,697	0.8%	0.8%
Deposits of the public	5,954	5,690	0.9%	0.8%
Deposits of banks (*)	264	273	1.0%	1.1%
Deposits of the government	48	57	0.3%	0.3%
Bonds and subordinated notes	297	278	0.7%	0.7%
Other liabilities	42	37	0.2%	0.1%
Total liabilities	6,604	6,335	0.8%	0.8%
Quasi-capital items	0	0	0.0%	0.0%
Minority shareholders' rights	0	0
Equity	375	362	0.8%	0.8%

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	61.1	55.9	0.6%	0.6%	33.8
Loan-loss provision	10.7	11.3	0.4%	0.4%	6.7
Operating and other income	46.9	46.4	0.8%	0.8%	23.5
Of which: Operating income	46.1	45.5	1.0%	1.0%	23.1
Operating and other expenses	72.3	68.2	0.7%	0.7%	37.5
Of which: Salaries and related expenses	45.3	42.0	0.8%	0.8%	23.9
Ordinary before-tax provision	25.0	23.7	0.6%	0.7%	13.1
Provision for taxes on ordinary profit	9.2	8.5	0.5%	0.5%	3.7
Ordinary after-tax profit	15.8	15.2	0.6%	1.0%	9.4
Bank's share in the profit of subsidiaries	-0.3	0.5			-0.1
Share of minority shareholders in profit of consolidated companies	0.0	0.0			0.0
Extraordinary after-tax profit	0.0	-2.2			0.0
Net profit	15.5	13.5	0.6%	0.9%	9.3


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	1,934	3,762	1,181	6,877
Balance of financial liabilities on balance-sheet date	1,861	3,713	1,025	6,599
Excess of financial assets over financial liabilities	73	49	156	278
Total indexation balance (incl.forwards and options in term of basis assets) 2	161	35	81	278
Rate of income on assets (percent) 3	6.09	7.96	8.74	7.57
Rate of expenditure on liabilities (percent) 3	-4.72	-6.90	-6.47	-6.24
Interest-rate differential	1.37	1.06	2.27	1.32

Problem borrowers	30.06.2004	31.12.2003
Total credit risk dew to problem borrowers	347	321
Total credit to problem borrowers	329	295

Main financial ratios - consolidated (percent)	30.06.2004	31.12.2003
Equity/balance-sheet ratio	5.37	5.40
Finanancial capital/equity ratio	74.11	72.87
Equity/risk-weighted-assets ratio	11.20	11.60
Return on equity (net profit/gross weighted-capital ratio) 4	8.80	7.40
Operating income/operating expenses ratio 5	64.87	68.88

^{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.}