Information and Reporing Unit, Banking Supervision Division					14/12/2004
Statement for the second quarter - bank
"Gahelet" Gmul Hisachon Lehinuch 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
Cash and deposits in banks	39	38
Securities	4	3
Credit to the public	365	360
Credit to the government	0	0
Investments in companies included on an equity basis	0	0
Buildings and equipment	0	0
Other assets	0	0
Total assets	407	402
Deposits of the public	246	247
Deposits of banks	0	0
Deposits of the government	0	0
Bonds and subordinated notes	0	0
Other liabilities	1	1
Total liabilities	247	247
Quasi-capital items	0	0
Minority shareholders' rights	0	0
Equity	160	154
Summary profit and loss statement	Six months to		THREE  MONTHS TO
	30.06.2004	30.06.2003	30.06.2004
Net interest profit before loan-loss provision	8.3	14.1	5.2
Loan-loss provision	0.5	-6.2	0.6
Operating and other income	0.0	0.0	0.0
Of which: Operating income	0.0	0.0	0.0
Operating and other expenses	1.6	1.7	0.7
Of which: Salaries and related expenses	1.0	1.0	0.4
Ordinary before-tax provision	6.3	19.1	4.0
Provision for taxes on ordinary profit	0.0	0.0	0.0
Ordinary after-tax profit	6.3	19.1	4.0
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	6.3	19.1	4.0
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	5	402	0	407
Balance of financial liabilities on balance-sheet date	1	246	0	247
Excess of financial assets over financial liabilities	5	156	0	160
Total indexation balance (incl.forwards and options in term of basis assets) 2	5	156	0	160
Rate of income on assets (percent) 3	3.42	8.76	7.32	8.70
Rate of expenditure on liabilities (percent) 3	0.00	-8.74	0.00	-8.74
Interest-rate differential	3.42	0.02	7.32	-0.04
Problem borrowers	30.06.2004	31.12.2003
Total credit risk dew to problem borrowers	0	0
Total credit  to problem borrowers	0	0
Main financial ratios - percent	30.06.2004	31.12.2003
Equity/balance-sheet ratio	39.39	38.39
Finanancial capital/equity ratio	99.82	99.81
Equity/risk-weighted-assets ratio	95.30	92.80
Return on equity (net profit/gross weighted-capital ratio) 4	8.14	20.06
Operating income/operating expenses ratio 5	0.57	1.69
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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