
Information and Reporing Unit, Banking Supervision Division					14/12/2004
Statement for the second quarter - bank
"Hesech" Kupat Hisachon Lehinuch Ltd., Haifa , 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	00.01.1900	00.01.1900
Cash and deposits in banks	16	16	0.0%	0.0%
Securities	0	0	0.0%	0.0%
Credit to the public	218	211	0.0%	0.0%
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	1	1	0.0%	0.0%
Other assets	0	0	0.0%	0.0%
Total assets	234	228	0.0%	0.0%
Deposits of the public	164	160	0.0%	0.0%
Deposits of banks	0	0	0.0%	0.0%
Deposits of the government	0	0	0.0%	0.0%
Bonds and subordinated notes	0	0	0.0%	0.0%
Other liabilities	0	0	0.0%	0.0%
Total liabilities	164	160	0.0%	0.0%
Quasi-capital items	0	0	0.0%	0.0%
Minority shareholders' rights	0	0
Equity	70	67	0.0%	0.0%

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	#REF!	00.01.1900	30.06.2004
Net interest profit before loan-loss provision	5.6	4.9	#REF!	0.0%	3.4
Loan-loss provision	0.7	1.8	#REF!	0.0%	0.4
Operating and other income	0.1	0.1	#REF!	0.0%	0.1
Of which: Operating income	0.1	0.1	#REF!	0.0%	0.0
Operating and other expenses	0.7	0.7	#REF!	0.0%	0.4
Of which: Salaries and related expenses	0.4	0.4	#REF!	0.0%	0.2
Ordinary before-tax provision	4.3	2.7	#REF!	0.0%	2.7
Provision for taxes on ordinary profit	0.0	0.0	#REF!	0.0%	0.0
Ordinary after-tax profit	4.3	2.7	#REF!	0.0%	2.7
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	4.3	2.7	#REF!	0.0%	2.7


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	16	218	0	233
Balance of financial liabilities on balance-sheet date	0	164	0	164
Excess of financial assets over financial liabilities	15	54	0	69
Total indexation balance (incl.forwards and options in term of basis assets) 2	15	54	0	69
Rate of income on assets (percent) 3	4.24	10.08	0.00	9.73
Rate of expenditure on liabilities (percent) 3	0.00	-8.09	0.00	-8.09
Interest-rate differential	4.24	1.99	0.00	1.64

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	29.97	29.62
Finanancial capital/equity ratio	98.82	98.75
Equity/risk-weighted-assets ratio	63.80	63.20
Return on equity (net profit/gross weighted-capital ratio) 4	12.41	8.23
Operating income/operating expenses ratio 5	15.90	18.51

^{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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