
Information and Reporing Unit, Banking Supervision Division					14/12/2004
Statement for the second quarter - consolidated
Leumi Mortgage Bank 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 (*)	316	20	0.2%	0.0%
Securities	37	0	0.0%	0.0%
Credit to the public	31,858	31,098	5.6%	5.5%
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	39	37	0.4%	0.3%
Other assets	207	194	1.0%	0.8%
Total assets	32,457	31,349	3.9%	3.8%
Deposits of the public	7,618	7,430	1.1%	1.1%
Deposits of banks (*)	21,201	20,427	33.1%	35.0%
Deposits of the government	603	602	3.7%	3.6%
Bonds and subordinated notes	1,276	1,207	3.1%	3.1%
Other liabilities	112	95	0.4%	0.3%
Total liabilities	30,810	29,761	3.9%	3.8%
Quasi-capital items	0	0	0.0%	0.0%
Minority shareholders' rights	0	0
Equity	1,647	1,588	3.6%	3.6%

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	182.0	175.0	1.7%	1.8%	88.0
Loan-loss provision	57.0	54.0	2.4%	1.8%	20.0
Operating and other income	69.0	80.0	1.1%	1.5%	31.0
Of which: Operating income	69.0	77.0	1.4%	1.8%	31.0
Operating and other expenses	86.0	82.0	0.9%	0.9%	43.0
Of which: Salaries and related expenses	39.0	43.0	0.7%	0.8%	18.0
Ordinary before-tax provision	108.0	124.0	2.5%	3.8%	56.0
Provision for taxes on ordinary profit	49.0	55.0	2.5%	3.2%	23.0
Ordinary after-tax profit	59.0	69.0	2.4%	4.6%	33.0
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	59.0	69.0	2.1%	4.8%	33.0


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	1,572	26,975	3,861	32,408
Balance of financial liabilities on balance-sheet date	736	26,149	3,866	30,751
Excess of financial assets over financial liabilities	836	826	-5	1,657
Total indexation balance (incl.forwards and options in term of basis assets) 2	836	826	-5	1,657
Rate of income on assets (percent) 3	6.15	7.92	8.50	7.91
Rate of expenditure on liabilities (percent) 3	-4.93	-7.34	-6.66	-7.21
Interest-rate differential	1.22	0.58	1.84	0.70

Problem borrowers	30.06.2004	31.12.2003
Total credit risk dew to problem borrowers	1,384	1,266
Total credit to problem borrowers	1,300	1,224

Main financial ratios - consolidated (percent)	30.06.2004	31.12.2003
Equity/balance-sheet ratio	5.07	5.07
Finanancial capital/equity ratio	100.61	99.94
Equity/risk-weighted-assets ratio	9.57	9.49
Return on equity (net profit/gross weighted-capital ratio) 4	7.50	7.40
Operating income/operating expenses ratio 5	80.23	83.75

^{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.}