
Information and Reporing Unit, Banking Supervision Division					14/12/2004
Statement for the second quarter - consolidated
"Tefahot" Israel 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 (*)	107	108	0.1%	0.1%
Securities	1	1	0.0%	0.0%
Credit to the public	32,240	31,792	5.7%	5.6%
Credit to the government	2	2	0.0%	0.0%
Investments in companies included on an equity basis	0	0	0.0%	0.0%
Buildings and equipment	109	104	1.0%	1.0%
Other assets	171	218	0.8%	0.9%
Total assets	32,630	32,225	3.9%	3.9%
Deposits of the public	20,033	20,380	2.9%	3.0%
Deposits of banks (*)	8,616	7,806	13.5%	13.4%
Deposits of the government	415	427	2.5%	2.5%
Bonds and subordinated notes	1,256	1,300	3.1%	3.3%
Other liabilities	164	302	0.6%	1.1%
Total liabilities	30,484	30,215	3.8%	3.8%
Quasi-capital items	0	0	0.0%	0.0%
Minority shareholders' rights	0	0
Equity	2,146	2,010	4.7%	4.5%

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	276.0	223.0	2.6%	2.3%	174.0
Loan-loss provision	65.0	78.0	2.7%	2.6%	36.0
Operating and other income	143.0	157.0	2.4%	2.9%	71.0
Of which: Operating income	136.0	150.0	2.8%	3.4%	67.0
Operating and other expenses	125.0	112.0	1.3%	1.2%	68.0
Of which: Salaries and related expenses	77.0	67.0	1.3%	1.2%	43.0
Ordinary before-tax provision	229.0	196.0	5.2%	6.0%	141.0
Provision for taxes on ordinary profit	93.0	88.0	4.8%	5.0%	51.0
Ordinary after-tax profit	136.0	108.0	5.6%	7.2%	90.0
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	1.0			0.0
Net profit	136.0	109.0	4.9%	7.7%	90.0


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	2,943	25,724	3,848	32,515
Balance of financial liabilities on balance-sheet date	4,526	24,672	1,235	30,433
Excess of financial assets over financial liabilities	-1,583	1,052	2,613	2,082
Total indexation balance (incl.forwards and options in term of basis assets) 2	6	2,045	31	2,082
Rate of income on assets (percent) 3	6.03	8.14	8.20	7.88
Rate of expenditure on liabilities (percent) 3	-4.39	-7.20	-6.74	-6.80
Interest-rate differential	1.64	0.94	1.46	1.08

Problem borrowers	30.06.2004	31.12.2003
Total credit risk dew to problem borrowers	2,144	1,864
Total credit to problem borrowers	1,987	1,803

Main financial ratios - consolidated (percent)	30.06.2004	31.12.2003
Equity/balance-sheet ratio	6.58	6.24
Finanancial capital/equity ratio	97.02	96.22
Equity/risk-weighted-assets ratio	10.20	10.00
Return on equity (net profit/gross weighted-capital ratio) 4	14.00	10.00
Operating income/operating expenses ratio 5	114.40	131.49

^{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.}