
Information and Reporing Unit, Banking Supervision Division					14/12/2004
Statement for the second quarter - bank
Discount Mortgage Bank , 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	30.06.2004	31.12.2003
Cash and deposits in banks (*)	88	121	0.1%	0.1%
Securities	1	1	0.0%	0.0%
Credit to the public	9,647	9,377	1.7%	1.6%
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	14	13	0.1%	0.1%
Other assets	36	22	0.2%	0.1%
Total assets	9,786	9,534	1.2%	1.1%
Deposits of the public	2,189	2,279	0.3%	0.3%
Deposits of banks (*)	6,519	6,182	10.2%	10.6%
Deposits of the government	43	49	0.3%	0.3%
Bonds and subordinated notes	151	160	0.4%	0.4%
Other liabilities	58	46	0.2%	0.2%
Total liabilities	8,960	8,716	1.1%	1.1%
Quasi-capital items	0	0	0.0%	0.0%
Minority shareholders' rights	0	0
Equity	826	818	1.8%	1.9%

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	30.06.2004	30.06.2003	30.06.2004
Net interest profit before loan-loss provision	70.0	58.0	0.7%	0.6%	40.0
Loan-loss provision	53.0	30.0	2.2%	1.0%	31.0
Operating and other income	28.0	29.0	0.5%	0.5%	14.0
Of which: Operating income	28.0	29.0	0.6%	0.7%	14.0
Operating and other expenses	35.0	32.0	0.4%	0.4%	18.0
Of which: Salaries and related expenses	20.0	18.0	0.3%	0.3%	10.0
Ordinary before-tax provision	10.0	29.0	0.2%	0.9%	5.0
Provision for taxes on ordinary profit	2.0	12.0	0.1%	0.7%	-1.0
Ordinary after-tax profit	8.0	17.0	0.3%	1.1%	6.0
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	8.0	17.0	0.3%	1.2%	6.0


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	563	7,819	1,390	9,772
Balance of financial liabilities on balance-sheet date	502	7,083	1,361	8,946
Excess of financial assets over financial liabilities	61	736	29	826
Total indexation balance (incl.forwards and options in term of basis assets) 2	-80	736	170	826
Rate of income on assets (percent) 3	3.76	7.99	8.63	7.79
Rate of expenditure on liabilities (percent) 3	-4.93	-7.17	-7.95	-7.17
Interest-rate differential	-1.17	0.82	0.68	0.63

Problem borrowers	30.06.2004	31.12.2003
Total credit risk dew to problem borrowers	1,156	1,092
Total credit to problem borrowers	964	958

Main financial ratios - percent	30.06.2004	31.12.2003
Equity/balance-sheet ratio	8.44	8.58
Finanancial capital/equity ratio	100.00	99.51
Equity/risk-weighted-assets ratio	11.00	11.60
Return on equity (net profit/gross weighted-capital ratio) 4	1.90	3.40
Operating income/operating expenses ratio 5	80.00	90.48

^{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.}