| General |
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The format adopted in this publication gives the main data relating to banks’ activities on one page, to enable their profitability, balance-sheet balances, financial ratios and main development trends for the relevant period to be reviewed at a glance. |
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This is not intended to make a thorough reading of the financial statements unnecessary, as a banking corporation’s activities may include very significant data or events which are not reflected in this format. |
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All the data are included explicitly in the financial statements, or can be derived from them via simple calculations, as will be explained below. |
| Presentation of the data |
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The data are divided into two groups according to the basis of their published financial statements, i.e., |
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- data on a consolidated basis |
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- data on an individual bank basis (unconsolidated). |
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For a banking corporation which published data on a consolidated basis, no data on an individual bank basis (unconsolidated) are shown. Despite this generalization, however, data on an individual bank basis (unconsolidated) for the five large banks are shown, in a shorter format. |
| Ending of inflation adjustment of financial statements |
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Inflation adjustment of financial statements in accordance with Accounting Regulations Nos. 12 and 17, The Adjustment of Financial Statements, ended on 1 January 2004. Hence data to 2004 are shown as amounts reported. |
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Amount reported: The amount adjusted to the transition date, plus nominal amounts added after the transition date, minus amounts deducted after the transition date (31 December 2003). |
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Comparative balance-sheet data to the years 2002-2003 are shown adjusted according to the December 2003 CPI. |
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Data for the Profit and Loss Account to 2003: |
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a. The items in the Profit and Loss Account up to Ordinary Pre-Tax Profits are shown adjusted according to the December 2002 CPI. |
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b. Inflation adjustment––income and expenditure included in ordinary before-tax profit in the reported amounts are adjusted for inflation according to the December 2003 CPI. |
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c. Items in the Profit and Loss Account from Ordinary Pre-Tax Profits up to Net Profit Are shown adjusted according to the December 2003 CPI. |
| Legend |
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The terms used in this publication have the same meaning as in the Directives for Preparing Reports for the Public determined by the Supervisor of Banks.
The definitions included herein relate to the relevant concepts defined in the Directives for Preparing Reports for the Public, as well as concepts related to specific calculations performed for this publication.
The concepts are arranged in the order of their appearance under the chapter headings in this publication.
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5.1 |
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Summary balance sheet and profit and loss statement |
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Total Banking System and The bank’s share in the whole system |
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5.1.1 |
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Total Banking System is defined as the sum of the following banks |
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- Euro-Trade Bank Ltd |
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- Bank Leumi Le-Israel Ltd |
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- Israel Discount Bank Ltd |
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- Bank Hapoalim B.M |
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- Union Bank of Israel Ltd |
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- United Mizrahi Bank Ltd |
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- The First International Bank of Israel Ltd |
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- Bank of Jerusalem Ltd |
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- Industrial Dev. Bank Ltd |
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- "Kupat Haoved Haleumi Leashrai Vehisachon Benetanya Ltd. |
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5.1.2 |
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Banks whose data are shown on a consolidated basis are included in the whole system on a consolidated basis, and those whose data are shown on an individual bank basis are included in the whole system on an individual bank basis. |
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5.1.3 |
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Data relating to banks and mortgage banks not included in the list in subsection 5.1.1 above will not be totaled for the calculation of the total banking system because their parent bank is shown on a consolidated basis so that they are included indirectly. |
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5.1.4 |
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Data relating to banks and mortgage banks not included in the list in subsection 5.1.1 above are also published in this publication, including their share in the total system. |
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5.1.5 |
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The item Total Banking System does not include the following financial institutions: "Gahelet", "Hesech" and "Otzar Hashilton Hamkomi," and their share in the banking system is not calculated. |
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The other financial institutions and the merchant bank are included indirectly in the total system because their parent bank is shown on a consolidated basis, but their share in the total system is not calculated. |
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5.1.6 |
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The share of the bank or banking group in the summary profit and loss statement is calculated only for banks showing a profit, as the concept of the share in profit has no meaning in the case of a bank making a loss. In calculating the total profit of the banking system (in the denominator) only banks making a profit are taken into account. In the figures for the total banking system on page 1, however, losses are also taken into account. |
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In the items Cash and deposits in banks and Deposits from banks the figure is calculated for the whole banking system (on a consolidated basis) after offsetting deposits of banks in other banks in the same group. For the parent bank of a banking group(and appearing in the list in section 5.1.1 above)the share of the banking group or bank in these items is calculated as the share of this total. In contrast, for every bank belonging to a banking group (and not appearing in the list in section 5.1.1 above) the share of the banking group or bank in these items in the whole banking system is calculated on a bank basis (not offset). |
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In the item Cash and deposits in banks the total for the banking system on a bank basis. On 31 December 2004 was NIS 143,648 million, and on 31 December 2003 it was NIS 149,729 million. |
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In the item Deposits from banks the total for the banking system on a bank basis on 30 September 2004 was NIS 62,790 million, and on 31 December 2003 it was NIS 58,427 million. |
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5.2 |
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Balances and rates of return on financial items by indexation segment |
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Excess of financial assets over financial liabilities |
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The excess (deficiency) of assets over liabilities on the balance-sheet date in each of the indexation segments, excluding the effect of ALM derivatives and financial options. If liabilities exceed assets in a particular indexation segment, the difference is shown as a negative amount. |
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Rate of income/expense on assets/liabilities |
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The balances used to calculate the rate of yield are the average balances of the monthly opening balances of assets/liabilities for which the interest income /financing costs were included. |
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In the unindexed local-currency segment the average balance is calculated on the basis of daily balances. |
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Internal rate of return |
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The rate of interest which discounts the expected flow of receipts from/payments on the total assets/liabilities in every segment to give the balance appearing in the balance sheet. The flow of receipts/payments includes balances of principal and interest. |
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Average duration |
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Calculated as the total assets/liabilities for an indexation segment by weighting the periods in the balances discounted at the internal rate of return, divided by the balance-sheet balance. |
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5.3 |
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Total off-balance-sheet and credit risk |
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Total balance-sheet credit risk |
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credit minus the special loan-loss provision plus bonds. |
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Total off-balance-sheet credit risk |
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Guarantees and other commitments on the customers’ account and futures as calculated for purposes of the limitation on the indebtedness of a borrower and a group of borrowers (Proper Conduct of banking Business, regulation no. 313). |
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Total credit risk |
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The sum of the balance-sheet and off-balance-sheet credit risks. |
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5.4 |
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Problem borrowers |
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Problem borrowers ddefined as “indebtedness under special supervision, an overdue debt, a rescheduled debt or one which it has been decided to reschedule but the rescheduling has not yet been implemented, a non-performing debt, or a debt which is considered doubtful, either in part or in total.” |
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Credit covered by recognized collateral for the purposes of the limitation on a borrower is not deducted from problem debts. |
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The data for the mortgage banks include loans for which a special loan-loss provision was made according to the depth of the arrears. |
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Total credit risk due to problem borrowers iincludes balance-sheet and off-balance-sheet credit risk due to problem borrowers |
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5.5 |
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Data on derivatives |
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Positive gross fair value |
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The total fair value of contracts owed to the bank by the opposing parties, after offsets. This represents the bank's maximum loss if all the opposing parties to the contracts fail and if the bank has no mortgage of the opposing parties. |
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5.6 |
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Branching and personnel |
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Number of employee posts: All employees, calculated on a full-time basis, whose pay is recorded under salaries and related expenses. Includes overtime when it is paid according to a specific report. |
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Branches: The number relates to the number of the bank’s branches. For the mortgage banks, service counters are not included. |
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Overseas branches: Including agencies; excluding representative offices. |
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5.7 |
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Main financial ratios in annual terms |
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Financial capital: Surplus of financial assets over financial liabilities. |
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Gross weighted equity: Equity at the beginning of the year, plus stock issues weighted according to the time in the year they were issued. |
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5.8 |
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Summary financial statements classified according to main activity segment |
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The data in this table are after all the adjustments and offsetting carried out for purposes of consolidating the financial statements. |
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5.9 |
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Figures |
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Net interest income: Interest income minus financing costs in the same segment. |
