Financial Reports 1st Quarter 2007

25 May, 2007

Financial Highlights

Net Profit (includes one-time capital gains): NIS 370 million ($89.0 million)

Compared with NIS 53 million ($12.8 million) in same period last year

Growth of 598%

Net Return on Equity: 32.1%

Compared with 4.6% in same period last year

And 13.0%* in full year 2006

Net Operating Profit: NIS 163 million ($39.2 million)

Compared with NIS 53 million ($12.8 million) in first quarter of 2006

Growth of 208%

Expresses return on equity of 13.3%

Financing Profit: NIS 467 million ($112.4 million)

Compared with NIS 404 million ($97.2 million) in same period last year

Growth of 15.6%

Provision for Doubtful Debts: NIS 50 million ($12.0 million)

Compared with NIS 119 million ($28.6 million) in same quarter last year

Decrease of 58.0%

*According to update of Bank of Israel Directives on Manner of Computing return on equity as from May 2007. Before the update - 13.8%.

For additional information - Bank Spokesperson: 03-7559227

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