Israel Discount Bank : Mercantile Discount Bank - financial statements as at June 30, 2015

1. Reclassified in respect to implementation of US GAAP on the topic "Taxes on Income" - See Note 1E(1).

The notes to the condensed financial statements constitute an integral part thereof.

1. Mainly represents adjustments to the actuarial estimates in respect to severance pay provisions and post-employment benefits, as well as the write down of amounts recorded in prior periods in other comprehensive income.

   The notes to the condensed financial statements constitute an integral part thereof.

   Condensed Consolidated Balance Sheets Reported amounts (in NIS millions)

   June 30,	June 30,	December 31,
   Note	2017	2016	2016
   (Unaudited)			(Audited)
   Assets
   Cash and deposits with banks	3,122	4,338	3,422
   Securities (1)(2)	5	5,613	4,227	6,002
   Credit to the public	6, 15	23,584	21,859	22,349
   Provision for credit losses	6, 15	(342)	(351)	(348)
   Credit to the public, net	23,242	21,508	22,001
   Investment in investee companies	5	8	9
   Buildings and equipment	361	356	358
   Assets in respect to derivative instruments	12	31	22	26
   Other assets	382	355	346
   Total assets	32,756	30,814	32,164
   Liabilities and equity
   Deposits from the public	7	27,798	25,815	27,199
   Deposits from banks	145	386	259
   Deposits from the government	144	156	149
   Debentures and subordinated capital notes	923	920	926
   Liabilities in respect to derivative instruments	12	131	122	79
   Other liabilities (3)	1,261	1,243	1,308
   Total liabilities	30,402	28,642	29,920
   Equity	8	2,354	2,172	2,244
   Total liabilities and equity	32,756	30,814	32,164

2. The balance includes securities pledged to lenders in an amount of NIS 370 million (June 30 2016 - NIS 372 million; December 31, 2016 - NIS 369 million).

3. The balance includes securities presented at fair value in an amount of NIS 5,336 million (June 30, 2016 - NIS 3,918 million; December 31, 2016 - NIS 5,693 million).

4. The balance includes a provision for credit losses in respect to off-balance-sheet credit instruments in an amount of NIS 27 million (June 30, 2016 - NIS 34 million; December 31, 2015 - NIS 28 million).

5. The notes to the condensed financial statements constitute an integral part thereof.

   Statements of Changes in Shareholders' Equity Reported amounts

   For the three months ended June 30, 2017
   (Unaudited)
   Paid- up share capital	Capital reserves	Total share capital and capital reserves	Cumulative other comprehensive income	Retained earnings	Total equity
   In NIS millions
   Balance as at beginning of period	51	152	203	(84)	2,179	2,298
   Net income for the period	-	-	-	-	54	54
   Other comprehensive income, net, after tax effect*	-	-	-	2	-	2
   Balance as at end of period	51	152	203	(82)	2,233	2,354

   For the three months ended June 30, 2016
   (Unaudited)
   Paid- up share capital	Capital reserves	Total share capital and capital reserves	Cumulative other comprehensive income	Retained earnings	Total equity
   In NIS millions
   Balance as at beginning of period	51	152	203	(62)	1,990	2,131
   Net income for the period	-	-	-	-	45	45
   Other comprehensive loss, net, after tax effect*	-	-	-	(4)	-	(4)
   Balance as at end of period	51	152	203	(66)	2,035	2,172

   The notes to the condensed financial statements constitute an integral part thereof.