Discount Mortgage Bank Ltd.
Discount Mortgage Bank Ltd. (DMB) was established as a publicly traded company by Israel Discount Bank Ltd. (Israel Discount) and a group of foreign investors in 1959. Israel Discount purchased all DMB shares held by the public in 2007, making DMB a fully owned private subsidiary of Israel's third-largest banking group.

DMB is led by Mr. Israel David, Chairman, Ms. Eti Langermann, CEO, and a top management team comprised of five vice presidents, each covering one of the following areas: credit, legal counsel, risk management, accounting, and technology and operations. The bank employs 400 people, and operates 73 branches throughout the country.

DMB completed its strategic plan to strengthen the group synergy with Israel Discount in 2008, leading to an increase in total new issued credit to 3.8 billion NIS, and the doubling of market share in the housing loan sector to 13%.

Areas of Operation
DMB operates in the following main areas:

• Mortgages for the purchase or building of homes
• All-purpose loans by mortgaging residential property already owned
• Mortgages for the purchase or building of commercial properties (e.g. stores, offices, light industry) for independent use or investment purposes

Specialized Services
DMB specializes in two additional areas – Affinity Groups for the Purchase of Real Estate and Foreign Residents.

Affinity Groups for the Purchase of Real Estate
DMB is one of the leading banks in this field it was among the first banks that became interested in this field, and has earned the experience and expertise necessary to provide the required specialized banking services.

Foreign Residents
DMB, the leading bank in the field of mortgages for foreign residents has a special set-up that specializes in servicing foreign residents who purchase Israeli residential properties – and focuses on residents of France, United States and the UK. The foreign residents' set-up operates in close cooperation with key factors in Israel and Jewish communities abroad. In addition, representatives of DMB regularly participate in foreign real estate fairs, with the full cooperation of Israel Discount's representatives abroad, in order to grant DMB's clients in Israel and abroad quick, efficient and professional service.

Doubling of Market Share
DMB achieved a 13% share in the housing loan market in 2008, more than double the bank's share prior to the introduction of its strategic plan with Israel Discount. The total amount of new credit issued by DMB, meanwhile, reached NIS 3.8 billion, representing an increase of over 45% compared to 2007.

The bank recorded profits of NIS 28.4 million in 2008, representing a significant 8.3% increase compared to 2007. Most of this growth was due to expanded activity, as reflected by a 6% increase in financing revenues and a 1.6% increase in operational revenues compared to the same period in the previous year.

The bank also substantially reduced its provision for doubtful debt by 77% to just NIS 8 million.

Focus on Service
DMB's 2008 results capped a year in which the bank underwent significant change at all aspects in order to address its increased level of activity. At the same time, DMB carried out changes in its cross-organizational processes and organizational structure to bolster sales and service. During the year, the bank set service-level goals, placing customers at the center of focus.

DMB carried out major efforts throughout the year to improve customer service by reducing response time and optimizing its product offering, along with expanding its sales and service framework. The bank continuously aims to improve its level of service so as to streamline the housing purchase process for customers.

"Shamayim" IT Project
The bank is in the midst of carrying out the "Shamayim" Project, a multi-year plan for upgrading its IT system. The project will enable increased flexibility in new product development as well as enhanced tracking and monitoring, thereby ensuring effective risk management and rapid, efficient service tailored to all customers.

Leading the Change in the mortgage market
Among the leading products offered by DMB is Subsidized Interest Mortgage. Fully supported by the bank's long-term strategy, this unique offering has been promoted via a highly successful publicity campaign.

DMB is renowned for its marketing and advertising innovation and creativity. Underscoring this reputation, the bank won the top prize for effective marketing in the category of financial products at the 2008 Israel Effie Awards competition.

The bank is also in the midst of carrying out a long-term marketing plan for strengthening its relationship with the Real Estate and Construction business community. The highlight of this plan was the annual Discount Conference for Real Estate and Construction held in December 2008 at the Dead Sea.

DMB's recent stepped-up activity, particularly the granting of housing credit, has helped the bank further establish its position as a central, leading and competitive player within the mortgage sector.

Community Contribution
DMB highly values its contribution to the community. The bank's commitment to social responsibility is underscored through two major programs. Many employees are active in DMB's "Makom Balev" project supporting Israeli children from Ethiopia.
The bank has adopted an Israel Defense Forces Artillery Corps battalion as part of its "Adopt a Fighter" program.

Management
Israel David – Chairman, Discount Mortgage Bank Ltd.
Education: BA in Economics and Business Administration, Ben-Gurion University of the Negev; MBA, Bar-Ilan University.
Present position: Chairman, Discount Mortgage Bank; Executive Vice President and Head of Retail Banking Division, Israel Discount Bank; Director, CAL, CAL Assets, and Beit Maniv Israel.
Previous positions: Vice President of Marketing and Strategic Planning Division, Israel Discount Bank (2002-2006); various managerial and professional positions in Israel and abroad, Bank Leumi (1980-2001).

Eti Langermann- Chief Executive Officer, Discount Mortgage Bank Ltd.
Education: BA in Economics and Business Administration, Bar-Ilan University; MBA, Bar-Ilan University.
Present position: Chief Executive Officer, Discount Mortgage Bank.
Previous positions: Vice President – Head of Business Division and Chief Loan Officer, Discount Mortgage Bank; Manager of Commercial Banking, Bank of Jerusalem; Credit Manager for Real Estate Division, Bank Leumi.


Contact Information
Discount Mortgage Bank Ltd.
Beit Hashoeva 16
Tel Aviv 65814
Tel: 972-3-710-7333, *2009
http://mashkanta.discountbank.co.il/