AS HANSAPANK

ANNOUNCEMENT

28.04.99

 

 

HANSA CAPITAL GROUP'S FINANCIAL RESULTS IN THE FIRST QUARTER OF 1999

 

 

Financial Highlights

					31.03.99	31.12.98

At period end (in EEK, thousands)		

		

Total assets 				6 890 390	6 754 382

Financial investments			6 443 441	6 279 900

   Leasing				5 871 052	5 743 808

   Factoring				  289 355	  279 795

   Loans				  195 066	  193 155

   Assignment				   41 537	   32 327

   Consumer factoring			   26 216	   30 815

Provisions				 -202 296	 -185 569

Debt capital				6 107 010	6 165 151

Equity					  247 149	  177 070

Provisioning rate			      3.1%	      3.0%

 

 

For the period (in EEK, thousands)	

	

Interest income and fees		  225 468	  750 417

   Leasing				  189 808	  647 024

   Factoring				   11 198	   35 481

   Loans				    5 556	   15 896

   Assignment				    2 277	    8 338

   Consumer factoring			    2 316	   11 856

Net profit				   65 268	  152 096

NIM					      6.3%	      5.8%

ROA					      3.9%	      3.5%

Return on used equity*			     32.1%	     22.9%

Number of employees			      274	      247

 

* used equity is 12% of Group's risk-weighted assets (Hansabank 

Group's internal capital adequacy requirement)

 

During the first quarter Hansa Capital Group's total assets grew by 

EEK 136.0 million, i.e. by 2.0% to EEK 6,890.4 million as at the end 

of March.

 

The largest single item on the asset side is the leasing portfolio, 

which forms EEK 5,871.1 million or 91.1% of financial investments. 

From the beginning of the year, the leasing portfolio has increased 

by EEK  127,2 million, i.e. by 2.2%. Factoring portfolio increased 

by EEK 9,6 million, i.e. by 3.4% to EEK 289.4 million. Loan portfolio 

(the major share of which are loans to associated companies) increased 

by EEK 1.9 million (1.0%). Assignment receivables grew by EEK 9.2 

million (28.5%), having reached EEK 41.5 million by the end of period. 

Consumer factoring portfolio decreased by 4.6 million (14.9%), amounting 

to EEK 26.2 million.

 

The regional structure of financial investments has not changed 

considerably since the beginning of the year. Portfolio of Estonian 

financial investments increased by EEK 45.1 million, having reached 

EEK 4,416.5 million at the end of the first quarter; Latvian and 

 

Lithuanian volumes increased by 80.7 million (923.9 million) and 

36.6 million (799.1 million) respectively.

 

Due to increase in provisioning rate as well as the growth of 

financial investments, the amount of provisions has increased by EEK 

16.7 million, having reached EEK 202.3 million by the end of period 

and constituting 3.1% of financial investments (in 1998 - 3.0%). 

At the same time the actual write-offs constituted merely EEK 

5.8 million (in 1998 a total of 23.9 million of receivables were 

written off).

 

Group's debt capital decreased by EEK 58.1 (0.9%) during the first 

quarter and amounted to EEK 6,930.1 million by the end of the period. 

Loans continue to make up the largest part of loan liabilities (79.6%); 

bonds' share in loan resource was 12.6%.

 

Equity grew by EEK 70.1 million, i.e. 39.6% to EEK 247.2 million 

during the first quarter. The growth resulted from the net income as 

well as changes in unrealized exchange differences.

 

Net income of Hansa Capital Group for the first quarter constituted 

EEK 65.3 million, exceeding the income earned in the last year's 

corresponding period by EEK 19.9 million (47.6%).

 

Group's net income, after the consolidation process, comprises the 

EEK 27.4 million net income of AS Hansa Liising Eesti, EEK 15.8 million 

of Hoiupanga Liisingu AS, EEK 10.9 million of SIA Hanza Lizings, 

EEK 9.7 million of UAB Hanza Lizingas, EEK 2.0 million of AS Balti 

Autoliising and EEK 1.1 million of Balti Realiseerimiskeskuse OÜ. 

Total assets of the largest subsidiaries were the following: AS 

Hansa Liising Eesti - EEK 3,605.8 million, Hoiupanga Liisingu AS - EEK 

1,363.6 million, SIA Hanza Lizings - EEK 718.8 million, UAB Hanza 

Lizingas - EEK 448,4 million, AS Balti Autoliising - EEK 162.9 million 

and Balti Realiseerimiskeskuse OÜ - EEK 64.3 million.

 

Group's total revenue (interest income, fees and commissions), according 

to results of the first quarter, constitutes EEK 225.5 million. When 

compared to the total revenue of last year's corresponding period, 

Group's revenues increased by EEK 90.1 million, i.e. 66.6%. Leasing 

income formed the largest share of revenues (80.8%).

 

Geographical distribution of revenues was the following: Estonia -  EEK 

158.2 million (68.2%), Latvia - 34.9 million (15.0%), Lithuania - 29.4 

million (12.7%), other regions - 9.5 million (4.1%).

 

Interest expenses in the first quarter rose by 78.9% and  totaled EEK 

101.2 million. Net interest income constituted EEK 99.2 million, exceeding 

the last year's corresponding period result by 55.1%. Net interest income 

formed 47.3% of interest income (in 1998 - 51.5%).

 

Group's net interest margin (NIM), which is the ratio of net interest 

income and average total assets, was 6.3%, return on average assets 

(ROA) 3.9% and return on used equity 32.1%.

 

 

Lauri Reinberg

Financial Analyst

Tel.	+372 6131 767

E-mail	Lauri.Reinberg@hansa.ee

 

 

Further information:

Tarmo Rooteman

Chief Financial Officer

Tel.	+372 6131 494

E-mail	Tarmo.Rooteman@hansa.ee

 

 

AS HANSAPANK

 

 

Mart Toevere

Analyst

Tel. +372 6131 569