Last update: 01.07.2024 02:10 (GMT+3)
AS HANSAPANK
ANNOUNCEMENT
11.03.99
APPENDIXES TO FINANCIAL STATEMENTS 12/98
Financial highlights
GROUP BANK
Increase/ Increase/
decrease decrease
1998 1997 1998/97 1998 1997 1998/97
At year end (EEK in millions)
Net interest income 1,023.7 591.4 73.1% 565.7 366.5 54.4%
Non-interest income 764.0 708.2 7.9% 567.5 564.5 0.5%
Income before
appropriations
and income tax (59.3) 569.6 -110.4% 16.3 451.2 -96.4%
Net income (60.5) 446.1 -113.6% 31.1 365.8 -91.5%
Per common share (EEK)
no of shares (yearly average)
Earnings per share (1.3) 11.7 -110.8%
Market price, end of
Year 49.9 138.9 -64.1%
Book value, end of year 53.3 30.1 76.9%
Capital ratios (%)
Shareholders' equity
to total assets 15.1% 8.0% 89.9% 19.5% 10.6% 84.6%
Asset yield 6.0% 11.4% -47.5% 5.6% 11.6% -51.7%
Return on equity -2.8% 44.6% -106.4% 1.6% 42.7% -96.3%
Return on assets -0.3% 4.1% -107.1% 0.2% 4.8% -95.6%
Profit margin -4.9% 35.7% -113.6% 3.8% 41.1% -90.8%
Net interest margin 4.9% 5.4% -8.6% 3.8% 4.8% -20.0%
Net non-interest margin -1.9% 1.1% -268.3% -1.1% 2.3% -149.9%
Tier 1 capital ratio 16.8% 10.0% 67.7% 16.9% 9.0% 87.8%
Total capital ratio 19.0% 11.9% 59.7% 19.1% 10.7% 78.7%
At year end (EEK in millions)
Loans 16,792.9 7,576.0 121.7% 12,183.4 5,059.0 140.8%
Other interest-earning
assets 5,129.9 3,761.0 36.4% 4,897.6 2,703.8 81.1%
Total assets 27,690.2 14,428.2 91.9% 21,284.8 9,601.1 121.7%
Deposits 14,745.8 7,004.3 110.5% 12,367.0 5,560.1 122.4%
Common stock 787.6 382.4 106.0% 787.6 382.4 106.0%
Total shareholders'
equity 4,194.5 1,151.1 264.4% 4,151.9 1,014.5 309.3%
No of employees 3,822.0 1,184.0 222.8% 1,882.0 779.0 141.6%
No of bank branches 159.0 31.0 412.9% 136.0 26.0 423.1%
Net interest income
GROUP BANK
(EEK in millions) 1998 1997 1998 1997
Interest income
Loans 910.4 426.4 862.0 454.7
Bank deposits and loans 62.8 64.2 35.6 52.9
Correspondent accounts 57.7 16.6 56.5 10.4
Securities portfolio 87.1 91.1 121.9 53.3
Repos 48.8 21.7 32.2 20.4
Leasing 622.4 283.6 0.0 0.0
Other 5.3 0.0 0.0 0.0
Total interest income 1794.5 903.6 1108.2 591.7
Interest expenses
Deposits 405.9 179.1 369.2 141.3
Demand deposits 149.3 71.5 139.6 45.4
Time deposits 256.6 107.5 229.6 95.9
Bank deposits and loans 240.5 87.9 116.9 73.7
Securities 117.5 40.5 55.5 9.6
Other 6.9 4.8 0.9 0.6
Total interest expense 770.8 312.2 542.5 225.2
Net interest income 1023.7 591.4 565.7 366.5
Net interest margin % 4.94% 5.41% 3.8% 4.8%
Trading income
GROUP BANK
(EEK in millions) 1998 1997 1998 1997
Foreign exchange 217.0 174.1 139.6 135.4
Bonds (170.7) 10.6 (146.2) 3.9
Trading equities (8.6) 16.4 (22.3) 14.3
Investment equities (11.5) 31.7 (11.5) 31.7
Derivatives 108.3 61.4 120.1 56.1
Swaps,forwards 151.2 20.4 163.5 20.4
Options,futures (42.9) 41.0 (43.4) 35.7
Other 25.6 0.0 20.4 0.0
Provisions (32.3) 0.0 (30.7) 0.0
Total trading income 127.8 294.2 69.4 241.4
Fees and commissions
GROUP BANK
(EEK in millions) 1998 1997 1998 1997
Transfers 99.2 63.8 72.5 49.9
Cash services 47.4 33.7 34.2 25.4
Loan management and guarantees 74.6 53.8 64.3 47.5
Leasing 50.4 39.3 0.0 0.0
Electronic services 128.3 57.0 109.5 48.8
- Bank cards 106.4 43.7 96.8 43.7
- Telebanking 21.9 13.3 12.7 5.1
Custody 16.1 11.3 13.0 9.1
Brokerage and investment
services 25.4 52.4 48.1 64.2
Other 70.0 53.2 39.8 23.2
Total fees and commissions 511.4 364.4 381.4 268.1
Service fees paid
GROUP BANK
(EEK in millions) 1998 1997 1998 1997
Settlements 18.7 17.1 15.2 11.5
Loan management and guarantees 16.3 10.0 6.8 8.2
Electronic card services 36.0 22.1 32.9 21.6
Securities transaction fees 22.7 17.7 19.6 11.1
Management consultancy 18.4 17.7
Payments to the Deposit
Guarantee Fund 29.9 29.9
Other 33.3 10.3 21.6 8.7
Total service fees 156.9 95.6 126.0 78.8
Personnel expenses
GROUP BANK
(EEK in millions) 1998 1997 1998 1997
Salaries and compensations 297.7 149.8 172.6 87.8
Bonuses 28.2 41.7 14.5 34.3
Payroll taxes 96.4 43.9 58.4 29.2
Total personnel expenses 422.3 235.4 245.5 151.3
Administrative expenses
GROUP BANK
(EEK in millions) 1998 1997 1998 1997
Maintenance 37.8 26.1 22.7 13.2
Rent for premises 37.9 26.3 32.5 20.5
Supplies 34.7 12.6 17.4 7.9
Communications 44.5 27.0 19.0 13.5
Professional services 77.4 21.8 35.9 8.9
Insurance 5.5 4.3 4.0 2.8
Security 19.5 10.8 13.4 10.1
Encachement 14.7 14.7
Other 70.2 17.9 34.6 10.7
Total administrative
expenses 342.2 146.7 194.2 87.6
Other expenses
GROUP BANK
(EEK in millions) 1998 1997 1998 1997
Business trips 9.8 7.6 6.4 6.2
Training 10.4 7.4 7.1 5.3
Advertising and PR 30.9 28.0 15.0 14.2
Promotion 12.8 4.9 5.0 4.0
Amortisation of goodwill 102.7 0.0 85.5 0.0
Impairment charges 0.0 3.1 0.0 3.0
Other 28.7 28.3 10.6 11.9
Total other expenses 195.3 79.3 129.6 44.6
Distribution of Loans by Product
GROUP
December 31 (EEK in millions) 1998 1997
Overdraft 1,298.7 713.0
Factoring 310.6 301.3
Capital leases 5,350.2 2,472.1
Loans 9,833.4 4089.6
Gross lending to customers 16,792.9 7,576.0
Specified loan-loss provisions 554.5 54.9
Gross lending after specified
loan-loss provisions 16,238.4 7,521.1
Unspecified loan-loss
provisions 185.6 44.6
Net lending to non-financial
customers 16,052.8 7,476.5
*Starting from 1998 Hansabank forms only specified loan provisions
´
Structure of the loan portfolio by industries
December 31 GROUP BANK
(EEK in millions) 1998 % 1997 % 1998 % 1997 %
Wholesale and retailing 2,925.7 17.4% 1,662.2 21.9% 1,398.4 11.5% 992.7 9.6%
Transport and communications
1,872.8 11.2% 1,149.0 15.2% 488.0 4.0% 149.2 2.9%
Construction and property management
607.0 3.6% 865.6 11.4% 292.7 2.4% 448.7 8.9%
Real estate management and other business services
2,115.7 12.6% 1,125.6 9.2%
Private individuals 3,217.6 19.2% 848.6 11.2% 2,564.1 21.0% 675.0 13.3%
Industry 3,468.4 20.7% 1,796.3 23.7% 1,767.0 14.5% 859.5 17.0%
Finance and insurance 323.2 1.9% 366.7 4.8% 3,055.9 25.1% 1,384.9 27.4%
Energetics 403.1 2.4% 228.4 3.0% 323.1 2.7% 212.6 4.2%
Hotels and restaurants 209.0 1.2% 99.1 1.3% 192.9 1.6% 78.0 1.5%
Medicine 24.1 0.1% 59.0 0.8% 24.1 0.2% 14.6 0.3%
Government entities 372.9 2.2% 40.8 0.5% 233.4 1.9% 7.9 0.2%
Other 1,253.4 7.5% 460.3 6.1% 718.2 5.9% 235.9 4.7%
Total 16,792.9 100% 7,576.0 100% 12,183.4 100% 5,059.0 100%
Allowance for credit losses
GROUP BANK
December 31
(EEK in millions) 1998 1997 1998 1997
Balance, beginning of year 99.5 58.9 64.7 39.3
Hoiupank's balance at the
time of merger 263.5 189.3
Write-offs -212.3 -20.2 -112.3 -11.3
Provision for loan losses* 590.4 58.7 320.1 36.7
Effect of exchange rate
changes -1.0 2.1
Balance, end of year 740.1 99.5 461.8 64.7
Recoveries during the year 49.0 3.9 16.6 3.0
* The provisions shown in the income statement also include
provisions made for guarantees in the total amount of EEK 3.9
million, which however are not included in the allowances for
credit losses, but are recorded separately under accrued
liabilities.
Loans overdue
December 31 GROUP BANK
(EEK in millions) 1998 1997 1998 1997
Up to 30 days 385.1 na 267.0 142.6
31 to 60 days 114.5 na 58.5 5.7
Over 60 days 175.2 na 138.0 61.3
Total loans overdue 674.7 na 463.5 209.6
Proportion of loans
overdue in the loan portfolio 4.02% na 3.80% 4.14%
Proportion of allowance for credit
losses in the average loan portfolio 4.41% 1.31% 3.79% 1.28%
Starting from 1998 Hansabank changed the calculation method of overdue loans.
This table includes comparable figures Also for earlier periods. Hansapank
includes in the calculation all loans with overdue interest or principal
payments. For these loans Hansapank shows the outstanding balance.
Tangible and intangible assets
December 31, 1998 GROUP
(EEK in millions)
Land Buildings Equipment Intangibles Construction Total
Cost 5.5 300.4 313.3 27.6 9.5 656.3
Accumulated depreciation (20.6) (123.8) (9.2) (153.6)
Opening net book
value, Dec. 31, 1997 5.5 279.8 189.5 18.4 9.5 502.7
Additions 11.7 183.8 20.9 55.0 271.4
Additions due to
acquisition 189.2 164.5 9.3 17.0 380
Disposals (26.6) (18.5) (45.1)
Impairment charge (13.0) (13.0)
Depreciation charge (32.2) (95.8) (15.0) (143)
Exchange rate adjustments
(0.2) (3.5) (2.2) (5.9)
Closing net book value 5.3 418.4 408.3 33.6 81.5 947.1
Goodwill
GROUP BANK
December 31
(EEK in millions) 1998 1997 1998 1997
Balance at the beginning
of the year 0.0 0.0 0.0 0.0
Increase during the year 857.9 820.8
of which merger related
goodwill 857.9 820.8
Amortisation (102.7) (85.5)
of which merger related
goodwill (102.7) (85.5)
Balance at the end of the
year 755.2 0.0 735.3 0.0
Off-balance sheet financial instruments
GROUP BANK
1998 1998
December 31
(EEK in millions)
nominal credit risk weighted NV CE RWV
value equivalent value
Guarantees 1,161.6 1,150.6 991.5 3,577.6 3,577.6 3,424.9
Undisbursed loans 1,313.8 749.2 648.0 1,132.2 566.1 468.3
Letters of credit 434.6 144.0 141.4 244.4 48.9 47.6
Derivatives 14,284.1 601.4 159.2 11,638.2 554.9 150.1
up to 1 year 8,903.9 151.7 46.5 7,402.4 140.2 56.8
over 1 year 5,380.2 449.7 112.7 4,235.8 414.7 93.3
Total off-balance sheet
financial instruments 17,194.1 2,645.2 1,940.1 16,592.4 4,747.5 4,090.9
Additional information:
Mart Toevere
Analyst
Tel. +372 6131 569
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