AS EESTI FOREKSPANK

ANNOUNCEMENT

12.12.98

 

 

9 MONTHS FINANCIAL RESULTS OF EESTI FOREKSPANGA GRUPP

 

As at 30.11.98, the balance sheet volume of Eesti Forekspank 

group was 1.98 billion EEK, and the 9 months loss was 98.8 

million EEK. The profit of the Eesti Forekspank group before 

the losses from the securities investments and investments to 

Russia was 13.4 million EEK. Among the larger subsidiaries, AS 

Foreks Liising earned 6.6 million EEK and AS Foreks Varahaldus 

75.6 thousand EEK profit, and the losses of AS Foreks Arendus 

and AS Foreksi Väärtpaberid were 1.1 million EEK and 261 

thousand EEK, respectively.

 

Considering a significant share of non-residents in the total 

volume of deposits, the general worsening of an economic 

climate in Estonia, Russia, and other countries has influenced 

the volume of the group’s deposits. During the 9 months of 

current year, the group’s balance sheet volume has decreased by 

563.5 million EEK. The group’s interest-bearing foreign capital 

was at the end of September 1.51 billion EEK, decreasing in 9 

months by 502.0 million EEK (25.0%). The clients’ deposits 

amounted at the end of September 943.5 million EEK, or 62.6% of 

the interest-bearing foreign capital, decreasing by 579.9 

million EEK (38.1%) in 9 months. At the end of September, the 

volumes of the clients’ demand and term deposits were 

respectively 604,2 and 339,3 million EEK. During the period, 

the demand deposits decreased by 591.6 million EEK (49.5%), and 

term deposits increased by 11.7 million EEK (3.6%). In 9 

months, in the section of foreign capital, the loans from banks 

have increased by 31.7 million EEK (8.6%), and government loan 

funds by 79.2 million EEK (10.3 times). At the end of 

September, the loans from other banks totaled 401.3 million 

EEK, or 26.6% of the interest-bearing liabilities.

 

The group’s share capital and capital surplus increased due to 

the share issuance in August by 12,5 million EEK (30,4%) and 

47,5 million EEK (263,5%). At the end of September, the total 

owners’ equity of a group was 136.5 million EEK, or 6.9% of the 

group’s assets.

 

Among the assets, the demand and term deposits in other banks 

decreased by 498.7 million EEK (80.5%), current securities 

investments by 25.5 million EEK (14.5%), net loan portfolio by  

39,6 million EEK (3.9%), and other assets by 52.9 million EEK 

(34.2%). The increase in the non-current securities investments 

on the balance sheet as at the end of September was due to the 

purchase of the Eesti Investeerimispank shares in the value of 

113,88 million EEK, which were resold to the Bank of Estonia in 

October 1998. The loan provisions for doubtful loans amounted 

4.1% of the gross loan portfolio at the end of September.

 

 

During the first 9 months of 1998, Eesti Forekspank group had 

86.3 million EEK loss from the securities investments, whereas 

starting from September, the investments in the Russian and 

Ukrainian securities are considered to have a zero-value on the 

balance sheet. In the securities loss section, the unrealized 

share amounted 43.4 million EEK, and realized share 42.9 million 

EEK.

 

The 9 months 1998 total income of Eesti Forekspank group was 

167.4 million EEK, of which the gross interest income after 

loan provisions was 45,0% (at the same period year ago 22,4%), 

commissions and fees received 29,9% (21,2%), income from the 

currency exchange operations 14,6% (16,6%) and other income 

10,5% (12,7%). Compared with the last year’s 9 months, the 

gross interest income after the loan provisions increased by 

20,1 million EEK (36,4%), whereas the interest income increased 

by 69,6 million EEK (70,5%) and interest expenses increased by 

30,5 million EEK (86,3%) from the last year. At the same time, 

the loan provisions increased 3,3 times, being 27,1 million EEK 

at the end of September.

 

The commissions and fees received decreased by 2.2 million EEK 

(4.1%), income from the currency exchange operations by 16.7 

million EEK (40.6%), and other income by 13.8 million EEK 

(43.8%). The non-interest income decreased a total of 99.3 

million EEK (51.9%).

 

The non-interest expenses of a group amounted 155.4 million 

EEK. Compared with the last year, the expenses have increased 

by 44.3 million EEK, or 39.9%. Of the non-interest expenses, 

the administrative expenses increased by 4.5 million EEK, or 

10.1 % compared with the same period last year. At the same 

time, other expenses increased by 18.0 million EEK, or 10.3 

times. 

 

In the 9 months standings of the current year, among the non-

interest expenses, the personnel expenses counted for 30,3% (in 

1997, 32,7%), administrative expenses 25,4% (39,6%), 

commissions and fees paid 6,2% (11,7%), other expenses 12,8% 

(1,7%), and revaluation of assets and general provisions 25,3% 

(14,3%). 

 

The 9 months return on owners’ equity of Eesti Forekspank group 

was –123%, and return on assets –8,0%.

 

 

Budget and Planning Department

Optiva Pank (AS Eesti Forekspank / AS Eesti Investeerimispank)

Tel. +372 6 302 103