HANSAPANK

ANNOUNCEMENT

 

SIGNING OF A LETTER OF INTENT

 

Today, on December 3, 1999 Hansabank's Latvian subsidiary A/S

Hansabanka and the shareholders of Latvian commercial bank A/S

Ventspils Apvienota Baltijas banka (UBB Ventspils) signed a letter of

intent whereby Hansabanka would purchase 100% of UBB Ventspils shares.

The banks hope to sign a binding sales agreement by the end of 1999.

UBB Ventspils is the 12th largest bank in Latvia by assets (LVL 52.2

million) and the 10th largest bank by deposits (LVL 39.2 million). The

pre-tax profit of UBB Ventspils for the first 9 months of 1999 was LVL

1.14 million. Hansapank considers UBB Ventspils to be an efficient and

well-run bank. The bank also has a strong market position in one of

the fastest developing regions in Latvia - Ventspils.

 

As of September 30 Hansabanka was the third largest bank in Latvia

with total assets amounting to LVL 172 million, deposits at LVL 141

million and loans at LVL 75 million. Hansabanka's 9 month profit for

the current year was LVL 820 thousand.

 

 

Additional information:

 

Ingrida Bluma            Indrek Neivelt

Hansabanka               Hansapank

+371 702 4200            +372 613 1372

 

 

Mart Toevere

Analyst

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