HANSAPANK

COMMENTARY TO FINANCIAL RESULTS



LATVIAN HANSABANKA'S FINANCIAL RESULTS, I H-Y 2000



Hansabanka’s result for the first six months of 2000 was a LVL 2.5

million profit. The bank’s assets increased by 60.2% to LVL 321.7

million during the period.



During the first six months of the year Hansabanka’s operating volumes

increased substantially – clients’ deposits increased by LVL 94.9

million, or 57.4% to LVL 260.2 million at the end of June. Demand

deposits increased by 59.2% and term deposits increased by 53.6%.

Through deposit growth, the bank’s assets grew by 60.2% or LVL 120.9

million amounting to LVL 321.7 million at the end of June. A

significant part of the growth came from the merger with Ventspils

UBB, whose deposits amounted to LVL 44.8 million.



Compared to deposit growth Hansabanka’s loan growth in the first six

months of the year remained fairly modest. The loan portfolio grew by

34.5% to LVL 119.3 million. As of June 30 total loans formed just

45.8% of clients’ deposits and the net loan portfolio formed 36.1% of

total assets (42.6% in the beginning of the year). Allowance for

credit losses totalled LVL 3.3 million at the end of June, forming

2.8% of the loan portfolio.



During the first half of the year Hansabanka earned a net profit of

LVL 2.5 million, which exceeds 1999 full-year result by VL 1.5

million. For the first half the bank’s revenues amounted to LVL 11.2

million, up by 53.4% from last year’s same period. Of this LVL 6.2

million was formed by non-interest income and LVL 5.0 million by net

interest income. The bank’s operating expenses amounted to LVL 7.1

million, which is 16.7% higher than a year ago.



As at June 30, 2000 1 LVL = 27.41 EEK





Mart Tõevere

Investor relations

+372 6131 569