Hansapank                     FINANCIAL RESULTS           08/05/2002 10:00



HANSA-LTB'S FINANCIAL RESULTS, Q2 2002



Hansabank’s Lithuanian subsidiary Hansa-LTB’s net profit for the

second quarter of 2002 was EUR 4.3 million. The bank’s assets

decreased by EUR 30.1 million to EUR 1,102 million during the period.

The bank’s deposit balance and total assets were significantly

influenced by the USD depreciation against the euro as 25% of the

bank’s customer deposits are denominated in USD.



Hansa-LTB’s integration project is coming to its final stretch. During

the second quarter, the bank closed a further 24 branches and by the

end of June 121 branches out of 164 were functioning in the new IT

system and on-line. While closing branches the bank is actively

developing new distribution channels. In the second quarter Hansa-LTB

issued 135,000 new bankcards taking the total to 379,000. The number

of hanza.net users increased by 51,000 to 77,000.





Hansa-LTB clients’ deposits decreased by EUR 24.0 million during the

second quarter 2002 to EUR 965.7 million. 77% of deposits were retail,

13% corporate and 10% public. The bank’s loan portfolio decreased by

EUR 10.8 million during the quarter to EUR 357.1 million. Allowance

for credit losses totalled EUR 8.4 million at the end of June, forming

2.4% of the loan portfolio. At the end of the period total loans

formed 37.0% of clients’ deposits (35.5% in the beginning of the year)

and the net loan portfolio formed 31.6% (29.6%)of total assets. The

amount of loans overdue stood at EUR 44.1 million and non-performing

loans (overdue more than 60 days) totalled EUR 1.1 million, or 0.3% of

the portfolio.



Hansa-LTB earned a net profit of EUR 4.3 million during the second

quarter of the year 2002. The bank’s revenues amounted to EUR 14.0

million during the quarter, of which 61% was formed by net interest

income and 21% net fee income. The bank’s operating expenses amounted

to EUR 14.2 million, including also redundancy costs worth EUR 0.9

million.

In addition to Hansa-LTB’s operating expenses, the Group’s accounts

include the amortisation of goodwill created from the purchase of LTB,

worth EUR 1.2 million per quarter.



1 EUR = 3.45 LTL





Balance Sheet                                                  

(in millions of euros, unaudited)     30.06.02 31.03.02 31.12.01

                                                               

Assets                                                         

Cash                                     43.3     47.4     39.1

Due from Central Bank                    58.5     84.2     76.6

Due from other financial institutions    83.5    114.0    171.8

Treasury securities                     199.8    165.1     57.3

Trading securities                       32.1      8.8      2.8

Investment securities                   266.2    283.9    355.8

Securities purchased under resale           -      0.1        -

agreements

Loans                                   357.1    367.9    337.5

   - Allowances for credit losses        -8.4    -11.1    -11.3

Net loans                               348.7    356.8    326.3

Tangible assets                          49.2     50.4     48.9

Intangible assets                         0.8      0.9      0.7

Prepayments and accrued interest         14.1     14.0     10.8

Other assets                              6.2      6.7     11.3

Total assets                          1,102.4  1,132.3  1,101.5

                                                               

Liabilities                                                    

Due to Central Bank and government        0.3      0.3        -

Due to other financial institutions      19.3     10.9     22.8

Deposits                                965.7    989.7    949.5

   Demand deposits                      533.6    520.6    497.5

   Time deposits                        432.1    469.1    452.0

Accrued liabilities                      11.7     12.7     11.5

Other liabilities                        15.0     32.7     35.8

Total liabilities                     1,012.0  1,046.3  1,019.6

Minority ownership                        0.7      0.7        -

                                                               

Shareholders' equity                                           

Share capital                           102.4    102.4    105.0

Share premium                             2.2      2.2      2.2

Reserves                                  9.4      9.4      8.9

Other reserves                              -        -      0.3

Currency translation reserve              3.8      3.8        -

Retained earnings                       -28.1    -32.5    -34.5

Total shareholders' equity               89.7     85.3     81.8

Total liabilities and shareholders'   1,102.4  1,132.3  1,101.5

equity





Income Statement                                      

(in millions of euros, unaudited)     Q2 2002  Q1 2002

                                                      

Interest income                          13.8     13.9

Interest expense                         -5.3     -5.9

Interest income, net                      8.5      8.0

                                                      

Fee and commission income                 4.9      5.0

Fee and commission expense               -2.0     -1.9

Fees and commissions, net                 2.9      3.0

                                                      

Net result from financial operations      2.1      2.0

Other operating income                    0.6      1.5

Total income                             14.0     14.4

                                                      

Personnel expenses                        7.4      9.2

Data network expenses                     1.1      0.8

Administrative expenses                   2.1      2.2

Other expenses                            1.7      1.3

Depreciation                              1.8      1.5

Total operating expenses                 14.2     15.0

Operating profit before provisions       -0.2     -0.6

Losses on loans and guarantees           -1.6      0.2

Recovered loans                           2.8      2.7

Profit before income tax                  4.3      2.4

Income tax                                0.0      0.0

Net profit                                4.3      2.4





Mart Tõevere

Head of investor relations

+372 6131 569