Hansapank                     FINANCIAL RESULTS                 10/25/2002



HANSABANKA'S FINANCIAL RESULTS, Q3 2002



Hansabank’s Latvian subsidiary A/s Hansabanka earned a consolidated

net profit of LVL 3.9 million in Q3 2002. The respective results in

the first and second quarter were LVL 1.8 million and LVL 2.1 million.

The bank’s consolidated assets decreased by 0.8% during the quarter to

LVL 604.6 million.



Hansabanka’s deposits decreased by 7.9% during the quarter to LVL

435.1 million at the end of September 2002. During the last 12 months

deposits have grown by 20.9%.

Hansabanka’s consolidated loan portfolio amounted to LVL 401.0 million

at the end of September 2002. LVL 119.9 million of this were loans to

SIA Hanza Lizings. Excluding these loans, the bank’s loan portfolio

increased by 5.5% during the last quarter and 35.1% during the last 12

months. Allowance for credit losses totalled LVL 4.68 million at the

end of Q3 2002, forming 1.17% of the loan portfolio. As of September

30 net loans formed 66% of total assets, up from 61% in the beginning

of the year. Loans to deposits ratio increased from 77% in the

beginning of the year to 92% at the end of September.



Hansabanka earned a consolidated net profit of LVL 3.9 million during

Q3 2002. The bank’s consolidated revenues increased 17.2% qoq,

amounting to LVL 11.2 million in Q3. Net fee income grew by 12.2% qoq

while net interest income rose by 7.2% qoq. The bank’s operating

expenses amounted to LVL 5.9 million in Q3 2002, decreasing by 2.3%

qoq. The bank’s net provisions decreased by 30.6% qoq, totalling LVL

0.7 million in Q3 2002.





As at September 30, 2002

1 LVL = 26.359 EEK

1 LVL = 1.685 EUR





HANSABANKA                                                          

BALANCE SHEET                                                       

(LVL in thousands, unaudited,     30.09.02 30.06.02 31.03.02 31.12.01

consolidated)

                                                                    

Cash                                24,870  23,984   21,570   29,400

Due from Central Bank                5,089  15,861   40,406   32,602

Due from credit institutions        67,084  58,725   78,075   68,339

Securities                          67,111  94,204   76,851   67,519

Loans to customers (net)           396,294 370,752  336,936  322,042

    Provisions                     (4,677) (4,419)  (4,765)  (4,317)

Goodwill                             1,525   1,705    1,886    2,067

Fixed assets                        15,538  18,018   17,715   17,185

Accrued interest and other assets   27,109  26,081   21,216   17,519

Total assets                       604,620 609,330  594,655  556,673

                                                                    

Due to Central Bank and              7,301       -        -        -

government

Due to other credit institutions    47,762  27,765   16,102   35,177

Due to other financial                 516     940    1,973    2,059

institutions

Deposits from customers            435,105 472,569  481,897  424,002

    Demand deposits                282,033 304,721  290,054  266,952

    Time deposits                  153,072 167,848  191,843  157,050

Debt securities                          -       -        -        -

Accrued interest and other          44,593  42,578   37,364   39,968

liabilities

Subordinated debt                    6,999   7,016    6,923    6,908

Total liabilities                  542,276 550,868  544,259  508,114

                                                                    

Common stock                        46,043  46,043   40,043   40,043

Capital reserves                       135     135      135      135

Accumulated losses                   8,381   8,381    8,381    2,209

Profit for current year              7,785   3,903    1,837    6,172

Total shareholders’ equity          62,344  58,462   50,396   48,559

Total liabilities and              604,620 609,330  594,655  556,673

shareholders' equity





HANSABANKA                               consolidated             

INCOME STATEMENT                                                  

(LVL in thousands, unaudited)       Q3 2002 Q2 2002 Q1 2002    2001

                                                                  

Interest income                       9,100  9,157   9,019  27,062

Interest expense                     -3,054 -3,517  -3,751 -11,082

Net interest income                   6,046  5,640   5,268  15,980

                                                                  

Fees and commissions, received        3,876  3,422   3,062   9,983

Fees and commissions, paid             -642   -541    -441  -1,500

Fees and commissions, net             3,234  2,881   2,621   8,483

                                                                  

Net result from financial             1,759    846   1,365   7,374

operations

Other income                            196    215     474     758

Total revenue                        11,235  9,582   9,728  32,595

                                                                  

Personnel expenses                    2,145  2,173   2,462   7,106

Data network expenses                   217    280     172   1,090

Administration expenses               1,886  1,732   1,690   5,906

Other operating expenses                421    637     719   2,541

Depreciation                          1,243  1,230   1,253   4,788

Total operating expenses              5,912  6,052   6,296  21,431

Loan losses                             782  1,282   1,296   4,479

Recovered loans                         114    320      92     384

Net profit before taxation            4,659  2,568   2,228   7,069

Tax                                     777    502     391     897

Net profit                            3,882  2,066   1,837   6,172





Mart Tõevere

Head of investor relations

+372 6131 569