AS SAMPO PANK              FINANCIAL REPORTS            03.11.2004



Business  results of the Consolidated Group of  AS  Sampo  Pank  9

months of 2004





Income Statement



The  net  profit  of  the  Consolidated Group  of  AS  Sampo  Pank

(hereinafter  the Group) for the nine months of 2004 exceeded  the

previous year’s figure by 28.8% or EEK 22.9 million, amounting  to

EEK  102.4  million.  In the conditions of a  moderate  growth  of

operating  expenses, net profit increased due to  the  significant

growth   of  operating  volumes.  The  Group’s  return  on  equity

accounted  for 23.8% (22.2% for the three quarters  of  2003)  and

return on assets 1.7% (1.6%), respectively.



As  compared to the prior year period, the Group’s income improved

by  17%  or  EEK  44.5  million, totaling  EEK  306  million.  The

structure of the Group’s total income was as follows: net interest

income 63.3% (62.6% in the nine-month period of 2003), net fee and

commission  income  24.3% (19.9%), income  from  foreign  exchange

transactions  5.8% (6.8%), income from investments  in  securities

5.4% (7.8%) and other income 1.2% (2.9%).



Net Interest Income



The  Group’s  net interest income for the nine months amounted  to

EEK  193.8  million, an increase of 18.5% or EEK 30.2 million,  as

compared  to the prior year period. Growth in net interest  income

was  primarily supported by the growth of the volume of  the  loan

and  leasing portfolio. Interest income increased by 13.0% or  EEK

33.7  million in 2004. At the same time interest expenses remained

at  the  previous year’s level primarily for the reason  that  the

growth  of  interest  bearing liabilities was compensated  by  the

decline in the latter’s price. Due to a decline in interest  rates

and  intense competition in the banking market return on  interest

earning assets decreased by 0.7 percentage points to 5.3% and  the

price  of  interest bearing liabilities declined by 0.5 percentage

points  to 2.1%, as compared to the prior year period, as a result

of  which  the Group’s interest spread decreased by 0.3 percentage

points to 3.2%.



Non-Interest Income



The  Group’s  non-interest income for the nine months amounted  to

EEK  112.2 million, an increase of 14.6% or EEK 14.3 million  over

the  prior  year  period, mainly due to an  increase  in  fee  and

commission income.



The  Group’s  fee and commission income totaled EEK 91.9  million,

exceeding the prior year’s figure by 27% or EEK 24.9 million. This

increase was mainly derived from a growth of 63% or EEK 13 million

in arrangement fees received from loan and guarantee agreements as

a result of the fast growth of the Group’s loan portfolio. Fee and

commission   income  from  investment  services   also   increased

significantly  (a  growth of 108% or EEK  7.1  million).  Fee  and

commission  expense increased by 17% or EEK 2.5 million  over  the

year,  totaling  EEK  17.5 million. Income from  foreign  exchange

transactions totaled EEK 17.7 million, a decrease of 0.7%  or  EEK

0.1  million  mainly  due  to  a  decrease  in  currency  exchange

transactions in cash executed in offices. Income from  investments

in  securities that amounted to EEK 16.4 million decreased by  20%

or  EEK 4 million chiefly due to the impairment of debt securities

contained in the trading portfolio.



Non-Interest Expense



The   Group’s  non-interest  expense  for  the  nine-month  period

amounted   to  EEK  183.5  million,  whereof  personnel   expenses

accounted  for  55.6% (54.8% in the same period  of  2003),  other

administrative  expenses 34.2% (36.0%), depreciation  7.7%  (6.8%)

and other operating expenses 2.5% (2.5%).



As  compared  to  the prior year period,  personnel  expenses  and

other  administrative  expenses increased  by   8.7%  or  EEK  8.2

million  and  1.9% or EEK 1.1 million, respectively.  Due  to  the

considerably more modest increase in non-interest expenses  (7.2%)

in  comparison  with the growth in income (17%),  cost  efficiency

increased  and  cost/income ratio dropped to 60%  by  the  end  of

September 2004 from 65.2% at the end of September 2003. The  ratio

of   non-interest  expenses  to  average  assets  also   improved,

declining to 3.0% from 3.5%.



Assets



The Group’s total assets amounted to EEK 8.7 billion at the end of

September, an increase of EEK 1.5 billion or 21.2% as compared  to

the  end of 2003. The Group’s assets experienced a growth  of  EEK

1.8 billion or 25.4% over the year.



The  Group’s assets increased mainly due to the growth of the loan

portfolio  which grew by  27.3% or EEK 1.4 billion  in  the  nine-

month  period,  amounting to EEK 6.6 billion  and  accounting  for

75.2% of total assets at the end of September. Loans and leases to

private  persons  totaled EEK 2.8 billion  and  loans  to  private

enterprises  amounted to EEK 3.6 billion at the end  of  September

2004,  accounting for 42.5% and 54.6% of the gross loan portfolio,

respectively.  Loans to private persons increased by 38.2% or  EEK

784.4  during the nine months of 2004 and 56.3% or EEK 1.0 billion

over  the year. Loans to private enterprises increased by  20%  or

EEK 608 million during the nine months of 2004 and by 21.3% or EEK

640 million over the year.



At  the  end  of  September 2004, allowances for  loan  impairment

comprised 1.8% of the gross loan portfolio, as compared to 2.1% at

the  same  time in the prior year. Allowances for loan  impairment

were  formed  in  the amount of EEK 20.9 million during  the  nine

months of 2004, as compared to EEK 12.5 million in the prior  year

period.  The  allowances formed in the nine months  of  2003  were

small  due  to  the  amendments  made to the Group’s  provisioning

principles,  taking  into  account the new  Basel  Capital  Accord

recommendations  as  well as the positive developments  that  have

prevailed in Estonia’s economy in recent years.



Liabilities



The  volume of client deposits amounted to EEK 4.9 billion at  the

end  of  September, an increase of 18% or EEK 883 million  in  the

nine-month period of  2004 and 23.5% or EEK 934 million  over  the

year. The volume of demand and time deposits grew by 18.7% or  EEK

401   million  and  29%  or  EEK  532  million  over   the   year,

respectively.  The  deposits  of private  persons  experienced  an

increase  of  23.9%  or  EEK 238.7 million and  those  of  private

enterprises an increase of 23.6% or EEK 501 million over the year.

The  share  of the deposits of private persons made up 25.2%  (EEK

1.2  billion)  and  that  of private enterprises  53.4%  (EEK  2.6

billion) of total deposits at the end of September



Loans  from  other  banks increased by 40.3% or  EEK  447  million

during  the nine months of 2004, totaling EEK 1.55 billion at  the

end of September.



Owners’ Equity



The  Group’s equity totaled EEK 623.3 million and capital adequacy

was 12.19% as at the end of September 2004.







Consolidated income statement

(unaudited, in thousands)

                                        EEK             EUR

                                     2004 9M 2003 9M 2004 9M 2003 9M



Interest income                      307 129 273 893  19 629  17 505

Interest income from

 banking activities                  232 356 210 283  14 850  13 439

Interest income

 from leasing activities              74 762  63 610   4 778   4 065

Other interest income                     11       0       1       0

Interest expense                     113 326 110 310   7 243   7 050

Interest expense from

 banking activities                  113 279 110 227   7 240   7 045

Interest expense from

 leasing activities                       47      83       3       5

Other interest expense                     0       0       0       0

Net interest income (loss) (+/-)     193 803 163 583  12 386  10 455

Income and expenses

 from insurance activities                 0       0       0       0

Insurance premiums                         0       0       0       0

Insurance compensations and

 change in reserves                        0       0       0       0

Income from securities                     0   1 099       0      70

Equity method gains (losses) (+/-)         0       0       0       0

Profit/loss from sales of

 long-term securities                      0   1 099       0      70

Dividends on long-term securities          0       0       0       0

Net fee and commission income         74 407  52 097   4 755   3 330

Fee and commission income             91 933  67 074   5 876   4 287

Fee and commission expense            17 526  14 977   1 120     957

Net profit (loss) on financial

 operations (+/-)                     34 089  38 270   2 179   2 446

Profit/income                         34 089  38 270   2 179   2 446

Loss/expense                               0       0       0       0

General administrative expenses      164 714 155 381  10 527   9 931

Salaries expense                      76 395  70 419   4 883   4 501

Social security expense               25 525  23 324   1 631   1 491

Pension expense (non-state)                0       0       0       0

Other administrative expenses         62 794  61 638   4 013   3 939

Value adjustments in

 investment property and tangible

 and intangible fixed assets (+/-)  - 14 161- 11 606  -  905  -  742

Profit/income                              0       0       0       0

Loss/expense                          14 161  11 606     905     742

Value adjustments in loans

 and off-balance sheet items (+/-)  - 20 118- 11 837 - 1 286  -  757

Profit/income                            739     654      47      42

Loss/expense                          20 857- 12 491   1 333  -  798

Value adjustments in

 long-term investments (+/-)               0       0       0       0

Income                                     0       0       0       0

Expense                                    0       0       0       0

Other operating income (+/-)          -  889   3 309   -  57     211

Other operating revenue                3 699   7 519     236     481

Other operating expenses               4 588   4 210     293     269

Extraordinary

 income/expenses (+/-)                     0       0       0       0

Extraordinary income                       0       0       0       0

Extraordinary expenses                     0       0       0       0

Profit before taxes (+/-)            102 417  79 534   6 546   5 083

Income tax expenses                        0       0       0       0

Income tax for reporting period            0       0       0       0

Change in deferred

 income tax liability (+/-)                0       0       0       0

Minority share of profits                  0       0       0       0

PROFIT FOR THE

 REPORTING PERIOD (+/-)              102 417  79 534   6 546   5 083









Consolidated balance sheet

(unaudited, in thousands)

                                      EEK               EUR

                                  30.09.04 31.12.03 30.09.0431.12.03



Cash                                57 123    55 659   3 651   3 557

Claims and loans                 7 408 560 6 167 727 473 492 394 189

Claims and loans

 to central bank                   526 808   612 807  33 669  39 165

Claims and loans to

 credit institutions               329 918   404 902  21 086  25 878

Claims and loans to

 clients of credit institution   5 069 511 3 950 372 324 000 252 474

Claims and loans to clients

 of leasing enterprises          1 603 764 1 307 424 102 499  83 559

Claims from insurance and

 reinsurance activities                  0         0       0       0

Other claims                             0         0       0       0

Allowance for claims

 and loans                       - 121 442 - 107 778 - 7 762 - 6 888

Debt securities                    899 533   662 601  57 490  42 348

Shares and other

 securities                         30 318    39 886   1 938   2 549

Investments in associates                0         0       0       0

Other shares                        28 588    37 265   1 827   2 382

Derivatives                          1 730     2 621     111     168

Intangible assets                    7 937     5 659     507     362

Consolidated goodwill                    0         0       0       0

Other intangible assets              7 937     5 659     507     362

Tangible assets                    142 511   141 657   9 108   9 054

Investment property                 12 995    13 239     831     846

Settlements with

 shareholders                            0         0       0       0

Other assets                        97 397    54 163   6 225   3 462

Prepayments and

 accured income                     66 587    57 981   4 256   3 706

TOTAL ASSETS                     8 722 960 7 198 572 557 497 460 071



Amounts owed                     6 484 441 5 157 689 414 430 329 636

Amounts owed to

 the central bank                        0         0       0       0

Amounts owed to the

 credit institutions             1 557 678 1 110 250  99 554  70 958

Amounts owed to the clients

 of credit institutions          4 914 685 4 031 512 314 105 257 660

Amounts owed from insurance

 and reinsurance activities              0         0       0       0

Other amounts owed                  12 078    15 927     772   1 018

Liabilities related

 to securities                     962 821   995 593  61 535  63 630

Issued debt securities             950 583   922 059  60 753  58 930

Derivatives                         12 238    73 534     782    4700

Other liabilities related

 to securities                           0         0       0       0

Other liabilities                  263 970   169 277  16 871  10 819

Accruals and

 deferred income                   139 187   141 296   8 896   9 030

Provisions                               0         0       0       0

Technical provisions for

 insurance activities                    0         0       0       0

Pension reserve                          0         0       0       0

Other provisions                         0         0       0       0

Subordinated liabilities           249 256   213 849  15 930  13 667

Minority interests                       0         0       0       0

Total liabilities                8 099 675 6 677 704 517 662 426 782

Share capital                      323 111   323 111  20 651  20 651

Paid in capital over par            17 081    17 081   1 092   1 092

General banking reserve                  0         0       0       0

Mandatory reserve                    9 025     4 695     577     300

Other reserves                           0         0       0       0

Unrealised rate

 differences                             0         0       0       0

Profit or loss retained            171 651    89 382  10 970   5 713

Profit or loss for

 the financial year                102 417    86 599   6 546   5 535

Own shares                               0         0       0       0

Total owners´equity                623 285   520 868  39 835  33 289

TOTAL LIABILITIES AND

 OWNERS´EQUITY                   8 722 960 7 198 572 557 497 460 071







The full version of AS Sampo Pank Public Interim Report is 

available on Sampo Pank's homepage 

<a href='http://www.sampo.ee/eng/rubriik.html?id=12838.' target='_blank'>http://www.sampo.ee/eng/rubriik.html?id=12838.</a>





Anneli Rõuk

Communication Manager

AS Sampo Pank

tel +372 630 210303