Last update: 22.11.2024 14:24 (GMT+2)
AS SAMPO PANK FINANCIAL REPORTS 09.11.2005
Business results of the Consolidated Group of AS Sampo Pank 9 months of 2005
The business results of the Consolidated Group of AS Sampo Pank for the third
quarter of the current year were very good. According to Härmo Värk, Chairman of
the Management Board of Sampo Pank the success is attributable to the fast growth
of the Group's business volumes and the continued expansion of the customer base.
"We have been successful in the areas that are essential for us - client
deposits increased by 50% and our loan and leasing portfolio increased by 49%
over the prior year period, while loans to private persons grew by 57%. The
Group's net profit increased by 40% over the year to EEK 143.7 million, largely
due to the increasing efficiency of the Group's business operations and the fast
growth of business volumes. "
INCOME STATEMENT ANALYSIS
The Group's net profit for the first nine months of 2005 was EEK 143.7 million
(EEK 102.4 m in 2004), an increase of 40.3% over the year. This increase was
primarily derived from the fast growth of business volumes and the low level of
allowances for loan impairment. Return on equity and return on assets accounted
for 27.0% (23.8%) and 1.7% (1.7%), respectively.
Income
The Group's net income totalled EEK 368.5 million (EEK 293.2 m) at the end of Q3
2005, an increase of 25.7% over the year. Net interest income accounted for 63.9%
(66.1%), net fee and commission income 25.2% (25.4%) and income from other
sources 10.9% (8.5%) of net income.
Net Interest Income
The Group's net interest income for the first nine months of 2005 amounted to EEK
235.4 million (EEK 193.8 m), an increase of 21.5% over the year.
Return on interest earning assets decreased to 4.9% (5.4%) in the nine-month
period due to the overall decline in loan interest margins. Expense on interest
bearing liabilities was 2.1% (2.0%). Net interest margin before allowances for
loan impairment was 3.0% (3.3 %).
Non-Interest Income
Non-interest income earned by the Group during the first nine months of 2005
totalled EEK 181.4 million (EEK 129.7m), an increase of 39.9% over the prior year
period. Fee and commission income amounted to EEK 117.6 million (EEK 91.9 m),
income from foreign exchange and financial transactions totalled EEK 24.4 million
(EEK 17.7 m) and EEK million 23.5 (EEK 12.8 m), respectively.
The fastest growth was reported in fee and commission income from investment
services that amounted to EEK 28.5 million (EEK 13.8 m) at the end of Q 3 2005,
accounting for 24.2% (15.0%) of the Group's total fee and commission income.
Operating Expenses
The Group's operating expenses for the first nine months of 2005 totalled EEK
239.8 million (EEK 183.5 m), an increase of 30.7% over the prior year period.
Personnel expenses amounted to EEK 122.3 million (EEK 101.9 m), an increase of
20.0%. Other administrative expenses for the first three quarters of 2005
totalled EEK 96.0 million (EEK 62.8 m), an increase of 52.8%. Depreciation for
the nine-month period totalled EEK 16.2 million (EEK 14.2 m) and other operating
expenses amounted to EEK 5.3 million (EEK 4.6 m).
Growth in other administrative expenses is attributable to the expansion of the
office network, investments made in information technology and increased
advertising expenses.
The Group's cost/income ratio of the nine-month period of 2005 was 61.2% (60.0%).
BALANCE SHEET
The Group's total assets amounted to EEK 12.9 billion (EEK 8.7 bn) at the end of
September 2005, an increase of 47.4% over the year and an increase of 32.5% or
EEK 3.2 billion, as compared to the end of 2004.
Assets
The Group's loan and leasing portfolio totalled EEK 9.8 billion (EEK 6.6 bn) at
the end of September 2005, an increase of 49.6% over the year. Loans and leases
to private persons amounted to EEK 4.4 billion (EEK 2.8 bn) and those to private
enterprises totalled EEK 5.2 billion (EEK 3.6 bn) at the end of Q3 2005.
The Group's loan and leasing portfolio increased by 36.5% or 2.6 billion during
the nine-month period, while the portfolio of private persons grew by 42.4% and
that of private enterprises by 31.8%.
The ratio of the allowances for loan impairment to the gross loan portfolio was
1.1% (1.8%) at the end of September. Allowances for loan impairment formed in the
nine-month period of 2005 totalled EEK 4.8 million (EEK 20.7 m).
Liabilities
The Group's client deposits totalled EEK 7.4 billion (EEK 4.9 bn) at the end of
September 2005, an increase of 49.6% over the year. Demand deposits totalled EEK
3.4 billion (EEK 2.5 bn), an increase of 33.1%. Time deposits amounted to EEK 4.0
billion (EEK 2.4 bn), an increase of 67.4%.
Deposits of private persons totalled EEK 1.8 billion (EEK 1.2 bn) and those of
private enterprises amounted to EEK 4.4 billion (EEK 2.6 bn) at the end of
September 2005, an annual increase of 49.0% and 65.9%, respectively.
Interest bearing liabilities amounted to EEK 11.5 billion (EEK 7.7 bn) at the end
of Q 3 2005, an increase of EEK 3.8 billion or 50.1% over the year.
Owners' Equity
The Group's equity totalled EEK 772.4 million (EEK 623.3 m) at the end of
September 2005, as compared to EEK 628.6 million at the end of December 2004.
The Group's capital adequacy was 11.0% (12.2%) at the end of September 2005.
Consolidated income statement
(unaudited, in thousands)
EEK EEK EUR EUR
2005 2004 2005 2004
Interest income 391 910 307 129 25 048 19 629
Interest income from banking activities 297 379 232 356 19 006 14 850
Interest income from leasing activities 94 521 74 762 6 041 4 778
Other interest income 10 11 1 1
Interest expense 156 463 113 326 10 000 7 243
Interest expense from banking activities 156 444 113 279 9 999 7 240
Interest expense from leasing activities 19 47 1 3
Other interest expense 0 0 0 0
Net interest income (loss) (+/-) 235 447 193 803 15 048 12 386
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 2 0 0 0
Equity method gains (losses) (+/-) 0 0 0 0
Profit/loss from sales of long-term securities 2 0 0 0
Dividends on long-term securities 0 0 0 0
Net fee and commission income 92 719 74 407 5 926 4 755
Fee and commission income 117 615 91 933 7 517 5 876
Fee and commission expense 24 896 17 526 1 591 1 120
Net profit (loss) on financial
operations (+/-) 53 134 34 089 3 396 2 179
Profit/income 53 134 34 089 3 396 2 179
Loss/expense 0 0 0 0
General administrative expenses 218 253 164 714 13 949 10 527
Salaries expense 91 852 76 395 5 870 4 883
Social security expense 30 437 25 525 1 945 1 631
Pension expense (non-state) 0 0 0 0
Other administrative expenses 95 964 62 794 6 133 4 013
Value adjustments in investment property
and tangible and intangible
fixed assets (+/-) - 16 184- 14 161 - 1 034 - 905
Profit/income 0 0 0 0
Loss/expense 16 184 14 161 1 034 905
Value adjustments in loans and
off-balance sheet items (+/-) - 8 468- 20 118 - 541 - 1 286
Profit/income 978 739 63 47
Loss/expense 9 446 20 857 604 1 333
Value adjustments in long-term investme 0 0 0 0
Income 0 0 0 0
Expense 0 0 0 0
Other operating income (+/-) 5 329 - 889 341 - 57
Other operating revenue 10 671 3 699 682 236
Other operating expenses 5 342 4 588 341 293
Extraordinary income/expenses (+/-) 0 0 0 0
Extraordinary income 0 0 0 0
Extraordinary expenses 0 0 0 0
Profit before taxes (+/-) 143 726 102 417 9 186 6 546
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 (+/-) 143 726 102 417 9 186 6 546
Consolidated balance sheet
(unaudited, in thousands)
EEK EEK EUR EUR
30.09.05 31.12.04 30.09.05 31.12.04
Cash 67 201 54 769 4 295 3 500
Claims and loans 11 079 482 8 185 271 708 106 523 133
Claims and loans to central bank 527 899 500 180 33 739 31 967
Claims and loans to credit institutions 757 872 503 326 48 437 32 168
Claims and loans to clients of credit
institution 9 914 200 5 565 782 633 631 355 717
Claims and loans to clients of leasing
enterprises 0 1 736 683 0 110 994
Claims from insurance and reinsurance
activities 0 0 0 0
Other claims 0 0 0 0
Allowance for claims and loans - 120 489 - 119 687 - 7 701 - 7 649
Debt securities 1 312 500 1 125 912 83 884 71 959
Shares and other securities 85 257 35 290 5 449 2 255
Investments in associates 0 0 0 0
Other shares 28 978 29 607 1 852 1 892
Derivatives 56 279 5 683 3 597 363
Intangible assets 7 667 9 615 490 615
Consolidated goodwill 0 0 0 0
Other intangible assets 7 667 9 615 490 615
Tangible assets 135 522 143 749 8 661 9 187
Investment property 12 670 12 914 810 825
Settlements with shareholders 0 0 0 0
Other assets 42 910 53 908 2 742 3 445
Prepayments and accured income 110 616 79 249 7 070 5 065
TOTAL ASSETS 12 853 825 9 701 690 821 507 620 049
Amounts owed 10 500 182 8 137 045 671 082 520 051
Amounts owed to the central bank 0 0 0 0
Amounts owed to the credit institutions 3 140 866 3 015 836 200 737 192 747
Amounts owed to the clients of credit
institutions 7 351 104 5 110 060 469 820 326 592
Amounts owed from insurance and reinsurance
activities 0 0 0 0
Other amounts owed 8 212 11 149 525 713
Liabilities related to securities 707 955 331 442 45 246 21 183
Issued debt securities 681 549 284 618 43 559 18 190
Derivatives 26 406 46 824 1688 2993
Other liabilities related to securities 0 0 0 0
Other liabilities 336 434 198 169 21 502 12 665
Accruals and deferred income 186 548 157 115 11 923 10 041
Provisions 0 0 0 0
Technical provisions for insurance activiti 0 0 0 0
Pension reserve 0 0 0 0
Other provisions 0 0 0 0
Subordinated liabilities 350 342 249 281 22 391 15 932
Minority interests 0 0 0 0
Total liabilities 12 081 461 9 073 052 772 144 579 872
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
Revaluation reserve 0 0 0
Mandatory reserve 14 413 9 025 921 577
Other reserves 0 0 0 0
Unrealised rate differences 0 0 0 0
Profit or loss retained 274 033 171 651 17 514 10 970
Profit or loss for the financial year 143 726 107 770 9 186 6 888
Own shares 0 0 0 0
Total owners' equity 772 364 628 638 49 363 40 177
TOTAL LIABILITIES AND OWNERS' EQUITY 12 853 825 9 701 690 821 507 620 049
Business results of the Consolidated Group of AS Sampo Pank 9 months of 2005 is
available on Sampo's Internet home page:
<a href='http://sampo.ee/eng/rubriik.html?id=15527' target='_blank'>http://sampo.ee/eng/rubriik.html?id=15527</a>
Anneli Rõuk
Communication Manager
Tel +372 630 2103
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