AS HANSAPANK

ANNOUNCEMENT

19.07.99

 

HANSABANKA’S SEMI-ANNUAL RESULTS

 

 

Hansabanka’s result for the first half of 1999 was a LVL 0.43 

million 

profit. The bank’s assets increased by 18.3% to LVL 171.2 million 

during the period.

 

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

volumes 

increased substantially – clients’ deposits increased by LVL 33.7 

million, or 30.4% to LVL 144.6 million at the end of June. Whereas 

due 

to decreasing interest rates the growth has come from demand 

deposits, 

while the volume of term deposits has decreased by 1.0%. The volume 

of 

demand deposits amounted to LVL 112.2 million at the end of June, 

up 

by 43.6% from the beginning of the year. Through deposit growth, 

the 

bank’s assets grew by 18.3% or LVL 26.6 million during the first 

half 

of the year, amounting to LVL 171.2 million at the end of June.

 

In the light of the unstable macroeconomic situation, Hansabanka’s 

loan growth in the first half of the year remained very modest. 

Over 

the six months, the loan portfolio grew by 0.3% to LVL 62.3 

million. 

At the same time the bank continued its conservative approach 

towards 

provisioning whereby the loan loss reserve increased to LVL 4.4 

million, forming 7.1% of the loan portfolio. At the end of June the 

net loan portfolio formed 33.8% of total assets (40.2% in the 

beginning of the year). As a result of a rapid deposit growth and a 

minimal loan growth, the share of liquid assets in total assets 

increased substantially. Funds in other banks and the securities 

portfolio (excl. the investment portfolio) increased by to LVL 63 

million (37% of total assets) by the end of June, up by 62% from 

the 

beginning of the year.

 

For the first half of the year, the bank’s revenues amounted to LVL 

6.89 million. Of this LVL 4.51 million was formed by non-interest 

income and LVL 2.39 million by interest income after provisions. 

The 

bank’s operating expenses amounted to LVL 6.46 million in the first 

half.

 

As at June 30, 1999 1 LVL = 25.21467 EEK

 

AS HANSAPANK

 

 

Mart Toevere

Analyst

Tel. +372 6131 569