HANSABANK

ANNOUNCEMENT

21.10.99

 

 

HANSA CAPITAL GROUP'S 9-MONTH FINANCIAL RESULTS 

 

Financial Highlights

 

                                                 9 m 1999          1998    9 m 1998

At period end (in EEK, millions)

Total assets                                      7,353.20     6,754.40     7,126.50

Financial investments                             6,352.90     6,034.60     5,846.70

  Leasing                                         5,469.90     5,350.20     5,235.00

  Factoring                                          395.4        279.8        240.4

  Loans                                                397        341.4        294.3

  Assignement                                         69.5         32.3         43.2

  Consumer factoring                                    21         30.8         33.7

Provisions                                          -270.1       -185.6        -44.1

Debt capital                                      6,410.00     6,165.10     6,356.00

Equity                                               345.7        177.1        196.3

For the period (in EEK, millions)

Net interest income                                  311.5        337.1        218.6

Net commission income                                 53.9         44.5         32.6

Other operating income (net)                          30.7           15           17

Net financial income                                  -7.1           44         22.2

Total operating income                                 389        440.5        290.4

Net profit                                           162.7        152.1       164,5

NIM                                                  5,9%         5.80%        5.60%

ROA                                                  3.10%        2.70%        4.20%

Interest yield on average assets                    11,7%        12.10%       11.60%

Average cost of interest-bearing liabilities         6.50%        7.10%        6.80%

Number or employees                                    306          247          229

 

 

During the first nine months of 1999, Hansa Capital Group's total 

assets increased by 8.9%, i.e. by EEK 598.8 million, to EEK 7,353.2 

million as at the end of September. Group’s net income for the first 

nine months amounted to EEK 162.7 million.

 

Group’s net income decreased by EEK 1.8 million compared with a net 

income of EEK 164.5 for the same period last year. The decrease is 

primarily due to significantly increased provisions and write-offs, 

reflecting a downturn in the transport sector. Provisions charged to 

income amounted to EEK 72.7 million in the first nine months of 1999 

(compared with EEK 23.2 million for the same period last year). The 

actual write-offs constituted EEK 47.5 million or 1.0% (annualised) of 

average financial investments (in 1998 write-offs were 23.9 million or 

0.5% of average financial investments).

Group’s leasing overdue portfolio share in total leasing portfolio has 

decreased from 18.5% as at the end of June to 17.6% as at the end of 

September. At the same time more than 30 days overdue portfolio share 

in total leasing portfolio has decreased from 7.1% to 6.9%.

2(4)

The Group's total operating revenue in the first nine months of 1999 

was EEK 389.0 million. When compared to the total income for the same 

period last year, the Group's income has increased by EEK 98.6 

million, i.e. 34.0%. The composition of total income was the 

following: 80.0% net interest income, 13.9% net fees and commissions, 

–1.8% net financial income, and  7.9% net other operating income.

Net interest income for the first nine months totaled EEK 311.5 

million, which exceeds the last year’s comparable result by 42.5%. 

When compared to last year’s 9-month period, interest income has risen 

by 37.1% and interest expenses by 32.0%.

Due to involving relatively low-cost funding, the average cost of 

interest-bearing liabilities decreased from 7.1% in whole 1998 to 6.5% 

in the first nine months of 1999. On the other side, interest yield on 

average assets fell from last year's 12.1% to 11.7%.  As a result the 

Group's net interest margin (NIM) increased to 5.9% from last year’s 

level at 5.8%.

Group's return on average assets has improved to 3.1% in the first 

nine months of 1999, up from 2.7% for the whole of last year.

During the first nine months of 1999, Hansa Capital Group's total 

assets increased by 8.9%, i.e. in absolute terms by EEK 598.8 million, 

to EEK 7,353.2 million as at the end of September. The increase in 

assets primarily resulted from an increase in leasing and factoring 

receivables as well as in prepayments to suppliers (which will turn 

into the leasing portfolio in the near future), which was partially 

offset by a decrease in the consumer factoring portfolio.

Group’s financial investments increased by EEK 318.3 million, i.e. 

5.3% during the period and amounted to EEK 6,352.9 at the end of 

September.

The leasing portfolio makes up the largest share of financial 

investments – 86.1%. From the beginning of the year, the leasing 

portfolio has increased by EEK 119.7 million, i.e. by 2.2%. At the 

same time prepayments to suppliers increased by EEK 267.3 million, 

i.e. by 108.9%. New lease originations amounted to EEK 1,883.8 million 

in the first nine months of 1999. The most credited sector as at the 

end of September was transport (32.0%), followed by industry (14.1%), 

trade (12.8%) and business services (9.6%).

The factoring portfolio increased by EEK 115.6 million, i.e. 41.3%, to 

EEK 395.4 million. The loan portfolio increased by EEK 55.5 million 

(16.3%). Assignment receivables more than doubled, reaching EEK 69.5 

million by the end of the period. The consumer factoring portfolio 

decreased by 9.8 million (31.8%), amounting to EEK 21.0 million.

The fastest growth was in the Latvian financial investments portfolio 

(growth 156.9 million or 19.1%), followed by the Estonian portfolio 

(growth 155.7 million or 3.8%) and Lithuanian portfolio (51.7 million 

or 6.8%).  The Ukrainian and Russian portfolio decreased by 26.8 

million (5.6%). 

The Group's interest-bearing liabilities increased by EEK 244.9 (4.0%) 

during the first nine months of the year and amounted to EEK 6,410.0 

million by the end of the period. Loans from financial institutions 

continue to form the largest part of interest-bearing liabilities 

3(4)

(83.1%).

Shareholders’ equity grew by EEK 168.6 million, or 95.2%, to EEK 345.7 

million during the first nine months of 1999.

 

 

Further information:

Lauri Reinberg

Financial Analyst

Phone:	+372 6131 767

E-mail:	Lauri.Reinberg@hansa.ee

 

HANSABANK

 

 

 

Mart Toevere

Analyst

Tel. +372 6131 569

 

 

 

 

Income statement

(in EEK, millions)                     9 m 1999          1998    9 m 1998

Interest income                            617.8        677.5        450.8

Interest expenses                          306.3        340.4        232.1

Net interest income                        311.5        337.1        218.6

Commission income                           65.1         59.8         40.2

Commission expenses                         11.2         15.4          7.6

Other operating income (net)                30.7           15           17

Net financial income                        -7.1           44         22.2

Total operating income                       389        440.5        290.4

Staff costs                                   47         59.6         42.2

Other administrative expenses               33.1         33.8         18.8

Depreciation                                 4.8          3.5          2.2

General and administrative expenses         84.9           97         63.3

Provisions for doubtful receivables         72.7        162.7         23.2

Write-offs                                  47.5         23.9         -2.1

Provisions for credit losses               120.2        186.6         21.1

Operating profit                           183.9        156.9          206

Net income from equity investments           5.1          2.9          1.4

Non-operating income/expenses               29.5         -1.2         -3.1

Profit before income tax                   218.5        158.7        204.3

Income tax                                  53.9          6.7         39.8

Minority interest                            1.8         -0.1            0

Net profit                                 162.7        152.1        164.5

 

 

 

 

 

Balance sheet

(in EEK, millions)                     30.09.99     31.12.98     30.09.98

ASSETS

Bank accounts                              124.9        166.5        244.4

Marketable securities                         45          6.4            0

Due from customers                         147.6          139        131.8

Financial investments                   6,352.90     6,034.60     5,846.70

   Leasing                              5,469.90     5,350.20     5,235.00

   Factoring                               395.4        279.8        240.4

   Loans                                     397        341.4        294.3

   Assignement                              69.5         32.3         43.2

   Consumer factoring                         21         30.8         33.7

Provisions for doubtful receivables       -270.1       -185.6        -44.1

Net financial investments               6,082.80     5,849.00     5,802.50

Prepayments to suppliers                   512.6        245.3        572.6

Stocks for resale                            132         99.1         60.6

Long-term equity investments                55.6         49.8         52.5

Tangible noncurrent assets                  92.1         72.6        105.9

Intangible assets                            6.5          6.3         15.8

Accrued income and prepaid expenses        134.8        117.4        138.1

Other assets                                19.3            3          2.3

TOTAL ASSETS                            7,353.20     6,754.40     7,126.50

 

LIABILITIES AND EQUITY

LIABILITIES

Loans                                   5,326.10     4,653.70     4,612.60

Bonds                                        636        972.7     1,148.10

Bills of exchange                          447.9        538.8        595.3

Liabilities to customers and suppli        430.8        257.5        334.9

Accrued expenses and prepaid revenu        152.3        136.8        182.4

Other liabilities                            2.1          0.7          0.3

Deferred tax liabilities                     0.4          4.2         41.5

Negative goodwill                            9.2           12           15

TOTAL LIABILITIES                       7,004.80     6,576.40     6,930.10

Minority interest                            2.6          0.9            0

EQUITY

Share capital                                 40           40           40

Reserves                                     5.8          5.6          4.8

Retained earnings                          312.9        150.4        163.1

Unrealised exchange difference               -13          -19        -11.6

TOTAL EQUITY                               345.7        177.1        196.3

TOTAL LIABILITIES AND EQUITY            7,353.20     6,754.40     7,126.50