AS OPTIVA PANK

ANNOUNCEMENT

14.07.1999

 

COMMENTARY TO THE H1 UNCONSOLIDATED AND UNAUDITED FINANCIAL RESULTS 

OF OPTIVA PANK

 

The volume of net profit earned by Optiva Pank in June was 2.6 

million; H1 net profit amounted to 7.6 million EEK. 

 

Total revenue of Optiva Pank in H1 1999 amounted to 100.6 million EEK. 

The income structure was as follows: net interest income after loan 

provisions accounted for 42.5% of total revenue, commissions and 

service fees received for 22.9%, income from currency exchange for 

15.3%, income from investments in shares for 19.2% and other income 

for 1.1%. 

 

In H1 1999, the average asset utilization was 11.0% and average 

yield 7.5%.

 

The bank’s non-interest expenses totaled in H1 74.6 million EEK. 

Among non-interest expenses, the administrative expenses accounted for 

44.0%, personnel expenses 43.6%, commissions and service fees paid 8.2%, 

other non-interest expenses 4.2% and asset revaluation 0.03%. 

 

AS of the end of June, the balance sheet volume of Optiva Pank was 

3.44 billion EEK. The balance sheet size increased in H1 1999 by 267.2 

million EEK or 8.4%. The balance sheet size increased in June by 

209.4 million EEK or 6.5%.

 

Client deposits increased from 877.0 million EEK (end of December) 

to 1.13 billion EEK (end of June), i.e. increasing by 254.3 million 

EEK or 29% in H1 1999.  Demand deposits increased in H1 by 244.8 million 

EEK or 44.4%, totaling 795.7 million EEK at the end of June. The 

fastest growth occurred in June, when the volume of demand deposits 

increased by 207.3 million EEK or 35.2%. 

In H1, The client term deposits increased by 9.5 million EEK or 

2.9%. 

Term deposits of private enterprises grew during this period by 

59.6 million EEK or 89.2% and government term deposits decreased by 31.3 

million EEK or 38.6%. Volume of term deposits decreased in June by 

68.5 million EEK or 16.95%, mainly due to withdrawal of the government 

term deposits amounting to 57 million EEK.

 

Volume of Optiva Pank’s owners’ equity account amounted to 345.6 

million EEK or 10.04% of total assets. 

 

The interest-bearing assets totaled 77.4% of the bank’s assets, or 

2.66 billion EEK. The bank’s interest-bearing assets increased in June 

by 123.6 million EEK or 4.9% (in first half year by 175.6 million EEK 

or 7.1%). Term and demand deposits with other banks increased in H1 by 

184.8 million EEK or 53.5%. 

 

The gross loan portfolio decreased in H1 by average of 2% per 

month, amounting to 1.9 billion EEK at the end of the first half year. The 

gross loan portfolio decreased in June by 62.4 million EEK or 3.2%, 

hence total decrease in H1 was 387.5 million EEK or 16.9%. As of 

the end of June, the allowances for potential loan losses totaled 9.4% 

of gross loan portfolio. As of the end of June, the share of net loan 

portfolio of the bank’s assets amounted to 50.1% (64.7% of 

interest-bearing assets) at the end of December 64.9% (82.8%).

 

Long-term financial investments in shares decreased in H1 1999 by 

34.5 million EEK or 25.3%, and in intangible assets by 14.2 million EEK 

or 10.2%. Among the long-term financial investments in shares, the 

investments in the bank’s subsidiaries and affiliated companies 

accounted for 54%.

 

H1 1999 ROE figure is 4.4%, ROA 0.5%, net interest margin 2.6%, and 

net non-interest margin -2.4%. 

 

As of the end of June, the bank's capital adequacy level was 11.48%. 

 

 

Budget and Planning Department

Optiva Pank

Tel. +372 6302 104