AS OPTIVA PANK

ANNOUNCEMENT

13.04.98

 

UNAUDITED FINANCIAL RESULTS OF Q1

 

Optiva Pank earned profit of 1.72 million EEK in March and 1.57 million 

EEK in the first quarter of 1999.

 

Total income of Optiva Pank in Q1 amounted to 45.7 million EEK. Income 

structure was the following: net interest income after loan provisions 

accounted for 41.6% of income, commissions and service fees received 

25.5%, income from the currency exchange operations 18.0%, income from 

investments in shares 13.8%, and other income 0.9%.

 

The average return on assets in Q1 was 10.6%, and interest return on 

assets 7.3%. Net interest margin after provisions was 2.3%.

 

The non-interest expenses of the bank in Q1 amounted to 35.0 million 

EEK. Among the non-interest expenses, the personnel expenses accounted 

for 46.7%, other administrative expenses 43.3%, commissions and 

services fees paid 5.4%, other non-interest expenses 4.6%, and asset 

revaluation–0.1%. 

 

In Q1, the average cost of assets hind was 4.6%.

 

The balance sheet volume of Optiva Pank at the end of March amounted to 

3.35 billion EEK. The balance sheet volume increased in Q1 by 173.4 

million EEK, or 5.5%. In March, the balance sheet volume decreased by 

20.7 million EEK, or 0.6%.

 

The clients’ deposits increased from 877.0 million EEK at the end of 

December to 1.02 billion EEK at the end of March, i.e. the Q1 growth 

was 141.0 million EEK, or 16.1%.  Average monthly growth of deposits’ 

volumes in Q1 was 5.1%, being at the highest level in March (12.8%, or 

115.3 million EEK).

 

Demand deposits of clients increased in Q1 by 56.5 million EEK , or 

10.3%, amounting to 607.3 million EEK at the end of March. 

The fastest growth occurred in March, when the volume of time deposits 

increased by 54.2 million EEK, or 9.8%.

 

Growth of the volume of time deposits in Q1 exceeded the growth of 

demand deposits. In Q1, the volume of time deposits increased by 84.5 

million EEK, or 25.9%, and in March 61.1 million EEK, or 17.5%. Time 

deposits in total amounted to 410.7 million EEK at the end of Q1.

 

The share of time deposits increased to 40.3% (37.2% at the end of 

December) of total deposits, bringing the share of demand deposits down 

to 59.7% (62.8% at the end of December).

 

In March, the volume of clearing accounts decreased by 50.5 million 

EEK, or 23.0%, and debt securities issued by 46.0 million EEK, or 5.6%. 

Other liabilities decreased by 12.1 million EEK, or 22.6%. 

 

On the account of foreign capital as of the end of March, the interest-

bearing liabilities accounted for 93.0%, increasing by 40.2 million 

EEK, or 1.5%, during the last month of the quarter. The share of time 

resources in interest-bearing liabilities at the end of Q1 was 78.3%, 

and the share of demand deposits of clients 21.7%.

 

The owners’ equity of Optiva Pank totaled 339.5 million EEK, or 10.1% 

of total assets. At the end of March, the capital adequacy was 11.9%. 

 

The interest-bearing assets of the bank increased in a month by 123.1 

million EEK, or 4.8%. (in Q1, 183.1 million EEK, or 7.4%). Interest-

bearing assets accounted for 79.8% of the bank’s total assets, or 2.67 

billion EEK.

 

The gross loan portfolio decreased in Q1 an average of 1.4% per month, 

amounting to 2.14 billion EEK as of the end of Q1. In March, the gross 

loan portfolio decreased by 72.2 million EEK, or 3.3%, whereas the 

total respective decline in Q1 was 144.6 million EEK, or 6.3%. 

Allowances for potential loan losses amounted to 10.7% of gross loan 

portfolio at the end of March. 

 

The share of net loan portfolio in total bank’s assets was 57.2% (71.7% 

of interest-bearing assets) at the end of Q1, and 64.9% (82.8%) at the 

end of December.

 

Investments in debt securities increased in the first quarter by 125.6 

million EEK, or 47.2%, amounting to 391.6 million EEK (14.7% of 

interest-bearing assets).

 

Time and demand deposits with other banks increased in Q1 by 188.4 

million EEK, or 54.5%. The most substantial increase occurred in 

February, when the time and demand deposits with other banks increased 

by 129.6 million EEK, or 35.6%; the respective increase in March was 

40.6 million EEK, or 8.2%.

 

During the first three months of 1999, the long-term financial 

investments in shares declined by 9.1 million EEK, or 6.6%, and 

intangible assets by 7.3 million EEK, or 5.3%. Other assets increased 

by 10.0 million EEK, or 7.4%, and the volume of cash in hand by 14.2 

million EEK, or 23.8%.

 

 

Department of Budget and Planning

Optiva Pank

Tel +372 6302 103