EESTI ÜHISPANK

ANNOUNCEMENT

25.11.98

 

 

 

AS EESTI ÜHISPANK, 9 MONTH CONSOLIDATED FINANCIAL STATEMENTS

 

Eesti Ühispank's consolidated balance sheet was EEK 17,035 bln. as  at

September  30,  1998  and  net  profit  for  the accounting period ( 9

months) was EEK 5,2  mln. Eesti Ühispank's consolidated  balance sheet

has increased  by 89  per cent  or EEK  8 bln.,  compared to  the same

period last year.

 

Ühispank's  profit  has  strongly  been  influenced  by the decline in

stock markets in Eastern Europe during  1998.  This is the reason  why

the  group  bore  losses  during  the  nine  months in different stock

markets in the amount  of EEK 151 mln.,  and in particular during  the

first half year.  In addition, Eesti Ühispank made general  provisions

for various  financial instruments  in the  amount of  EEK 8,3 mln. In

spite of  this, Eesti  Ühispank's total  income has  increased by 14,2

per cent compared to the  same period last year. The  income structure

has  changed  significantly   due  to  the  reasons listed above:  the

percentage of net interest  income has increased in  a year from 54  %

to  71  %.   Substantial   increase  has  occurred  in other operating

income,  which  is  tied  to  rental  incomes from various real estate

projects and  operating lease  services offered  by leasing companies.

Net income from fees constituted 17,1 per cent of the total income  as

at  September  30,  1998   and  other  operating income 11,8 per cent.

Operating expenses have  increased by 76  per cent in  a year, partial

reason being the merger of two banks.

 

Main ratios of Ühispank's group: ROE 0,57 per cent, ROA 0,05 per  cent

and EPS EEK 0,20.

 

On   the   assets   side,   securities   portfolio   has    diminished

significantly, which has decreased over  six times or by EEK  800 mln.

in a  year.   EEK 142  mln. stock  portfolio constituted  only 0,8 per

cent  of  total  assets  as  at  September  30,  as a result of which,

Ühispank has  practically been  freed from  the risks  of stock market

decline. Loan  portfolio has  increased more  than two  times. At  the

same time the  loan provisions to  loan portfolio have  increased from

1,8 per cent to 2,8 per  cent, whereby the general provision has  been

included  to  loan  provisions   because  of  the  worsened   economic

environment.  Net  loan  portfolio  was  59,6  per  cent  of the total

assets, compared to 55,1 per cent  in the end of the same  period last

year.

 

Leasing companies  constituted 22  per cent  of the  overall EEK  10,4

bln. loan portfolio.  Tangible  fixed assets of EEK 1,75  bln. include

assets leased to  clients (operating lease)  in the amount  of EEK 538

mln. and real estate  in the amount of  EEK 401 mln. Intangible  fixed

assets include  also   the goodwill  from the  merger with  TP in  the

amount of EEK 343 mln.

 

On the  liabilities side,  client deposits  have increased  by 61  per

cent or  EEK 3,3 bln.,  whereas significant increase has been in  time

deposits  as well as  in their percentage of total  deposit structure.

However, the  increase in  demand deposits  has been  minimal.   Given

changes are distinctive to the overall Estonian banking market,  where

client demand deposits have  decreased by 7.7 per  cent in a year  due

to the  decline in  money supply   and worsened  economic environment.

Owners'  equity  has  increased  in  a  year  by  EEK  1,1 bln. due to

Ühispank's international GDR issue and share issue to former  Tallinna

Pank's shareholders.

 

 

Ülo Suurkask

vice president

Tel. +372 6 110 350

 

 

 

 

Eesti Ühispank, Balance Sheet          Consolidated         Bank

Unaudited (EEK million)

                                      30.09    30.09    30.09    30.09

                                       1998     1997     1998     1997

ASSETS

 

Cash                                  446.3    209.6    316.0    209.6

Due from central bank                 893.7    493.4    871.1    493.4

Due from other banks                1,080.0    215.6    651.2    215.6

 

TOTAL CASH AND DUE FROM BANKS       2,420.0    918.6  1,838.3    918.6

 

Loans to clients                   10,437.5  5,056.3  7,852.1  4,998.1

     Less: provisions                -291.9    -91.0   -219.2    -78.3

Loans to clients net               10,145.6  4,965.3  7,632.9  4,919.8

 

Fixed income securities             1,349.7    573.5  2,420.3    603.3

 

Securities held pursuant

to re purchase arrangements            32.1    251.7     32.1    251.7

 

Long term

investments in subsidaries                              381.2     18.0

 

Other shares and participations       194.6  1,013.7    180.6    772.6

 

Goodwill                              344.5        0    342.8        0

 

Fixed assets                        1,756.5    790.8    653.6    503.3

 

 

Transit items and prepaid expenses    366.8    281.6    228.6    132.0

 

Other assets                          425.0    212.3    209.3    212.3

 

TOTAL ASSETS                       17,034.8  9,007.5 13,919.7  8,331.6

 

 

LIABILITIES AND SHAREHOLDERS' EQUITY

 

 

Customers demand deposits           4,538.6  3,741.8  3,963.5  3,741.8

 

 

Customers time deposits             4,174.0  1,665.9  3,755.4  1,617.7

 

TOTAL CUSTOMERS DEPOSITS            8,712.6  5,407.7  7,718.9  5,359.5

 

Due to credit institutions          2,143.0    711.2  1,328.8    666.5

 

Bonds                               2,809.5  1,236.5  2,129.1    802.7

 

Subordinated loans                    515.5    345.0    515.5    345.0

 

TOTAL INTEREST BEARING LIABILITIES 14,180.6  7,700.4 11,692.3  7,173.7

incl.demand                         4,682.3  3,744.2  3,977.2  3,744.2

     time                           9,498.3  3,956.2  7,715.1  3,429.5

 

Transit items and prepaid income      290.3    218.2    198.7     81.2

 

Other liabilities                     817.5    489.1    321.2    489.1

 

TOTAL LIABILITIES                  15,288.4  8,407.7 12,212.2  7,744.0

 

Minority Interest                      38.9      8.1

 

Share capital                         511.5    296.8    511.5    296.7

Paid in surplus                       891.9     38.8    891.9     38.9

Reserves                              298.5     87.3    298.5     87.3

Translation differences                 0.4        0        0        0

Non-distributed profit                  5.2    168.8      5.6    164.7

 

TOTAL SHAREHOLDERS' EQUITY          1,707.5    591.7  1,707.5    587.6

 

TOTAL LIABILITIES AND

SHAREHOLDERS' EQUITY               17,034.8  9,007.5 13,919.7  8,331.6

 

 

 

 

 

 

 

 

Ühispank, Income Statement             Consolidated         Bank

Unaudited (EEK thousand)

                                      30.09    30.09    30.09    30.09

                                       1998     1997     1998     1997

 

Interest income                     952,675  576,241  753,466  397,048

Interest expenses                  -509,744 -326,629 -437,660 -169,984

Net interest income                 442,931  249,612  315,806  227,064

 

Fees and commissions received       186,893  116,532  171,947  106,308

Fees and commissions paid           -80,345  -40,876  -75,096  -41,412

Net income from fees and

commissions                         106,548   75,656   96,851   64,896

 

Income from securities and

currency dealing profits            -95,909  126,822 -103,443  126,629

Other operating income               73,167    9,288    7,516    7,369

 

TOTAL OPERATING INCOME              526,737  461,378  316,730  425,958

 

Personnel expenses                 -151,594 -100,286 -121,780  -97,000

 

Other administrative expenses      -184,357  -86,804 -115,079  -85,263

 

Value adjustments of tangible and

intangible assets and depreciation  -67,642  -34,440  -54,749  -33,858

 

Other operating expenses            -20,538  -19,798  -18,314  -16,233

 

TOTAL OPERATING EXPENSES           -424,131 -241,328 -309,922 -232,354

 

OPERATING PROFIT                    102,606  220,050    6,808  193,604

 

Income from subsidaries                                30,220    4,832

 

Value adjustments of advances

and off-balance sheet items         -84,494  -42,666  -31,432  -33,736

 

PROFIT BEFORE TAXES                  18,112  177,384    5,596  164,700

 

Minority Interest                      -921   -4,198

 

Income tax                          -12,011   -4,425

 

NET PROFIT                            5,180  168,761    5,596  164,700

 

 

 

 

 

Eesti Ühispank, key indicators                            30.09.98

(EEK'000)

                                                  Consolidated   Bank

 

1.Total operating income(turnover)                    526,737  316,730

 

2.Net interest income                                 442,931  315,806

  % from turnover                                        84.1     99.7

 

3.Other incomes                                        83,806      924

 

4.Net operatin profit (before extraordinary items)     17,204    5,778

  % from turnover                                        3.27     1.82

 

5.Extraordinary items                                     908     -182

 

6.Profit before appropriations and taxes               18,112    5,596

  % from turnover                                        3.44     1.77

 

7.Net operating profit - Taxes                          5,193    5,778

 

8.Return on Equity-% (ROE)                               0.57     0.65

 

9.Return on Assets-% (ROA)                               0.05     0.07

 

10.(Equity+Minority Interest)/Total Assets, %            10.3     12.3

 

11.Investments to fixed assets from beginn. of year   767,745  132,133

  % from turnover                                       145.8     41.7

 

12.Capital adequacy ratio-% (Eesti Pank regulations)     11.2    11.98

 

 

 

 

 

 

Per-share ratios                                          30.09.98

 

                                                  Consolidated   Bank

 

1.Earnings (Net operating profit+

  +Minority Interest -Taxes) EEK'000                    6,114    5,778

 

2.Earnings per share(EPS), (average no.of shares)        0.20     0.19

 

  Earnings per share(EPS), (shares at end of period)     0.16     0.15

 

3.Equity/Number of shares, EEK                          33.38    33.38

 

4.Price/Earnings ratio-% (P/E)                         164.05   172.68

 

5.Period end share rate, EEK                            32.81    32.81

 

7.Market price of shares, EEK                       1678277434

                                                            1678277434

8.Adjusted number of shares

 - at period end                                     51151400 51151400

 - average number during the period                  40477600 40477600

 

 

 

 

Eesti Ühispank, consolidated subsidaries:

 

Ühisliisingu AS

AS Navarra

AS PF Koda

OÜ Efficio

Ühisinvesteeringute AS

AS TPF Orior

AS LF Finants

AS Ühispanga Fondijuht

AS Russki Obedinennyi Lizing

Tallinna Panga Liisingu AS

Saules Pank

AS Bangalo

Baltic Invest

PT Investeeringute AS

Tallinna Panga Varahalduse AS

AS FMI Baltijos Verbytiniai Poperieriai

AS Tallinna Pank Securities Latvija