EESTI ÜHISPANK

COMMENTARY TO FINANCIAL RESULTS



COMMENT ON THE PERFORMANCE OF EESTI ÜHISPANK IN NOVEMBER



At the end  of November the  total balance of  Eesti Ühispank amounted

to EEK14.3bn, remaining on the same   level as at the end of  October.

The  November  profit  of  the  Bank  was EEK9.3m and consequently the

unaudited profit for the whole reporting period is EEK88.8m.



In November the capital adequacy of Eesti Ühispank was 12.7 per cent.



The aggregate client deposits increased by 0.4 per cent, i.e.  EEK30m.

The decrease in  central and local  government deposits was  EEK99m or

6.8 per cent. The deposits of  other legal entities grew by EEK97m  or

2.6 per cent.



The growth of corporate deposits by EEK200m, i.e. by 8.6 per cent  has

been quite significant.  Private deposits have  also grown steadily  -

- in November the increase was EEK35m or 1.6 per cent. From the  point

of  view  of  earnings,  there  is  a  positive  trend  in liabilities

expressed by the increased share  of demand deposits and the  decrease

of the  more expensive term deposits.



On  the  asset side the loan portfolio kept growing  and  in  November

it increased by EEK126m, i.e. 1.6 per  cent. At  the end of the  month

the net loan portfolio  amounted to 55.5 per  cent  of   the net worth

of the bank. Cash and balances  with other banks went down by  EEK42m,

i.e. 1.6 per cent. The bond portfolio   went up by EEK20m, by 1.7  per

cent,  due  to  the purchase of liquid bonds.



In the income structure of the bank interest income amounted to   59.9

per cent,  service fees  and charges  20.7 per   cent, trading  income

14.1 per cent, other income 5.3 per cent.



Ülo Suurkask

Vice President, Eesti Ühispank

Telephone: +372 6657 200





Urmas Neetar

head of reporting dept.

6 656 390