HANSAPANK

CASH FLOW STATEMENT



AUDITED CASHFLOW STATEMENT 31.12.98-31.12.99



year ended December 31                       GROUP             BANK

(EEK in millions)                        1999      1998     1999     1998

                                                                  

Net income*                              815.0    -60.5    540.2     31.1

Adjustments to net income                                         

Accounted interest income             -2,459.3 -1,794.5 -1,607.0 -1,108.2

Interests received                     2,401.1  1,736.0  1,659.9  1,015.0

Accounted interest expense               922.7    770.8    699.1    542.6

Interests paid                          -893.8   -764.4   -727.4   -508.1

Provisions                              -116.8    625.0   -161.3    354.7

Collection of bad debts                           -49.0             -16.6

Collection of treasury debts                      -20.4             -20.4

Depreciation and amortisation            409.9    245.7    315.5    158.5

Profit/loss from sales of tangible        -1.4      0.3     -1.3      1.3

assets

Book value of tangible assets written-     2.4     13.0      2.2      1.0

off

Profit from the sale of associated      -112.0             -56.2 

companies

Profit from the exchange rate not         -9.2                    

related to business activities

Income tax paid                          -16.4    -53.1             -39.8

Total adjustments to net income          127.2    709.4    123.5    380.0

Changes in operating assets and                                   

liabilities

Net change in prepayments               -455.5    286.5    -15.5      5.9

Net change in accrued liabilities        161.9    100.9     66.8     18.8

Net change in deposits placed with      -102.5    283.0   -169.6    443.1

other banks

Net change in trading securities          -1.9    158.0    -75.8     12.1

Net change in loans to financial        -116.2    246.3    -73.0    168.2

institutions

Net change in liquidity securities    -1,677.1      2.3 -1,101.4   -485.1

Net change in securities purchased         3.6    465.9    -72.0    366.8

under resale agreements

Net change in loans                   -2,668.9 -3,317.7 -1,778.5 -1,707.0

Net change in other assets                79.1    139.1     93.5    216.9

Net change in short-term liabilities     179.8   -261.0    182.6    -94.0

due to other banks

Net change in demand deposits          3,414.6  1,706.3  2,281.5    750.7

Net change in time deposits            1,622.6    206.2    728.7    913.6

Net change in securities sold under      490.8   -130.3    491.1    -67.2

repurchase agreements

Net change in other liabilities         -113.8    -54.6    205.6     -2.2

Total adjustments to operating assets    816.5   -169.1    764.0    540.6

and liabilities

Net cash provided by operating         1,758.7    479.8  1,427.7    951.7

activities

Cash flows of investing activities                                

Sale of associated companies             193.2             193.2 

Net change in securities held for       -780.0    120.6 -1,040.4    -44.7

investment

Real estate purchases/construction      -106.0    -66.7    -79.2    -64.5

Acquisition of other tangible assets    -489.8   -183.8   -192.3    -63.7

Sale of tangible assets                  213.6     44.8     29.3      6.3

Net change in Intangible assets          -28.3    -20.9    -26.8    -12.3

Total cash flow from investing          -997.3   -106.0 -1,116.2   -178.9

activities

Cash flows from financing activities                              

Credit lines of central bank and           8.9     58.7      8.9     21.1

government received

Credit lines of central bank and        -100.3    -11.8    -29.9    -11.8

government paid

Long-term loans received from other    1,023.8  1,291.9    617.0    616.9

banks

Long-term loans paid back to other      -117.0 -1,743.4   -117.0 -1,507.0

banks

Issue of securities                     -783.2    225.9   -402.9    246.4

Net change in common stock and share            3,162.6           2,751.0

premium

Net change in subordinated loans           9.2     -4.1               0.0

Cash dividends paid                               -26.7             -26.7

Net change in treasury stock            -100.2     25.7               0.0

Total cash flow from financing           -58.8  2,978.8     76.1  2,089.9

activities

Effect of the change in exchange rate     52.4                    

from foreign subs.

Net increase in cash                     755.0  3,352.6    387.6  2,862.7

Cash at the beginning of the year      5,144.3  1,791.7  4,144.0  1,281.3

Cash at the end of the year            5,899.3  5,144.3  4,531.6  4,144.0



*Dividends received included

*Cash comprises cash on hand, demand deposits with Central Bank and

liquid deposits with other banks.





Mart Tõevere

Investor relations

+372 6131 569