OPTIVA PANK

COMMENTARY TO FINANCIAL RESULTS



UNCONSOLIDATED FINANCIAL RESULTS FOR 11 MONTHS 2000



In 2000, Optiva Bank has managed its business activity well in 

line with the plans. At the end of November, total assets 

amounted to EEK 4.3 billion, growing EEK 590 Million, or 

15.8%, in the course of the year.



Moody’ Investors Service, the rating agency, upgraded Optiva 

Bank’s deposit ratings to Baa1/P-2 from Ba2/Not Prime and 

assigned a positive outlook to the E Financial Strength 

rating. The steep rating improvement action by four grades 

reflects Optiva’s good financial standing and strong 

ownership, which enhances investor security about the future.



In November, Optiva Bank issued bonds at a total of EUR 30 

million. Maturity is one year and the coupon rate is the 3-

month Euribor + 110 bp. The issue was managed by Deutsche Bank 

and was fully subscribed.



The Bank’s client deposits and loan portfolio have increased 

by EEK 398 million, or 25.6%, and EEK 293 million, or 15,6%, 

respectively, over a period of eleven months. In the fourth 

quarter, deposits have moved up by EEK 93 million, or 5%, and 

loans have risen by EEK 104 million, or 5%.



The period operating profit before amortisation of goodwill is 

EEK 31.5 million. Amortisation of goodwill for the first ten 

months was EEK 23.1 million. In November, the remaining 

goodwill total of EEK 85.5 million was written off under a 

resolution of the Supervisory Board. As a result, amortisation 

of goodwill for eleven months is EEK 108.6 million. The 

balance of goodwill in the Bank’s assets is zero. Given that 

goodwill is written off through the income statement, the 

financial result of the Bank is a loss of EEK 77.1 million for 

the period. Capital adequacy after amortisation of goodwill is 

12.02%.





Piret Villman

Analysis department

+372 6 302 100