HANSAPANK

ANNOUNCEMENT



HANSA CAPITAL'S FINANCIAL RESULTS, 6M 2001



Financial Highlights                                               

                                     6 m 2001       2000   6 m 2000

At period end (in EEK, millions)                                   

Total assets                         15 399,6   12 794,4    9 873,6

Financial Investments                13 222,7   10 961,9    8 400,0

  Leasing                            10 555,3    8 864,9    7 082,6

  Factoring                           1 675,7    1 394,1      882,4

  Loans                                 542,9      421,1      290,3

  Assignment                            100,4      106,2       83,6

  Consumer Factoring                    348,4      175,6       61,1

Provisions                             -300,4     -342,3     -311,8

Debt capital                         13 371,4   11 288,0    8 489,4

Equity                                1 211,0      770,0      588,0

At period end (in EEK, millions)                                   

Net interest income                     324,7      485,7      209,3

Net commission income                    98,3      160,7       69,9

Other operating income (net)             40,2       66,7       30,7

Total operating income                  463,2      713,1      309,9

Net profit                              369,5      395,8      196,6

NIM                                      4,7%       4,9%       4,8%

ROA                                      5,3%       4,0%       4,5%

ROE (Return on used equity*)            36,3%      24,6%      27,6%

Interest yield on average assets        10,5%      10,9%      10,9%

Cost-income ratio (before               25,5%      31,7%      27,3%

provisions)

Net risk cost**                          0,2%       0,5%       0,5%

Number or employees                       467        412        363

* return on operating equity = net income/(average risk-weighted

assets x 15%)

** net risk cost = (write-offs – recoveries)/average financial

investments



Hansa Capitali Group’s net profit for the first half year of 2001 was

369,5 million kroons. As at the end of June 2001 Group’s total assets

amounted to 15 399,6 million kroons.



During the first half year Hansa Capital Group’s (henceforth Group)

total assets grew by 2 605,2 mln kroons (or 20,0%). Group’s financial

investments grew by 2 260,8 mln kroons (20,6%) during the first half

year totalling 13 222,7 mln kroons, which is 1,6% more than budgeted.

Leasing portfolio grew by 19,1% during the first half year and

factoring portfolio grew by 20,2%. Compared to same period last year

factoring turnover has grown by 2,02 bln kroons (or 2,22 times). Most

of the total growth has come from Latvia and Lithuania where the

growth rates are far faster than in Estonia. In the geographic

division of financial investments, Estonia still forms the largest

share with 60,9% from Group’s financial investments; followed by

Latvia with 20,4% and Lithuania with 17,3%, Ukraine and Russia with

1,4%. Compared with the beginning of the year and also as at the end

of first quarter 2001 Estonia’s share has decreased and Latvian and

Lithuanian shares have increased, which is a positive aspect from the

Group’s point of view.



As at the end of June 2001 the largest credited sector was

transportation (21,5%), followed by real estate management and other

business services (19,6%) and private individuals (15,4%). In leasing

portfolio divided by object type the largest share belongs still to

real estate (27,8%), followed by passenger vehicles (25,3%), machinery

and equipment (19,0%). Compared to the beginning of the year there is

a noticeable trend towards the increase of home leasing share in real

estate crediting.



Group’s Estonian leasing and factoring market share has increased

slightly during the first half year forming 64,6%. Group’s Latvian

market share increased during first half year from 39,1% to 44,7%.

Group’s Lithuanian market share was 47,0% as at the end of first half

year.



There has been a noticeable growth in consumer factoring portfolio

during the first half year of 2001, forming 348,4 mln kroons as at the

end of June; growth during first half year was 172,8 mln kroons. The

growth came mostly from strong sales of the EGO card – during first

half year there over 24 000 new consumer factoring contracts have been

sold. During first half year EGO card portfolio grew by 190 mln kroons

and a part of that growth came from a decrease of the existing

consumer factoring products portfolio. Group’s consumer factoring

portfolio forms 17,2% of total private individual’s portfolio, which

compared to the European Union’s average is at the same level (16-17%)

and so proves the fact that there is no sign of a consumer boom in

Estonia.



In the second quarter Group started to offer the following new

products: operating lease of office equipment – it provides

flexibility, customers can upgrade their equipment at any time to take

advantage of new features and improved performance; car hire-purchase

this became possible because of the change in legislation. Car hire-

purchase is beneficial to those car sellers, who are not VAT

registered: the VAT is added to monthly payments in case of financial

leasing, in case of car hire-purchase VAT is not added. In Latvia and

Lithuania people are getting more interested in operating lease

solutions, primarily in vehicles operating lease.



As at the end of June Group had overdue receivables in amount of

1219,3 mln kroons, from which 75% were overdue less than 30 days, 18%

31-60 days and 7% over 60 days. Overdue receivables made 9,2% of the

average loan portfolio. In May Group changed provisioning principles –

the HBG’s principles were applied also for Hansa Capital Group credit

portfolio. Because of that provisions were decreased and income

increased by 62,3 mln kroons in May.



Partly because of the mentioned reason (includes an extraordinary

increase in revenues) the ROA and ROE ratios are comparatively higher

compared with last year and same period preceding year. Compared to

the same period preceding year there has been a noticeable increase in

interest income from consumer factoring and factoring. There has been

a noticeable increase in factoring and insurance commissions.

Communication and personnel expenses recorded the largest growth among

operating expenses.





Additional information:



Märten Kress

Financial Analyst

Tel: +372 6131 926

E-mail: Marten.Kress@hansa.ee



Erika Saks

Head of Marketing

Tel: +372 6131 735

E-mail: Erika.Saks@hansa.ee





Mart Tõevere

Head of investor relations

+372 6131 569