HÜVITUSFOND

COMMENTARY TO FINANCIAL RESULTS



COMMENTARY TO FINANCIAL RESULTS, H1 2001



In H1 2001 Hüvitusfond earned net income in amount of EEK 34 million 

(EEK 34 million also in H1 2000).

 

In H1 the fund earned EEK 53.8 million in interest income, whereas 

more than half of net interest income was earned from investments in 

bonds. Interest expenses totaled EEK 13.6 million, mostly including 

interest paid on bonds. Thus, net interest income was EEK 40.2 million 

(EEK 45 million last year).



Income from trading portfolio (stock exchange listed shares and money 

market instruments) was EEK 3.5 million, compared to EEK 8 million in H1 2000.



Income from investment portfolio (bonds, less liquid shares and 

units) was EEK 3.3 million (EEK 3.8 million in H1 2000). Interest

income from bonds in investment portfolio is shown on interest income 

account on income statement.



Provisions for doubtful accounts totaled EEK 1.3 million, compared to 

EEK 1.9 million in H1 2000.



In H1 Hüvitusfond earned EEK 43 million of gross profit (EEK 46.1 

million in H1 2000).



In H1 the fund saw EEK 8.6 million loss from subsidiaries (mainly from

Werol Tehased), decreasing from EEK 12 million loss during the 

same period last year.



In H1 2001 Hüvitusfond's net profit totaled EEK 34 million (EEK 34 million 

in H1 2000).



In H1 Hüvitusfond's total assets decreased by EEK 116.6 million due to 

redemption of bonds (total volume EEK 137.5 million). 



As of 30.06.01 the fund's owners equity stood at EEK 1,078.7 million

(EEK 1,061.2 million in 30.06.00).





Jaanus Kosemaa

PR manager

+372 66 51 800