HANSAPANK

ANNOUNCEMENT



BUSINESS PHILOSOPHY AND STRATEGIES



Hansabank  Group’s goal is to be the leading financial institution  in

each of the three Baltic countries by the year 2004.

We  believe  that  Hansabank Group’s strong  performance  and  growing

international  recognition  is the result of  entrepreneurial  spirit,

openness to innovation, quality drive and high ethical standards.



STRATEGY



Who is our customer?

Hansabank is primarily focused on medium-sized companies and  affluent

private customers; however, as a universal bank, we serve all customer

groups.



What are our value propositions to the customer?

In  customer  relations,  we  believe in  long-term  partnerships.  We

believe  that  in  an  increasingly competitive  environment  the  key

competitive  advantage  we  have  and  are  able  to  sustain  is  the

combination  of easy access, knowledge of our customers and  the  best

quality of service.

We  believe  in  the “one-stop-shop” strategy: all financial  services

from one place.



How can we do this efficiently?

-     By running the best ATM network, Internet and mobile bank,  we

offer our customers convenient and easy access to financial services.

We  believe  that in the future, branch offices will function  as

advisory and sales centers for our customers.

-    By using Customer Relationship Management (CRM) tools, we are

able to offer our customers the most suitable solutions.

-    By shared information technology solution in all the three

countries, we operate more efficiently.

-    We make decisions close to our customers within the Group

framework.

-    After joining our organization, all employees will have an

opportunity to become true business professionals. We provide a

positive environment for self-development.

-    We believe that by sharing knowledge within the Group and with

Swedbank in all business areas, we can exploit synergies and avoid

making mistakes in our business judgments.



STRATEGIC OBJECTIVES FOR 2002



The Group’s rapid organic growth together with the acquisition of LTB,

on  the  one hand, and a slowdown in the world economy, on  the  other

hand, force us to strengthen our organisation internally. At the same

time,  we  remain growth oriented but seek profitable growth only.  In

order  to  retain  our  position  as  the  leading  universal  banking

powerhouse, we have to focus on the following objectives in 2002:



-     To  improve  our  understanding of  our  customers’  needs  by

implementing Customer Relationship Management tools.

-    To improve the Internet offering to companies.

-    To increase employee satisfaction through further developing a

motivating environment.

-    To clarify the functions between product units and customer

relationship units.

-    To streamline internal processes.

-    Hansabank Estonia: To improve customized offering and  service

quality to target segments.

-    Hansabanka: To increase business volumes by being the first

choice for the existing corporate customers and by aggressively

acquiring new private customers.

-    Hansa-LTB: To create the best access.

-    Hansa Capital: To transform Hansa Capital into an integrated

product company in the asset-based financing area.

-    Hansabank Markets: To be the dominant player in managing the

second pillar pension reform assets.



FINANCIAL OBJECTIVES (medium term)



ROE (1)                       > 25%

Cost/Income ratio (2)         < 50%

Net Risk Cost ratio (3)       < 0.8%

To  double  the  operating profit (before taxes) after every 4 years

(20% growth per annum).



(1) Based on Tier 1 CAD 11%

(2) Operating cost (excluding goodwill amortisation)/total revenue

(3) (Write offs – recoveries) / average loan portfolio





Mart Tõevere

Investorsuhete juht

+372 6131 569