Commentary on JSC "Pirma banka" financial results for 2000

Estimating  JSC  "Pirma  banka"  financial  results for 2000 we have to

consider following aspects:

JSC  "Pirma  banka"  has  begun operations in October 1999 as result of

restructuring  and  rehabilitation  of Rigas Komercbanka. Attraction of

strategic  investor  was  main task after beginning of operations. This

task  was  complicated  and  had  to  be  carried  out  in limited time

therefore  it  required  significant  extraordinary expenses. During II

quarter  of 2000 attraction of strategic investor had been successfully

completed   and  JSC  Pirma  banka  majority  interest  holder  now  is

Norddeutsche Landesbank (NORD/LB) - one of leading German banks.

On December 31, 2000 they held 97.14% of banks share capital.

Following  sale  of  majority interest to strategic investor scrupulous

and  conservative  analyses and revaluation of banks assets took place.

Following  necessary  accruals  were made. This resulted in increase of

banks loses for 2000.

At  present bank successfully attracts new clients and is regaining old

ones.

This  is  time  consuming.  Nevertheless  at the end of last year banks

operational income almost grew to the level of expenses.

Management  of  the  bank wants to emphasise support of banks strategic

investor   NORD/LB  to  JSC  "Pirma  banka".  Following  attraction  of

strategic  investor  last  year  two new share issues took place and as

result  banks  share  capital was increased by LVL 7,5 million. Jointly

with  Norddeutsche  Landesbank (NORD/LB) significant crediting projects

were completed.

JSC "Pirma banka" loses for 2000 (un-audited) reached LVL 4 794 894.

I.Allika, Head of Public Relations