AS HANSAPANK             STOCK EXCHANGE RELEASE             26.11.2004





Hansabank raises medium-term financial targets





Hansabank will raise some of its medium-term financial targets in the

light of faster growth in the Baltic financial sector and expansion to

Russia. The new targets are effective from 2005 and are as follows:

- Increase in operating profit before taxes at least 15%

- Cost-income ratio below 45%

- Return on equity at least 20%

- Net risk cost below 0,5%



Hansabank has set a goal to become a benchmark of modern banking in

Europe by year 2007. This includes also being among the best in terms

of growth, efficiency and other financial indicators. Hansabank’s

actual financial performance is on par with the best universal banks

in Europe, however our current financial targets fall short of this

level.



Accession of the Baltic countries to the European Union this spring

increased economic activity and raised corporate and consumer

confidence in the region. Additionally, interest rates continue to

maintain on historic low levels and economic growth in the Baltics is

the fastest in Europe.



Hansabank believes that as a result of these positive factors, current

rapid growth in the financial sector should be sustainable at least

for the next 2-3 years. As a result, the Group will raise its

operating profit (before taxes) growth target from the current 10% to

15%.

A significant component in the improved profitability will come from

higher cost-efficiency. We believe that by organizing our internal

processes more efficiently we will be able to grow our operating

volumes with existing resources. This will result in improved cost

efficiency and as a result the Group has decided to lower the cost-

income ratio target by 5% to 45%.

The Group also decided to lower the net risk cost target by 0.1% based

on improving risk profile of our operating environment and the credit

portfolio. The Group will target to keep the net risk cost ratio below

0.5% over the economic cycle. The net risk cost is calculated as

follows: net risk cost=(write-offs – recoveries)/average total loans.

The Group left the return on equity target unchanged at 20%.



The new financial targets were approved by the Council on 25 November

and are effective until 2007.



Mart Tõevere

Head of Corporate Communications and IR

Tel: +372 613 1569