HANSABANK                    RELEASE                    03.03.05



Changes to Hansabank's accounting principles



Based on changes to international reporting standards (IAS 39, revised), which

are effective from Q1 2005, the Group will change significantly its provisioning

principles.



The Group has so far calculated provisions (losses on loans and guarantees) based

on estimated losses. According to the new requirements, provisions may only be

based on sc. "loss events". As a result, the Group will release approximately 35%

or 30 million euros from the allowance for credit losses recorded in the balance

sheet in the first quarter of 2005 and the share of allowance for credit losses

will decrease from 1.3% to 0.8% of total loans. The said provision release will

be booked directly in retained earnings of previous periods and it will increase

the book value of the company. It will not affect the 2005 income statement.

The new principles will also reduce the recurring provisioning expense (losses on

loans and guarantees in the income statement) by approximately 30% going forward.



The other change concerns goodwill amortisation. Starting from 2005 goodwill will

no longer be amortised on a monthly basis, but re-valued based on an annual asset

impairment test. The Group's goodwill amortisation cost was 7.9 million euros in

2004.



Mart Tõevere

Head of Corporate Communications and IR

Tel. +372 6131 569