EESTI ÜHISPANK

ANNOUNCEMENT

15.07.1999

 

EESTI ÜHISPANK IN JUNE 1999

 

Highlights

 

* Total growth of deposits during  first 6 months of 1999 amounted  

to

16.6 per cent (EEK 1.2 Billion)

 

* Net loan  portfolio of the  bank amounts to  52.4 per cent  of 

total

assets (54.4 per cent at the beginning of the year)

 

* Bank's profit for the  first half of the year,  influenced 

primarily

by the falling  interest rates, amounted  to EEK 48.1  Million 

(profit

in June EEK 8.05 Million).

 

As  at  the  end  of  June  1999,  the balance sheet of Eesti 

Ühispank

amounted to EEK  14.3 Billion (EEK  14.4 Billion in  May 1999 and  

EEK

13.5 Billion in  December 1998). The  volume of the  balance sheet 

has

increased by 5.5 per cent from the beginning of the year.

 

Profit of Eesti  Ühispank earned in  May amounted to  EEK 8.05 

Million

and the  total profit  for the  first half-year  was EEK  48.1 

Million

(profit for first half-year of 1998 amounted to EEK 81.6 Million,  

pro

forma profit of Tallinna Pank and Ühispank for the same period to  

EEK

46 Million).

 

Bank's capital adequacy as at end of June was 13.12 per cent.

 

On  the  deposits  side,  governmental  deposits  have  continued   

to

decrease  (decrease  during  June  EEK  300  Million).  That  has 

been

compensated  by  the   constant  growth  of   corporate  and   

private

individuals deposits: corporate deposits increased by EEK 170  

Million

or 5.6 per cent and  private individuals' deposits by EEK  134 

Million

or 6.6 per cent in June.

 

The  structure  of  deposits  has  been  changing  as  the decrease 

in

deposit interest rates has led to the increase of the share of  

demand

deposits in total  deposits. Total growth  of demand deposits  in 

June

amounted  to  7.1  per  cent  or  EEK 283 Million (growth during 

first

half-year amounted to 23 per  cent or EEK 811 Million).  Time 

deposits

decreased in June  by 9.6 per  cent or EEK  444 Million (total  

growth

during first half-year amounted to 10.2 per cent or EEK 387  

Million).

Total growth of deposits during  first half-year amounted to 16.6  

per

cent or EEK 1.2 Billion.

 

The equity of  Eesti Ühispank has  increased by EEK  53 Million 

during

the first six  months, fuelled by  the profit and  the share issue  

of

410,000  shares  to  FMO  for  the  acquisition of the Latvian  

Saules

Bank.

 

The first half-year of 1999 has witnessed significant increase of  

the

bank's  liquidity,  reflected  in  the  increase  of  money  and  

bank

deposits by more than EEK 900 Million on the assets side.  

Maintaining

high  liquidity  has  been  the  bank's  policy  to  be  able  to 

meet

refunding requirements the bank had during the first half of 1999.  

At

the  same  time,  the  net  loan  portfolio  increased by just EEK 

114

Million and investments and other less liquid assets decreased by  

EEK

277 Million. At the  end of June, the  net loan portfolio amounted  

to

52.4  per  cent  of  assets  while  its  quality  has  stabilised.  

In

accordance  with  the  loan   accounting  rules,  certain   

previously

provisioned loans  have been  written off  and the  amount of 

doubtful

loans has decreased, amounting to  2.8 per cent of the  loan 

portfolio

as at the end of June.

 

For additional information, please contact:

 

Ülo Suurkask

Vice President

Phone: + 372 6656 350