OPTIVA PANK

ANNOUNCEMENT

15.06.99

 

COMMENTARY TO THE UNAUDITED FINANCIAL RESULTS 05/99  

 

The volume of the net profit earned by Optiva Pank in May was 1.3 

million EEK, which brings the five-month profit total to 5.04 million 

EEK. As of the end of May, the bank's balance sheet showed a balance 

of 3.2 billion EEK, a decrease in May by 2.8% (94.2 million EEK). 

The main reason for the decline in the balance sheet was the repayment 

of issued bonds(representing a decline of 56.6 million EEK, or 7.2%).  

 

At the end of May, client deposits totaled 992.5 million EEK. Of the 

total volume of deposits, demand deposits accounted for 59.3% (588.3 

million EEK) and time deposits for 40.7% (404.1 million EEK). This 

represents a decrease in demand deposits of 1.2 million EEK (0.2%) and 

a decrease in time deposits of 25.8 million EEK (6.0%).  

 

The volume of clearing accounts decreased by 14.0% (21.7 million EEK) 

along with a decrease in other obligations by 10.1% (5.1 million EEK).

 

At the end of May, demand and time deposits with other banks decreased 

by 14.8% (72.6 million EEK) and accounted for 12.9% (417.5 million EEK) 

of the bank's assets. 

 

The gross loan portfolio decreased by 7.4% (157.6 million EEK) in May.  

Allowances for potential loan losses decreased by 21.0% (48.0 million EEK) 

as a result of a portion of loans being taken off the balance sheet.  

The net loan portfolio decreased 109.6 million EEK or 5.8%.  As a portion 

of the assets, the net loan portfolio at the end of May was 55.2% (compared 

to 56.9% in April).

 

The bank's bond portfolio grew 99.9 million EEK or 21.7%.  Investments in 

the bonds accounted for 17.4% (561.4 million EEK) of assets at the end of May. 

  

The income structure in May was as follows: net interest income after loan 

provisions accounted for 39.4% of total income, commissions and service fees 

received for 23.2%, income from currency exchange for 19.4%, income from 

investments in shares for 26.8% and other income for 1.1%. 

 

As of the end of May, the level of the bank's capital adequacy was 11.98%. 

 

 

Additional information:

Piret Villman

Manager of Budget and Planning Department

Tel. +372 6302 503