EESTI ÜHISPANK      

ANNOUNCEMENT

17.05.99

 

COMMENTS ON EESTI ÜHISPANK FINANCIAL RESULTS FOR APRIL 1999

 

Total assets of Eesti  Ühispank amounted to   EEK 15,4 billion at  the

end of April (EEK 14,8 billion in March 31, 1999).

 

The  profit  for  the  Bank  was  EEK  10,1  million  in April and the

unaudited profit  for the  accounting period  (4 months)  was EEK 30,1

million.

 

The increase of balance sheet  by approximately EEK 600 million  or 4%

is mainly due  to the increase  in corporate client  deposits (EEK 323

million)  and  credit  institutions   (EEK  292  million  ).   Private

individual demand deposits grew by   EEK 55 million or 5%.   Growth of

client deposits by EEK 337  million in April resulted mainly  from the

9,6%  increase  of  demand  deposits.   Because  of  the  decrease  in

interest  rates  there  was  practically  no  change  in  client  time

deposits in April.

 

In order to meet the Bank's obligation in early May to pay back  bonds

issued in  the amount  of USD  90 million,  Eesti Ühispank  has placed

short term  deposits into  other banks,  for which  reason the  bank's

liquidity in April was very high.

 

Growth  in  investments  and  decrease  in  loan  portfolio is related

mainly to  the take  over of  Optiva Bank  shares that  were placed as

collateral for  OÜ Immermann  loan, granted  by former  Tallinna Bank.

The  transaction  does  not  have  any  impact  on  the  Bank's Income

Statement as the loan had been  provisioned already in 1998.

 

Capital adequacy of Eesti Ühispank's was 13,14% at the end of April.

 

Ülo Suurkask

Vice President

Tel: (372) 6 655 600