EESTI ÜHISPANK

ANNOUNCEMENT

15.04.99

 

Comments on the financial results of Eesti Ühispank, March 1999

 

At the end of March 1999  the total assets of Eesti Ühispank  amounted

to EEK 14.8  billion, having increased  by EEK 1.3  billion, i.e. 9.4%

from the beginning of the year.  The first quarter profit of the  Bank

was EEK 20 million, including the EEK 9.9 million earned in March.

 

The balance  sheet increase  during the  first quarter  is due  to the

approximately  one  billion  kroon,   i.e.  13.6%  growth  in   client

deposits.  In  March  the  client  deposits  grew by EEK 97 million or

1.2%. The biggest  increase was in  private corporate deposits,  which

grew by EEK 225  million, i.e. by 11.4%  in March. On the  other hand,

the central government  deposits declined most,  by EEK 74  million or

4.3%. Since the  beginning of the  year total corporate  deposits have

grown by EEK 199  million, i.e. by 5.7%,  and the deposits of  private

individuals by EEK 71 million or 3.8%. The ongoing deposit growth  and

the substantially fallen price  of funding indicate that  the Estonian

economy is reviving.

 

Changes  in  the   Bank's  other  liabilities   are  related  to   the

refinancing  of  current  funds.   As  in  March Eesti Ühispank had to

repay EEK  360 million,  the syndication  organised by  Fuji Bank, the

funds of credit institutions  decreased. The funds generated  in March

by  the  50-million  Euro  bond  issue  of  Eesti Ühispank were mainly

deposited  as  term  deposits  in  other  banks.  In consequence Eesti

Ühispank's liquidity has grown significantly,  proven also by the  75%

growth in the  amount of money  and deposits during  the first quarter

of 1999.  At the  same time  the loan  portfolio remained  practically

unchanged. Therefore the share of  net loan portfolio in total  assets

has fallen below 50 %.

 

In March the  profit Eesti Ühispank  amounted to EEK  9.9 million; the

profit for  the whole  accounting period  reached the  total of EEK 20

million (EEK 81.3 million during the first quarter of 1998).

 

The Bank's income structure was the following:

         66.5% net interest income;

         16.7% net commissions and fees;

         12.7% financial income;

          4.1% other income.

 

At the end of March Eesti  Ühispank had the capital adequacy ratio  of

13.12%.

 

Ülo Suurkask

Vice President

Phone: (372) 6 656 350