EESTI ÜHISPANK

ANNOUNCEMENT

15.12.98

 

FINANCIAL RESULTS OF EESTI UHISPANK FOR NOVEMBER, 1998

 

By the  end of  November, total  assets of  Eesti Uhispank amounted to

EEK 13,5 Billion, evidencing a  decrease of 2,2% or 301,5  Million EEK

compared to the  last month. Due  to the significant  deterioration of

economical environment and  potential risks, Eesti  Uhispank increased

bank's  general  provisions  rate  from   2,8%to  4%  of  total   loan

portfolio. As  the result  of that  the loan  provisions increased  by

124,4  Mio  EEK  or  up  to  324,1  Mio  EEK.  Due  to the increase of

provision, bank posted  129,8 Mio EEK  loss in November.  The loss was

caused also by the write  off loans surpass of maturity  and deduction

of security portfolio in the amount of 35 Mio EEK for what  24,9MioEEK

formed from  subsidiaries revaluation.  The bank  has made  a 25.9 Mio

EEK net profit  during the month  from the banking  activities. Of the

total operating income, 74.2%  account for net interest  income, 11.8%

for net commissions and fees,  6.7% for financial income and  7.3% for

other inome. The total loss  for the reporting period thus  amounts to

139,4 Mio EEK.

 

On the assets side, there was a increase on the net loan portfolio  by

EEK 38  Mio which  was mainly  caused by  the utilisation of overdraft

facilities for our customers. The  net loan portfolio formed 57,1%  of

total assets. Other shares and participations decreased as a result of

selling the  bank's participation  in   an insurance  company   Seesam

(12,7 Mio  EEK).  Investments to subsidiaries increased by 18 Mio  EEK

as Eesti  Uhispank established a 100% owned life-insurance company. On

the liabilities  side,  deposits decreased  by  EEK 174  Mio  or 2,3%.

Corporate clients'  demand deposits  increased   on the  same time  by

EEK 110 Mio or 7,4%. Private clients'deposits decreased by EEK 51 Mio.

Eesti  Uhispank capital  adequacy  ratio   was  11,1%  at the  end  of

November. By the present time, after Skandinaviska Enskilda Banken has

made a  EEK 600  Mio payment  into Eesti  Uhispank equity,  the bank's

capital adequacy  and  liquidity   ratios  are significantly   higher.

All figures are un-audited.

 

Additional information:

Ulo Suurkask

Vice President

Tel. +372 6 110 350