HANSAPANK

COMMENTARY TO FINANCIAL RESULTS



HANSABANKA'S FINANCIAL STATEMENTS, 9M 2000



A/s Hansabanka’s result for the first nine months of 2000 was a LVL

3.8 million profit. The bank’s assets increased by 67.3% to LVL 336.0

million during the period.



During the first nine months of the year Hansabanka’s clients’

deposits increased by 58.3% to LVL 278.2 million at the end of

September. Demand deposits increased by 55.0% and term deposits

increased by 95.7%. Through deposit growth, the bank’s assets grew by

67.3% or LVL 135.2 million amounting to LVL 336.0 million at the end

of September.



Hansabanka’s loan growth in the first six months of the year remained

fairly modest. In the third quarter, however, growth accelerated and

for the full 9 months, the loan portfolio increased by 62.8% to LVL

143.9 million. As of September 30 total loans formed just 51.7% of

clients’ deposits and the net loan portfolio formed 41.7% of total

assets (42.6% in the beginning of the year). Allowance for credit

losses totalled LVL 3.6 million at the end of September, forming 2.53%

of the loan portfolio.



During the first nine months of the year Hansabanka earned a net

profit of LVL 3.8 million, which exceeds 1999 full-year result by VL

2.75 million. For the first three quarters the bank’s revenues

amounted to LVL 17.9 million, up by 50.5% from last year’s same

period. Of this LVL 9.2 million was formed by non-interest income and

LVL 8.7 million by net interest income. The bank’s operating expenses

amounted to LVL 11.8 million, which is 23.4% higher than a year ago.



As at September 30, 2000 1 LVL = 28.8885 EEK





Mart Tõevere

Head of Investor Relations

+372 6131 569