HANSAPANK

COMMENTARY TO FINANCIAL RESULTS



LATVIAN HANSABANKA'S Q1 2001 FINANCIAL RESULTS



A/s Hansabanka’s result for the first three months of 2001 was a LVL

1.26 million profit. The bank’s assets increased by 69.7% to LVL 379.9

million during the period.



Over the last 12 months (March 01 vs March 00) Hansabanka’s clients’

deposits increased by 63.8% to LVL 301.4 million at the end of March

2001. Demand deposits increased by 38.9% and term deposits increased

by 110.9%. Through deposit growth, the bank’s assets grew by 69.7% or

LVL 156.1 million amounting to LVL 379.9 million at the end of March.



Hansabanka’s loan portfolio increased by 85.2% year-on-year to LVL

174.4 million. As of March 31 total loans formed just 57.8% of

clients’ deposits and the net loan portfolio formed 44.7% of total

assets (45.5% in the beginning of the year). Allowance for credit

losses totalled LVL 4.61 million at the end of March, forming 2.64% of

the loan portfolio.



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

profit of LVL 1.26 million, which exceeds last year’s first quarter

result by 4.7%. For the first three months the bank’s revenues

amounted to LVL 7.54 million, up by 42.0% from last year’s same

period. Of this LVL 3.51 million was formed by non-interest income and

LVL 4.03 million by net interest income. The bank’s operating expenses

amounted to LVL 5.05 million, which is 40.3% higher than a year ago.



As at March 30, 2001 1 LVL = 28.0796 EEK





Mart Tõevere

Head of investor relations

+372 6131 569