HANSAPANK

COMMENTARY TO FINANCIAL RESULTS



HANSA CAPITAL GROUP'S FINANCIAL RESULTS, 9 MONTHS 2001



Financial Highlights                                               

                                     9 m 2001       2000   9 m 2000

At period end (in EEK, millions)                                   

Total assets                         16,778.6   12,794.4   10,992.5

Financial Investments                14,242.4   10,961.9    9,215.2

  Leasing                            11,335.7    8,864.9    7,791.1

  Factoring                           1,753.5    1,394.1      952.0

  Loans                                 619.2      421.1      318.8

  Assignment                             98.7      106.2       66.1

  Consumer Factoring                    435.3      175.6       87.1

Provisions                             -326.9     -342.3     -326.6

Debt capital                         14,478.0   11,288.0    9,452.6

Equity                                1,330.9      770.0      722.1

At period end (in EEK, millions)                                   

Net interest income                     499.2      485.7      338.6

Net commission income                   155.4      160.7      111.5

Other operating income (net)             70.1       66.7       51.5

Total operating income                  724.7      713.1      501.6

Net profit                              533.0      395.8      313.2

NIM                                      4.5%       4.9%       4.8%

ROA                                      4.8%       4.0%       4.5%

ROE (Return on used equity*)            39.1%      24.6%      27.6%

Interest yield on average assets        10.2%      10.9%      10.9%

Cost-income ratio (before               24.2%      31.7%      27.0%

provisions)

Net risk cost**                          0.4%       0.5%       0.5%

Number or employees                       496        412        388

* return on operating equity = net income/(average risk-weighted

assets x 15%)

** net risk cost = (write-offs – recoveries)/average financial

investments



During the first nine months of 2001, the scope of financial

investments of Hansa Capital Group grew by 3 280,5 million kroons

(29,9%) to 14 242,4 million kroons.

During the first nine months the 2001 the Leasing Portfolio grew by

27,9% and the Factoring Portfolio by 25,8%.

According to regional distribution of the financial investments,

Estonia is still of the most importance making up 61,0% of the

financial investments of the Group. Estonia is followed by Latvia with

20,2%, Lithuania with 17,8%, and Ukraine and Russia with 1,1%.

Compared to the conditions at the end of this year’s second quarter,

the importance of Lithuania has grown by 0,5%. The growth of the

proportion in Lithuania is most notably due to the purchase of LTB

Lizingas, that increased the volume of the Group’s assets by 238,2

million EEK and the volume of the financial investments portfolio by

217,1 million EEK.

According to data from the end of September of the current year, the

most important credited sectors were business services and real estate

management (20,2%), followed by transport (20,0%) and private persons

(16,0%). The distribution of the Leasing Portfolio according to the

                                                                  2(3)

type of property was as follows: the most important was still real

estate (28,5%), followed by small vehicles (26,3%) and production

apparatus (18,7%). As compared to the situation at the end of the year

2000, the biggest change has taken place in the crediting of the

purchase of commercial vehicles, which decreased from 20,5% to 17,6%.

The market share of the Group's Estonian Leasing activity by volume of

the portfolio had grown 2,8% by the end of the first half of the year

and totalled 67,4% at the end of September. Market share according to

sales turnover was 71,2 %. At the end of the third quarter, the market

share of the Group’s Estonian Factoring, according to the volume of

the portfolio, was 60,3 %.

During the third quarter of the year the following new articles were

brought to the market – in September SIA Hanza Lizings in Latvia

introduced the popular EGO credit card, which can be applied for by

Latvian citizens in Hansapanka offices and shops of its partners. In

the third quarter, the Internet based IT system Partner, which allows

clients to draw up payment graphs and sign leasing contracts at

partners, was introduced in Estonia as well as Lithuania. In Lithuania

the collecting factoring service was introduced, which strengthened

the Groups position in the Lithuanian factoring market even further.





Additional information:



Märten Kress

Financial Analyst

Tel: +372 6131 926

E-mail: Marten.Kress@hansa.ee





Mart Tõevere

Head of investor relations

+372 6131 569