Hansapank                     FINANCIAL RESULTS                 07/22/2002



HANSABANKA'S CONS. RESULTS, 6M 2002



Hansabank’s Latvian subsidiary A/s Hansabanka earned a consolidated

net profit of LVL 3.9 million in the first half of 2002 (includes also

LVL 1.5 million profit of SIA Hanza Lizings and eliminations). The

quarterly results were LVL 1.8 million in the first quarter and LVL

2.1 million in the second quarter. The bank’s consolidated assets

increased by 29.6% to LVL 609.3 million during one year.



Hansabanka’s deposits increased by 31.0% during one year to LVL 472.6

million at the end of June 2002. Demand deposits increased by 56% and

term deposits by 2%.

Hansabanka’s consolidated loan portfolio amounted to LVL 370.8 million

at the end of June 2002. LVL 112.4 million of this were loans to SIA

Hanza Lizings. Excluding these loans, the bank’s loan portfolio

increased by 41% during one year. Allowance for credit losses totalled

LVL 4.42 million at the end of June 2002, forming 1.17% of the loan

portfolio. As of June 30 total loans formed 79% of clients’ deposits

and the net loan portfolio formed 61% of total assets (57% at the end

of the first quarter).



Hansabanka earned a consolidated net profit of LVL 3.9 million during

the first six months of 2002. The bank’s consolidated revenues

amounted to LVL 19.3 million for the first half of the year, up by

29.5% from last year’s same period. Net interest income totalled LVL

10.9 million and non-interest income LVL 8.4 million. The bank’s

operating expenses amounted to LVL 12.3 million, which is 23.4% higher

than a year ago.





As at June 30, 2002

1 LVL = 26.211 EEK

1 LVL = 0.597 EUR







HANSABANKA                              consolidated              

BALANCE SHEET                                                     

(LVL in thousands, unaudited)        30.06.02  31.12.01   30.06.01

                                                             

Cash                                   23,984    29,400     25,209

Due from Central Bank                  15,861    32,602     22,222

Due from credit institutions           58,725    68,339     93,791

Securities                             94,204    67,519    120,811

Loans and advances to customers       370,752   322,042    183,669

(net)

    Provisions                        (4,419)   (4,317)    (4,261)

Goodwill                                1,705     2,067      2,428

Fixed assets                           18,018    17,185     15,934

Accrued interest and other assets      26,081    17,519      6,186

Total assets                          609,330   556,673    470,250

                                                                  

Due to Central Bank and government     27,765    35,177     10,000

Due to other credit institutions          940     2,059     20,347

Deposits from customers               472,569   424,002    360,877

    Demand deposits                   304,721   266,952    195,897

    Time deposits                     167,848   157,050    164,980

Debt securities                             -         -         47

Accrued interest and other             42,578    39,968     33,060

liabilities

Subordinated debt                       7,016     6,908      6,835

Total liabilities                     550,868   508,114    431,166

                                                                  

Common stock                           46,043    40,043     34,043

Capital reserves                          135       135        135

Accumulated losses                      8,381     2,209      2,209

Profit for current year                 3,903     6,172      2,697

Total shareholders’ equity             58,462    48,559     39,084

Total liabilities and shareholders'   609,330   556,673    470,250

equity







HANSABANKA                             consolidated             

INCOME STATEMENT                                                

(LVL in thousands, unaudited)         6m 2002     2001   6m 2001

                                                                

Interest income                        18,176   27,062    13,575

Interest expense                       -7,268  -11,082    -5,449

Net interest income                    10,908   15,980     8,126

                                                                

Fees and commissions, received          6,484    9,983     4,431

Fees and commissions, paid               -982   -1,500      -690

Fees and commissions, net               5,502    8,483     3,741

                                                                

Net result from financial               2,211    7,374     2,522

operations

Other income                              689      758       530

Total revenue                          19,310   32,595    14,919

                                                                

Personnel expenses                      4,635    7,106     3,260

Data network expenses                     452    1,090       433

Administration expenses                 3,422    5,906     2,534

Other operating expenses                1,356    2,541     1,490

Depreciation                            2,483    4,788     2,286

Total operating expenses               12,348   21,431    10,003

Loan losses                             2,578    4,479     1,999

Recovered loans                           412      384       113

Net profit before taxation              4,796    7,069     3,030

Tax                                       893      897       333

Net profit                              3,903    6,172     2,697





Mart Tõevere

Head of investor relations

+372 6131 569