Hansapank                     FINANCIAL RESULTS                 02/14/2003



LATVIAN HANSABANKA'S RESULTS, 2002



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

net profit of LVL 10.4 million in 2002. The bank’s consolidated assets

increased by 21% during the year to LVL 676 million.



The year 2002 was exceptional for Hansabanka in many aspects. The

second pillar pension reform was launched on October 1 in Latvia.

During the first three months of the reform Hansabanka captured 63% of

the market with 42,600 customers choosing Hansabanka’s pension funds.

In e-banking Hansabanka continues as the market leader in cards

(353,000 cards), Internet banking customers (168,000 customers) and m-

banking customers (58,000 customers). Hansabanka was also the first

bank in the Baltics and Scandinavia to launch an EMV smart card.

For the first time Hansabanka lead the Latvian banking sector in terms

of lending growth, forming 26% of total sector growth. Hansabanka’s

consolidated loan portfolio increased 40% during the year to LVL 456

million at the end of December 2002. LVL 131.9 million of this were

loans to SIA Hanza Lizings. Lending growth was driven by retail and

SME lending. Allowance for credit losses totalled LVL 5.39 million at

the end of the year, forming 1.18% of the loan portfolio. At the end

of 2002 net loans formed 67% of total assets, up from 58% in the

beginning of the year. Loans to deposits ratio increased from 77% in

the beginning of the year to 95% at the end of December.

Hansabanka’s deposits increased by 12% during 2002 to LVL 475 million.

The growth came mostly from retail deposits while corporate deposits

remained stable and government deposits decreased slightly.



Hansabanka’s consolidated revenues totalled LVL 42.7 million in 2002.

Net interest income formed 55% revenues, net fee income 28%, trading

income 14% and other income 3%. Operating expenses totalled LVL 26.1

million during the year.





As at December 31, 2002

1 LVL = 25.4953 EEK

1 LVL = 1.6294 EUR







HANSABANKA                                           

CONSOLIDATED BALANCE SHEET                           

(LVL in thousands, unaudited)      31.12.02  31.12.01

                                                     

Cash                                 30,378    29,400

Due from Central Bank                19,850    32,602

Due from credit institutions         63,798    68,339

Securities                           72,906    67,519

Loans to customers                  455,747   326,359

    Provisions                       -5,393    -4,317

Loans to customers (net)            450,354   322,042

Goodwill                              1,344     2,067

Fixed assets                         15,444    17,185

Accrued interest and other assets    21,973    17,519

Total assets                        676,047   556,673

                                                     

Due to other credit institutions     50,485    35,177

Due to other financial                   10     2,059

institutions

Deposits from customers             475,434   424,002

    Demand deposits                 326,736   266,952

    Time deposits                   148,698   157,050

Debt securities                      15,010         -

Accrued interest and other           63,104    39,968

liabilities

Subordinated debt                     7,069     6,908

Total liabilities                   611,112   508,114

                                                     

Common stock                         46,043    40,043

Capital reserves                        135       135

Accumulated losses                    8,381     2,209

Profit for current year              10,376     6,172

Total shareholders’ equity           64,935    48,559

Total liabilities and               676,047   556,673

shareholders' equity







HANSABANKA                                      

INCOME STATEMENT                                

(LVL in thousands, unaudited)     2002      2001

                                                

Interest income                 37,044    28,362

Interest expense               -13,694   -12,369

Net interest income             23,350    15,993

                                                

Fees and commissions,           14,531     9,956

received

Fees and commissions, paid      -2,388    -1,485

Fees and commissions, net       12,143     8,471

                                                

Net result from financial        5,969     7,322

operations

Other income                     1,243       785

Total revenue                   42,705    32,571

                                                

Administration expenses         20,032    15,556

Other operating expenses         1,085       534

Depreciation                     4,951     4,788

Total operating expenses        26,068    20,878

Operating profit before         16,637    11,693

provisions

Loan losses                     -7,928    -5,802

Recovered loans                  3,983     1,177

Operating profit                12,692     7,068

Income from affiliates              10         1

Net profit before tax           12,702     7,069

Tax                             -2,326      -897

Net profit                      10,376     6,172





Mart Tõevere

Head of Investor Relations

+372 6131 569