Hansapank                     FINANCIAL RESULTS           02/18/2003 09:30



HANSA CAPITAL GROUP'S RESULTS, 2002



Financial highlights                  31.12.02  Pro-forma   Pro-forma

                                                   31.12.02* 31.12.02*

                                                            

At period end (in millions of euros)      1 309,5    1 548,5  1 180,5

Total assets                              1 172,2    1 390,0  1 028,8

Financial investments                       943,8    1 100,6    806,9

  Leasing                                   147,4      184,9    133,9

  Factoring                                  29,2       47,9     48,3

  Loans                                       4,6        5,1      6,5

  Assignments                                47,2       51,4     33,3

  Small-scale financing                     -20,8      -24,0    -21,2

Allowance for doubtful receivables          896,8    1 111,7    955,6

Loan liabilities                             98,9       98,9     55,0

Owners' equity                                                       

For the period (in millions of euros)        45,8       55,6     44,3

Net interest income                          16,1       18,1     14,0

Net commission income                         5,9        6,6      6,1

Net other operating income                   67,8       80,2     64,4

Total revenue                                43,8       47,0     46,3

Net profit                                   4,0%       4,1%     4,4%

NIM (net interest margin)                    3,8%       3,4%     4,4%

ROA (return on assets)                      36,3%      32,7%    36,0%

ROE (return on operating equity**)           8,4%       8,4%     9,9%

Interest yield on average assets            25,4%      26,4%    24,6%

Cost-income ratio before provisions         0,34%      0,46%    0,48%

Risk expense***                               N/A       40,1     30,7

EVA (in millions of euros)****                535        645      524

Number of employees                       1 309,5    1 548,5  1 180,5

* Pro-forma figures also include the assets, liabilities and economic

results of SIA Hanza Lizings, which is not legally a part of Hansa

Capital Group from November 2001, but is organisationally still

managed by Hansa Capital.

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

assets x 11%) (15% in 2001)

*** Risk expense = (written-off receivables - recovered

receivables)/average portfolio of financial investments

**** The principles for calculation of EVA were changed in 2002, the

figure for 2001 was re-stated to make it comparable



Hansa Capital Group (hereinafter the HC Group) sustained its leading

position in leasing, factoring and consumer finance markets of all

Baltic countries. HC Group’s total assets increased by 368.0 million

euros (31.2%) to 1,548.5 million euros during 2002. The biggest

absolute growth in 2002 was in the lease portfolio (22.6%), while

consumer finance portfolio's growth rate was the fastest (54.4%).

In the geographical structure of financial investments Estonia has the

largest share (61.7%), followed by Lithuania (19.9%), Latvia (17.9%)

and other regions (0.5%). The Lithuanian investment portfolio recorded

the fastest growth in 2002 (55.9%), while Estonian portfolio grew by

36.4% and Latvian portfolio by 20.7%. Other regions experienced a

negative growth during 2002(-19.3%).



Real estate and private vehicle-finance continue to hold the largest

share among the financed assets with 32.1% (of which 41.9% are

residential mortgages and 58.1% commercial real estate) and 25.3%

respectively. Next is the acquisition of commercial vehicles (16.9%)

and industrial equipment (15.7%).



The year 2002 was very successful for HC Group. Of the record high net

income 73.7% was earned in Estonia, followed by Lithuania (14.6%),

Latvia (10.3%) and other regions (1.4%).



In November 2002 the Group and EBRD signed the establishment agreement

of Hansa Leasing Russia.

During the year, several new products were introduced to the market:

ship financing, stock financing (financing the storing of goods in

customs warehouse), vehicle leasing concept throughout the Baltic

states (packages X, XL and XXL) and a package "My Home" for financing

of housing. Ego consumer finance card was successfully introduced in

Lithuania. During the first five months already 10,000 new cards were

issued in Lithuania. In Estonia and Latvia the number of Ego cards

increased to 61,354 and 14,239 respectively. In 2002 a discount

programme was added to the card to increase its attractiveness.



In 2003 HC Group is going to concentrate on growth in Latvia and

Lithuania, providing professional asset-based finance services to the

Russian transit sector, developing financing packages, extending

product penetration over the Baltic countries and increasing

efficiency.



PROFIT AND LOSS STATEMENT, unaudited, in millions of euros

                                                  Pro-forma Pro-forma

                                            2002      2002*     2001*

                                                              

Interest income                             96,4      114,8      99,0

Interest expenses                           50,6       59,2      54,7

Net interest income                         45,8       55,6      44,3

                                                              

Commission income                           17,9       20,3      15,7

Commission expenses                          1,8        2,2       1,7

Net other operating income                   5,9        6,6       6,1

Total revenue                               67,8       80,2      64,4

                                                              

Operating expenses                          17,2       21,2      16,6

Profit before provisions and                50,6       59,0      47,9

financial income

Total provisions                             6,0        9,1       2,2

Net financial income                         0,0       -0,3       0,1

Operating profit                            44,5       49,7      45,9

Income from equity investments               0,0        0,0       0,0

Extraordinary income (expense)               0,0        0,0       0,0

Profit before income tax                    44,6       49,7      45,9

Income tax                                   0,8        2,7       1,6

Minority profit (loss)                       0,0        0,0      -2,0

Net profit                                  43,8       47,0      46,3

* Pro-forma figures also include the assets, liabilities and economic

results of SIA Hanza Lizings, which is not legally a part of Hansa

Capital Group from November 2001, but is organisationally still

managed by Hansa Capital.



Balance sheet, unaudited, in millions of euros

                                       31.12.02  Pro-forma  Pro-forma

                                                31.12.02 * 31.12.02 *

ASSETS                                                               

Bank account                                12,7      14,2       15,1

Due from customers                          19,9      25,8       20,8

Financial investments                    1 172,2   1 390,0    1 028,8

  Leasing                                  943,8   1 100,6      806,9

  Factoring                                147,4     184,9      133,9

  Loans                                     29,2      47,9       48,3

  Assignments                                4,6       5,1        6,5

 Small-scale financing                      47,2      51,4       33,3

Allowance for doubtful receivables         -20,8     -24,0      -21,2

Net financial investments                1 151,4   1 366,0    1 007,6

Prepayments to suppliers                    78,4      88,5       84,9

Stocks for resale                           16,6      20,2       16,4

Long-term equity investments                 0,0       0,0        1,1

Tangible fixed assets                       16,8      17,3       19,8

Intangible assets                            0,2       0,2        0,2

Accrued income and prepaid expenses         13,5      16,1       14,6

TOTAL ASSETS                             1 309,5   1 548,5    1 180,5

                                                                     

LIABILITIES AND OWNERS' EQUITY                                       

LIABILITIES                                                          

Loans                                      896,8   1 111,7      955,6

Bonds                                      232,7     232,7       89,0

Bills of exchange                            2,2       2,2        7,5

Liabilities to customers and                59,2      69,8       51,2

suppliers

Accrued expenses and prepaid revenue        17,8      21,0       12,8

Other liabilities                            0,9       0,9        0,6

Deferred tax liabilities                     0,9       1,0        0,7

Negative goodwill                            0,0       0,0        0,0

TOTAL LIABILITIES                        1 210,5   1 439,1    1 117,5

Minority interest                            0,1      10,4        8,0

OWNERS' EQUITY                                                       

Share capital                                7,7       7,7        7,7

Reserves                                     1,4       1,4        1,4

Retained earnings                           89,8      89,8       46,0

Unrealised exchange rate difference          0,1       0,0       -0,1

TOTAL OWNERS' EQUITY                        98,9      98,9       55,0

TOTAL LIABILITIES AND OWNERS' EQUITY     1 309,5   1 548,5    1 180,5

* Pro-forma figures also include the assets, liabilities and economic

results of SIA Hanza Lizings, which is not legally a part of Hansa

Capital Group from November 2001, but is organisationally still

managed by Hansa Capital.



Additional information:

Tarmo Rooteman

Chief Credit Officer

Phone +372 613 1494

E-mail: tarmo.rooteman@hansa.ee





Mart Tõevere

Head of investor relations

+372 6131 569