Sampo Pank                    CORRECTIVE RELEASE                08/18/2004



CORRECTION IN SAMPO PANK'S HY1 RESULTS



There was a mistake in Sampo Pank's announcement from the 

16th August regarding Business results of the 

Consolidated Group of AS Sampo Pank of the 6 months of 2004.



Mistake was in the paragraph of Assets. Instead

of sentence "At the end of June of 2004, allowances for

loan impairment comprised 1.1% of the gross loan 

portfolio, as compared to 1.0% at the end of 2003" 

must be sentence "At the end of June of 2004, 

allowances for loan impairment comprised 1.9% of the 

gross loan portfolio, as compared to 2.0% at the end

of 2003".



The revised announcement follows:

-------------------------------------



Business results of the Consolidated Group of AS Sampo

Pank of the 6 months of 2004





Income Statement



The net profit of the Consolidated Group of AS Sampo Pank

(hereinafter  the  Group) for  the  first  half  of  2004

exceeded the previous year’s figure by 10.3% or  EEK  5.1

million, amounting to EEK 54.1 million. In the conditions

of  a  moderate growth of operating expenses, net  profit

mainly increased due to the growth of interest as well as

fee  and  commission  income  caused  by  the  growth  of

operating volumes. The Group’s return on equity accounted

for 19.5% (21.3% in the first half of 2003) and return on

assets 1.4% (1.6%), respectively.



As  compared  to the same period last year,  the  Group’s

income  improved by 15.9% or EEK 27.0 million,  totalling

EEK  196.6  million. The structure of the  Group’s  total

income  was as follows: net interest income 63.4%  (63.7%

in the first half of 2003), net fee and commission income

24.1%  (18.8%), income from foreign exchange transactions

6.0%  (6.4%), income from investments in securities  5.1%

(8.7%) and other income 1.3% (2.4%).



Net Interest Income



The  Group’s  net interest income for the first  half  of

2004  amounted to EEK 124.6 million, an increase of 15.3%

or  EEK 16.5 million, as compared to the same period last

year.   Growth  in  net  interest  income  was  primarily

supported  by  the  growth of  the  volume  of  the  loan

portfolio which mainly led to a 9.1% or EEK 16.5  million

increase  in  interest income. At the same time  interest

expenses remained at the level of the first half of  2003

primarily  for  the  reason that the growth  of  interest

bearing liabilities was compensated by the decline in the

latter’s price. Due to a decline in market interest rates

and  intense competition in the banking market return  on

interest earning assets decreased by 1.0 percentage point

to   5.3%  and  price  of  interest  bearing  liabilities

declined by 0.6 percentage points to 2.1%, as compared to

the  same  period  last year, as a result  of  which  the

Group’s  interest  spread  decreased  by  0.4  percentage

points to 3.1%.



Non-Interest Income



The  Group’s  non-interest income amounted  to  EEK  83.0

million  in the first half of 2004, an increase of  17.5%

or  EEK  12.4 million over the prior year period,  mainly

due to the increased fee and commission income.



Fee  and  commission income totalled  EEK  58.0  million,

exceeding the figure for the first half of 2003 by  42.0%

or  EEK  17.1 million. The increase was mainly caused  by

the adjustments made to loan and guarantee agreement fees

in  the  first  half of 2003. Total loan  agreement  fees

received by the Group also increased due to the growth of

the  loan  portfolio and fees related to the lowering  of

the  interest rates of the earlier granted loans  in  the

conditions of continued decline in market interest rates.



Income  from  foreign exchange transactions increased  by

8.8%  or EEK 1.0 million due to an increase in the number

of   clients  as  well  as  the  volume  of  transactions

performed,  amounting to EEK 11.8 million.   Income  from

investments  in  securities that  amounted  to  EEK  10.5

million,  decreased by 29.0% or EEK 4.3 million,  chiefly

due  to increased losses deriving from the decline in the

value   of  debt  securities  contained  in  the  trading

portfolio  as a result of the decline in market  interest

rates.



Non-Interest Expense



The  Group’s non-interest expense amounted to  EEK  125.7

million  in  the  first half of 2004, of which  personnel

expenses accounted for 56.0% (56.5% in the first half  of

2003),   other  administrative  expenses  34.2%  (35.0%),

depreciation  7.4%  (6.5%) and other  operating  expenses

2.4%  (2.0%).  As  compared to the first  half  of  2003,

personnel  expenses  and  other  administrative  expenses

increased by  7.5% or EEK 4.9 million and 5.9% or EEK 2.4

million,  respectively.  Due  to  the  considerably  more

modest  increase  in  non-interest  expenses  (8.4%)   in

comparison  with  the  growth  in  income  (15.9%),  cost

efficiency  increased and cost/income ratio dropped  from

68.3%  in  the first half of 2003 to 63.9% in  the  first

half  of  2004.  The  ratio of non-interest  expenses  to

average  assets  also improved, declining  from  3.7%  to

3.2%.



Assets



The  Group’s total assets amounted to EEK 8.2 billion  at

the end of the first half of 2004, an increase of EEK 1.0

billion  or  13.9%, as compared to the end of  2003.  The

Group’s assets experienced a growth of EEK 1.4 billion or

21.0% over the year.



The Group’s assets increased mainly due to the growth  of

the  loan  portfolio which grew by  16.2%  or  EEK  853.8

million  in  the six-month period, amounting to  EEK  6.1

billion and accounting for 74.5% of total assets  at  the

end  of  June.  The  annual  growth  of  the  gross  loan

portfolio   reached  30.9%.  Loans  to  private   persons

increased by 24.6% or EEK 505.9 million in the first half

of  2004 and 59.7% or EEK 957.6 million over the year. As

at  the  end  of  June  2004, loans  to  private  persons

totalled  EEK  2.6  billion or 41.9% of  the  gross  loan

portfolio. Loans to private enterprises amounted  to  EEK

3.4 billion at the end of June 2004, accounting for 55.0%



of the gross loan portfolio. Loans to private enterprises

increased  by 10.8% or EEK 327.8 million over  the  first

half  of 2004 and by 15.1% or EEK 440.7 million over  the

year.



At   the  end  of  June  of  2004,  allowances  for  loan

impairment comprised 1.9% of the gross loan portfolio, as

compared to 2.0% at the end of 2003. Allowances for  loan

impairment were formed in the amount of EEK 17.3  in  the

first  six months of 2004, as compared to EEK 5.3 million

in  the  same period last year. The allowances formed  in

the  first  half of 2003 were small due to the amendments

which   were  being  made  to  the  Group’s  provisioning

principles,  taking into account the  new  Basel  Capital

Accord   recommendations  as   well   as   the   positive

developments that have prevailed in Estonia’s economy  in

the recent years.



Liabilities



The volume of client deposits amounted to EEK 4.6 billion

at  the  end of June, an increase of 14.1% or  EEK  569.9

million in the first half of 2004 and 15.8% or EEK  628.7

million over the year. Both the volume of the deposits of

private  persons  as well as that of private  enterprises

increased mainly due to the growth of demand deposits  in

the first half of 2004, by 12.1% or EEK 126.7 million and

17.1% or EEK 415.0 million, respectively. The deposits of

private persons experienced an increase of 19.9%  or  EEK

195.6  million  and  those  of  private  enterprises   an

increase of 28.8% or EEK 635.5 million over the year.  At

the  end  of  June, the share of the deposits of  private

persons  made up 25.6% (1.2 billion) and that of  private

enterprises 61.8% (2.8 billion) of total deposits.



Loans  from other banks increased by 13.7% or  EEK  150.3

million  in  the  first half of 2004, totalling  EEK  1.2

billion at the end of June.



Owners’ Equity



As  at  the end of June 2004, the Group’s equity totalled

EEK 574.9 million and capital adequacy was 12.03% (12.07%

in the first half of 2003).





Balance sheet

in thousands of kroons

                                               ths EUR ths EUR

                            30.06.04  31.12.0330.06.0431.12.03

Cash                          61 343    55 659   3 921   3 557

Claims and loans           6 909 819 6 167 727 441 617 394 189

Claims and loans             627 548   612 807  40 108  39 165

 to central bank

Claims and loans to          291 651   404 902  18 640  25 878

 credit institutions

Claims and loans to        4 606 498 3 950 372 294 408 252 474

 clients of credit institution

Claims and loans to clients1 505 173 1 307 424  96 198  83 559

 of leasing enterprises

Claims from insurance and          0         0       0       0

 reinsurance activities

Other claims                       0         0       0       0

Allowance for claims       - 121 051 - 107 778 - 7 737 - 6 888

 and loans

Debt securities              858 085   662 601  54 841  42 348

Shares and other              34 221    39 886   2 187   2 549

 securities

Investments in associates          0         0       0       0

Other shares                  26 573    37 265   1 698   2 382

Derivatives                    7 648     2 621     489     168

Intangible assets              7 698     5 659     492     362

Consolidated goodwill              0         0       0       0

Other intangible assets        7 698     5 659     492     362

Tangible assets              141 509   141 657   9 044   9 054

Investment property           13 076    13 239     836     846

Settlements with                   0         0       0       0

 shareholders

Other assets                 107 377    54 163   6 863   3 462

Prepayments and               67 038    57 981   4 284   3 706

 accured income

TOTAL ASSETS               8 200 166 7 198 572 524 085 460 071



Amounts owed               5 878 124 5 157 689 375 680 329 636

Amounts owed to                    0         0       0       0

 the central bank

Amounts owed to the        1 263 209 1 110 250  80 734  70 958

 credit institutions

Amounts owed to the clients4 601 400 4 031 512 294 082 257 660

 of credit institutions

Amounts owed from insurance        0         0       0       0

 and reinsurance activities

Other amounts owed            13 515    15 927     864   1 018

Liabilities related          967 487   995 593  61 834  63 630

 to securities

Issued debt securities       961 461   922 059  61 448  58 930

Derivatives                    6 026    73 534     385   4 699

Other liabilities related          0         0       0       0

 to securities

Other liabilities            388 882   169 277  24 854  10 819

Accruals and                 141 505   141 296   9 044   9 030

 deferred income

Provisions                         0         0       0       0

Technical provisions for           0         0       0       0

 insurance activities

Pension reserve                    0         0       0       0

Other provisions                   0         0       0       0

Subordinated liabilities     249 231   213 849  15 929  13 667

Minority interests                 0         0       0       0

Total liabilities          7 625 229 6 677 704 487 340 426 782

Share capital                323 111   323 111  20 651  20 651

Paid in capital over par      17 081    17 081   1 092   1 092

General banking reserve            0         0       0       0

Mandatory reserve              9 025     4 695     577     300

Other reserves                     0         0       0       0

Unrealised rate                    0         0       0       0

 differences

Profit or loss retained      171 651    89 382  10 970   5 713

Profit or loss for            54 069    86 599   3 456   5 535

 the financial year

Own shares                         0         0       0       0

Total owners´equity          574 937   520 868  36 745  33 289

TOTAL LIABILITIES AND      8 200 166 7 198 572 524 085 460 071

 OWNERS´EQUITY



Income statement

In thousands of kroons                              ths. EURths. EUR

                                    30.06.0430.06.0330.06.0430.06.03

Interest income                      198 344 181 853  12 676  11 622

Interest income from                 151 060 140 482   9 654   8 978

 banking activities

Interest income                       47 284  41 371   3 022   2 644

 from leasing activities

Other interest income                      0       0       0       0

Interest expense                      73 710  73 758   4 711   4 714

Interest expense from                 73 677  73 700   4 709   4 710

 banking activities

Interest expense from                     33      58       2       4

 leasing activities

Other interest expense                     0       0       0       0

Net interest income (loss) (+/-)     124 634 108 095   7 966   6 909

Income and expenses                        0       0       0       0

 from insurance activities

Insurance premiums                         0       0       0       0

Insurance compensations and                0       0       0       0

 change in reserves

Income from securities                     0   1 099       0      70

Equity method gains (losses) (+/-)         0       0       0       0

Profit/loss from sales of                  0   1 099       0      70

 long-term securities

Dividends on long-term securities          0       0       0       0

Net fee and commission income         47 462  31 821   3 033   2 034

Fee and commission income             58 011  40 862   3 708   2 612

Fee and commission expense            10 549   9 041     674     578

Net profit (loss) on financial        21 916  24 514   1 401   1 567

 operations (+/-)

Profit/income                         21 916  24 514   1 401   1 567

Loss/expense                               0       0       0       0

General administrative expenses      113 389 106 078   7 247   6 780

Salaries expense                      52 784  49 276   3 374   3 149

Social security expense               17 574  16 176   1 123   1 034

Pension expense (non-state)                0       0       0       0

Other administrative expenses         43 031  40 626   2 750   2 596

Value adjustments in                 - 9 328 - 7 514  -  596  -  480

 investment property and tangible

 and intangible fixed assets (+/-)

Profit/income                              0       0       0       0

Loss/expense                           9 328   7 514     596     480

Value adjustments in loans          - 16 856 - 4 699 - 1 077  -  300

 and off-balance sheet items (+/-)

Profit/income                            431     560      28      36

Loss/expense                          17 287 - 5 259   1 105  -  336

Value adjustments in                       0       0       0       0

 long-term investments (+/-)

Income                                     0       0       0       0

Expense                                    0       0       0       0

Other operating income (+/-)          -  370   1 760   -  24     112

Other operating revenue                2 627   4 108     168     263

Other operating expenses               2 997   2 348     192     150

Extraordinary                              0       0       0       0

 income/expenses (+/-)

Extraordinary income                       0       0       0       0

Extraordinary expenses                     0       0       0       0

Profit before taxes (+/-)             54 069  48 998   3 456   3 132

Income tax expenses                        0       0       0       0

Income tax for reporting period            0       0       0       0

Change in deferred                         0       0       0       0

 income tax liability (+/-)

Minority share of profits                  0       0       0       0

PROFIT FOR THE                        54 069  48 998   3 456   3 132

 REPORTING PERIOD (+/-)





Anneli Rõuk

kommunikatsioonijuht

6302103