OPTIVA PANK

ANNOUNCEMENT

30.09.99

 

 

COMMENTARY TO THE UNAUDITED AND UNCONSOLIDATED FINANCIAL RESULTS 09/99

 

The volume of net profit earned by Optiva Pank in September was 597 

thousand EEK; the bank's nine-months net profit is 10.3 million EEK.

 

As of end-September, the balance sheet size of Optiva Pank stood at 

3.46 billion EEK, providing 121.7 million EEK increase from the beginning 

of the year. The balance sheet volume declined in September by 63.7 

million EEK, or 1.9%.

 

Total income earned by the bank in nine months amounted to 147.9 million 

EEK. The income structure in September was as follows: net interest income 

after provisions accounted for 40.0% of total revenue, commissions and 

service fees received 26.6%, income from currency exchange operations 

17.2%, income from investments in shares 14.9% and other income 1.3%.

 

The bank's nine-months non-interest expenses totaled 109.9 million EEK, 

of which the personnel expenses accounted for 42.2%, the administration 

expenses 44.3%, commissions and service fees paid 9.4% and other non-interest 

expenses 4.1%.

 

The total volume of clients' deposits increased in nine months by 210.6 

million EEK or 24.0%, increasing in September by 42.2 million EEK or 3.7%. 

Demand deposits increased in 9 months by 135.8 million EEK or 24.7% (-21.0 

million EEK or -3.0% in September), and term deposits by 74.8 million EEK 

or 22.9% (-21.2 million EEK or -5.0% in September). 

As of the end of September, the share of demand deposits among total 

deposits stood at 63.1% and term deposits at 36.9%. As of the end of 

September, the share of clients' deposits among the bank's external 

finances was 36.9 (30.9% at the end of December).

 

Borrowings from other banks decreased in September by 13.3 million EEK 

or 2.1%.

 

Monthly increase of net loan portfolio amounted to 37.7 million EEK or 

2.1%, totaling 1.85 billion EEK at the end of September. As of the end 

of September, the allowances for potential loan losses totaled 9.2% of 

gross loan portfolio. Compared to the beginning of the year, the volume 

of net loan portfolio declined by 204.8 million EEK or 9.9%, bringing 

the share of net loan portfolio among total assets down to 56.3% (61.7% 

in December 1998).

 

Deposits with other banks decreased in September by 66.4 million EEK 

or 14.9%. 

 

Compared with the beginning of the year, the bank's long-term investments 

in shares have dropped by 40.7 million EEK or 29.5% and short-term 

investments in shares by 4.8 million EEK or 184.8%. The share of investments 

in shares among total assets was 3.2% at the end of September.

 

As of the end of September, the bank's owners' equity stood at 348.3 

million EEK and capital adequacy was 11.61%. 

 

The following table presents the key indicators of the bank:

 

				Q1 99		Q2 99	        Q3 99

Return on equity  		 1.8%		 6.8%		 3.0%

Return on assets  		 0.2%		 0.7%		 0.3%

Average asset utilization	10.6%		11.4%		10.6%

Average yield           	 7.3%		 7.7%		 7.0%

Net non-interest margin  	 3.2%		 3.7%		 3.6%

Profit margin     		 1.8%		 6.2%		 3.0%

Net interest margin after 

    loan provisions		 2.3%		 2.8%		 1.9%

 

 

 

Piret Villman

Head of Budget and Planning Department

+372 63 02 103