AS HANSAPANK

ANNOUNCEMENT

08.02.99

 

 

HANSABANK-LATVIA’S 1998 AUDITED RESULTS

 

 

According to audited results the total assets of Hansabank-

Latvia at the end of 1998 stood at LVL 144.6 million, clients’ 

deposits amounted to LVL 110.9 million and the loan portfolio 

to LVL 62.1 million. The bank’s audited financial result for 

the year was a LVL 3.2 million loss.

 

During 1998 Hansabank-Latvia’s total assets increased by 63.1%, 

or LVL 56 million (of this LVL 44.0 million originated from the 

merger with Zemes banka). Clients’ deposits grew by 85.0% or 

LVL 51 million (LVL 28 million from the merger) and the loan 

portfolio by 147.4% or LVL 37 million (LVL 23 million from the 

merger). At the end of the year the loan portfolio formed just 

56.0% of the deposits.

 

Hansabank-Latvia’s operating result in 1998 was a LVL 3,2 

million loss, which was caused by the liquidation of all 

Russian positions, increased loan provisions and merger-related 

expenditures.

The bank’s net interest margin increased by 43% or LVL 1.2 

million during the year to LVL 4.0 million. As loan provisions 

increased LVL 2.8 million the net interest income after 

provisions decreased on a year-on-year basis by 55.8% to LVL 

1.3 million.

 

Securities trading resulted in a loss of LVL 1.1 million for 

the bank. The largest non-interest income item, service fees 

and commissions, increased by 49.6% or LVL 0.9 million and 

totaled LVL 2.8 million. 

 

During the year total non-interest income decreased by 27% or 

LVL 2.1 million and total revenue by 39.7% or LVL 3.9 million.

 

The bank’s operating expenses increased by 27.5% during 1998 to 

LVL 7.2 million. The largest cost item is still personnel 

expense, which having increased only by 5% totaled LVL 2.2 

million. During the year administrative expenses increased by 

51.9% to LVL 2.1 million and depreciation by 26.6% to LVL 1.6 

million.

 

On October 30, 1998 Hansabank Latvia merged with Latvian Zemes 

bank. The financial statements included in this announcement 

represent the merged bank. The 1998 income statement also 

includes Zemes banka’s revenues and costs for the post merger 

period (November-December).

 

1 LVL  = 23.59995 EEK

 

 

 

 

HANSABANK Ltd.

 

Mart Toevere

Analyst

Tel. +372 6131 569