EESTI ÜHISPANK

ANNOUNCEMENT

16.11.98

 

FINANCIAL RESULTS OF EESTI ÜHISPANK FOR OCTOBER, 1998

 

The volume of  the balance sheet  of Eesti Ühispank  as at the  end of

October was EEK  13,840 million, having  decreased by 0.6%  during the

month.  Clients'  deposits  decreased  by  2.1%,  that  is, by EEK 166

million.   Due  to  the   constant  deterioration  of   the   economic

environment  as  a  whole  and  the  impact  of  negative  information

concerning  the  whole  banking   sector,  the  deposits  of   private

customers  decreased.  Deposits   of  corporate  customers,   however,

increased.  The  demand  deposits  of  clients amounted to EEK 3,363.9

million and the term deposits to EEK 4,189.2 by the end of the month.

 

Ühispank made a loss of EEK 15.2 million during October, the loss  for

the  10  months  of  1998  thus  being   EEK 9.6 million. The loss was

caused by  the dollar-rouble  deal made  by the  former Tallinna  Pank

during the first  half of 1998.  The deal was  written off immediately

after it was revealed  that the partner of  the deal, a Russian  bank,

is not able to fulfill its  commitments to Ühispank. As by the  end of

October, all transactions with the Russian banks, made during  earlier

periods, were either fulfilled or accounted for as loss.

 

Goodwill of the  Bank decreased by  EEK 2.9 million,  amounting to EEK

339.9  million  as  at  the  end  of  October. Interest income make up

75.9%, income  on commissions  and fees  22.1% and  other income 2% of

the total income of the Bank.

 

The net loan  portfolio of Ühispank  amounted to EEK  7,907.5 million,

forming 55.6%  of total  assets. Loan  provisions amounted  to EEK 219

million which  is 2.8%  of loan  portfolio. The  portfolio of bonds of

the  bank  was  decreased  by  EEK  16 million, amounting to EEK 2,404

million  and  the  amount  of  the  securities  with  the   repurchase

commitment reduced by EEK 14.1 million to EEK 18 million.

 

The owners' equity of the Bank  was EEK 1,692.3 million as at  the end

of October with the capital adequacy ratio being 12.03%.

 

Report is not audited.

 

Additional information:

Ülo Suurkask

Vice President

Tel + 372 6 110 35