HANSAPANK

COMMENTARY TO FINANCIAL RESULTS



LATVIAN DAUGHTER BANK'S FINANCIAL RESULTS, 1ST Q 2000



Hansabanka’s result for the first three months of 2000 was a LVL 1.2

million profit. The bank’s assets increased by 11.5% to LVL 223.8

million during the period.



During the first three months of the year Hansabanka’s operating

volumes increased substantially – clients’ deposits increased by LVL

18.7 million, or 11.3% to LVL 184.0 million at the end of March.

Demand deposits increased by 8.1% and term deposits increased by

17.9%. Through deposit growth, the bank’s assets grew by 11.5% or LVL

23.0 million amounting to LVL 223.8 million at the end of March.



Hansabanka’s loan growth in the first three months of the year

remained fairly modest. The loan portfolio grew by 6.6% to LVL 94.2

million. As of March 31 total loans formed just 51.2% of clients’

deposits and the net loan portfolio formed 40.8% of total assets

(42.6% in the beginning of the year). Allowance for credit losses

totalled LVL 2.8 million at the end of March, forming 2.93% of the

loan portfolio.



During the first quarter Hansabanka earned a net profit of LVL 1.2

million, which exceeds 1999 full-year result by VL 0.15 million. For

the first quarter the bank’s revenues amounted to LVL 5.3 million, up

by 60.6% from last year’s first quarter. Of this LVL 3.0 million was

formed by non-interest income and LVL 2.3 million by net interest

income. The bank’s operating expenses amounted to LVL 3.5 million,

which is 14.5% higher than a year ago.



As at March 31, 2000 1 LVL = 27.56542 EEK





Mart Tõevere

Investor relations

+372 6131 569