HANSAPANK

ANNOUNCEMENT



HANSABANK GROUP'S STRATEGIES FOR 2001



1.   To be an Internet financial services provider of the highest

international standard.



At the end of year 2000 Hansabank Group had over 205 000 online

customers in the Baltics. Internet has proven to be one of the most

efficient distribution channels of financial services for our

customers as well as for the group. By offering best product

solutions, the group is targeting to have 250,000 online customers in

Estonia, 60,000 in Latvia and 4,000 in Lithuania by the end of the

year 2001.



2.   To focus on SME-s and affluent private customers.



Inside its universal banking profile, Hansabank Group will increase

its focus the SME segment and affluent private individuals in all

three countries.



3.   To improve co-operation and exchange of know-how within the Group

and with Swedbank.



Hansabank Group is known for its entrepreneurial culture and strive

for excellency. Achievements of well operating professional teams must

be further enhanced by improvement of information and know-how

transfer and closer co-operation between organisational units pan-

Baltically.



4.   To introduce pan-Baltic employee development and exchange

programs.



In order to become a true international company, with know-how

exchange and career opportunities throughout the Baltic countries, a

systematic incentive exchange program has to be developed.

For the same purposes opportunities should be developed to work within

Swedbank.



5.   To assure reliability of electronic channels.



The life cycle of electronic channels has reached a new stage.

Financial services have become an integral part of people’s everyday

life. This puts focus on availability and reliability of these

services. The infrastructure has to be up and running 24 hours a day

and 7 days a week. We have to assure that core products are available

around the clock.



6.   Hansabank Estonia: To increase customer activity.



Hansabank Estonia’s aim is to increase the number of products used by

one customer.



7.   Hansabanka: To grow aggressively with emphasis on strengthening

lending organisation and processes.



Hansabanka has shown a strong growth in 2000 and is currently well

positioned in the market. To further improve efficiency and market

position, the organisation and processes of lending have to be

improved.



8.   Hansabankas: To increase market share.



Hansabankas has in a short time established a strong brand name. All

efforts will be focused on increasing market shares with the help of

innovative products and high quality services.



9.   Hansa Capital: To grow in Latvia and Lithuania and to improve

efficiency of back-office operations.



Hansa Capital holds a very strong market position in all three

countries. At the same time the size of Latvian and Lithuanian market

is relatively modest. Hansa Capital’s goal is to develop the two

markets by introducing new and attractive products. Back-office

workflow should be integrated within the Group in order to increase

efficiency.



10.  Hansabank Markets: To improve industry focus and product know-how

by establishing a pan-Baltic organisation.



In order to remain competitive and profitable Markets has to

strengthen industry knowledge and product sophistication. Therefore a

clear pan-Baltic approach will be needed to offer clients not only

integrated service, but also to make it easier to develop products and

share necessary know-how within the organisation.





Hansabank Group’s medium-term financial targets are:

1.   ROE* not less than 25%

2.   Cost-income ratio below 50%

3.   Positive non-interest margin

4.   Net risk cost** below 80bp

5.   Double the net income every four years



*normalised equity based on 15% capital adequacy

**Net risk cost = (loan write-offs – recoveries)/average total loans





Mart Tõevere

Head of Investor Relations

+372 6131 569