Sampo Pank                    FINANCIAL RESULTS                 03/01/2002



CONSOLIDATED FINANCIAL RESULTS 2001



All figures in this announcement are in euros. The EEK/EUR 

exchange rate is 15.64664.



Balance sheet analysis



At the end of 2001 the Group had total assets of EUR 345,1 

million, a rise of 25.7 per cent or EUR 70,3 million, 

generated largely by an increase in client deposits, which 

is the main funding source for the Group.



Lending



The share of the Group's loans to clients has increased of 

the Group's assets in 2001. Total assets grew largely on 

the account of the loan portfolio. At the end of 2001, the 

gross loan portfolio amounted to EUR 204,5 million or 59.1 

per cent of the Group's total assets, an increase of 41.4 

per cent or EUR 60.1 million over the year 

Outstanding private company loans totalled EUR 153,3 

million at the end of 2001, an increase of 30.8 per cent or 

EUR 36.7 million. Loans to private persons experienced an 

annual growth of 97.5 per cent or EUR 21.0 million, to EUR 

42.4 million.  



At the end of 2001, the reserve for possible loan losses 

represented 4.3 per cent of the gross loan portfolio, 

compared to 4.5 per cent in 2000. During 2001, 

uncollectible loans were written off at EUR 1.4 million, 

while EUR 0.5 million was recovered from the write-offs of 

previous years. Loan provisions made in 2001 totalled EUR 

3.4 million. The percentage of overdue loan payments in the 

gross loan portfolio accounted for 0.8 per cent, compared 

to 0.9 per cent at the end of December last year. Overdue 

loans comprised 19,1 per cent of the reserve for possible 

loan losses in 2001, compared to 20.9 per cent in 2000.



Client deposits



Client deposits continued to grow at an accelerated growth 

rate in 2001. The annual increase in the total volume of 

client deposits amounted to EUR 70.3 million (57,4 per 

cent) in 2001, compared to EUR 33.2 (35.8 per cent) in 

2000. Time deposits increased by EUR 38.6 million or 64.1 

per cent, while demand deposits grew by EUR 33.6 million or 

51.2 per cent. 



Total demand deposits can be mainly accounted for the 

growth in the volume of current accounts of both private 

persons and private companies, which altogether increased 

by 48.6 per cent or EUR 31.1 million. The rise in time 

deposits was principally generated by the growth in the 

time deposits of insurance and financial institutions, EUR 

22.8 million or 308.9 per cent respectively.    



Time deposits of private persons with the Group grew 22 per 

cent or EUR 5.3 million and demand deposits 99.4 per cent 

or EUR 9.8 million in 2001. In 2001 private company demand 

deposits increased to EUR 76.7 million, a growth of 39.4 

per cent or EUR 21.3 million. The growth rate of private 

company time deposits was more modest in 2001, amounting to 

16.1 per cent or EUR 4.3 million.



Of total deposits, an equal share of 50.0 per cent or EUR 

95.9 million was derived from demand as well as time 

deposits. 



Equity 



In the year 2001, the Group's equity increased by 58.6 per 

cent or EUR 9.0 million due to EUR 2.6 million of profit 

earned and due to additional EUR 6.4 million received from 

the issue of shares with a premium, sold to the parent 

company Sampo plc. At the end of 2001, the Group's equity 

accounted for 7.0 per cent of total assets, compared to 5.6 

per cent in December 2000. The Group's capital adequacy was 

16.4 per cent at the end of 2001, compared to 13.4 per cent 

in December 2000.



Income statement analysis



At the end of 2001, the Group reported a profit of EUR 2.6 

million. The Group's return on equity was 13.2 per cent, 

return on assets was 0.8 per cent and the ratio of cost/ 

income was 71.0 per cent.     

					

The Group's total income increased by 34.6 per cent or EUR 

8.4 million over the year, while interest income grew by 

45.5 per cent and non-interest income by 13.7 per cent. 

This led to the increase of the share of interest income in 

the Group's total income. In 2001 interest income accounted 

for 71.1 per cent of total income, while in 2000 the 

respective percentage was 65.7 per cent. Of 2001 total 

income, 16.8 per cent was derived from fees and 

commissions, 7.8 per cent from foreign exchange 

transaction, 1.1 per cent from transactions in securities 

and 3.6 per cent from other income.  



Interest income and expenses



In 2001, total interest income of the Group totalled EUR 

23.3 million, a rise of 45.5 per cent over the year. In 

2001, interest expenses of the Group amounted to EUR 11.8 

million, an increase of 45.4 per cent over the year. Net 

interest income totalled EUR 11.5 million in 2001, a growth 

of 45.6 per cent or EUR 3.6 million over the year.



In 2001, average return on interest earning assets 

decreased by 0.3 percentage points or 7.8 per cent. 

Interest expenses on interest bearing liabilities 

experienced a decline of 0.2 percentage points or 4.3 per 

cent. In 2001 the Group's interest spread was 3.6 per cent 

and the interest margin represented 3.5 per cent, compared 

to 3.7 per cent and 3.4 per cent respectively, a year 

before.



Non-interest income 



The Group's non-interest income amounted to EUR 9.5 million 

in 2001, an increase of 13.7 per cent or EUR 1.1 million 

over the year. The non-interest income structure of the 

Group remained largely the same as in the prior year. In 

2001, fees and commissions income and foreign exchange 

income represented the biggest shares of 58.2 per cent and 

27.1 per cent, respectively, of non-interest income 

(compared to 57.2 per cent and 34.8 per cent in 2000). In 

the year under review, fees and commissions income 

increased by 15.6 per cent or EUR 741.4 thousand, while 

foreign exchange income decreased by 11.5 per cent or EUR 

332.3 thousand, mainly caused by a decrease in margins.    



In 2001, of fees and commissions income, fees and 

commissions earned from cash and banking operations 

accounted for 41.6 per cent, arrangement fees from 

loan/borrowing and guarantee agreements represented 27.0 

per cent, fees from card transactions 11.2 per cent and 

fees and commissions from investment services accounted for 

5.1 per cent.



Fees and commissions from banking operations decreased by 

4.4 per cent or EUR 89.5 thousand over the year.     



In the year 2001, similar to 2000, fees and commissions 

income from card transactions experienced highest growth 

rate of 51.4 per cent or EUR 210.9 thousand extra, 

totalling EUR 619.9 thousand at the end of the year.      



Fees and commissions income from cash operations declined 

by 7.7 per cent or EUR 34.2 thousand. 



Fees and commissions income received from investments 

management increased almost four times, totalling EUR 281.2 

thousand at the end of the year. 



Supported by an increased credit demand both by private 

persons as well as companies, the number of guarantee and 

loan agreements doubled over the year, which resulted in a 

growth of 1.4 per cent or EUR 447.3 thousand in the 

arrangement fees income received from these agreements.



Income from securities accounted for 1.6 per cent of the 

Group's total income. In 2001, the short-term securities 

investment and trading portfolio yielded a profit of EUR 

294.0 thousand (EUR 389.9 thousand in 2000), while the 

long-term investment portfolio produced a profit of EUR 

89.5 thousand (compared to a loss of EUR 581.6 thousand in 

2000).  



Non-interest expenses



The Group's non-interest expenses grew in line with 

increasing business volumes. In 2001, non-interest expenses 

jumped 30.0 per cent to EUR 3.1 million. At the same time 

cost efficiency also grew. In 2001 the Group's non-interest 

expenses accounted for 4.2 per cent from the Group's 

average assets and 41.6 per cent from total income, 

(compared to 4.6 per cent and 43.1 per cent, respectively, 

in 2000).   



Personnel expenses, including salaries, fringe benefits and 

social security payments, totalled EUR 6.0 million and 

represented the biggest share of the Group's non-interest 

expenses (i.e. 44.1 per cent) in 2001. The Group's 

personnel expenses were 26.7 per cent or EUR 1.3 million 

higher than the prior year. The growth was mainly caused by 

both increased number of personnel and higher salaries. The 

Group's personnel expenses accounted for 18.3 per cent of 

total income and 1.9 per cent of average assets, while in 

2000 the same percentages were 19.5 per cent and 2.1 per 

cent, respectively.

                          

The Group's business travelling and training expenses 

increased by 92.3 per cent or EUR 153.4 thousand during the 

year, principally due to an increased volume of personnel 

training activities.



Paid commissions and fees experienced a growth of 6.4 per 

cent or EUR 83.1 thousand over the year. Fee expenses from 

card transactions experienced greatest growth. It was 

mainly related to a growth in the volume of card 

transactions performed by clients. 



The largest expense items in other administrative expenses 

were communication and data processing expenses (comprising 

25.3 per cent of this total) and room rent and 

administration expenses  (22.0 per cent of this total). 

Communication and data processing expenses increased by 4.1 

per cent or EUR 51.1 thousand and room rent and 

administration expenses grew by 23.9 per cent or EUR 204.5 

thousand over the year. The latter increased due to the 

growth of the volume the Group's business activities as 

well as the expansion of the branch network. Of other 

administration expenses advertising expenses grew most (2.6 

times), principally resulting from an extensive marketing 

campaign arranged and the introduction of the Group's 

trademark in 2001.





Anneli Rõuk

PR manager

+372 6302103