Hansapank                     FINANCIAL RESULTS                 04/26/2002



LITHUANIAN HANSA-LTB'S RESULTS, Q1 2002



HANSA-LTB’S FINANCIAL RESULTS, Q1 2002



Hansabank’s Lithuanian subsidiary Hansa-LTB’s net profit for the first

quarter of 2002 was EUR 2.4 million. The bank’s assets increased by

EUR 33.8 million to EUR 1,132 million during the first quarter.



Hansa-LTB’s integration project has been very successful. During the

past nine months, the bank has closed over 200 smaller branches and by

the end of March 84 branches are functioning in the new IT system and

on-line. The bank is also actively developing new distribution

channels. The bank issued over 50,000 new bankcards and installed 25

new ATMs during the quarter. At the end of March the bank’s customers

had already 244,000 bankcards. During the quarter, the number of

hanza.net users more than tripled to 25,500.





Hansa-LTB clients’ deposits increased by EUR 42.8 million during the

first quarter 2002 to EUR 989.7 million. 45% of deposit growth

originated from retail customers, 35% from corporate and 20% from the

public sector. The bank’s loan portfolio increased by EUR 32.0 million

during the quarter to EUR 367.9 million. Allowance for credit losses

totalled EUR 11.1 million at the end of March, forming 3.0% of the

loan portfolio. At the end of the period total loans formed just 37.2%

of clients’ deposits and the net loan portfolio formed 31.5% of total

assets. The amount of loans overdue stood at EUR 56.2 million and non-

performing loans (overdue more than 60 days) totalled EUR 1.7 million,

or 0.5% of the portfolio.



Hansa-LTB earned a net profit of EUR 2.4 million during the first

quarter of the year 2002. The bank’s revenues amounted to EUR 14.4

million during the quarter, of which 55% was formed by net interest

income and 21% net fee income. The bank’s operating expenses amounted

to EUR 15.0 million, including also redundancy costs worth EUR 1.9

million.

In addition to Hansa-LTB’s operating expenses, the Group’s accounts

include the amortisation of goodwill, created from the purchase of

LTB, worth EUR 1.23 million in the first quarter.







Balance Sheet                                         

(in millions of euros, unaudited)     31.03.02 31.12.01

                                                      

Assets                                                

Cash                                     47.4     39.1

Due from Central Bank                    84.2     76.6

Due from other financial institutions   114.0    171.8

Treasury securities                     165.1     57.3

Trading securities                        8.8      2.8

Investment securities                   283.9    355.8

Securities purchased under resale         0.1        -

agreements

Loans                                   367.9    337.5

   - Allowances for credit losses       -11.1    -11.3

Net loans                               356.8    326.3

Tangible assets                          50.4     48.9

Intangible assets                         0.9      0.7

Prepayments and accrued interest         14.0     10.8

Other assets                              6.7     11.3

Total assets                          1,132.3  1,101.5

                                                      

Liabilities                                           

Due to Central Bank and government        0.3        -

Due to other financial institutions      10.9     22.8

Deposits                                989.7    949.5

   Demand deposits                      520.6    497.5

   Time deposits                        469.1    452.0

Accrued liabilities                      12.7     11.5

Other liabilities                        32.7     35.8

Total liabilities                     1,046.3  1,019.6

Minority ownership                        0.7        -

                                                      

Shareholders' equity                                  

Share capital                           102.4    105.0

Share premium                             2.2      2.2

Reserves                                  9.4      8.9

Other reserves                              -      0.3

Currency translation reserve              3.8        -

Retained earnings                       -32.5    -34.5

Total shareholders' equity               85.3     81.8

Total liabilities and shareholders'   1,132.3  1,101.5

equity





Income Statement                             

(in millions of euros, unaudited)     3m 2002

                                             

Interest income                          13.9

Interest expense                         -5.9

Interest income, net                      8.0

                                             

Fee and commission income                 5.0

Fee and commission expense               -1.9

Fees and commissions, net                 3.0

                                             

Net result from financial operations      2.0

Other operating income                    1.5

Total income                             14.4

                                             

Personnel expenses                        9.2

Data network expenses                     0.8

Administrative expenses                   2.2

Other expenses                            1.3

Depreciation                              1.5

Total operating expenses                 15.0

Operating profit before provisions       -0.6

Losses on loans and guarantees            0.2

Recovered loans                           2.7

Profit before income tax                  2.4

Income tax                                0.0

Net profit                                2.4





Mart Tõevere

Head of investor relations

+372 6131 569