Hansapank                     FINANCIAL RESULTS                 10/25/2002



HANSA-LTB'S FINANCIAL RESULTS, Q3 2002



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

quarter of 2002 was EUR 3.9 million. The respective results in the

first and second quarter were EUR 2.3 million and EUR 4.4 million. The

bank’s assets increased by 5.7% or EUR 63 million to EUR 1.17 billion

during the quarter.



Restructuring in Hansa-LTB completed

The 18-month long integration project was successfully completed in

September. As of today all of its 155 branches are functioning in the

new IT system and on-line. During this period the bank closed over 250

branches while replacing them with new distribution channels. In the

third quarter Hansa-LTB issued 119,000 new bankcards taking the total

close to 500,000. The number of hanza.net users increased by 43,000 to

120,000 during Q3 2002.



Hansa-LTB clients’ deposits increased by 4.8% qoq, totalling EUR

1,011.7 million at the end of Q3 2002. The bank’s loan portfolio

increased by 11.6% qoq, or EUR 41.5 million to EUR 398.6 million.

During the year 2002, the portfolio has grown by EUR 61.1 million.

Over half of the growth, EUR 35.6 million, comes from mortgage lending

to private individuals. Their volume has almost doubled in 9 months

(+88%). Allowance for credit losses totalled EUR 7.6 million at the

end of September, forming 1.9% of the loan portfolio. The ratio of net

loans to assets increased from 31.6% at the end of Q2 to 33.5% at the

end of Q3 while loans-to-deposits ratio improved from 37.0% to 39.4%.

The amount of loans overdue was EUR 29.8 million and non-performing

loans (overdue more than 60 days) totalled EUR 0.8 million, or 0.2% of

the portfolio at the end of September 2002.



Hansa-LTB earned a net profit of EUR 3.9 million during the third

quarter of the year 2002. The bank’s revenues amounted to EUR 13.5

million during the quarter, of which 60% was formed by net interest

income and 26% net fee income. The bank’s operating expenses amounted

to EUR 11.6 million, reducing by 18% compared to Q2 2002.

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 1.2 million per quarter.





Balance Sheet                                                         

(in millions of euros, unaudited)   30.09.02 30.06.02 31.03.02 31.12.01

                                                                      

Assets                                                                

Cash                                     42.5    43.3     47.4    39.1

Due from Central Bank                    47.5    58.5     84.2    76.6

Due from other financial institutions   108.2    83.5    114.0   171.8

Treasury securities                     256.1   199.8    165.1    57.3

Trading securities                       47.3    32.1      8.7     2.8

Investment securities                   199.9   266.2    283.9   355.8

Securities purchased under resale         0.1     0.0      0.1       -

agreements

Loans                                   398.6   357.1    367.9   337.5

   - Allowances for credit losses        -7.6    -8.4    -11.1   -11.3

Net loans                               391.0   348.7    356.8   326.2

Tangible assets                          47.5    49.1     50.5    48.9

Intangible assets                         0.8     0.8      0.8     0.7

Prepayments and accrued interest         13.8    14.1     14.0    10.8

Other assets                             10.8     6.3      6.8    11.4

Total assets                          1,165.5 1,102.4  1,132.3 1,101.4

                                                                      

Liabilities                                                           

Due to Central Bank and government        0.6     0.3      0.3     0.0

Due to other financial institutions      12.5    19.3     10.9    22.8

Deposits                              1,011.7   965.7    989.7   949.5

   Demand deposits                      581.9   533.6    520.6   497.5

   Time deposits                        429.8   432.1    469.1   452.0

Accrued liabilities                      10.4    11.7     12.7    11.5

Other liabilities                        36.1    15.0     32.7    35.7

Total liabilities                     1,071.3 1,012.0  1,046.3 1,019.5

                                                                      

Shareholders' equity                                                  

Share capital                           107.3   107.2    107.2   105.0

Share premium                             2.2     2.2      2.2     2.2

Reserves                                  9.4     9.4      9.4     8.9

Other reserves                            0.0     0.0      0.0     0.3

Retained earnings                       -24.7   -28.4    -32.8   -34.5

Total shareholders' equity               94.2    90.4     86.0    81.9

Total liabilities and shareholders'   1,165.5 1,102.4  1,132.3 1,101.4

equity





Income Statement                                              

(in millions of euros, unaudited)     Q3 2002  Q2 2002 Q1 2002

                                                              

Interest income                          12.7     13.8    13.9

Interest expense                         -4.6     -5.3    -5.9

Interest income, net                      8.1      8.5     8.0

                                                              

Fee and commission income                 5.1      4.9     5.0

Fee and commission expense               -1.6     -2.0    -2.0

Fees and commissions, net                 3.5      2.9     3.0

                                                              

Net result from financial operations      1.1      2.1     2.0

Other operating income                    0.8      0.6     1.5

Total income                             13.5     14.1    14.5

                                                              

Personnel expenses                        5.7      7.4     9.2

Data network expenses                     1.2      1.1     0.8

Administrative expenses                   2.1      2.1     2.2

Other expenses                            0.8      1.7     1.4

Depreciation                              1.8      1.8     1.5

Total operating expenses                 11.6     14.1    15.1

Operating profit before provisions        1.9      0.0    -0.6

Losses on loans and guarantees           -0.1     -1.6    -0.2

Recovered loans                           1.9      2.8     2.7

Profit before income tax                  3.9      4.4     2.3

Income tax                                0.0      0.0     0.0

Net profit                                3.9      4.4     2.3





Mart Tõevere

Head of investor relations

+372 6131 569