Hansapank                     FINANCIAL RESULTS                 02/14/2003



LITHUANIAN HANSA-LTB RESULTS, 2002



Hansabank’s Lithuanian subsidiary Hansa-LTB’s net profit was EUR 14.6

million for the full year 2002. The bank’s assets increased by 13% or

EUR 139 million to EUR 1.24 billion during the year.



Restructuring in Hansa-LTB completed

The 18-month long integration project was successfully completed in

September 2002. During this period the bank focused on building a new

dynamic organisation and improving access to its services. As of today

all of its 150 branches are functioning in the new IT system and on-

line. Hansa-LTB has also significantly expanded its electronic

distribution channels. During the period the number of ATMs increased

to 275, the number of cards to 601,000 and the number of hanza.net

users to 173,000. These measures are already taking effect, as the

bank’s cost base is stable while revenue growth is picking up.



Hansa-LTB clients’ deposits increased by 8% during the year, totalling

EUR 1.03 billion at the end of December. The growth was negatively

influenced by lower deposit rates as well as the decrease in the

USD/EUR exchange rate. The bank’s loan portfolio increased by 35%

during the year, or EUR 119 million to EUR 0.46 billion. The biggest

growth drivers were lending to private individuals and small and

medium size customers. Allowance for credit losses totalled EUR 7.5

million at the end of December, forming 1.64% of the loan portfolio.

The ratio of net loans to assets increased from 30% at the end 2001 to

36% at the end of 2002 and the loans-to-deposits ratio improved from

36% to 44%. The amount of loans overdue decreased by 20% during the

year to EUR 25.6 million. Non-performing loans (overdue more than 60

days) totalled EUR 0.5 million, or 0.1% of the portfolio at the end of

the year.



Hansa-LTB revenues amounted to EUR 56.4 million in 2002, of which 59%

was formed by net interest income and 24% net fee income. The bank’s

operating expenses totalled EUR 52.2 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 1.2 million per quarter.



1 EUR = 3.4528 LTL





Balance Sheet                                                         

(in millions of euros,        31.12.0 30.09.0 30.06.0 31.03.02 31.12.01

unaudited)                          2       2       2

                                                                        

Assets                                                                  

Cash                             52.7    42.5    43.3     47.4    39.1

Due from Central Bank            66.4    47.5    58.5     84.2    76.6

Due from other financial         93.2   108.2    83.5    114.0   171.8

institutions

Treasury securities             212.1   256.1   199.8    165.1    57.3

Trading securities               70.9    47.3    32.1      8.7     2.8

Investment securities           200.7   199.9   266.2    283.9   355.8

Securities purchased under        0.2     0.1     0.0      0.1       -

resale agreements

Loans                           456.0   398.6   357.1    367.9   337.5

   - Allowances for credit       -7.5    -7.6    -8.4    -11.1   -11.3

losses

Net loans                       448.5   391.0   348.7    356.8   326.2

Tangible assets                  45.2    47.5    49.1     50.5    48.9

Intangible assets                 0.8     0.8     0.8      0.8     0.7

Prepayments and accrued          11.6    13.8    14.1     14.0    10.8

interest

Other assets                     37.7    10.8     6.3      6.8    11.4

Total assets                  1,240.0 1,165.5 1,102.4  1,132.3 1,101.4

                                                                      

Liabilities                                                           

Due to Central Bank and           0.0     0.6     0.3      0.3     0.0

government

Due to other financial           28.7    12.5    19.3     10.9    22.8

institutions

Deposits                      1,029.6 1,011.7   965.7    989.7   949.5

   Demand deposits              620.6   581.9   533.6    520.6   497.5

   Time deposits                409.0   429.8   432.1    469.1   452.0

Securities sold under             0.5     0.0     0.0      0.0     0.0

repurchase agreements

Accrued liabilities               8.1    10.4    11.7     12.7    11.5

Other liabilities                74.9    36.1    15.0     32.7    35.7

Total liabilities             1,141.8 1,071.3 1,012.0  1,046.3 1,019.5

                                                                      

Shareholders' equity                                                  

Share capital                   107.3   107.3   107.2    107.2   105.0

Share premium                     2.2     2.2     2.2      2.2     2.2

Reserves                          9.4     9.4     9.4      9.4     8.9

Other reserves                    0.0     0.0     0.0      0.0     0.3

Retained earnings               -20.7   -24.7   -28.4    -32.8   -34.5

Total shareholders' equity       98.2    94.2    90.4     86.0    81.9

Total liabilities and         1,240.0 1,165.5 1,102.4  1,132.3 1,101.4

shareholders' equity





Income Statement                                                      

(in millions of euros,           2002  Q4 2002 Q3 2002 Q2 2002 Q1 2002

unaudited)

                                                                       

Interest income                  53.4     12.9    12.7    13.8    14.0

Interest expense                -20.2     -4.3    -4.6    -5.3    -6.0

Interest income, net             33.2      8.6     8.1     8.5     8.0

                                                                       

Fee and commission income        21.0      6.0     5.1     4.9     5.0

Fee and commission expense       -7.2     -1.5    -1.6    -2.1    -2.0

Fees and commissions, net        13.8      4.5     3.5     2.8     3.0

                                                                       

Net result from financial         6.4      1.3     1.1     2.0     2.0

operations

Other operating income            3.0      0.1     0.8     0.6     1.5

Total income                     56.4     14.5    13.5    13.9    14.5

                                                                       

Personnel expenses               27.8      5.5     5.7     7.4     9.2

Data network expenses             4.3      1.2     1.2     1.1     0.8

Administrative expenses           9.0      2.6     2.1     2.1     2.2

Other expenses                    5.0      1.2     0.8     1.7     1.3

Depreciation                      6.1      1.0     1.8     1.8     1.5

Total operating expenses         52.2     11.5    11.6    14.1    15.0

Operating profit before           4.2      3.0     1.9    -0.2    -0.5

provisions

Losses on loans and              -1.3      0.6    -0.1    -1.6    -0.2

guarantees

Recovered loans                   8.7      1.2     1.9     2.8     2.8

Profit from associates under      0.3      0.3     0.0     0.0     0.0

equity method

Operating profit                 14.5      3.9     3.9     4.2     2.5

Extraordinary income              0.1      0.1    -0.1     0.1     0.0

Net profit                       14.6      4.0     3.8     4.3     2.5





Mart Tõevere

Head of Investor Relations

+372 6131 569