Hansapank                     NEWS RELEASE                04/30/2003 10:00



HANSABANKAS' RESULTS, Q1 2003



Hansabank’s Lithuanian subsidiary Hansabankas’ net profit was EUR 5.4

million for the first quarter of 2003. The bank’s assets decreased by

1% to EUR 1.22 billion during the quarter. Annual growth of assets was

8%.



Hansabankas clients’ deposits increased by 3% during the quarter,

totalling EUR 1.06 billion at the end of March. Annual growth of

deposits was 7%. 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 6% during the quarter (annual growth 32%)

to EUR 0.49 billion. The ratio of net loans to assets increased from

32% at the end Q1 2002 to 39% at the end of Q1 2003 and the loans-to-

deposits ratio improved from 37% to 46%. The bank’s asset quality

continues to be on a very high level. The amount of loans overdue

totalled EUR 36.2 million at the end of March. Non-performing loans

(overdue more than 60 days) totalled EUR 0.5 million, or just 0.1% of

the portfolio. Allowance for credit losses totalled EUR 7.8 million at

the end of March, forming 1.63% of the loan portfolio.



Hansabankas’ revenues amounted to EUR 16.0 million in Q1 2003, of

which 55% was formed by net interest income and 29% net fee income.

Annual revenue growth was 10%. At the same time the bank’s operating

expenses decreased by 20% yoy taking the total sum to EUR 11.9 million

in Q1 2003.

In addition to Hansabankas’ 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,          31.03.0 31.12.0 30.09.0 30.06.0 31.03.0

unaudited)                            3      2       2       2       2

                                                                      

Assets                                                                

Cash                               46.9   52.7    42.5    43.3    47.4

Due from Central Bank             100.3   66.4    47.5    58.5    84.2

Due from other financial           76.1   93.2   108.2    83.5   114.0

institutions

Treasury securities               176.4  212.1   256.1   199.8   165.1

Trading securities                 76.4   70.9    47.3    32.1     8.7

Investment securities             174.1  200.7   199.9   266.2   283.9

Securities purchased under         33.9    0.2     0.1     0.0     0.1

resale agreements

Loans                             485.5  456.0   398.6   357.1   367.9

   - Allowances for credit         -7.8   -7.5    -7.6    -8.4   -11.1

losses

Net loans                         477.7  448.5   391.0   348.7   356.8

Tangible assets                    42.5   45.2    47.5    49.1    50.5

Intangible assets                   0.8    0.8     0.8     0.8     0.8

Prepayments and accrued            11.7   11.6    13.8    14.1    14.0

interest

Other assets                        5.5   37.7    10.8     6.3     6.8

Total assets                    1,222.6 1,240.0 1,165.5 1,102.4 1,132.3

                                                                      

Liabilities                                                           

Due to Central Bank and             0.8    0.0     0.6     0.3     0.3

government

Due to other financial             12.8   28.7    12.5    19.3    10.9

institutions

Deposits                        1,060.6 1,029.6 1,011.7   965.7   989.7

   Demand deposits                644.2  620.6   581.9   533.6   520.6

   Time deposits                  416.4  409.0   429.8   432.1   469.1

Securities sold under               0.0    0.5     0.0     0.0     0.0

repurchase agreements

Accrued liabilities                 9.5    8.1    10.4    11.7    12.7

Other liabilities                  35.4   74.9    36.1    15.0    32.7

Total liabilities               1,119.0 1,141.8 1,071.3 1,012.0 1,046.3

                                                                      

Shareholders' equity                                                  

Share capital                     107.3  107.3   107.3   107.2   107.2

Share premium                       2.2    2.2     2.2     2.2     2.2

Reserves                            9.4    9.4     9.4     9.4     9.4

Other reserves                      0.0    0.0     0.0     0.0     0.0

Retained earnings                 -15.3  -20.7   -24.7   -28.4   -32.8

Total shareholders' equity        103.6   98.2    94.2    90.4    86.0

Total liabilities and           1,222.6 1,240.0 1,165.5 1,102.4 1,132.3

shareholders' equity





Income Statement                                                      

(in millions of euros,           Q1 03   Q4 02   Q3 02   Q2 02   Q1 02

unaudited)

                                                                      

Interest income                   12.6    12.9    12.7    13.8    14.0

Interest expense                  -3.9    -4.3    -4.6    -5.3    -6.0

Interest income, net               8.7     8.6     8.1     8.5     8.0

                                                                      

Fee and commission income          6.0     6.0     5.1     4.9     5.0

Fee and commission expense        -1.4    -1.5    -1.6    -2.1    -2.0

Fees and commissions, net          4.6     4.5     3.5     2.8     3.0

                                                                      

Net result from financial          2.4     1.3     1.1     2.0     2.0

operations

Other operating income             0.3     0.1     0.8     0.6     1.5

Total income                      16.0    14.5    13.5    13.9    14.5

                                                                      

Personnel expenses                 5.8     5.5     5.7     7.4     9.2

Data network expenses              1.2     1.2     1.2     1.1     0.8

Administrative expenses            2.4     2.6     2.1     2.1     2.2

Other expenses                     0.8     1.2     0.8     1.7     1.3

Depreciation                       1.7     1.0     1.8     1.8     1.5

Total operating expenses          11.9    11.5    11.6    14.1    15.0

Operating profit before            4.1     3.0     1.9    -0.2    -0.5

provisions

Losses on loans and guarantees    -0.7     0.6    -0.1    -1.6    -0.2

Recovered loans                    2.0     1.2     1.9     2.8     2.8

Profit from associates under       0.0     0.3     0.0     0.0     0.0

equity method

Operating profit                   5.4     3.9     3.9     4.2     2.5

Extraordinary income               0.0     0.1    -0.1     0.1     0.0

Net profit                         5.4     4.0     3.8     4.3     2.5





Mart Tõevere

Head of investor relations

+372 6131 569