Sampo Pank                    FINANCIAL RESULTS                 05/06/2004



PUBLIC INTERIM REPORT 3M 2004



Unaudited business results of the

Consolidated Group of AS Sampo Pank of the

3 months of 2004





The net profit of the Consolidated Group of

AS Sampo Pank (hereinafter the Group) was

EEK 26.5 million in Q1 2004, an increase of

38.9% or EEK 7.4 million compared to the

same period last year. The Group’s return

on equity was 19.6% (17.0% in Q1 2003) and

return on assets was 1.4% (1.3%).



Income Statement



The Group’s income, which includes net

interest income, net fee and commission

income and other non-interest income

amounted to EEK 95.4 million in Q1 of 2004.

Compared to Q1 2003, the Group’s income

increased by 17.1% or EEK 14.0 million. Net

interest income accounted for 57,0%

(60,4%), net fee and commission income

25.9% (24.1%), income from foreign exchange

transactions 5.6% (6.5%), income from

investments in securities 9.7% (6.5%) and

other income 1.8% (2.5%) of the total

income earned in Q1 2004.



Net Interest Income



The Group’s net interest income amounted to

EEK 54.4 million in Q1 of the current year,

an increase of 10.6% or EEK 5.2 million

compared to the same period last year (EEK

49.2 million).



The Group’s return on interest earning

assets accounted for 5.0% (6.3%) and

expense on interest bearing liabilities

2.2% (2.9%) in Q1 2004, as a result of

which interest spread was 2.8% (3.4%). Net

interest margin before allowances for loan

impairment reached 2.8% (3.3%) in Q1 of the

current year.



Non-Interest Income



The Group’s non-interest income increased

by 25.0% or EEK 9.1 million compared to Q1

2003, amounting to EEK 45.4 million in the

period under review. The breakdown of non-

interest income was as follows: fee and

commission income 63.2% (65.2%), income

from investments in securities 21.2%

(14.6%), income from foreign exchange

transactions 11.8% (14.5%) and other income

3.8% (5.7%). Fee and commission income

increased by 21.2% or EEK 5.0 million

compared to the same period last year,

amounting to EEK 28.7 million at the end of

Q1 of the current year.

Non-Interest Expenses



The Group’s non-interest expenses totalled

EEK 57.9 million in Q1 2004, an increase of

7.8% or EEK 4.2 million compared to Q1 of

the prior year.  The breakdown of non-

interest expenses was as follows: personnel

expenses 60.0% or EEK 34.7 million (58.9%

or EEK 31.6 million) and other

administrative expenses 29.8% or EEK 17.3

million (32.5% or EEK 17.4 million).

Compared to the same period last year,

personnel expenses increased by 9.7% or EEK

3.1 million and other administrative

expenses decreased by 1.1% or EEK 200

thousand.



Due to the slower increase in expenses in

comparison with the growth of income the

Group’s cost/income ratio dropped from

65.9% in Q1 2003 to 60.6% in Q1 2004. The

ratio of non-interest expenses to average

assets also declined: from 3.6% in Q1 2003

to 3.0% in Q1 of this year.



Balance Sheet



The Group’s total assets amounted to EEK

7.7 billion at the end of March 2004, an

increase of 6.4% or EEK 459 million over Q1

2004 and an increase of 23.7% or EEK 1.5

billion over the year.



Assets



The volume of the Group’s gross loan

portfolio grew by 6.7% or EEK 353,8 million

over Q1 of the current year, amounting to

EEK 5.6 billion at the end of March 2004

and accounting for 73.3% of the Group’s

total assets. The annual growth of the

gross loan portfolio reached 31.5%. Loans

to private enterprises totalled EEK 3.2

billion at the end of March 2004,

accounting for 57.0% of the gross loan

portfolio. Loans to private enterprises

increased by 5.3% or EEK 160.7 million over

Q1 2004 and by 31.5% or EEK 1.3 billion

over the year. Loans to private persons

grew by 8.9% or EEK 183.4 million over Q1

2004 and 63.0% or EEK 864.8 million over

the year.  As at the end of March 2004,

loans to private persons totalled EEK 2.2

billion, accounting for 39.9% of the gross

loan portfolio.



At the end of March of the current year

allowances for loan impairment represented

2.0% of the gross loan portfolio, remaining

at the level of the year-end of 2003. In Q1

2004 uncollectible loans were written off

in the amount of EEK 1.7 million and at the

same time EEK 0.3 million was recovered

from the write-offs of the previous

periods. Allowances for loan impairment

were established in the amount of EEK 11.4

million in Q1 of the current year, compared

to EEK 8.8 million in the same period last

year.



Liabilities



The volume of client deposits increased by

2.7% or EEK 108.8 million over Q1 of the

current year and by 22.8% or EEK 768.0

million over the year, amounting to EEK 4.1

billion at the end of March 2004.  The

deposits of private persons increased by

2.1% or EEK 21.7 million, while the

deposits of private enterprises remained

almost unchanged.  The deposits of private

persons and those of private enterprises

increased by 22.6% or EEK 197.8 million and

26.3% or EEK 505.3 million over the year,

respectively. The share of the deposits of

private persons made up 25.9% and that of

private enterprises 58.6% of total

deposits.



In Q1 of the current year demand deposits

increased by 6.2% or EEK 129.9 million,

chiefly due to the growth of the demand

deposits of private enterprises. Total

client demand deposits experienced an

increase of 29.5% or EEK 506.5 million over

the year, amounting to EEK 2.2 billion at

the end of March 2004.



The volume of time deposits decreased by

1.1% or EEK 21.1 million over Q1 of the

current year, but increased by 15.8% or EEK

261.5 million over the year. At the end of

March the volume of time deposits amounted

to EEK 1.9 billion.



The share of client deposits in the Group’s

total liabilities and owners’ equity

comprised 54.1% at the end of Q1 2004 and

56.0% at the end of 2003.



Loans from other banks increased by 31.0%

or EEK 344.6 million and the volume of

issued debt securities decreased by 17.0%

or EEK 156.9 million over Q1 of the current

year. Total interest bearing liabilities

increased by 5.3% or EEK 330.9 million over

Q1 2004 and 24.5% or EEK 1.3 billion over

the year, amounting to EEK 6.6 billion at

the end of March 2004.



Owners’ Equity



As at the end of March 2004, the Group’s

equity totalled EEK 547.3 million,

accounting for 7.1% of total assets (7.2%

at the end of Dec. 2003), and the Group’s

capital adequacy was 12.3% (12.5% at the

end of Dec. 2003).



Balance sheet               

                           ths. EEK  ths. EEK  ths.EUR  ths.EUR

                           31.03.04  31.12.03 31.03.04 31.12.03

Cash                         49 633    55 659    3 172    3 557

Claims and loans          6 468 155 6 167 727  413 389  394 189

Claims and loans            451 966   612 807   28 886   39 165

 to central bank

Claims and loans to         523 174   404 902   33 437   25 878

 credit institutions

Claims and loans to       4 244 127 3 950 372  271 248  252 474

 clients of credit institution

Claims and loans to       1 367 461 1 307 424   87 396   83 559

 clients of leasing enterprises

Claims from insurance and         0         0        0        0

 reinsurance activities

Other claims                      0         0        0        0

Allowance for claims      - 118 573 - 107 778  - 7 578  - 6 888

 and loans

Debt securities             733 296   662 601   46 866   42 348

Shares and other             41 299    39 886    2 639    2 549

 securities

Investments in associates         0         0        0        0

Other shares                 31 366    37 265    2 005    2 382

Derivatives                   9 933     2 621      635      168

Intangible assets             5 359     5 659      343      362

Consolidated goodwill             0         0        0        0

Other intangible assets       5 359     5 659      343      362

Tangible assets             141 149   141 657    9 021    9 054

Investment property          13 157    13 239      841      846

Settlements with                  0         0        0        0

 shareholders

Other assets                143 880    54 163    9 196    3 462

Prepayments and              61 397    57 981    3 924    3 706

 accured income

TOTAL ASSETS              7 657 325 7 198 572  489 391  460 071



Amounts owed              5 610 063 5 157 689  358 547  329 636

Amounts owed to                   0         0        0        0

 the central bank

Amounts owed to the       1 454 878 1 110 250   92 983   70 958

 credit institutions

Amounts owed to the       4 140 286 4 031 512  264 612  257 660

 clients of credit institutions

Amounts owed from insurance       0         0        0        0

 and reinsurance activities

Other amounts owed           14 899    15 927      952    1 018

Liabilities related         774 358   995 593   49 490   63 630

 to securities

Issued debt securities      765 187   922 059   48 904   58 930

Derivatives                    9171     73534      586    4 700

Other liabilities related         0         0        0        0

 to securities

Other liabilities           332 605   169 277   21 257   10 819

Accruals and                143 766   141 296    9 188    9 030

 deferred income

Provisions                        0         0        0        0

Technical provisions for          0         0        0        0

 insurance activities

Pension reserve                   0         0        0        0

Other provisions                  0         0        0        0

Subordinated liabilities    249 206   213 849   15 927   13 667

Minority interests                0         0        0        0

Total liabilities         7 109 998 6 677 704  454 411  426 782

Share capital               323 111   323 111   20 651   20 651

Paid in capital over par     17 081    17 081    1 092    1 092

General banking reserve           0         0        0        0

Mandatory reserve             4 695     4 695      300      300

Other reserves                    0         0        0        0

Unrealised rate                   0         0        0        0

 differences

Profit or loss retained     175 981    89 382   11 247    5 713

Profit or loss for           26 459    86 599    1 691    5 535

 the financial year

Own shares                        0         0        0        0

Total owners´equity         547 327   520 868   34 980   33 289

TOTAL LIABILITIES AND     7 657 325 7 198 572  489 391  460 071

 OWNERS´EQUITY





Income statement

                               ths. EEK   ths. EEK ths.EUR  ths.EUR

                               I kv 2004 I kv 2003 QI 2004  QI 2003

Interest income                   91 937   85 816    5 876    5 485

Interest income from              70 606   65 855    4 513    4 209

 banking activities

Interest income                   21 331   19 961    1 363    1 276

 from leasing activities

Other interest income                  0        0        0        0

Interest expense                  37 539   36 634    2 399    2 341

Interest expense from             37 520   36 602    2 398    2 339

 banking activities

Interest expense from                 19       32        1        2

 leasing activities

Other interest expense                 0        0        0        0

Net interest income (loss) (+/-)  54 398   49 182    3 477    3 143

Income and expenses                    0        0        0        0

 from insurance activities

Insurance premiums                     0        0        0        0

Insurance compensations and            0        0        0        0

 change in reserves

Income from securities                 0        0        0        0

Equity method gains (losses) (+/-)     0        0        0        0

Profit/loss from sales of              0        0        0        0

 long-term securities

Dividends on long-term securities      0        0        0        0

Net fee and commission income     24 693   19 653    1 578    1 256

Fee and commission income         28 659   23 653    1 832    1 512

Fee and commission expense         3 966    4 000      253      256

Net profit (loss) on financial    14 616   10 561      934      675

 operations (+/-)

Profit/income                     14 616   10 561      934      675

Loss/expense                           0        0        0        0

General administrative expenses   51 921   49 048    3 318    3 135

Salaries expense                  26 154   23 788    1 672    1 520

Social security expense            8 538    7 841      546      501

Pension expense (non-state)            0        0        0        0

Other administrative expenses     17 229   17 419    1 101    1 113

Value adjustments in             - 4 546  - 3 595   -  291   -  230

 investment property and tangible

 and intangible fixed assets (+/-)

Profit/income                          0        0        0        0

Loss/expense                       4 546    3 595      291      230

Value adjustments in loans      - 11 103  - 8 754   -  710   -  559

 and off-balance sheet items (+/-)

Profit/income                        334       41       21        3

Loss/expense                      11 437    8 795      731      562

Value adjustments in                   0        0        0        0

 long-term investments (+/-)

Income                                 0        0        0        0

Expense                                0        0        0        0

Other operating income (+/-)         322    1 050       21       67

Other operating revenue            1 719    2 072      110      132

Other operating expenses           1 397    1 022       89       65

Extraordinary                          0        0        0        0

 income/expenses (+/-)

Extraordinary income                   0        0        0        0

Extraordinary expenses                 0        0        0        0

Profit before taxes (+/-)         26 459   19 049    1 691    1 217

Income tax expenses                    0        0        0        0

Income tax for reporting period        0        0        0        0

Change in deferred                     0        0        0        0

 income tax liability (+/-)

Minority share of profits              0        0        0        0

PROFIT FOR THE                    26 459   19 049    1 691    1 217

 REPORTING PERIOD (+/-)





Unaudited business results of the Consolidated Group of 

AS Sampo Pank of the 3 months of 2004 are available on our homepage

<a href='http://www.sampo.ee/eng/rubriik.html?id=12838' target='_blank'>http://www.sampo.ee/eng/rubriik.html?id=12838</a>





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