Hansabank Group

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Hansabank Group

• 2002

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Hansabank Groups historic highlights

• July 1991 establishment of Hansabank
• July 1993 establishment of Hansa Capital
• June 1996 purchase of Deutsche Lettische Bank
  (current Hansabanka)
• July 1998 merger with Estonian Savings Bank
• Autumn 1998 Swedbank became Hansabanks
  strategic shareholder
• July 1999 greenfield banking operations in
  Lithuania (establishment of Hansabankas)
• July 2001 privatisation of Lithuanian Savings
  Bank (LTB)
• November 2002 establishment of Hansa Leasing
  Russia

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Hansabank Groups business philosophy

• Who is our client?
• Hansabank is a universal bank
• Our target customers are small and medium-sized
  companies and above-average income earning
  private individuals
• What do we offer?
• We believe in the one-stop-shop strategy
• Our competitive advantages include the widest
  distribution network, knowledge of the customer
  and good service quality
• How can we do this efficiently?
• The best electronic channels
• A common IT-platform
• Systematic customer relationship management

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Hansabank Group today
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Hansabank Group today
Banking in Estonia

• Dominant position on the Estonian market
• Deposit market share 56
• (incl. 67 in retail deposits)
• Lending market share 53
• II pillar pension market share 50
• 95 branches and 506 ATMs
• 400,000 Internet bank customers

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Hansabank Group today
Banking in Latvia

• Second largest bank in deposits and loans,
  largest retail bank
• Deposit market share15
• Lending market share 21
• II pillar pension market share 63
• 61 branches and 200 ATMs
• 168,000 Internet bank users

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Hansabank Group today
Banking in Lithuania

• Second largest bank in deposits and loans
• Deposit market share 31
• Lending market share 28
• Dominating retail bank in Lithuania with 2
  million customers
• 150 branches and 275 ATMs
• 173,000 Internet bank users

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Hansabank Group today
Leasing and factoring

• The largest leasing and factoring company in the
  Baltics with 50 market share
• Starting from 2003 Hansa Capital offers
  asset-based finance also to companies in the
  Russian transport sector
• In addition to the main products, Hansa Capital
  offers also car rental services for passanger and
  commercial vehicles, asset realisation,
  encashment and insurance brokerage

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Hansabank Group today

• Hansabank and the Internet
• Hansabanks aim is to be the best Internet
  banking service provider in the Baltics
• In Estonia over 95 of all transfers and
  cash transactions are done in electronic
  channels
• Growth in the number of customers

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Hansabank Groups financialsVolume growth
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Hansabank Groups financials Regional
distribution
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Hansabank Groups share

• Share price 15.9 euros - growth in 2002 55
• Market capitalisation 1.3 billion euros
• EPS 1.52 euros
• Average daily turnover 1.9 million euros

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Hansabank Groups financial targets

• Double the operating profit in 4 years
• ROE at least 20
• Cost-income ratio below 50
• Net risk cost below 0.6
• net risk cost (write-offs - recoveries) /
  average loan portfolio

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Hansabank Groups priorities for 2003

• To increase the loan portfolio in Latvia and
  Lithuania
• The biggest value driver is SME lending and
  mortgages, we also see potential in consumer
  finance.
• To develop a group-wide knowledge sharing
  framework
• We have a unique opportunity to make use of the
  development gap between the three countries -
  learn from experience or adopt solutions that
  have proved to be successful in other business
  units.
• To implement fully Pan-Baltic product development
• We have a similar technological solution in all
  the countries, which makes us more efficient.
  Product development must also be centralized in
  order to keep IT systems similar and use
  development resources efficiently.

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Thank you!