OREANDA-NEWS. May 04, 2008. The results of the Hansabank Group in the first quarter of 2008 were good – the net profit of the Group increased 5% when compared to the first quarter of 2007 and reached 114 million euros, reported the press-centre of Hansabank.

The Group’s return on equity reached 23,7% and the cost-benefit ratio was 41,9%. “The economy is cooling down and it can also be seen in the indicators of the Hansabank Group, but it can be said that considering the situation, out results met our expectations – regardless of the volatility in the financial markets, we managed to achieve a reasonable return on equity and cost-benefit ratios,” said Erkki Raasuke, Director General of the Hansabank Group. The loan portfolio of the Group grew 28% when compared to the same period last year and reached 20.7 billion euros. The growth compared to the previous quarter was 4%.

The net profit of Hansabank Estonia grew 10% when compared to the last quarter of 2007 and reached 52 million euros. The return on equity of the bank was 32,7% and its cost-benefit ratio 37,9%.

The loan portfolio of Hansabank Estonia grew 5% and the volume of deposits increased 3% when compared to the fourth quarter of 2007. “The quality of the bank’s loan portfolio remains good,” said Priit Perens, Manager of Hansabank Estonia when commenting on the first quarter results. Loan losses reduced from 0,67% in the end of the previous year to 0,38% in the first quarter of this year.

Results of the Hansabank Group in the first quarter of 2008

Quarterly growth in loans 4%, annual growth 28%

Quarterly growth in deposits 0%, annual growth 14%

Net interest margin 2,82%, both quarterly and annual decrease in 14 basic points

Net profit 114 million euros, quarterly decrease 4%, growth compared to the first quarter of 2007 5%

Return on equity 23,7%

Revenue 253 million euros, quarterly decrease 6%, growth compared to the first quarter of 2007 14%

Expenses 106 million euros, quarterly decrease 8%, growth compared to the first quarter of 2007 18%

Cost-benefit ratio 41,9%