OREANDA-NEWS. July 23, 2008. Hansabank Group’s net profit was EUR 137.5m for total operations in the second quarter of 2008 with annual growth of 7%. Hansabank Group sold Russian business unit in Q2 (OAO Swedbank and Hansa Leasing Russia Ltd), reported the press-centre of Hansa.

According to the current accounting rules, continuing and discontinued operations must be presented separately. Therefore all the numbers and comments in the report refer to the continuing operations, unless otherwise stated.

Hansabank Group’s net profit from continued operations in the second quarter of 2008 was EUR 135m, ROE 26,3% and cost-income ratio 32.9%. The Group’s loan portfolio increased 20% yoy and 4% qoq, reaching EUR 20,3bn in Q2. Net loan losses were within expected limits, 0,55%.

The quarterly results of Hansabank Group were influenced by positive one-off effects of related companies’ disposals (Russian business unit, Banks’ Card Centre in Estonia) and Baltic banking bonus reserve reversal. The total positive effect from those to the quarterly net profit was EUR 27m.

"The results from our core businesses are in line with our own expectations. The worsening economic environment in the Baltics has brought along increase in loan losses and we expect that trend to continue in upcoming quarters as well. Our main focus is on managing the business through economic downturn, developing further our client service capabilities and offers, and preparing for the name change scheduled to autumn," said Erkki Raasuke, head of Hansabank Group.

The net profit of Hansabank’s Estonian business unit in the second quarter was EUR 49m, ROE 31,5% and cost-income ratio 39,9%. The unit’s loan portfolio increased by 3% and deposits increased by 2% compared to Q1. Net loan losses comprised 0,58% of the total portfolio, compared to 0,38% in Q1.

Highlights of the operating results of the continued operations of Hansabank Group in Q2 2008:
Loans increased by 4% qoq and 20% yoy
Deposits increased by 1% qoq and by 10% yoy
Net interest margin was 2.69%, down 7 bp qoq and 22 bp yoy
Net profit was EUR 135m, increased by 18% qoq and 7% yoy
Return on equity was 26.3%
Income EUR 259m, increased by 7% qoq and also 7% yoy
Expenses were EUR 85m, decreased by 13% qoq and 10% yoy
Cost-income ratio was 32,9%.