Earnings of the Baltic List companies

Eesti Telekom (Estonian Telecom) earned a net profit of 580 million kroons (USD 39 mln) in 1999, the group announced on Monday. Operating revenue was up 16 percent over the preceding year to3.595 billion kroons. Profit before minority interest totaled 663 million kroons, an increase of four percent over 1998.

Analysts had expected Telekom's profit to be about 100 million kroons more. A decrease in deferred income tax liabilities by 68 million kroons, resulting from the new Tax Law, has been recorded as income tax revenue in Telekom's profit and loss statement. A decrease in deferred income tax assets by 84 mln kroons has been recorded as an income tax expense.

As of Dec. 31, 1999, Estonian Telephone Company had income tax receivables in the amount of 85 million kroons. In accordance with the previous Law, it could have been balanced with income tax accounted on profit in the following periods.

As Eesti Telekom is the 100 percent owner of Estonian Telephone Company, no income tax liability will arise in the coming periods on dividends paid by the subsidiary company, and no offset of the kind is possible under the new Income Tax Law. The item has been recorded as an extraordinary expense in financial statements of 1999. Depreciation, amortization and value adjustments of current assets of the Eesti Telekom group grew 23 percent over 1998 to 884 million kroons last year. Profit from operations before depreciation amounted to 1.840 billion kroons, equal to a 51.2 percent operating margin, compared with 49 percent in 1998. The net debt for the group at the turn of the year made up 3.8 percent of owners' equity.

Estonian Telephone Company, a subsidiary of Eesti Telekom, has posted a net profit of 140 million kroons (USD 8.84 mln) for 1999.

An audit has confirmed the 1999 consolidated profit of the Hansapank group at 815 million kroons (USD 50.3 mln). The group's total assets grew 23.7 percent during the year to 34.25 billion kroons. Hansapank's revenue increased by 1.22 billion kroons compared with 1998, to 2.86 billion kroons in 1999.

Net interest income made up 53.6 percent of the year's total income, financial income gave 21 percent, net fees and commissions gave 19.4 percent, and net income from insurance, 1.9 percent. Other income contributed 4.1 percent.

Deposits in Hansapank grew 34.2 percent during 1999 to 19.78 billion kroons, and the loan portfolio was up 15.9 percent to 19.46 billion kroons. Overdue loans made up 6.5 percent of the group's loan portfolio at the end of the year while bad loans accounted for one percent.

The consolidated profit of Eesti Uhispank in 1999 was 100.2 million kroons (USD 6.25 mln) and the profit of the bank itself, was 129.2 million kroons, provisional figures released by the bank show.

In the fourth quarter of 1999 Uhispank netted 54.1 million kroons. The group's consolidated profit during the same period was 25.1 million kroons. Net income from fees and commissions totaled 209.5 million kroons while net income from securities transactions was 103.1 million kroons. Consolidated net interest income amounted to 518.4 million kroons. Total assets of the Uhispank group at the end of 1999 stood at 14.969 billion kroons, compared with 16.498 billion kroons at the end of 1998.

Latvia

Balta insurance group's provisional profit after taxes was 1.23 million lats (USD 2.08 mln) last year, Balta non-life insurance company told BNS Wednesday. The group's unaudited profit before taxes was 1.49 million lats in 1999. Balta insurance group includes Balta non-life insurance company, Rigas Apdrosinasanas Sabiedriba non-life insurance company that will take over Saules laiks non-life insurance company, and Latvia life-insurance company.

According to provisional figures, the group collected 20.2 million lats in premiums and paid 8.5 million lats in claims in non-life insurance last year. Within its life insurance activities Balta group received 1.8 million lats in premiums and paid 685,700 lats in claims in 1999. Balta said that the audit of the group's financial results will be completed by March 20. The individual financial results of each insurance company included in the group will be available after this date. Shares in Balta non-life insurance company are quoted on the official list of the Riga Stock Exchange.

Hanza Lizings (Hansa Leasing) leasing company's audited profit was 3.1 million lats (USD 5.254 mln) in 1999, the company's management told reporters Tuesday. In 1998 Hanza Lizings earned a profit of 1.1 million lats.

Latvian Unibanka this year is planning to increase the bank's assets by 36-38 percent, according to an action plan for 2000 drafted by Unibanka. The bank's action plan and budget for 2000 will be presented to the bank's shareholders for approval at the general meeting March 7. According to the bank's audited financial report for 1999 operations, its assets grew by 28.668 million lats (USD 48.18 mln) in 1999 or 9.35 percent to 335.257 million lats as of Dec. 31, 1999.