Preatoni Pank loss at 4 million kroons in 1999

  • 2000-01-13
TALLINN (ETA) - Preatoni Pank, founded in October 1999 by Italian
businessman Ernesto Preatoni, had a loss of 3.9 million kroons
($260,000) last year.

The December loss was 0.4 million kroons but this year the bank hopes
to make a profit.

The three-month administrative expenses of the bank were 4.8 million
kroons while the bank earned 0.9 million kroons on interest and 0.5
million on commission.

The assets of the smallest Estonian commercial bank were 113.5
million kroons at the end of December.

The securities portfolio of the bank plummeted in December to 49.1
million kroons from November's 78.3 million kroons. At the same time,
claims to credit grew from 0.1 million kroons to 39 million kroons.

The bank sold its stakes of Hansapank and Uhispank money market funds
in December and put the money on accounts in larger Estonian banks.

The bank reduced the ratio of higher-risk assets to be more
conservative at the end of the year, said a bank spokesman.

The loan portfolio of the bank grew by one third in December to 19.6
million kroons. The volume of deposits grew to 15.6 million kroons.

This summer the bank increases its 100 million kroon share capital by
another 50 million kroons.

The issue will also target small investors and will not be paid
exclusively by Preatoni,the bank said. There are no plans yet to
become listed on the stock exchange.

Preatoni Pank sees private banking and asset management as its main
areas, while issuing cheap home loans and gaining deposits are
additional services.