TALLINN, Finland, Sept. 24, 2003 (PRIMEZONE) -- In a meeting held yesterday, 24 September, the Council of Hansabank (Other OTC:HNSBF) decided to lower the operating profit growth target from 20% to 10%. Hansabank set a target to double the operating profit before taxes in 4 years (annual average growth 20%) in 1999, when the bank was operating in a high-growth environment and the Group's market share in Lithuania was less than 1%. During the years 1999-2002, the Group's operating profit increased by 35% annually (CAGR).
Today our market share in the Baltic banking market has grown to a third of the market and the rapid development of the local banking sector has raised the share of financial services in GDP close to the levels seen in developed markets. Additionally, the continuing convergence with the European markets is gradually decreasing interest margins, making a 20% operating profit unsustainable. Hence the Group has set a mid-term target of average annual operating profit growth of 10%. The council approved the following financial targets: 1. Return on equity at least 20% 2. Cost-income ratio below 50% 3. Net risk cost below 0.6% 4. To increase the operating profit before taxes by 10%
The Council also approved the resignation of Arunas Siksta -- chairman of the Board of the Lithuanian Hansabankas and member of the Board of Hansabank and elected Darius Nedzinskas, current vice-chairman of the Board of Hansabankas, as the member of the Board of Hansabank. Darius Nedzinskas will be appointed as the chairman of the Board of Hansabankas from 1 November. Darius Nedzinskas has been heading the Corporate Banking Division of Hansabankas since 1999.
The recent employment history of Darius Nedzinskas is the following:
1999 - Head of Corporate Banking Division of Hansabankas 1998 - 1999 Establishment of Hansabankas, member of the project
Darius Nedzinskas does not own Hansabank shares.