Public Annual Report of 2001 (Act No 25, of the President of Bank of Estonia, dd. October 19, 1999 and Act No 1, of the President of Bank of Estonia, dd. February 9, 2000)

Contents

Introduction________________________________________________________________________________ 2Statement of the Management Board_____________________________________________________________ 31. Operating review___________________________________________________________________ 41.1. Bank and consolidation group________________________________________________________ 41.1.1. Consolidation group__________________________________________________________________ 41.1.2. Changes in the consolidated group during the accounting period and projects for year 2002_________ 41.1.3. Share issues________________________________________________________________________ 51.1.4. Shareholders at 31.12.2001.___________________________________________________________ 51.1.5. Employees_________________________________________________________________________ 51.1.6. Related parties______________________________________________________________________ 61.1.7. Shares held by the members of Management and Supervisory Board____________________________ 61.1.8. Strategy and organisation______________________________________________________________ 71.1.9. Development Costs__________________________________________________________________ 71.1.10. Dividend policy_____________________________________________________________________ 71.2. Highlights of Eesti Ühispank in 2001___________________________________________________ 81.3. Risk management and maintenance policy in Eesti Ühispank______________________________ 101.4. Internal control systems______________________________________________________________171.5. Standard ratios_____________________________________________________________________ 181.5.1. Capital adequacy____________________________________________________________________ 181.5.2. Report of comprimed risk weighted assets________________________________________________ 191.5.3. Net currency position_________________________________________________________________ 191.5.4. Liquidity (assets and liabilities by remaining maturity)_______________________________________201.5.5. Risk concentration___________________________________________________________________ 201.6. Key Figures________________________________________________________________________ 211.7. Ratings____________________________________________________________________________241.8. Legal Disputes______________________________________________________________________24

2. Financial Statements________________________________________________________________ 252.1. Income Statement___________________________________________________________________ 252.2. Balance sheet_______________________________________________________________________262.3. Cash Flow Statement________________________________________________________________ 272.4. Changes in Shareholders' Equity______________________________________________________ 282.5. Off-Balance sheet items______________________________________________________________ 292.6. Customer securities portfolio under management of the group_____________________________ 29Note 1 Accounting principles_______________________________________________________________ 30Notes 2 - 35________________________________________________________________________________ 38Independent Auditor's Report________________________________________________________________ 48Proposal of the Management Board regarding the profit/loss distribution____________________________ 49

Introduction

Credit institutionCompany name AS Eesti ÜhispankAddress Tornimäe Str.2, Tallinn 15010, EstoniaRegistred in Republic of EstoniaRegistry date 08.12.1995Registry code 10004252 (Estonian Commercial Register)Phone +372 6 655 100 Telex 173006Fax +372 6 655 102SWIFT EEUHEE2Xe-mail postkast@eyp.ee Internet homepage http://www.eyp.ee

AuditorAuditor's company name AS PricewaterhouseCoopers Registry code 10142876Address Pärnu str. 15, 10141 Tallinn, EstoniaAuditor's name Urmas KaarlepAuditor's license 17.12.1990, license no. 53

Report balance sheet date 31.12.2001Reporting period 01.01.2001 - 31.12.2001Report currency Estonian kroon (EEK), millions

Statement of the Management Board

After having been introduced to the Public Annual Report of 2001 of Eesti Ühispank, theManagement Board is on the following opinion on 21.02.2002, the date of publishing the PublicAnnual Report of 2001:

1. The Public Annual Report of 2001 consists of the following parts and reports: Introduction Operating Review Financial Statements Independent Auditor's Report Annual meeting decision about profit distributionThe Report also includes the information in accordance with the requirements for Public AnnualReports, as stipulated by the Act No 25 of the President of the Bank of Estonia, dd. October 19,1999 and Act No 1 of the President of the Bank of Estonia, dd.February 2, 2000.

2. The financial and other additional information published in the Public Annual Report of 2001 istrue and complete.

3. The financial and other information, published in the Public Annual Report of 2001, is notmissing anything, which could affect the meaning or contents of the report.

4. The financial reports have been compiled in accordance with the internationally acceptedprinciples of accounting and reporting, as stipulated in § 5 of the Accounting Law. The PublicAnnual Report of 2001 has been completed in accordance with the requirements of Estonian laws.The audit of the year 2001 was conducted in accordance with International Auditing standards. TheAnnual Report of 2001 will be submitted for the approval to the General Shareholders' Meeting on10.04.2002. The Annual Report of the previous year, 1999, was approved on April 6, 2001.

Members of Management Board:

12.02.2002. (signature) Ain Hanschmidt

12.02.2002. (signature) Lembit Kitter

12.02.2002. (signature) Andrus Kimber

12.02.2002. (signature) Margus Schults

12.02.2002. (signature) Rein Rätsep

12.02.2002. (signature) Tõnu Liik

12.02.2002. (signature) Jürgen Lamp

12.02.2002. (signature) Veine Svensson

1. Operating review1.1. Bank and consolidation group1.1.1. Consolidation group 31.12.01

Company name

Reg. No. Reg.date Register Address Activity Ownership (%)

At an acquisition cost (EEK

mio)

Ühisliisingu AS 10281767 03.10.1997 Estonian Commercial Register Tallinn, Estonia Tornimäe 2 Leasing 100.00% 23.4HF Liisingu AS* 10304592 07.11.1997 Estonian Commercial Register Tallinn, Estonia Tornimäe 2 Leasing 100.00% -Union Kindlustusmaakler AS* 10723587 16.01.2001 Estonian Commercial Register Tallinn, Estonia Tornimäe 2 Insurance brokerage 100.00% -AS Rentacar* 10303546 20.10.1997 Estonian Commercial Register Haapsalu, Estonia Lihula mnt. 3 Leasing 100.00% -

AO Russkii Obedinennoi Lizing R-6603.16 19.06.1997 Russian Commercial Register St.Peterburg, Russia Pl.Konstitutsii 2 Leasing 75.00% 0.6AS Ühisinvesteeringud 10282152 06.10.1997 Estonian Commercial Register Tallinn, Estonia Tartu mnt. 13 Investment banking 100.00% 34.0Ühispanga Varahalduse AS 10035169 22.05.1996 Estonian Commercial Register Tallinn, Estonia Tornimäe 2 Asset management 100.00% 42.5AS Ühispanga Elukindlustus 10525330 21.01.1999 Estonian Commercial Register Tallinn, Estonia Tornimäe 2 Insurance 100.00% 30.0AS Bangalo 10088272 18.10.1996 Estonian Commercial Register Tallinn, Estonia Tornimäe 2 Real estate 100.00% 47.0AS PF Koda 10423249 01.04.1998 Estonian Commercial Register Tallinn, Estonia Tornimäe 2 Real estate 100.00% 132.9

AS Tornimägi* 10198768 05.05.1997 Estonian Commercial Register Tallinn, Estonia Tornimäe 2 Real estate 100.00% -OÜ Strongler 10141919 23.04.1997 Estonian Commercial Register Tallinn, Estonia Tornimäe 2 Real estate 100.00% 35.0SEB IT Partner Estonia OÜ** 10002566 20.11.1995 Estonian Commercial Register Tallinn, Estonia Tartu mnt. 13 Colsulting, programming 38.00% 0.4AS Sertifitseerimiskeskus** 10747013 27.03.2001 Estonian Commercial Register Tallinn, Estonia Pärnu mnt. 12 Data communication services 25.00% 3.0AS Intergate** 10705049 13.10.2000 Estonian Commercial Register Tallinn, Estonia Tornimäe 2 Information technology 50.00% 15.1Pankade Kaardikeskuse AS** 10452335 19.05.1998 Estonian Commercial Register Tallinn, Estonia Laki 12 Card centre 41.52% 4.0AS Eesti Liisingkeskus** 10325921 17.11.1997 Estonian Commercial Register Tallinn, Estonia Pärnu mnt. 10 Leasing centre 33.33% 0.4

368.3* consolidated sub-subsidaries** associatesThe ‘consolidation group’ and the ‘Group’ are identical.

1.1.2. Changes in the consolidated group during the accounting period and projects for year 2002

In January the holding in associated company AS Kinnisvaraportaal was sold to AS ETYP.In February PT Investeeringute AS was sold.In March the subsidiary AS LF Finants was liquidated and a new associated company AS Sertifitseerimiskeskus founded.In May investment in OÜ Strongler was increased by 34,7 Million kroons. In May share capital of AS Bangalo was reduced by 44 Million kroons. In July the business name of AS ETYP was changed into AS Integrate.In December investment in the shares of Ühispanga Varahalduse AS was increased by 31,5 Million kroons.In December AS Rentacar, a subsidiary of Ühisliisingu AS sold its participation in subsidiaries SIA Budget Latvia and UAB Rentacar Vilnius.

1.1.3. Share issues

IssueDecision made

at Registred atNumber of

sharesShare capital

(milj.kr.)Restructuring gen.partnership to joint stock Co. 06.05.94 - 8,353,700 83.5Government, current shareholders 31.12.94 - 2,146,300 21.5Current shareholders, reinvestments 30.06.95 - 2,000,000 20.0Swedfund 15.11.95 14.06.96 2,500,000 25.0Ernesto Preatoni 29.03.96 14.06.96 2,200,000 22.0Employees 29.03.96 14.06.96 427,888 4.3Small investors 29.03.96 14.06.96 5,872,112 58.7Merger of Põhja Eesti Pank 12.04.97 04.09.97 5,000,000 50.0Share issue 12.04.97 28.04.97 1,175,000 11.7Swedfund Financial Markets AB 19.12.97 04.03.98 590,406 5.9Bankers Trust Co. & customars 05.03.98 01.04.98 11,159,592 111.6Owners of Tallinna Pank 24.05.98 29.07.98 9,726,444 97.3Skandinaviska Enskilda Banken 26.11.98 07.12.98 15,000,000 150.0Netherlands Development Finance Company 26.11.98 20.05.99 410,939 4.1Total 31.12.2001 66,562,381 665.6

1.1.4. Shareholders at 31.12.2001.Ownership 5 % and more

Information from Estonian Central Depository of Securities:

Country

Number of shares at 31.12.01

% from total number of

shares % of votesSkandinaviska Enskilda Banken (SEB) Sweden 65,871,595 98.96 98.96Others - 690,786 1.04 1.04Total number of shares 66,562,381 100.00 100.00

1.1.5. Employees Group Bank31.12.01 31.12.00 31.12.01 31.12.00

Avg number of employees during the year 1,216 1,280 # 1,061 1,115Number of employees (period end) 1,242 1,190 # 1,082 1,039

1.1.6. Related parties(millions of EEK) Group Bank

31.12.01 31.12.00 31.12.01 31.12.00Loans to employees and members of board 157.9 108.6 150.0 107.7Demands to subsidiaries 3,233.9 2,525.9Off-balance sheet commitments to subsidiaries 199.0 422.1

Loans to related parties are practically with the same interest rate as loans given to other customers.The transactions has either been based on market prices.Related parties are the members of Management and Supervisory Board and their confidants, alsocommercial undertakings controlled jointly or severally by the mentioned persons.

169.531.12.01 31.12.00

Salaries in Ühispank 169.5 145.9Members of management board 7.4 6.6Members of supervisory board 0.4 1.8Employees 161.7 137.5

Salaries in subsidaries 29.7 27.8Members of management board 0.0 3.0Members of supervisory board 0.0 0.0Employees 29.7 24.8

Total salaries, Group 199.2 173.7199.2 173.7

1.1.7. Shares held by the members of Management and Supervisory Board

The members of AS Eesti Ühispank Management and Supervisory Board and their next of kin,as well as the commercial undertakings controlled jointly or severally by the mentioned personsdid not hold any shares of Eesti Ühispank as of 31.12.2001.

Members of the Management Board: Ain Hanschmidt, Lembit Kitter, Andrus Kimber, Margus Schults,Rein Rätsep, Tõnu Liik, Jürgen Lamp, Veine Svensson.

Members of the Supervisory Board: Mats Kjaer, Mart Avarmaa, Koit Uus, Andres Lipstok, Aadu Luukas, Tord Martin Olofsson, Per-Arne Magnus Carlsson, Petteri Karttunen.

1.1.8. Strategy and organisation

Strategy

Eesti Ühispank Group, being a member of SEB Group, is an Estonian financial group thatserves private individuals, companies and public sector.Eesti Ühispank is a universal bank that offers its customers all financial services. The biggestand the most important area is commercial banking together with leasing, but assetmanagement and life insurance are also important priorities.

Eesti Ühispank Group carries out the vision of SEB Group that is to be a customer drivenNorth-European bank based on long-term relationships, competence and e-technology. Bythis goal we mean continuous, sustainable growth of volumes and market share, and increaseof efficiency. Essential criteria for achieving these are customer satisfaction, employeemotivation and co-operation within the organisation.

Main directions of Eesti Ühispank Group are increasing of customer-orientedness in allprocesses of the organisation and the development of electronic channels. Improving theposition in private individuals’ and companies’ market and further integration into SEBGroup are also high in the agenda.

Organisation

The number of employees in the Ühispank group increased by 52 employees compared to the2000 year-end. The number of employees at the end of 2001 was 1242.

The goal of personnel department is to increase the percentage of professionals, establishingproductivity as the top priority, supporting people and development of people and quality.Training programs were prepared considering in particular the job profile and the employeesneeds.

1.1.9. Development costs

see Note 1 Accounting principles, subtitle "Establishment and Development Costs".

1.1.10. Dividend policy

Eesti Ühispank is 98,96%-owned by SEB. In working out the strategy for equitymanagement, profit distribution and formation of reserves the bank is following the commonapproach of future risks and performance strategy of the SEB Group.

1.2. Highlights of Eesti Ühispank in 2001

Clearstream Banking Luxembourg selected Eesti Ühispank as its partner.One of the world’s largest clearing and settlement organisations Clearstream BankingLuxembourg (CBL) opened a securities account with Eesti Ühispank.

Standard & Poor’s upgraded the rating of ÜhispankA rating agency Standard & Poor’s upgraded the rating of Ühispank to the level BBBpi.The agency justified the upgrading (pi) with increase of SEB’s holding in Ühispank to 97,4percent.

Ühispank sold investments and real estateThe largest sales transactions of Eesti Ühispank included the bank’s holding in LatvianSaules Banka. From the real estate portfolio the former Tallinna Pank, Tööstuspank andPõhja-Eesti Pank buildings in Tallinn found new owners.

Foreign securities traded in U-NetForeign securities may be traded via Eesti Ühispank Internet banking U-Net. Any personinterested in investing may choose freely from among ca 400 foreign stocks of ninedifferent foreign countries.

Estonian companies and the state in a common project “Look@World”Estonian companies and the state participate in a common project “Look@World”, whichsupports Internet use and the idea of which is to increase the quality of life of Estonianinhabitants. Ühispank supports the project with 30 Million kroons.

A bankcard for those engaged in pedagogical workEesti Ühispank started to issue ITIC Teacher Eurocard, a bankcard designed for personsengaged in pedagogical work. ITIC Teacher card combines a document evidencing thestatus of a teacher or lecturer and a bankcard. The card operates as a debit card, howeverenabling a credit of up to a two-month net salary on especially favourable terms.

Ühispank offers “Housing loan for young people”The loan enables to finance the purchase or renovation of a home of young educated peopleyet with modest solvency.

Ühispank opened new quality Internet banking U-NetThe new version of U-Net has improved navigation, modern design and more diversifiedoptions.

Post Bank developedThe Post Bank developed in co-operation with Eesti Post (Estonian Post Company) andEesti Ühispank enables to perform banking operations in all post offices of Eesti Postthroughout Estonia.

Car leasing– “Jointly”…provides the customer a possibility to conclude lease agreements directly at a car dealer,without a need to visit Ühisliising (“turn key solution”). In 2001 every fourth car leasingagreement was concluded by means of “Jointly” car leasing.

Eesti Ühispank Group offers a product called “Preemialaen” (Premium loan)Eesti Ühispank Group is the first in Estonia to offer a housing loan providing life insurancecoverage and enabling investment of the loan amount.

Investment loan for apartment associations from Eesti Ühispank with a KredExguaranteeEesti Ühispank and Export Credit and Guarantee Foundation KredEx concluded a co-operation agreement, according to which the loan taken by apartment associations fromEesti Ühispank for renovation works may be guaranteed up to 75% with a KredExguarantee.

Eesti Ühispank supports internetisation of Health Insurance Fund with 1 MillionkroonsEesti Ühispank and Estonian Health Insurance Fund signed a contract, according to whichEesti Ühispank will support the activities necessary for internetising the services providedby the Health Insurance Fund in the amount of 1 Million Estonian kroons.

Internet banking with more than 100 000 customersThe goal of Eesti Ühispank is to develop U-Net into a personal communication channelbetween the customer and the bank, offering in addition to transaction environment alsovarious services from financial advice to entertainment. 100000th customer joined U-net lastfall.

Market launch of MagnetOn October 29th Eesti Ühispank launched a Magnet, combining the best functions of acredit and instalment card. When in mid-November the bankcards issued by Ühispankreached the landmark of 200 000 cards, the 200000th card happened to be namely a Magnet.

New branch officeEesti Ühispank opened a new branch office in Tallinn at Lasnamäe, where the customersare getting full service, including saving and credit advice.

Option prices from U-NetEesti Ühispank customers may view the option prices for Estonian securities in the U-Netsubsection of Investments.

Account statements via e-mail now more secureAs of the end of November the customers of Ühispank may subscribe to account statements,which are sent by e-mail and signed with the bank’s electronic signature or are encrypted.

1.3. Risk management and maintenance policy in Eesti Ühispank

Risk policy and structure

In its everyday activity Eesti Ühispank is facing various risks, the management ofwhich is an important and integral part of Eesti Ühispank business activities. Theability of the organisation to identify, measure and control different risks is animportant input for the profitability of the entire company. Main keyword of riskmanagement in 2001 was integration with SEB.

Eesti Ühispank defines the risk as a possible negative deviation from expectedfinancial result. Main risk factors are credit risk, market risk, operational risk andliquidity risk.

In order to ensure effective management and comparability of the risk factors, EestiÜhispank started to implement a capital at risk (CAR) model in 2001 in accordancewith the Risk Policy. According to the capital at risk model the bank shall establishan amount of risk capital sufficient for each risk factor, which then shall be allocatedbetween different units of the bank. The allocated capital shall be comparedregularly with income generated on the risk capital by the respective unit.

Requirements set by the Bank of Estonia and other regulatory bodies, adherence tothe general accounting standards, including good banking practice and internalregulations and risk policies form the risk management basis. Risk managementgenerally embraces identification, measuring and controlling of the risks.

Central body in risk management, approving of risk procedures and establishmentand monitoring of various risk limits is the Assets and Liabilities Committee(ALCO). Besides ALCO we have established different committee systemscomplementing each other, the assignment of which is systematic review of riskreports.

Credit risk

Credit risk is a potential loss that may occur in case of improper fulfilment or non-compliance of the client with the contractual obligations as a result of failure of theclient’s business operations or other factors.

The principles for measuring and taking credit risk are established with the EestiÜhispank Group credit policy.

The principles of credit policy are the following:a) The basis for credit policy is the objectives and strategy of the bank

consolidation group,b) Loan quality must prevail the quantity,c) Extending the loan must as a rule be in accordance with the principles of credit

policy,d) Loan disbursement is based on the creditworthiness of clients,

e) Decision of extending a loan must be based on analysis,f) Loan amount must be in proportion to the solvency of the borrower,g) In addition to cash flow obtained from daily business activity, an alternative

source of loan repayment must be available,h) Extending a loan must be in accordance with the bank’s profit objectives.

Credit risk analysis involves several different activities, like evaluation of the risk ofthe borrower’s background, structure, management and owner, economicenvironment and position of the borrower, analysis and evaluation of the businessplan and submitted cash flow prognosis; evaluation of the familiarity, reliability andcredit history of the client. Deciding on the risk taking is performed collegially bycredit committees and by the authorised persons in accordance with the decision-making limits established by the bank’s management.

Credit risks are mainly measured on two levels. For verifying the loan portfolio’sexposure to credit risk, Eesti Ühispank uses a portfolio diversification method. Thedivision of financial obligations is monitored by different products, clients andindustries. The Credit Area performs monthly analysis on the credit risk of loanportfolio and informs the bank’s managing bodies of the results.

In respect to individual clients the bank prepares regular analyses on the borrowers’situation as well as risk level. The analyses are based on annual and quarterlyreports, on basis of which the financial situation is evaluated, as well as on credithistory and information originating from other sources. Evaluation of the borrowers’reliability is of material importance. Based on the results of the analysis, the clients -being legal persons with credit risk assumed by Eesti Ühispank Group of more thanEEK 1,000,000 – are divided into eleven risk classes in accordance with the EestiÜhispank client rating system.

Risk class ExplanationClass 1 Companies with the lowest level of riskClass 2 Very strong companiesClass 3 Strong companies, first partClass 4 Strong companies, second partClass 5 Companies with moderate strengthClass 6 Companies with sufficient strengthClass 7 Companies with accepted strength, under separate watch listClass 8 Under constant watch list – relatively good possibilities for continuingClass 9 Under constant watch list – limited possibilities for continuingClass 10 Under constant watch list – little or limited possibilities for continuingClass 11 Insolvency

According to the client rating system the risk class assignment is not required forcompanies or a group with credit risk to the group less than EEK 1,000,000.Evaluation of these borrowers is based on the same grounds as of the borrowers withassigned risk class.

Private individuals are on basis of their payment history divided into five riskclasses:

Class Explanation1 Borrower makes prompt principal and interest payments,

presumably there is no problem with loan repayment.2 Financial position of the borrower is stable, however

certain unfavourable factors may influence the loanrepayment.

3 Financial position of the borrower is unstable, problemswith making principal and interest payments.

4 Financial position of the borrower is weak; problems withfurther servicing of the loan.

5 Further loan servicing is unlikely.

Risk classes of private individuals are updated on monthly basis. Review of thesituation and risk level of legal persons is performed on regular basis, at least once ayear. During the review the bank assesses the client’s situation, risk level, regularityof fulfilling existing financial obligations and need for financing. As an importantoutcome, a risk class is assigned to the client, which depending on the risk class shallbe valid for one year, half a year or three months. With the resolution of a creditcommittee also a different term may be established to the risk class of a client.

Primary responsibility for monitoring the quality lies with client executives, whoshall inform immediately their department head and if necessary, the credit area ofoccurred problems and accordingly take necessary measures.

Provided, during the valuation of the loan it becomes evident that the loan or part ofit is doubtful and the collateral is insufficient for covering the loan amount togetherwith accrued interest and penalties, i.e. a loan loss may be assumed, a reserve forloan loss i.e. provision will be established for the loan. The purpose is to calculateand present the actual value of the loan portfolio as fairly and objectively as possible.

For decreasing real loan losses a separate department was established under thesubordination of Credit Area, handling problem loans and recovering written-offloans by using several methods in doing so: negotiations with clients, rehabilitation,execution and bankruptcy proceedings.

The head office credit control group and credit risk management departments of theoffices perform regular in-depth survey of the quality of the loan portfolio.Also the bank’s internal audit and external auditors carry out a survey of the loanportfolio. During the control the adherence to procedures, availability of requiredinformation and documents, regularity of loan servicing (repayments), adequacy ofcollateral and other factors influencing the risks is verified.

In order to diminish credit risk the bank has established a requirement for theborrower to provide the bank with collateral in the form of registered immovable

property, registered movable property and/or personal sureties as security. Theprinciples for granting an unsecured loan are stated in the credit policy.The pledged assets have to be insured throughout the loan period in an insurancefirm accepted by the bank at least within the restoration value. In case of a housingloan also life insurance is required, if the borrower is contributing majority to thefamily’s income. The aforementioned measures help to decrease the credit risk asthey serve, as an alternative in collecting the loan facility, in case the borrower is notable to repay the loan.

The credit risk is closely connected with country risk. Country risks are mainlyregulated by setting country limits on different financial products. Risk limits on A-zone countries (countries, to which the international rating agencies have assigned acountry rating A or higher) have been co-ordinated with the requirements set by theBank of Estonia (for example capital adequacy requirement). Regarding othercountries, especially the countries of the former Soviet Union, strictly conservativeprinciple is followed and assumed positions are minimal in order to ensure smoothdaily banking performance.

Country risks are monitored by Treasury and Risk Management department

Market risk

Eesti Ühispank defines market risk generally as a potential loss resulting from thechange and volatility of interest rates, stock prices and currency exchange rates.

Market risk may arise from the bank’s activity at the financial markets and it has animpact on the majority of bank products: loans, deposits, securities, credit. Ühispankis calculating the risks on daily basis using different methods of risk valuation andmanagement. Important role in risk prevention is diversification of risk assets andlimitation for trading positions.

According to the Bank of Estonia prudential ratios the risk assets are divided intoshort-term or trading positions and long-term or investment positions. The purposeof trading positions is to earn profit on short-term price fluctuations. The positionrisk, related to trading portfolio, comprises general and specific risk. Specific riskoriginates from factors related to the issuer. General risk originates from generaldevelopments of the financial markets.

Due to different risk characteristics the risks of trading positions and bank positionsare valued individually. If necessary, different instruments facilitating riskmanagement are used.

Maximum limits approved by the committees, which are in compliance with thelimits set by the Bank of Estonia, form the basis for controlling and monitoring therisk of various instrument portfolios.

For positions related to market risk nominal limits area applied, which are monitoredby trading portfolios on daily basis. Any breach of limits shall be reported inaccordance with the regulations of market risk policy. In addition to the

aforementioned, also scenario analysis is applied in market risk management, whichis used for valuing the performance of trading positions in case of more extremefluctuations in market variables.

Market risk for trading portfolios is measured by using the VAR model. “Value atRisk” (VAR) is defined as a maximum potential loss on the financial instruments’portfolio over a specified period of time at a given level of confidence.VAR is calculated on trading positions daily, using a 99 percent confidence level,meaning that on one day out of hundred the loss may exceed the computed amount.

VAR model enables to effectively measure market risks associated with differentinstruments and the results are homogeneously comparable.

There are three basic methods for calculating VAR: parametric method, historicalsimulation, Monte Carlo simulation. Eesti Ühispank is using the parametric methodon a daily basis. This method considers the diversification effect arising out ofdifferent financial instruments. Analysis is based on volatility of historical marketvariables and presumes that assets returns are normally distributed. The bank alsouses other VAR methods, if necessary.

The reliability of VAR model is controlled using so called backtesting, where theactual profit/loss is compared with the profit/loss over the given period estimatedwith VAR model.

In addition to the Bank of Estonia prudential ratios the bank uses also Delta1%methodology for pricing the ALM (assets-liability mismatch) risk, arising from thestructure of interest bearing assets and liabilities. Eesti Ühispank defines Delta1% asdecrease of potential return due to one-percent change in market rates. In Delta1%calculation it is assumed there is a parallel shift in the yield curve, which means thatall interest rates (long and short term) will change by 100 b.p. Delta1% methodenables to effectively measure the impact of interest rate changes to interest bearingassets and liabilities- Delta1% limit is monitored as a negative or positive netposition respectively, depending of which one is higher.

CAR “Capital at Risk” is an analogue of VAR and enables the bank to measure itscapital need for covering potential risks. CAR is calculated over a one-year periodon a higher level of confidence (99,97%) and for the total balance sheet of the bank.

Liquidity risk

Liquidity risk is a possibility of loss or impaired ability to earn income as a result ofuntimely fulfilment of the payment obligation by the Bank.

The bank's liquidity risk is regulated on basis of the mandatory reserve of the Bankof Estonia and of the ratio of minimal and maximal required liquidity determined bythe Management Board of the Bank at the proposal of the ALCO. Liquiditymanagement is based on the model of remained maturity of assets/liabilities andspecial models reflecting liquidity positions.

Long-term liquidity of the bank is planned and control over liquidity riskmanagement is executed by ALCO. Central and daily management of the bank’sliquidity is the responsibility of the Money Market department, and analysing - thatof the Risk Management department.

Operational risk

Operational risk is the possibility of loss due to external factors (e.g. naturaldisasters, external crime) as well as internal factors (breakdown of IT systems, fraud,non-compliance with laws and internal rules of procedure and other internal controldeficiencies).

To manage the risks arising from inefficient procedures the bank is using a standardprocedure, which must ensure that a product is fully covered with contracts (legalpersons), control procedures and true presentation in the bank's accounts. Afterintroduction of the product, the internal audit department verifies adherence to theestablished procedures on a regular basis. For specifying the future volume ofoperational risks, the Risk Management department is studying differentmethodologies in order to adjust them to local environment.

Insurance agreements concluded by Skandinaviska Enskilda Banken AB applied toEesti Ühispank and extended to the SEB subsidiaries, cover the following:

1) Proprietary damage resulting from a crime committed by a bank employee ora third person (e.g. forgery, robbery, theft, fraudulent conduct)

2) Proprietary damage occurred in course of daily business of the bank,resulting from negligence or error of the bank’ employee or failure to act

3) Damage resulting from an illegal act of the bank’s management boardmember or employee

4) Damage caused to a third person resulting from the activity of the bank

Information technology risks

The purpose for managing information technology (IT) risks is to guarantee safety ofthe information of Eesti Ühispank and avoid security incidents that would suspendthe bank’s critical business processes and cause business loss.

The Eesti Ühispank Security Committee is a body guiding and co-ordinating thesecurity work of Eesti Ühispank, evaluation of technological risks and qualitymanagement, acting within the authority granted by the Eesti Ühispank ManagementBoard. The EÜP data security group ensures evaluation and management of risks inthe IT Area.

The Eesti Ühispank IT infrastructure ensures the security of data and informationsystems with implementing respective security measures (firewall, detection andrepel of an attack, virus protection, implementation of access policy, etc).

The Eesti Ühispank Security Policy is realised through implementation of securitymeasures, adherent to security requirements, established on basis of risk analysis.Prior to implementation of any new banking products, they are analysed in respect toinformation technology risks, if necessary the technological support of the product ismodified in a way to adhere to the required security level. Designing process ofinformation security consists of the following stages:

• Defining information assets and their managers• Defining security requirements for information assets• Rough risk analysis• Determining security measures– a detailed analysis and detailed

description of security measures, if necessary• Accepting residual risks

Operating information security:• Monitoring / maintenance of changes / incidents• Regular accreditation of information security• Handling information security incidents

1.4. Internal control systems

Internal control systems are a part of the bank’s means of management, involving allactivities of the bank group and being integral part of the processes taking place in thebank and the group. Existence and functioning of the internal control systems is theresponsibility of the management, the need for and scope of internal control systems isdetermined by the extent and form of risk-taking. For daily management the bankestablishes decision-making and liability limits for the managers of structural units andjob descriptions for the employees, internal rules of procedure and procedures manualguiding the activities. The bank’s management establishes internal accounting proceduresand the order of preparing and presenting the reports.Risk management department co-ordinates the measuring and reporting of risks to themain risk management body - the Asset and Liability Committee (ALCO).

Besides the group’s management also the activities of the Supervisory Board, AuditCommittee and internal audit department have an important role in supporting theefficient control environment.

The Supervisory Board exercises supervision over the activity of the bank and the totalfinancial group, approving general principles of risk management and determining theneed for risk capital, arising from these risks.

The Audit Committee co-ordinates the work of internal audit in line with the goals of thegroup, by reviewing on quarterly basis the audit reports and co-ordinating the audit plan.

The purpose of the activity of internal audit is to achieve adequacy of internal controlsystems and risk management of the group in line with the goals of the group. Internalaudit systematises information on risk management and the existence and functioning ofinternal control systems by following the audit standards.In planning its activities the department has fully implemented the standards valid in theSEB Group.

According to the audit model used by SEB Group the audit plan of the group is preparedand approved by the auditor responsible for the Eesti Ühispank Group audit. In course ofthe year-end audit the external auditors examine independently the internal controlsystems and the results of internal audit and provide the owners and management of EestiÜhispank with their findings and recommendations in respect to the aforementioned.

The activities, required for ensuring the quality of risk management and administrationare aimed at ongoing integration of Eesti Ühispank Group to the international financialgroup and at bringing the control environment and operating standards into accordancewith the principles valid in the SEB Group.

1.5. Standard ratios

1.5.1. Capital adequacy(millions of EEK) Group Bank

31.12.01 31.12.00 31.12.01 31.12.00

I. EQUITY (5-6+7) 2,075.0 1,518.9 2,009.8 1,573.61. Primary equity (Tier 1) 1,657.5 1,462.6 1,657.6 1,464.8 1.1 Paid in share capital 2,012.3 2,012.3 2,012.3 2,012.3 1.2 General banking reserves 298.5 298.5 298.5 298.5 1.3 Other reserves 0.0 0.0 0.0 0.0 1.4 Retained earnings / loss -373.8 -274.4 -373.4 -274.4 1.5 Profit/loss for the period (audited) 161.6 -99.0 161.6 -99.0 1.6 Minority Interest (only in consolidated statement) 1.1 0.4 0.0 0.0 1.7 Unrealised rate differences (only in consolidated statement) -0.7 -1.4 0.0 0.0 1.8 Treasury stock (less) 0.0 0.0 0.0 0.0 1.9 Intangibles (less) -441.5 -473.8 -441.4 -472.62. Supplementary equity (Tier 2) 420.0 332.9 420.0 332.93. Total gross equity (1+2) 2,077.5 1,795.6 2,077.6 1,797.74. Deductions from total equity * 2.5 188.4 67.8 224.15. Total equity net (3-4) 2,075.0 1,607.1 2,009.8 1,573.66. Deductions from equity net 0.0 88.2 0.0 0.0

6.1. Exceeding investment limits 0.0 0.0 0.0 0.06.2. Exceeding risk limits 0.0 88.2 0.0 0.0

7. Equity for market risk (Tier 3) 0.0 0.0 0.0 0.0II. CAPITAL REQUIREMENT FOR RISKS (1+2+3+4) 1,549.5 1,342.3 1,538.5 1,323.41. Capital requirement for credit risk (1.1+1.2)/10 1,549.5 1,340.2 1,538.5 1,322.7

1.1. Risk adjusted assets 14,125.5 12,309.8 14,007.7 11,893.7I category 0.0 0.0 0.0 0.0II category 111.5 135.4 111.5 134.5III category 837.3 554.5 707.4 525.2IV category 13,176.7 11,619.9 13,188.8 11,234.0

1.2. Risk weighted off-balance sheet commitments 1,369.3 1,092.2 1,377.7 1,333.52. Capital requirement for trading portfolio risks 0.0 0.0 0.0 0.0

2.1. For interest position risk 0.0 0.0 0.0 0.02.2. For share position risk 0.0 0.0 0.0 0.02.3. For transaction risk 0.0 0.0 0.0 0.0

3. Capital requirement for currency risk (3.1/10) 0.0 2.1 0.0 0.73.1. Total open net foreign currency position exceeding the 2% level of equity 0.0 20.7 0.0 6.6

4. Capital requirement for other risks 0.0 0.0 0.0 0.0III. Capital adequacy, % (I/II×10) 13.39 11.32 13.06 11.89

Tier 1 ( I -2-7 )/II×10 10.68 8.84 10.33 9.38Tier2 2/II×10 2.71 2.48 2.73 2.52

* Investments in financial and credit institutions where the group's / bank’s holding exceeds 10% or holdings, exceeding 3% of the group's / bank’s gross own funds.

1.5.2. Summary report of risk weighted assets(millions of EEK)

Group Bank31.12.01 31.12.00 31.12.01 31.12.00

Assets in balance sheetI category (0%) 0.0 0.0 0.0 0.0II category (20%) 111.5 135.4 111.5 134.5III category (50%) 837.3 554.5 707.4 525.2IV category (100%) 13,176.7 11,619.9 13,188.8 11,234.0

Off-balance sheet irrevocable commitments and derivatesI category (0%) 0.0 0.0 0.0 0.0II category (20%) 7.1 11.3 7.1 11.3III category (50%) 0.1 0.0 0.1 0.0IV category (100%) 1,362.1 1,259.3 1,370.5 1,322.1

Total risk weighted assets 15,494.8 13,580.4 15,385.4 13,227.1

1.5.3. Net currency positionExceeding 1% level of net equity 31.12.01(millions of EEK)

Group1 % from net equity: 20.8

Currency Position in balance sheet Off-balance sheet position NetAdvances Commitments Advances Commitments position

0.0 0.0 0.0 0.0 0.0

Groups' net position of every currency is under 1 % level of net equity.

Bank1 % from net equity: 20.1

Currency Position in balance sheet Off-balance sheet position NetAdvances Commitments Advances Commitments position

0.0 0.0 0.0 0.0 0.0

Banks net position of every currency is under 1 % level of net equity.

1.5.4. Liquidity (assets and liabilities by remaining maturity) 31.12.01(millions of EEK)

Assets; Liabilities:Demand deposits Overdue

< 1 month

1 < 3 months

3 < 12 months

1 < 2 years

2 < 5 years

over 5 years Total

1.Bank assets 1,408.3 240.9 607.5 1,232.9 2,836.1 1,469.5 5,224.4 3,879.4 16,899.02.Group assets 1,424.5 345.5 1,157.7 1,328.2 3,330.4 1,906.3 4,078.7 3,104.2 16,675.5

cash & due from credit institutio 1,307.0 0.0 0.0 3.4 33.5 0.0 0.0 0.0 1,343.9due from customers 0.2 333.6 567.7 857.9 2,757.1 1,864.5 3,944.4 2,732.1 13,057.5securities 115.8 0.0 144.2 460.7 539.4 41.8 134.3 218.6 1,654.8other assets 1.5 11.9 445.8 6.2 0.4 0.0 0.0 153.5 619.3

1.Bank liabilities 6,714.7 0.0 3,446.2 1,567.2 2,354.8 107.3 451.6 1,048.0 15,689.82.Group liabilities 6,619.7 0.0 3,546.7 1,578.0 2,411.1 120.0 464.7 1,131.8 15,872.0

due to credit institutions 218.3 0.0 576.4 25.0 103.0 0.0 49.1 247.0 1,218.8due to customers 6,401.3 0.0 2,076.3 715.0 1,610.7 118.8 373.0 415.0 11,710.1issued debt securities 0.0 0.0 213.2 806.8 688.3 1.0 0.0 0.0 1,709.3other liabilities 0.1 0.0 680.8 31.2 9.1 0.2 42.6 469.8 1,233.8

The column of outstanding amounts indicates the (net) amount of claims and liabilities overdue.

1.5.5. Risk concentration 31.12.01(millions of EEK)

Group Bank

number/ amount

% from net equity

number/ amount

% from net equity

1.Number of customers with big risk concentration 6 62.Due from customers with big risk concentration 1,582.4 76.26 1,492.1 74.253.Due from related persons and shareholders 157.9 7.61 150.0 7.46

1,740.3 83.87 1,642.1 81.71

High credit risk exposure is the total exposure of one party or related parties to the group which exceeds 10% of the group's/bank´s net equity.All instruments where credit risk may arise to the group/bank are taken into consideration. The maximum rate of total high exposureallowed is 800%. The limit of the total exposure of one party or related parties is 25%. As of 31.12.2001 the group and the bank had 6 high creditrisk exposures. Total exposure of any group of related parties not exceeded the limit of 25%.

1.6. Key Figures

12 Months Group Bank31.12.01 31.12.00 31.12.01 31.12.00

Profit (loss) 161.6 -99.0 161.6 -99.0Average equity 2,017.1 1,984.1 2,018.1 1,986.8Return on equity (ROE), % (year basis) 8.01 -4.99 8.01 -4.98

Average assets 16,921.1 15,420.2 16,622.5 14,711.5Average equity 2,017.1 1,984.1 2,018.1 1,986.8Equity multiplier (EM) 8.39 7.77 8.24 7.40

Profit (loss) 161.6 -99.0 161.6 -99.0Total income (EEKmio) 1,798.2 1,649.9 1,809.0 1,444.2Profit margin (PM), % 8.99 -6.00 8.93 -6.86

Total income 1,798.2 1,649.9 1,809.0 1,444.2Average assets 16,921.1 15,420.2 16,622.5 14,711.5Asset utilization (AU), % (year basis) 10.63 10.70 10.88 9.82

Profit (loss) 161.6 -99.0 161.6 -99.0Average assets 16,921.1 15,420.2 16,622.5 14,711.5Return on assets (ROA), % (year basis) 0.96 -0.64 0.97 -0.67

Net interest income less futures 618.5 500.7 523.4 449.1Average interest earning assets 13,819.8 11,882.4 13,978.2 11,795.0Net interest margin (NIM), % 4.48 4.21 3.74 3.81

Credit losses adjusted net interest income 463.0 293.9 394.2 289.5Average assets 16,921.1 15,420.2 16,622.5 14,711.5Credit losses adjusted net interest margin (%) 2.74 1.91 2.37 1.97

Interest income less futures 1,224.5 1,096.2 1,118.6 999.9Average interest earning assets 13,819.8 11,882.4 13,978.2 11,795.0Yield on interest earning assets 8.86 9.23 8.00 8.48

Interest expenses less futures 606.0 595.5 595.2 550.8Interest bearing liabilities, average 14,086.4 12,763.5 13,963.7 12,177.2Cost of interest bearing liabilities 4.30 4.67 4.26 4.52

SPREAD, % 4.56 4.56 3.74 3.95

Non-interest income 445.7 448.7 357.8 350.8Average assets 16,921.1 15,420.2 16,622.5 14,711.5Non-interest margin (%) 2.63 2.91 2.15 2.38

Operating costs / Operating income (%) 63.12 72.54 67.97 73.52

Share information Group Bank31.12.01 31.12.00 31.12.01 31.12.00

Number of shares at end of period 66,562,381 66,562,381 66,562,381 66,562,381Average number of shares, adjusted with issues 66,562,381 66,562,381 66,562,381 66,562,381Price of shares (SEB offer), EEK 38.00 38.00 38.00 38.00Net Profit/Loss, EEKmio 161.6 -99.0 161.6 -99.0Earnings per share (EPS), EEK (year basis) 2.43 -1.49 2.43 -1.49Diluted earnings per share (EEK) (year basis) 2.43 -1.49 2.43 -1.49

As the bank did not have potentially issued common stock in 2000 and 2001,the common net profit per share equals the diluted net profit per share.

Price/Earnigs ratio (P/E) 15.64 -25.50 15.64 -25.50Market price of shares at end of period, EEKmio 2,529.4 2,529.4 2,529.4 2,529.4Book value of shares, EEK 24.89 21.97 24.90 22.00Equity per share, EEK 31.52 29.08 31.53 29.11

Assets quality Group Bank(millions of EEK) 31.12.01 31.12.00 31.12.01 31.12.00

Assets 17,971.5 15,870.6 17,788.8 15,456.1Overdue (brutto) 494.2 366.9 389.2 234.7 overdue/assets, % 2.75% 2.31% 2.19% 1.52%Provisions 273.7 227.4 217.6 174.8(uncollectible debt)

Equity after deductions 2,075.0 1,607.1 2,009.8 1,573.6Capital adequacy, % 13.39 11.32 13.06 11.89Tier 1 Ratio (%) 10.68 8.84 10.33 9.38Tier 2 Ratio (%) 2.71 2.48 2.73 2.52

ExplanationsReturn on equity (ROE), % Profit(loss) / Average equity * 100Equity multiplier (EM) Average assets / Average equityProfit margin (PM), % Profit(loss) / Total income * 100Asset utilization (AU), % Total income / Average assets *100Return on assets (ROA), % Profit(loss) / Average assets * 100Net interest margin (NIM), % Net interest income less futures / Average interest earning assetsNon-interest margin (%) Non-interest income / Average assetsCost of interest bearing liabilities Interest expenses less futures / Interest bearing liabilities, averageSPREAD, % Yield on interest earning assets - Cost of interest bearing liabilitiesEarnings per share (EPS), EEK Net profit (loss) / Average number of sharesPrice/Earnigs ratio (P/E) Price of shares / EPSMarket price of shares at end of period, EEKmio Price of shares * Number of shares at end of periodBook value of shares, EEK (Equity - Intangible assets) / Number of shares at end of periodEquity per share, EEK Equity / Number of shares at end of periodCredit losses adjusted net interest income =

=Net interest income less futures - Provisions of advances to customers - Provisions of loans and advances to banks(note 8) (note 8)

Interest earning assets: Interest bearing liabilities:Balances with the central bank Due to central bankLoans and advances to credit institutions Due to credit institutionsLoans and advances to customers of credit institutions Due to clients of credit institutionsDue from custmers of leasing enterprises Due to clients of insurance institutionsDue from insurance institutions Other commitmentsDebt securities and fixed income securities Issued debt securities-Uncollectible debt Subordinated liabilities

Total income includes the following items (Act No 25 of President of the Bank of Estonia, dd. October 19, 1999):For Group: For Bank:

Interest income Interest incomeInsurance premium Profit/income from currency dealingIncome from securities Income from fees and commisionsProfit/loss from equity method (+) Income from financial investmentsFees and commissions received Income from value adjustmsnts of fixed and intangible assets (+)Net profit/loss from financial activities (+) Profit/Income from value adjustm. of advances and off-bal.sheet commitments (+)Value adjustments of tangible and intangible assets (+) Income from value adjustemsnts of long term financial investmentsValue adjustments of advances and off-balance sheet items (+) Other operating incomeValue adjustments of long term investmenst (+) Extraordinary incomeOther incomeExtraordinary income/expense (+)

Operating income, operating costs and non--interest income includes the following items:Operating income: Operating costs:

Net Interest Income Administrative expensesIncome and expenses from insurance activities Value adjustments of tangible and intangible assets (+/-)Income from securities Other expensesNet income from fees and commissionsNet profit/loss fom financial activities (+/-)Other income

Non-interest income:Income and expenses from insurance activitiesIncome from securitiesNet income from fees and commissionsNet profit/loss fom financial activities (+/-)Other income

1.7. Ratings 31.12.01 31.12.00 31.12.99

Moody’s Investor ServiceDeposit rating (Long term / Short term) Baa1/P-2 Baa1/P-2 Baa3/P-3Financial strength rating D+ D+ DRating descriptions in Internet: http://www.moodys.com

FitchIBCA Short term rating 23.04.01 withdrawn - F2 F3Long term rating _ ,, _ - BBB+ BBB-Individual rating _ ,, _ - C/D DSupport rating _ ,, _ - 3 4Rating descriptions in Internet: http://www.fitchratings.com

Standard & PoorsPublic information rating BBBpi BBpi BBpiRating descriptions in Internet:http://www.standardpoor.com

1.8. Legal Disputes

On 3 August 2001 the Appeals Selection Committee of the Supreme Court refused to grant leave to the appeal of AS A.O. Imbi for annulment of Tallinn District Court judgement of 26 March 2001.

According to Tallinn District Court judgement of 26 March 2001 the claim of AS A.O. Imbi (in bankruptcy) against AS Eesti Ühispank in the amount of EEK 72,081,099.63 was dismissed and Tallinn City Court judgement of 19 September 2000 adjudging EEK 56,617,234 from AS Eesti Ühispank in favour of AS A.O. Imbi (in bankruptcy) was annulled.

2. Financial Statements

2.1. Income Statement Group Bank(millions of EEK) Note 31.12.01 31.12.00 31.12.01 31.12.00

1. Interest income 2 1,230.5 1,107.4 1,124.6 1,011.11.1. Interest income from banking activities 985.1 908.0 1,124.6 1,011.11.2. Interest income from leasing activities 201.4 158.71.3. Other interest income 44.0 40.72. Interest expenses 3 606.0 595.5 595.2 550.82.1. Interest expenses from banking activities 592.8 549.3 595.2 550.82.2. Interest expenses from leasing activities 12.7 40.12.3. Other interest expenses 0.5 6.13. Net Interest Income 624.5 511.9 529.4 460.34. Income and expenses from insurance activities 22.4 15.2 0.0 0.04.1. Insurance premium 67.1 47.84.2. Insurance compensations and changes in reserves -44.7 -32.65. Income from securities 2.2 4.6 1.9 4.26. Profit/loss from equity method (+/-) 3.2 4.7 80.0 -3.97. Net income from fees and commissions 269.0 236.6 223.4 207.77.1. Fees and commissions received 4 343.1 293.2 287.6 257.77.2. Fees and commissions paid 5 74.1 56.6 64.2 50.08. Net profit/loss fom financial activities (+/-) 6 98.5 112.9 101.8 106.89. Administrative expenses 467.1 430.0 427.0 391.09.1. Salaries 199.2 173.7 169.5 147.39.2. Social insurance tax 66.3 57.4 56.4 49.29.3. Other adminastrive expenses 7 201.6 198.9 201.1 194.510. Value adjustments of tangible and intangible assets (+/-) -150.1 -201.9 -132.7 -174.411. Value adjustments of advances and off-balance sheet items (+/-) 8 -163.1 -236.9 -130.9 -181.912. Value adjustments of long term investments (+/-) -72.4 -127.1 -71.7 -128.013. Other income and expense -4.7 14.5 -12.6 1.213.1. Other income 9 53.6 79.3 30.7 32.113.2. Other expenses 10 58.3 64.9 43.3 30.914. Extraordinary income/expense (+/-) 0.0 0.0 0.0 0.015. Profit (loss) before taxation 162.4 -95.5 161.6 -99.016. Income tax expenses 0.1 0.1 0.0 0.016.1. Income tax of financial year 11 0.1 0.1 0.0 0.017. Minority interest 0.7 3.418. Net profit/loss (+/-) 12 161.6 -99.0 161.6 -99.0

“Accounting principles on pages 30 - 37 and notes to the annual report on pages 38 - 47 are integral part of the financial statements”.

2.2. Balance sheet Group Bank(millions of EEK) Note 31.12.01 31.12.00 31.12.01 31.12.00

ASSETS1. Cash 495.0 427.0 495.0 427.02. Loans and advances 13,906.3 11,741.3 11,453.7 10,060.02.1. Balances with the central bank 13 643.8 1,236.3 643.8 1,236.32.2. Loans and advances to credit institutions 14 205.0 295.6 204.0 290.82.3. Loans and advances to customers of credit institutions 15 11,214.1 8,988.5 10,823.5 8,707.72.4. Due from custmers of leasing enterprises 2,116.3 1,447.62.5. Due from insurance institutions 0.8 0.72.6. Other loans and advances 0.0 0.02.7. Uncollectible debt 16,17 -273.7 -227.4 -217.6 -174.83. Debt securities and fixed income securities 18 1,403.3 588.7 3,958.8 2,483.94. Shares and other securities 18 219.0 767.1 177.3 503.25. Shares and participations in affiliates 18 32.6 26.7 31.4 25.36. Shares and participations in subsidaries 18 0.0 0.0 422.3 432.27. Intangible assets 19 441.5 473.8 441.4 472.67.1. Consolidated goodwill 441.4 472.6 441.4 472.67.2. Other intagible assets 0.1 1.2 0.0 0.08. Tangible assets 20 854.4 1,300.0 448.4 564.29. Subscribed capital unpaid 0.0 0.0 0.0 0.010. Other assets 21 196.0 244.5 196.0 244.311. Accruals and prepaid expenses 22 423.4 301.5 164.5 243.412. Total assets 17,971.5 15,870.6 17,788.8 15,456.1

LIABILITIES AND SHAREHOLDERS' EQUITY1. Liabilities 12,928.9 11,309.4 12,957.9 11,146.81.1. Due to central bank 23 6.3 5.8 6.3 5.81.2. Due to credit institutions 23 1,212.5 1,600.2 1,165.2 1,378.71.3. Due to clients of credit institutions 24 11,524.8 9,449.6 11,639.7 9,537.01.4. Due to clients of insurance institutions 24 0.7 0.71.5. Other commitments 25 184.6 253.1 146.7 225.32. Issued debt securities 26 1,709.3 1,312.2 1,691.4 1,218.23. Other liabilities 27 440.7 495.0 403.2 466.34. Accrued expenses and deferred income 28 284.6 289.6 208.9 203.05. Provisions 80.1 43.6 0.0 0.05.1. Insurance technical provisions 51.6 43.65.2. Potential income tax 0.0 0.05.3. Other provisions 28.5 0.06. Subordinated liabilities 29 428.5 484.5 428.5 484.58. Minority interest 30 1.1 0.47. Total liabilities 15,873.2 13,934.7 15,689.9 13,518.89.1. Paid up capital 665.6 665.6 665.6 665.69.2. Share premium 1,346.6 1,346.6 1,346.6 1,346.69.3. General banking reserve 298.5 298.5 298.5 298.59.4. Revaluation reserve 0.4 0.0 0.0 0.09.5. Other reserves 0.0 0.0 0.0 0.09.6. Unrealized rate differences -0.6 -1.49.7. Profit/Loss retained 12 -373.8 -274.4 -373.4 -274.49.8. Profit/Los for the financial year 12 161.6 -99.0 161.6 -99.09.9. Own shares 0.0 0.0 0.0 0.010. Total shareholders' equity 2,098.3 1,935.9 2,098.9 1,937.311. Total liabilities and capital 17,971.5 15,870.6 17,788.8 15,456.1

“Accounting principles on pages 30 - 37 and notes to the annual report on pages 38 - 47 are integral part of the financial statements”.

2.3. Cash Flow Statement(millions of EEK) Group Bank

31.12.01 31.12.00 31.12.01 31.12.00I Cash flow from Operating ActivitiesNet Profit 161.6 -99.0 161.6 -99.0+ value adjustments of fixed and intangible assets 150.1 201.9 132.7 174.4

Net incerease(-)/decrease(+) in operating assets:Time deposits and other due to banks 22.9 273.0 18.8 273.4Loans and advances to customers -2,848.1 -1,078.5 -2,073.0 -100.9Investments securities portfolio 567.2 347.2 -310.3 -1,322.1Other assets -121.9 -40.5 78.9 -52.3

Net increase(+)/decrease(-) in operating liabilities:Amounts owed to credit institutions and government loan funds -510.0 172.5 -354.7 508.4Amounts owed to customers 2,075.2 1,678.5 2,102.7 1,697.8Issued bonds 397.1 -887.4 473.2 -602.1Other liabilities 31.5 46.5 5.9 0.2

Net Cash Flow from Operating Activities -74.4 614.2 235.8 477.8

II Cash Flows from Investing Activities

Investments in subsidaries 0.0 0.0 9.9 3.9Investments in associates -5.9 -20.9 -6.1 -20.7Tangible fixed assets - - value adjustments of fixed and intangible assets 327.8 -207.0 14.3 -34.5Net Cash Flows from Investing Activities 321.9 -227.9 18.1 -51.3

III Cash Flows from Financing ActivitiesMinority interest 0.7 3.2Unrealized rate differences 0.8 2.6Issue of subordinated debt -56.0 -16.0 -56.0 -16.0Net Cash Flows from Financing Activities -54.5 -10.2 -56.0 -16.0

Change in Cash and Cash Equivalents (I + II + III) 193.0 376.1 197.9 410.5

Cash and Cash Equivalents at the Beginning of the period 2,364.6 1,988.5 2,355.7 1,945.2

Cash and Cash Equivalents at the End of the period 2,557.6 2,364.6 2,553.6 2,355.7

Group BankCash and cash equivalents includes 31.12.01 31.12.00 31.12.01 31.12.00(millions of EEK)Cash on hand 495.0 427.0 495.0 427.0Balances with the central bank 643.8 1,236.3 643.8 1,236.3Demand deposits in credit institutions 168.1 284.3 167.1 283.4Dealing and liquidity securities 1,250.7 417.0 1,247.7 409.0Total 2,557.6 2,364.6 2,553.6 2,355.7

“Accounting principles on pages 30 - 37 and notes to the annual report on pages 38 - 47 are integral part of the financial statements”.

Annexes to Cash Flow Statement

1. Eesti Ühispank has not paid income tax.

2. Financial transactions that are not reflected on the Cash Flow Statement:2.1. Eesti Ühispank has not made investments with nonmonetary payment.2.2. Eesti Ühispank has not received nonmonetary dividends paid in other assets.

3. Eesti Ühispank and his subsidaries have not bought assets, which acquired with Estonian Privatisation Vouchers (EVP)

2.4. Changes in Shareholders' Equity(millions of EEK)

Group

Year beginning 31.12.00

Profit/ loss of annual year

Revaluation reserve

Final balance 31.12.01

Paid up capital 665.6 665.6Share premium 1,346.6 1,346.6General Banking reserve 298.5 298.5Revaluation reserve 0.0 0.4 0.4Translation differences -1.4 0.8 -0.6 Retained profit/loss -373.4 161.6 -0.4 -212.2Total shareholders' equity 1,935.9 162.4 0.0 2,098.3

Bank

Year beginning 31.12.00

Profit/ loss of annual year

Final balance 31.12.01

Paid up capital 665.6 665.6Share premium 1,346.6 1,346.6General Banking reserve 298.5 298.5 Retained profit/loss -373.4 161.6 -211.8Total shareholders' equity 1,937.3 161.6 2,098.9

Explanation regarding the shares owned by the shareholders and employees of the parent company is presented in part 1.1.7 of the Operating Review, page 6.

“Accounting principles on pages 30 - 37 and notes to the annual report on pages 38 - 47 are integral part of the financial statements”.

2.5. Off-Balance sheet items 31.12.01(millions of EEK)

Group BankAssets Liabilities Assets Liabilities

1.Irrevocable transactions 220.9 2,542.2 220.9 2,440.41.1.Guarantees and pledges 0.0 1,044.6 0.0 1,162.8 incl.financial guarantees 0.0 372.7 0.0 481.51.2.Irrevocable transactions (related to management and investment service) 0.0 0.0 0.0 0.01.3.Stand-by Loans 220.9 1,497.6 220.9 1,277.61.4.Other Off-Balance Sheet Commitments 0.0 0.0 0.0 0.02.Derivatives 3,035.3 3,037.3 3,045.7 3,047.7 incl.Options 0.4 5.3 0.4 5.32.1.Currency Rate based Derivatives 3,034.9 3,032.0 3,045.3 3,042.42.2.Interest Rate based Derivatives 0.0 0.0 0.0 0.02.3.Securities based Derivatives 0.4 5.3 0.4 5.32.4.Other derivatives 0.0 0.0 0.0 0.03.Revocable Transactions 0.0 0.0 0.0 0.03.1.Stand By Loans 0.0 0.0 0.0 0.03.2.Other revocable transactions 0.0 0.0 0.0 0.04.Pledged Assets as Collateral 0.0 0.0 0.0 0.0

3,256.2 5,579.4 3,266.6 5,488.1

2.6. Customer securities portfolio under management of the group

As of 31.12.2001 the customer securities portfolios under management of the group amounted to 366,6 millionkroons (including 143,5 million kroons in portfolios of private individuals). The total volume of aforementioned portfolios as of 31.12.2000 was 104,6 million kroons, including 16,3 million kroons in portfolios of private individuals. Commission fee is received from management of these portfolios and no credit or market risk is involved for the bank.

Note 1

Accounting principles

AS Eesti Ühispank (Reg. No.10004252) is a credit institution registered in Tallinn(Estonia), at Tornimäe 2, the majority shareholder of which is SEB. As at the end of year2001 Eesti Ühispank Group employed 1242 persons.

General principles

The accounting statements of Eesti Ühispank parent company (the bank) and theconsolidated group are in accordance with the Accounting Act of the Republic of Estonia,generally accepted accounting principles and legal acts of the Bank of Estonia, applicableto credit institutions in preparing consolidated public annual accounts. Businesstransactions have been accounted for at acquisition cost principle as of the moment oftheir execution, adjusted with revaluation of derivatives and trading and liquidityportfolio of securities into fair value. Financial accounts have been prepared according toaccrual basis of accounting.

Presentation and comparative figures

The accounting statements have been compiled for the year ended 31.12.2001. Thefigures in the published annual accounts are presented in Million Estonian kroons. Thestatements of the parent company and the group have been presented in parallel. Wherenecessary the comparative figures have been adjusted to adhere to the way of presentingthe annual accounts in the current year.

Cash and its equivalents

Cash and its equivalents include cash at hand, due from central bank and other creditinstitutions and securities of trading and liquidity portfolio.

Scope of Consolidated Financial Statements

The financial statements of Eesti Ühispank Group include the audited financialstatements of the subsidiaries as of 31 December 2001. Only the statements of thesubsidiaries, where Eesti Ühispank has significant shareholding have been consolidated.The shareholding is considered significant if the bank owns more than 50% of the votingright of the company or in some other way exercises a significant control over the othercompany. The Eesti Ühispank Group accounts include the financial statements of thefollowing companies: Ühisliisingu AS (shareholding 100%), AO Russkii ObjedinennoiLizing (shareholding 75%), AS Ühisinvesteeringud (100%), Ühispanga Varahalduse AS(100%), AS Ühispanga Elukindlustus (100%), AS Bangalo (100%), AS PF Koda (100%),OÜ Strongler (100%). Accounts of the subsidiaries of Ühisliisingu AS and AS PF Kodahave been previously consolidated into the financial statements of the respective parentcompany.

The associated companies of Eesti Ühispank are the companies where the group owns20-50% of the voting power. The Group accounts include the financial results of SEB ITPartner OÜ (shareholding 38%), AS Sertifitseerimiskeskus (shareholding 25%), ASIntegrate (shareholding 50%), AS Pankade Kaardikeskus (shareholding 41,52%) andEesti Liisingkeskus (shareholding 33,33%).

Consolidation

The accounts of the subsidiaries have been prepared in conformity with the accountingprinciples of the parent company. In consolidation the balance sheets and incomestatements of the parent company and subsidiaries are combined line-by-line, eliminatingintra-group balances and transactions. Minority interest in the sharecapital of subsidiarieshas been presented in Group accounts on a separate row “Minority Interest”.Acquisition of subsidiaries and related companies has been presented in the financialstatements at acquisition method. Income and expenses of the subsidiaries acquiredduring the accounting year have been consolidated into income statement as of theacquisition until the end of the year and the result of the subsidiaries disposed of duringthe year is consolidated into the income statement until the moment of disposal.The subsidiary and its subsidiaries founded in abroad are presented as independent. Theirincome statements have been re-valued into Estonian kroons according to the 2001average exchange rate of the Bank of Estonia and their balance sheets have beenconsolidated with the Bank of Estonia exchange rate as at 31 December 2001.

In separate statements of the parent company the investments in the shares of subsidiariesare presented at equity method.Long-term investments in the shares of associated companies are presented in theaccounts of the parent company and the group at equity method, according to which thegroup investment is increased by the share of profit and reduced by the loss of ordistribution of profit received from the associated company and attributable to the group.

As an exception, the shares purchased and held for selling purposes are not presented assubsidiaries and associated companies. They are presented, regardless of the ownership,within the trading and investment portfolio of securities and re-valued according tovaluation principles established for the mentioned portfolios.

Assets and liabilities in foreign currency

In the balance sheet, the assets and liabilities denominated in foreign currency arerecognised in Estonian kroons according to the official exchange rate of the Bank ofEstonia as at balance sheet date. Result gained from foreign exchange as well as foreigncurrency purchase-sale is presented on the income statement line ”Net dealingprofit/loss”.

Interest income and expenses

Interest income and expenses are presented in income statement on accrual basis. Interestincome includes also coupon interest on fixed interest investment bonds and accruedincome on dividing the price gap into periods as well as similar income on derivatives. Ifloan interest has not been received for two months, accruing of interest on these loanswill be terminated and previously accounted interest income will be adjustedrespectively.

Securities

All securities possessed by the bank, including securities acquired with reverserepurchase transactions, are recognised as securities.Investments into securities are classified either as related to trading-, liquidity- orinvestment portfolio depending on their purpose of acquisition.

Trading portfolio includes shares and securities acquired with trading purpose.Liquidity portfolio includes marketable shares and securities, acquired with the purposeof investing liquid monetary resources.

The trading and liquidity portfolio shares quoted at the stock exchange are accounted forat market value, based on the stock exchange last BID-price of the respective day.The shares not quoted at the stock exchange are re-valued into market value according tothe LAST-price, being the price of the last transaction. Provided the LAST-price is notreliable, the position will be written down, being based on all available informationregarding the investment value.

Trading and liquidity portfolio securities not quoted at the stock exchange are discountedat market interest rates, issuer’s risk added. The market interest rate is the deposit ratequoted at the inter-bank market and the average BID, ASK of the loan.The result of the trading and liquidity portfolio securities is presented on incomestatement row ”Net dealing profit/loss ”.

The stocks and shares acquired with strategic purpose for long-term holding and resellingare presented under the investment portfolio. Investment portfolio shares are presented inthe group accounts at acquisition cost. If the realisation value of a long-term investmenthas decreased persistently, it will be written down. When situation changes, the previousdeductions will be adjusted, however not more than up to their acquisition cost.

Shares obtained as security for reverse repurchase deals are presented in the balance sheetunder securities and the obligation of the same amount under other liabilities. Both theassets and liabilities sides are daily adjusted to market price. The result of revaluation isbooked in income statement, whereas the net result on row “Net dealing profit/loss” isunaffected.

Bonds include fixed interest, floating interest and discounted bonds and other fixedincome securities. Investment portfolio bonds are accounted for in the balance sheet atacquisition cost. For valuation, interest or coupon interest arising as a difference betweenthe acquisition cost and nominal value is allocated on the maturity of the bond. The resultwill be presented as interest income in income statement.The realised sales revenue of the investment portfolio securities is presented in incomestatement as ”Income/expenses on securities” and revaluation result as ”Value adjustmentof long-term financial investments”.

Derivatives

Forward-, swap and option transactions are presented as off-balance sheet assets andcommitments. Forward- and swap-transactions in foreign currency are re-valuedaccording to the applicable exchange rate of the Bank of Estonia, adjusted with thedifference of bank rates.Equity options are re-adjusted to market price. In case reliable market value can not beobtained, the real value is calculated by using the Black-Scholes formula. Black-Sholesformula is used for calculating the option price with following assumptions: interest rateis the market rate of the pursuant currency, volatility is based on historic volatility,adjusted according to market trends.

Interest on forward-transactions is presented over the period of the transaction andpremium on option transactions on the date of executing the transaction. The realised andunrealised yield from the revaluation of off-balance sheet items is presented in incomestatement under “Net dealing profit/loss” and the emerged balance sheet asset or liabilityunder other assets or liabilities. Net result on swap-transactions is presented in incomestatement as “Interest income”. Balance sheet assets and liabilities are not balanced.Derivatives used for managing risks are re-valued on the same basis as the coveredposition.

Loans

Loans to customers are presented in the balance sheet until they are repaid or written-offregardless of that part of them may be carried under costs as bad and doubtful debts. Badand doubtful claims are presented under the same asset item with a minus sign. Loanshave been recognised in the balance sheet at their actual amount due from customers,without accrued interest and penalties. In case of overdraft, the actual use of the limit bythe borrower is stated. The unused credit limit is stated as off-balance sheet liability.

In valuation of loans several risks are prudently considered. In 2000 Eesti Ühispankintroduced a new customer rating system for evaluating corporate loans, corresponding tothe SEB customer rating system. Valuation of the customers is based on the company’sfinancial position, situation in the industry, trustworthiness of the borrower, competence

of the management, timely fulfilment of contractual obligations and other factors.Valuation of private individuals is based on timely fulfilment of contractual obligationsand income.

For estimating loan losses the probability of collecting loans and interest payments overthe coming periods and discounted present value of estimated receivables as well asanticipated receivable from the realisation of collateral is valued. Within the extent ofpresumed loan losses, a loan loss reserve has been established. If loan interest has notbeen received for two months, accruing of interest on these loans will be terminated andpreviously accounted interest income will be adjusted respectively.

Leasing loans

Leasing loans include financial lease, consumer factoring and instalment sale. Leaseportfolio due from customers is presented in net book value, i.e. accounts receivablewithout interest and other charges.In case of financial lease and instalment sale, all risks and income related to the right ofownership on the property will be transferred in a material part to the lessee. The lesseeuses the asset during the lease period and pays the total cost or a major part of the cost ofthe property to the lessor in instalments together with interest.

In case of factoring the claims in the balance sheet are also recognised in net book value,i.e. acquired claims, not paid yet by the remitters by the end of the period under review.

Valuation of claims is based on due fulfilment of contractual obligations, estimatedmarket value of lease object and additional (if available) collateral, financial position ofthe lease or factoring customer and reliability of the customer. For covering the presumedlosses, individual provisions for loan losses have been established pursuant to thementioned particulars.

Tangible and intangible assets

Land, buildings and other assets of long-term use are recognised in the balance sheet astangible fixed assets. Intangible assets include franchise and goodwill. Tangible fixedassets are presented at net book value whereas accumulated depreciation has beendeducted from the acquisition cost. Depreciation is calculated as of the month ofacquisition until full amortisation of the asset. Tangible assets with acquisition cost lessthan 15,000 kroons and expected useful life less than one year are accounted for asexpenses upon acquisition.Assets are depreciated on straight-line-basis. Depreciation calculation is based on usefullife of the fixed asset, which serves as basis for forming depreciation rates. Buildings aredepreciated over 20-50 years, intangible assets (excluding goodwill) over 5 years, other

assets over 2 -10 years. Land is not depreciated. Depreciation and write-down ispresented on the income statement line ”Value adjustment of tangible and intangibleassets”.

Goodwill

Goodwill represents the difference between the cost of acquisition and the fair value ofnet assets on purchasing a business entity. Goodwill is amortised on a straight-line-basis,considering its expected payback period, within 20 years. The amortisation cost ofgoodwill is presented on the income statement line “Value adjustment of tangible andintangible assets”.

Capitalisation of expenses

Reconstruction expenditures of bank offices are capitalised and carried to expensesproportionally in course of five years or according to the term of the rental agreement.

Establishment and Development Costs

Establishment and development costs are not capitalised. Expenses of advertising andlaunching of new products, services and processes are taken to expenses. Expendituresrelated to trademarks, etc., to be developed inside the company are also expensed at themoment of their occurrence.

Holiday allowance

Holiday allowance includes amounts owed to employees according to employmentagreements and other disbursements, accrued in the amount of holiday pay as at the endof the year. The reserve includes also expenses on social taxes and unemploymentinsurance tax calculated on the holiday allowance.

Technical Provisions of Life Insurance

Life insurance provision comprises of discounted present value of the difference fromdisbursements to be made to the insured in the future and insurance premiums received inthe future on basis of concluded insurance agreements. Provision for outstanding claimsinclude losses, which are valued and processed but not yet disbursed, and losses, whichare registered but not yet processed. Provision for bonuses include amounts allocated tothe insured or the beneficiary under the contract in the accounting year in addition to aguaranteed profit share and on account of which life insurance provisions will beincreased or bonus disbursements will be made.

Reserves

According to the Income Tax Act valid until 2000 the credit institutions could form a tax-exempt reserve up to 5% of the loan portfolio to cover potential losses. Allocations to thisreserve could be deducted from the taxable income.

According to the Commercial Code at least 5% of the net income has to be entered into areserve capital until the reserve capital comprises 10% of the sharecapital. The reservecapital may be used for covering losses.

Eesti Ühispank profit for the year 1994, 1995, 1996 and 1997 has been allocated to thegeneral banking reserve (except 6,2 Million kroons from the 1995-year profit) and makesup 298,5 Million kroons, also including the reserve capital requirement under theCommercial Code. In 1998, 1999, 2000 and 2001 allocations to the reserve were notmade.

Taxes

According to the Income Tax Act effected in the Republic of Estonia on January 1, 2000,legal entities registered in Estonia are subject to income tax in case of direct profitdistribution in the form of dividends and indirect profit distribution in the form ofallowances, gifts and donations and costs not related to business. The tax rate is 26/74 onall dividends and allocations made to private persons, non-profit associations andfoundations, which are not included in the register of non-profit associations andfoundations with income tax incentives as well as to non-residents and fringe benefitsmade to employees. Dividends paid to the resident commercial undertakings are notsubject to taxation. In case of dividends paid from the retained earnings of 1994-1999, itis possible to deduct the income tax previously paid on the dividends, from non-payableincome tax.

The amount of deferred income tax liability, related to dividend payout, depends on ifand when the company intends to pay the dividends and how the shares of the companyhave been divided between non-residents, resident commercial undertakings and residentprivate persons on the dividend payout day. As at 31.12.2001, the Eesti Ühispank grouphas no deferred income tax liability.

Segments

Major activity of the Group is effected within Estonia and therefore geographicalsegments are not accounted for separately.There are three segments by the fields of activity: commercial banking (including loanand leasing activity), asset management (incl. life insurance) and money and capitalmarkets. Majority of the year 2001 result is reflecting the outcome of commercial

banking, accordingly a separate report by the fields of activity is not presented. Thereport reflects financial result by companies in the consolidation group (note 35).

Changes in accounting principles

Compared to the previous year, the principle of valuing unlisted liquidity bonds has beenchanged in accordance with the internationally accepted accounting principles. If in 2000the unlisted liquidity bonds were presented at acquisition cost and accrued interest wastaken into account, then in 2001 they are discounted at market interest rates, to which theissuer’s risk premium is added. The profit of 9,0 Million kroons gained as a result of therevaluation during the accounting period is booked on income statement row “Netdealing profit/loss”.

Compared to the previous year the shares in the amount of 26,1 Million kroons, receivedas security for the reverse repurchase deals have been presented in the balance sheetunder securities and the obligation of the same amount under other liabilities. Both, theassets and liabilities sides are daily adjusted to market price. The result of revaluation isbooked in income statement, whereas the net result is zero.

Unlike 2000, the current financial statements reflect income on full service and short termlease assets in the amount of 12,9 Million kroons on income statement row “Fees andcommissions received”, which previously was booked under “Other operating income”.Expenses on full service and short term lease assets in the amount of 2,0 Million kroonsare presented on row “Fees and commissions paid”, previously booked as other“operating expenses”. Adjustments were made also in comparative figures by increasingfees and commissions received for previous year by 6,6 Million kroons and fees andcommissions paid by 2,3 Million kroons, and accordingly reducing other operatingincome and other operating expenses.

In 2001 EÜP re-examined Goodwill and in accordance with the accounting principles ofSEB decided to establish 20 years as the useful life of Goodwill, previously being 10years. Resulting from the change, the amount of depreciation calculated on Goodwill for2001 is by 28,8 Million kroons less compared to the same period last year, which isreflected on income statement row “Value adjustment of tangible and intangible assets”.

Notes 2 - 35(millions of EEK)

2 Interest income Group Bank31.12.01 31.12.00 31.12.01 31.12.00

Loans 899.4 830.1 869.8 872.0Leasing loans 201.4 158.7 0.0 0.0Deposits 53.0 57.1 53.0 56.9Fixed income securities 70.5 50.0 195.6 70.9Derivatives 6.0 11.2 6.0 11.2Other 0.2 0.3 0.2 0.1

1,230.5 1,107.4 1,124.6 1,011.11,230.5 1,107.4 1,124.6 1,011.1

3 Interest expenses Group Bank31.12.01 31.12.00 31.12.01 31.12.00

Interest to other banks 48.1 85.5 41.0 56.8Demand deposits 124.3 96.6 126.5 98.1Time and other deposits 287.3 243.8 287.4 243.8Issued bonds 105.4 123.7 102.1 110.5Subordinated debts 38.2 41.6 38.2 41.6Other 2.7 4.3 0.0 0.0

606.0 595.5 595.2 550.8606.0 595.5 595.2 550.8

4 Fees & commissions received Group Bank31.12.01 31.12.00 31.12.01 31.12.00

Settlement fees 61.3 83.5 61.5 83.7Securities market services 22.9 26.0 14.9 20.8Credit instrument contracts organising* 88.2 87.1 66.6 69.0Credit and payment cards 97.7 73.6 97.8 73.7Other 73.0 23.0 46.8 10.3

343.1 293.2 287.6 257.5343.1 293.2 287.6 257.7

* Credit instrument contracts include loan contracts, letters of credit, and guarantee contracts signed with customers.

5 Fees & commissions paid Group Bank31.12.01 31.12.00 31.12.01 31.12.00

Settlement fees 8.2 8.8 8.1 8.5Securities market 3.6 5.0 3.5 5.1Credit and payment cards 27.4 17.6 27.4 17.6Contract organising fees 0.0 6.6 0.0 4.4Money collecting fees 13.1 13.0 13.1 13.0Other 21.8 5.6 12.1 1.4

74.1 56.6 64.2 50.074.1 56.6 64.2 50.0

6 Net profit/loss from financial activities Group Bank31.12.01 31.12.00 31.12.01 31.12.00

Profit/loss from liquidity portfolio shares 15.9 21.3 15.9 20.6Profit/loss from trading and liquidity portfolio shares -0.5 1.1 -0.5 1.1Profit/loss from other financial instruments 1.4 3.2 1.4 3.2Realized gain 16.8 25.6 16.8 24.9

Profit/loss from liquidity shares -1.1 1.4 -0.9 1.9Profit/loss from trading and liquidity bonds 7.0 1.8 8.3 1.9Profit/loss from other financial instruments 0.4 -0.6 0.4 -0.6Unrealized gain 6.3 2.6 7.8 3.2

Profit/loss from dealing in foreign currencies 75.4 84.7 77.2 78.798.5 112.9 101.8 106.8

7 Other administrative expenses Group Bank31.12.01 31.12.00 31.12.01 31.12.00

Staff training and travelling 12.4 10.7 10.8 9.4Rent and utilities 34.0 32.5 55.7 53.8Other property and equipment expenses 9.9 11.7 9.0 9.6Transport 8.8 9.6 7.2 7.8Office, postal, communication expenses 28.8 30.5 24.4 25.0Advertising & marketing 40.3 34.9 35.9 32.2Other, incl. information technology expenses 67.4 69.0 58.1 56.7

201.6 198.9 201.1 194.5201.6 198.9 201.1 194.5

8 Value adjustments of advances and off-balance sheet itemsGroup Bank

31.12.01 31.12.00 31.12.01 31.12.00Provisions of advances to customers -155.5 -201.3 -129.2 -154.1 - specific loan provision -229.0 -215.8 -187.2 -171.7 - recovered loans 6.7 7.0 4.5 6.2 - reversals of provisions 66.8 7.5 53.5 11.4

Provisions of loans and advances to banks 0.0 -5.5 0.0 -5.5Provisions of other advances -7.6 -30.1 -1.7 -22.3

-163.1 -236.9 -130.9 -181.9-163.1 -236.9 -130.9 -181.9

9 Other income Group Bank31.12.01 31.12.00 31.12.01 31.12.00

Income on penalties and fines 8.5 15.6 3.9 3.3Rent income 34.7 47.4 20.0 20.8Other income 10.4 16.3 6.8 8.0

53.6 79.3 30.7 32.153.6 79.3 30.7 32.1

10 Other expenses Group Bank31.12.01 31.12.00 31.12.01 31.12.00

Cost on legal services 17.4 10.1 16.1 9.0Penalties and fines paid 2.9 3.4 2.4 1.2Cost on sale and writ-off of assets 13.0 28.8 11.9 8.3Cost on bond issues 1.6 1.3 1.6 1.3Other operating expenses 23.4 21.3 11.2 11.1

58.3 64.9 43.2 30.958.3 64.9 43.3 30.9

SUM(Knd1!J321;Knd1!J324:J333;Knd1!J346;Knd1!J347;IF(Knd1!J458.3

11 Income tax Group Bank31.12.01 31.12.00 31.12.01 31.12.00

Direct income tax 0.1 0.1 0.0 0.0

0.1 0.1 0.0 0.00.1 0.1

AO Russkii Obedinennoi Lizing faced an income tax liability of 0,1 million Estonian kroons in 2001. The income tax rate effective in Russia is 29% of the taxable income.

12 Undistributed profit/loss Group Bank31.12.01 31.12.00 31.12.01 31.12.00

Profit/Loss retained -373.8 -274.4 -373.4 -274.4Profit/Los for the financial year 161.6 -99.0 161.6 -99.0

-212.2 -373.4 -211.8 -373.4Revaluation reserve 0.4 0

* Earnings per share is performed in Operating Review tab.1.6.Key Figures, page22.

13 Balances with the central bank Group Bank31.12.01 31.12.00 31.12.01 31.12.00

Balances with the central bank 643.8 1,236.3 643.8 1,236.3Mandatory reserve 1,566.2 1,307.9 1,566.2 1,307.9

Estonian commercial banks are obliged to maintain mandatory reserves on their clearing accounts with the Central Bank, calcu-lated on 13% of the mandatory reserve basis, up to 20% cash in EEK is allowed to be included. Mandatory reserve basis includes amounts owed to customers, issued bonds, net amounts due to foreign credit institutions and financial guarantees to financial ins-titutions and foreign credit institutions. Mandatory reserve on the correspondent account of the Bank of Estonia is monitored on basis of monthly average. As of 01.07.2001 the reserve may be filled with external assets in the amount of 50% from themonthly average mandatory reserve requirement.

168.1 284.3 167.1 283.414 Loans and advances to banks Group Bank

31.12.01 31.12.00 31.12.01 31.12.00Demand deposits 168.1 284.3 167.1 283.4Time deposits 3.5 11.2 3.4 7.3Other 33.5 0.1 33.5 0.1

205.1 295.6 204.0 290.8205.0 295.6 204.0 290.8

15 Loans and advances to customersLoan portfolio by economic sector and by countries presented in notes 31 and 32.

16 Value adjustments of advances Group Bank31.12.01 31.12.00 31.12.01 31.12.00

At 1 January 227.4 251.4 174.8 174.5Exchange rate adjustments 0.2 0.3 0.2 0.0Loans and advances written off -116.1 -250.2 -91.1 -160.0Other provisions 0.0 17.6 0.0 0.0Reversals of provisions -66.8 -7.5 -53.5 -11.4Loan provisions 229.0 215.8 187.2 171.7At 31 December 273.7 227.4 217.6 174.8

-273.7 -227.4 -217.6 -174.8

Recoveries from write-offs 6.7 7.0 4.5 6.2

Problem loans 634.7 345.3 539.1 303.6 incl. provisions 254.4 217.6 212.0 169.6

* Problem loans are claims on which interest accrueing on daily basis is stopped.

17 Information about loans and advances, restructured during the 12 months of 2001

As a result of temporary or permanent insolvency, 46 loans in the total amount of EEK164.2 million have been restructured during the present year. The aim of the restructuring was to amend theexisting loan agreements in a way that would enable the clients to achieve positive cash flows.

18 Securities Group Bank31.12.01 31.12.00 31.12.01 31.12.00

Dealing and liquidity securitiesProvision for diminution in value 0.0 0.0 0.0 0.0Equity securities 7.8 21.0 4.8 18.1 incl. listed 4.8 20.3 4.8 17.4Fixed income securities (trading) 97.6 37.5 97.6 37.5 incl. listed 68.6 37.4 68.6 37.4Fixed income securities (liquidity) 1,145.3 358.5 1,145.3 353.4 incl. listed 502.4 244.9 502.4 240.3

1,250.7 417.0 1,247.7 409.0Investment securitiesDebt securities 160.4 199.3 2,715.9 2,099.6 incl. listed 32.5 22.2 0.0 0.0Provision for debt securities 0.0 -6.6 0.0 -6.6Equity securities 211.2 746.1 172.5 485.1 incl. listed 54.7 20.1 43.6 19.6

371.6 938.8 2,888.4 2,578.1Shars of associates and subsidariesShares and participations in affiliates 32.6 26.7 31.4 25.3Shares and participations in subsidaries 0.0 0.0 422.3 432.2

32.6 26.7 453.7 457.5Securities total 1,654.9 1,382.5 4,589.8 3,444.6

Net book value 31.12.01

Subsidaries, associates and their subsidaries

Nominal value (EEK)

Booked acquisition cost (EEKmio)

Net book value (EEKmio)

Ühisliisingu AS 1,000 23.4 97.5HF Liisingu AS* 1,000 0.5 0.0Union Kindlustusmaakler AS* 10,000 1.0 4.7AS Rentacar* 10 0.0 1.6

AO Russkii Obedinennoi Lizing 5 RUB 0.6 3.6AS Ühisinvesteeringud 10 34.0 35.1Ühispanga Varahalduse AS 100 42.5 47.6AS Ühispanga Elukindlustus 10 30.0 37.2AS Bangalo 1,000 47.0 44.4AS PF Koda 1,000 132.9 121.9

AS Tornimägi* 1,000 131.5 122.2OÜ Strongler 50,000 35.0 35.1Total subsidaries: 345.4 422.4

SEB IT Partner Estonia OÜ** 19,000 0.4 2.0AS Sertifitseerimiskeskus** 100,000 3.0 1.0AS Intergate** 10 15.1 12.7Pankade Kaardikeskus** 1,000 4.0 15.6Eesti Liisingkeskus** 400,000 0.4 1.2Total associates: 22.9 32.5

* consolidated sub-subsidaries** associatesThe ‘consolidation group’ and the ‘Group’ are identical.

Addresses, activities, owneship and other data performed in Operating Review, page 4.Percentage of the group of the net assets of subsidiaries and associates equals to the net book value of the subsidiary and associate.The minority interest of AO Russkii Obedinennoi Lizing is 1,1 million kroons of net assets and 0,7 million kroons of profit.Other subsidiaries have no minority interest.

Other long term investments with ownership over 10%, presented on the balance sheet line “Shares and other securities”.

As Viljandi Erakliinik Kaarsaar OÜEsco Holding AS AS Repo VabrikudAS Ühendatud Kapital Ühisarengu AsAS CMF Kommerts OÜ Munga MajaAS Baltlink-valduse Tallinna Väärtpaberibörsi ASAs Vana-Võidu Saetööstus Freier Projekt OÜ

The aforementioned companies are located in Estonia.

624.3-182.8

19 Intangible assets Group Bank31.12.01 31.12.00 31.12.99 31.12.01 31.12.00

Cost at the beginning of period 626.9 626.9 577.3 623.2 623.2Additions 0.0 0.0 49.6 0.0 0.0Sales and disposals -2.6 0.0 0.0 0.0Cost at the end of period 624.3 626.9 626.9 623.2 623.2Accumulated amortization -182.8 -153.1 -90.0 -181.8 -150.6Total 441.5 473.8 536.9 441.4 472.6

Value at the beginning of period 473.8 536.9 553.2 472.6 534.9Additions 0.0 0.0 0.0 0.0 0.0Sales and disposals -0.6 0.0 2.2 0.0 0.0Amortisation expense -31.7 -63.1 -65.9 -31.2 -62.3At the end of period * 441.5 473.8 536.9 441.4 472.6

441.5 473.8 441.4 472.6

* Goodwill amounts to 441.4 million kroons and other intangible assets make 0.1 million kroons of theintangible assets of the group by the end of the period.

20 Tangible fixed assets Group Bank

At the beginning of period (31.12.00) Land BuildingsOtheracsess Total Land Buildings

Otheracsess Total

Cost 9.3 1,022.1 731.9 1,763.2 1.0 461.6 493.5 956.2Accumulated depreciation 0.0 -110.3 -352.9 -463.2 0.0 -73.6 -318.4 -392.0Net book amount 9.3 911.8 379.0 1,300.0 1.0 388.0 175.1 564.2

1,300.0 564.2Period ended (31.12.01)Opening net book amount 9.3 911.8 379.0 1,300.0 1.0 388.0 175.1 564.2Additions (residual value) 5.6 7.4 55.0 68.0 1.8 4.3 48.7 54.8Disposals (residual value) -1.2 -193.4 -198.3 -392.8 0.0 -59.7 -7.2 -66.9Impairment charge (residual value) 0.0 -0.3 -2.1 -2.4 0.0 0.0 -2.1 -2.1Depreciation charge 0.0 -29.6 -88.8 -118.3 0.0 -19.5 -82.1 -101.6Closing net book amount 13.7 695.9 144.8 854.5 2.8 313.1 132.4 448.4

31.12.01Cost 13.7 818.3 544.2 1,376.1 2.8 402.4 505.7 910.9Accumulated depreciation 0.0 -122.3 -399.4 -521.7 0.0 -89.2 -373.3 -462.5Net book amount 13.7 696.0 144.8 854.4 2.8 313.2 132.4 448.4

854.4 448.4

21 Other assets Group Bank31.12.01 31.12.00 31.12.01 31.12.00

Items in transactions 196.0 244.5 196.0 244.3

196.0 244.5 196.0 244.3

22 Accruals and prepaid expenses Group Bank31.12.01 31.12.00 31.12.01 31.12.00

Accrued interest receivable 82.6 124.1 75.7 115.6Other accrued revenue 340.8 177.4 88.8 127.8

423.4 301.5 164.5 243.4423.4 301.5 164.5 243.4

23 Amounts owed to credit institutions and central bank Group Bank31.12.01 31.12.00 31.12.01 31.12.00

Demand deposits 218.2 190.2 218.2 190.2Time deposits and loans (maturity up to 1 year) 704.5 1,052.2 657.2 940.4Time deposits and loans (maturity more than 1 year) 296.1 363.6 296.1 253.9

1,218.8 1,606.0 1,171.5 1,384.51,218.8 1,606.0 1,171.5 1,384.5

In 2001 the bank took credit lines from European Investment Bank amounting to 4 Million EUR, with interest rate 4,83% and 2,7 Million EUR, with interest rate 3,39% and maturity December 2010.

24 Amounts owed to customers Group Bank31.12.01 31.12.00 31.12.01 31.12.00

Demand deposits 6,401.3 5,107.3 6,496.4 5,199.4Time deposits and other deposits, insurance 5,124.2 4,343.0 5,143.3 4,337.6

11,525.5 9,450.3 11,639.7 9,537.011,525.5 9,450.3 11,639.7 9,537.0

Non residents 1,764.4 1,444.7 1,759.0 1,531.4Residents 9,761.1 8,005.6 9,880.7 8,005.6

11,525.5 9,450.3 11,639.7 9,537.0

25 Other commitments Group Bank31.12.01 31.12.00 31.12.01 31.12.00

Government lending funds 184.6 253.1 146.7 225.3

26 Issued bonds

BuyerAmount in foreign

currency (mio)

Amountin

EEKmio Interest rateMaturity

date

Issued bonds by ÜhispankEstonian Central Depository of Securities 98.2 EEK 98.2 3.60% 28.06.2002Estonian Health Insurance Fund 14.9 EEK 14.9 3.20% 21.01.2002Estonian Ministry of Finance 39.3 EEK 39.3 3.80% 05.04.2002Estonian Ministry of Finance 39.7 EEK 39.7 3.25% 15.02.2002Estonian Ministry of Finance 39.6 EEK 39.6 3.35% 05.04.2002Merill Lynch 2.6 EUR 40.0 3 months' Libor+1,25 % 27.06.2002Estonian Central Depository of Securities 197.2 EEK 197.2 4.85% 21.01.2002Estonian Central Depository of Securities 44.3 EEK 44.3 3.75% 15.02.2002Nomura Bank 29.5 EUR 461.6 3 months' Euribor + 3,125% 17.05.2002Lehmann Brothers 45.8 EUR 716.6 6 months' Euribor + 3,5% 12.03.2002

1,691.41,691.4

Issued bonds by leasing companiesVolvo Truck Co. 0.961 DEM 7.7 6,55-10% 14.06.2002Motorcomsa 0.327 DEM 2.6 6% 01.12.2003London Forfaiting 0.320 DEM 2.6 6,1 - 8% 18.05.2003Vereinsbank 0.625 DEM 5.0 5,68% 17.06.2002

17.9Issued bonds total 1,709.3

27 Other liabilitiesGroup Bank

31.12.01 31.12.00 31.12.01 31.12.00Items in transmission 403.2 466.2 403.2 466.3Rest of factoring 37.5 28.8 0.0 0.0

440.7 495.0 403.2 466.3440.7 495.0 403.2 466.3

28 Accrued expenses and deferred income Group Bank31.12.01 31.12.00 31.12.01 31.12.00

Accrued interest payable 154.3 165.7 152.8 154.6Other accrued expenses 130.3 123.9 56.1 48.4

284.6 289.6 208.9 203.0284.6 289.6 208.9 203.0

29 Subordinated debt

BuyerAmount in foreign

currency (mio)

Amountin

EEKmio Interest rate Maturity date

Hüvitusfond 42.5 EEK 42.5 7.625% 23.09.2006SEB 17.0 EUR 266.0 3 months' Euribor+1,75% 21.12.2011EBRD 5.1 EUR 80.0 6 months' Libor+4.4% 13.01.2008EBRD 2.6 EUR 40.0 6 months' Libor+3.4% 24.05.2007

428.5428.5

Subordinated debt may be considered as hybrid instrument, which due to their partial capital nature may be included under thebank's own funds in case certain requirements are met. In calculation of capital adequacy, loans with the remaining maturity over 5 years meeting certain requirements are included in own funds. Regarding loans with maturity less than 5 years, a 20% straight-line depreciation is applied in each following year, thus the loan is not considered own funds when the maturity period is less than one year.

30 Minority interests Group31.12.01 31.12.00

At beginning of year 0.4 -2.8Exchange rate adjustments 0.0 -0.2Share of net profit / loss of subsidiaries 0.7 3.4At end of year 1.1 0.4

31 Concentration of loans and advances from customers by countries(millions of EEK)

Group 31.12.01In balance sheet

Country Loans Securities Other

incl. total outstanding of overdue and

uncollectible debt and loans

off- balance sheet

commitments

% from total

Austria 0.0 82.0 0.0 0.0 0.0 0.4Belize 0.0 0.0 0.1 0.0 177.2 0.8Cypros 64.3 0.0 2.5 0.0 0.0 0.3Estonia 13,096.9 497.0 76.2 1,283.8 2,699.3 78.5Finland 23.2 165.1 0.0 4.7 10.0 1.0Germany 54.2 689.3 0.0 1.2 105.8 4.1Hong Kong 0.0 0.0 0.0 0.0 16.0 0.1Ireland 7.0 0.0 0.0 0.3 10.9 0.1Latvia 12.7 5.2 0.0 0.3 42.7 0.3Lithuania 3.9 9.3 0.0 2.7 7.8 0.1Luxembourg 13.6 41.4 0.0 0.0 0.0 0.3Russia 110.1 0.5 0.4 0.3 10.2 0.6Sweden 48.7 128.6 2.0 5.0 2,374.3 12.2Ukraine 0.4 28.6 0.0 0.0 0.0 0.1United States 9.6 0.0 0.0 0.0 8.8 0.1Unallocated 91.6 7.9 1.4 7.8 116.4 1.0TOTAL 13,536.2 1,654.9 82.6 1,306.1 5,579.4 100.0

13,536.2 1,654.9 82.6 1,306.1 5,579.4 100.0

Bank 31.12.01In balance sheet

Country Loans Securities Other

incl. total outstanding of overdue and

uncollectible debt and loans

off- balance sheet

commitments

% from total

Austria 0.0 82.0 0.0 0.0 0.0 0.4Belize 0.0 0.0 0.1 0.0 177.2 0.8Cypros 41.1 0.0 2.4 0.0 0.0 0.2Estonia 10,695.3 3,488.1 70.1 885.4 2,607.9 79.5Finland 6.5 165.1 0.0 0.9 10.0 0.9Germany 46.7 684.8 0.0 0.1 105.8 3.9Hong Kong 0.0 0.0 0.0 0.0 16.0 0.1Ireland 0.3 0.0 0.0 0.3 10.9 0.1Latvia 11.7 5.2 0.0 0.0 42.7 0.3Lithuania 0.1 9.3 0.0 0.1 7.9 0.1Luxembourg 13.6 0.0 0.0 0.0 0.0 0.1Russia 102.0 3.3 0.1 0.1 10.2 0.5Sweden 37.4 122.6 1.9 0.2 2,374.3 12.0Ukraine 0.4 28.6 0.0 0.0 0.0 0.1United Kingdom 48.6 0.0 0.2 0.0 106.2 0.7United States 2.8 0.0 0.0 0.0 8.8 0.1Unallocated 21.0 0.8 0.9 2.9 10.2 0.2TOTAL 11,027.5 4,589.8 75.7 890.0 5,488.1 100.0

11,027.5 4,589.8 75.7 890.0 5,488.1 100.0

The columns of outstanding amounts indicate the balance (gross) of these claims and loans that are overdue and/or written down, including not overdue.

32 Concentration of loans and advances from customers by economic sector(millions of EEK)

Group 31.12.01In balance sheet

Economic sector Loans Securities Other

incl. total outstanding of overdue

and uncollectible

debt and loans

off-balance sheet

commitments

% from total

Agriculture, hunting, forestry 325.6 0.5 1.9 47.0 32.1 1.7Construction 131.8 0.5 1.0 11.8 156.6 1.4Education 165.0 0.0 6.3 1.4 29.9 1.0Energy, gas and water plants 62.1 1.0 0.6 2.2 91.6 0.7Finance 229.8 302.7 2.1 0.1 2,904.7 16.5Fishing 38.2 0.0 0.2 5.3 4.0 0.2Gevernment, soc.insurance 749.7 1,139.5 3.6 1.5 32.5 9.2Health services, social work 120.5 0.0 0.2 5.2 4.8 0.6Home services 0.0 0.0 0.0 0.0 0.0 0.0Hotels, rastaurants 236.3 0.0 0.7 15.6 1.6 1.1Individuals 3,031.1 0.0 19.6 285.2 109.4 15.2Industry 1,823.9 101.9 10.5 163.0 393.6 11.2Mining 2.6 0.0 0.0 0.4 2.5 0.0Real estate 3,316.1 51.2 16.8 406.0 511.1 18.7Trading 1,923.2 2.2 10.5 206.3 856.7 13.4Transport 936.3 28.6 6.2 91.9 299.5 6.1Other gov. & social services 444.0 26.8 2.4 63.2 148.8 3.0TOTAL 13,536.2 1,654.9 82.6 1,306.1 5,579.4 100.0

13,536.2 1,654.9 82.6 1,306.1 5,579.4 100.0

Bank 31.12.01In balance sheet

Economic sector Loans Securities Other

incl. total outstanding of overdue

and uncollectible

debt and loans

incl. uncollectible overdue

off-balance

sheet commitme

nts

% from total

Agriculture, hunting, forestry 165.2 0.0 0.7 14.5 3.3 14.5 23.0 0.9Construction 76.1 0.5 0.4 6.5 4.3 6.5 155.9 1.1Education 146.7 0.0 6.3 0.9 0.0 0.9 29.9 0.8Energy, gas and water plants 39.7 1.0 0.2 0.4 0.0 0.4 59.5 0.5Finance 392.5 2,811.1 8.0 0.0 0.0 0.0 3,100.4 29.8Fishing 32.2 0.0 0.1 3.9 0.9 3.9 3.8 0.2Gevernment, soc.insurance 697.1 1,116.1 3.1 0.3 0.0 0.3 30.9 8.7Health services, social work 86.2 0.0 0.3 0.4 0.0 0.4 4.8 0.4Home services 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0Hotels, rastaurants 228.3 0.0 0.7 13.5 0.1 13.4 1.6 1.1Individuals 2,730.8 0.0 18.5 219.7 3.5 219.3 109.4 13.5Industry 1,427.5 88.9 8.6 118.6 14.3 118.5 321.7 8.7Mining 0.0 0.0 0.0 0.0 0.0 0.0 2.5 0.0Real estate 3,009.0 483.3 16.9 359.0 209.1 292.4 506.0 19.0Trading 1,339.7 1.2 6.9 132.7 51.8 132.4 699.4 9.7Transport 434.5 23.2 3.9 7.4 4.9 7.4 295.5 3.6Other gov. & social services 222.1 64.4 1.0 12.1 3.0 12.1 144.1 2.0TOTAL 11,027.5 4,589.8 75.7 890.0 295.2 822.3 5,488.1 100.0

11,027.5 4,589.8 75.7 890.0 5,488.1 100.0

The columns of outstanding amounts indicate the balance (gross) of these claims and loans that are overdue and/or written down, including not overdue.

33 OverdueBy remaining maturity(millions of EEK)

31.12.01

Group BankOverdue: < 30 30 < 60 over 60 < 30 30 < 60 over 60

days days days Total days days days TotalLoans 668.2 123.4 446.9 1,238.4 397.9 39.6 384.8 822.3Securities 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0Other 0.5 0.3 0.0 0.8 0.0 0.0 0.0 0.0Total 668.7 123.7 446.9 1,239.2 397.9 39.6 384.8 822.3

The table indicates the balance (net) of overdue claims.

34 Events after end of the financial year

No events have occurred after the end of the financial year that would have materialinfluence on the results of the following period under review.

35 Profit by consolidated enterprises

Jan-Dec Jan-Dec2001 2000

Banking 85.1 -90.4Leasing 60.6 -4.4Life insurance 4.5 4.0Asset Management 3.7 0.9Other 7.7 -9.1TOTAL 161.6 -99.0

AS PricewaterhouseCoopersPärnu mnt. 1510141 TallinnEstoniawww.pwcglobal.com/ee/

Telephone +372 6 141 800Facsimile +372 6 141 900

AUDITOR’S REPORT

(Translation of the Estonian original)

To the shareholders of AS Eesti Ühispank

We have audited the financial statements of AS Eesti Ühispank (the Bank) for the yearended 31 December 2001 and the consolidated financial statements of AS Eesti Ühispankand its subsidiary companies (the Group) for the year ended 31 December 2001 as set outon pages 25 to 47. These financial statements are the responsibility of the Bank’smanagement. Our responsibility is to express an opinion on these financial statementsbased on our audit.

We conducted our audit in accordance with International Standards on Auditing. ThoseStandards require that we plan and perform the audit to obtain reasonable assurance aboutwhether the financial statements are free of material misstatement. An audit includesexamining, on a test basis, evidence supporting the amounts and disclosures in thefinancial statements. An audit also includes assessing the accounting principles used andsignificant estimates made by management, as well as evaluating the overall financialstatement presentation. We believe that our audit provides a reasonable basis for ouropinion.

In our opinion the financial statements give a true and fair view of the financial position ofthe Bank and the Group as at 31 December 2001 and of the results of their operations andtheir cash flows for the year then ended in accordance with Estonian Accounting Law.

Urmas KaarlepAS PricewaterhouseCoopers

15 February 2002

AS EESTI ÜHISPANK MANAGEMENT BOARDLocated at Tornimäe 2, Tallinn

RESOLUTION NO 30

In Tallinn, 12.02.2002

Pursuant to Paragraph 1 of Article 37 of the AS Eesti Ühispank Articles ofAssociation and Clause 2.1.4 of the Management Board bylaws, AS Eesti ÜhispankManagement Board hereby resolves:

1. To make a proposal to the general shareholders’ meeting not distribute the profitof the financial year 2001 in the amount of 161’637’882 EEK (one hundred andsixty-one million, six hundred and thirty-seven thousand, eight hundred andeighty-two Estonian kroons).

2. To submit the present resolution to the Supervisory Board of AS Eesti Ühispankfor review.

Ain HanschmidtChairman of the Management Board