Competitive Position

The Bank faces significant competition in all of its principal areas of operation, primarily from the other four major Estonian commercial banks: Hansapank, Tallinna Pank, Eesti Ühispank and Forekspank. Together with the Bank, these banks hold in excess of 85.6 per cent of the banking sector's assets. These banks, together with the Bank, control 85.7% of all loans.

In competing with other financial institutions, the Bank's management believes it has several competitive advantages. With regard to the retail banking market, the Bank has an unparalleled branch network, which makes it possible for the Bank to provide a wider range of services to its customers than many of its competitors. In addition, the Bank has high name-recognition among private individuals which is likely to support market share maintenance and further increasing it. Being one of the largest commercial banks in Estonia, the Bank is well positioned to increase its corporate lending and to provide additional services to the largest corporate borrowers.

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