History

The Bank first began operations in 1927, but following the Soviet annexation of the country, was merged into the Soviet Savings Bank as the Estonian branch network with over 400 branches. The recent history of the Bank begins with the implementation of a restructuring programme, aimed at turning the Bank into a profitable and modern bank, after the Bank's partial privatisation in 1993. In 1994 the new management team of the Bank was in place and work began on renovating and reducing the number of branches. In 1995 the Bank increased its share capital by issuing 8.25 million new shares with nominal value of EEK 10 per share. Of that amount, the EBRD subscribed EEK 28 million nominal (for roughly 30 per cent of the share capital). In 1996, the Bank increased its share capital by an additional 3.2 million shares through a rights issue to the existing shareholders.

Within less than three years the Bank became profitable. The large and inefficient branch network has been reduced and reorganised, giving the Bank the most extensive regional coverage among the Estonian commercial banks. In the last years, the Bank has heavily invested in information technology, resulting in on-line, real time connected branch network. As of 30th June, 1997 the Bank had installed 87 ATMs.

In June 1996, the Bank signed an agreement with the Estonian Privatisation Agency and became the owner of AS Eesti Kindlustus - the largest insurance company in Estonia. As of 30th June, 1997 Hoiupank owns 85.6% of the shares of AS Eesti Kindlustus.

Since 1993, the Bank's financial statements have been audited by an internationally recognised auditor according to the IAS requirements.

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