|
Structure of
loan portfolio
|
|
31.12.1996
|
31.12.1995
|
|
Loans to individuals
|
34%
|
25%
|
|
Loans to corporate clients
|
61%
|
69%
|
|
Loans to municipalities
|
5%
|
6%
|
|
Total
|
100%
|
100%
|
In view of the rapid increase in the loan portfolio
the Bank has firmly secured
its loan portfolio by hedging future credit risks, following the principles of
conservatism in provisioning loans. At the same time the risk exposure of the
Bank's loan portfolio has been continuously diminishing which is another proof
of the Bank's adherence to the so-called reasonable risk policy.
Quality of loan portfolio
of loan portfolio
|
|
31.12.1996
|
31.12.1995
|
|
Estimated losses on loans and guarantees,
000 EEK
|
60,652
|
24,277
|
|
Percentage of doubtful loans (provisioning
rate) in the loan
portfolio
|
2.76
|
2.55
|
|
Percentage of overdue loans in
the loan portfolio
|
1.61
|
1.38
|
An active co-operation with various financial institutions
was performed in
1996 in order to find new crediting possibilities for clients. Also, new products
have been launched in the domain of housing loans and financing factoring to corporate
clients. In 1996, Hoiupank concluded co-operation agreements with Maaelu ja Põllumajanduse
Krediteerimise Fond (Country-Life and Agriculture Crediting Fund), Väikeettevõtluse
Krediteerimise Fond (Small Enterprises Crediting Fund) and Keskkonnafond (Environment
Fund).
In 1997, Hoiupank intends to make a maximum use
of the advantages of its organisational
structure and IT level, enabling to provide more flexible services, oriented to
different client groups, and to offer the most universal services package in Estonia.
Loan portfolio by
economic sectors
|
|
31.12.1996
|
31.12.1995
|
|
Industry
|
7%
|
10%
|
|
Trade
|
11%
|
16%
|
|
Power engineering
|
5%
|
7%
|
|
Services
|
6%
|
6%
|
|
Food industry
|
4%
|
6%
|
|
Hotels and tourism
|
3%
|
4%
|
|
Municipal sector
|
5%
|
6%
|
|
Financial institutions
|
8%
|
7%
|
|
Individuals
|
29%
|
18%
|
|
Student loans
|
6%
|
10%
|
|
Real estate
|
8%
|
0%
|
|
Others
|
8%
|
10%
|
|
Total
|
100%
|
100%
|
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|