Adjusted profit sharing reserve in Baltic Banking

The performance based remuneration reserve for the business area Baltic Banking has been revised as a result of over provisioning during 2006 and 2007. Performance based remuneration provisions in Baltic Banking are accrued as a percentage of annual Economic Value Added (EVA). Substantial increase of EVA over the recent years has resulted in larger reserves than forecasted.
The accumulated reserves will be reduced by about SEK 185m during Q2 2008, as a result performance based staff costs in Baltic Banking (and Hansabank as a legal entity) will decrease with the same amount. The model for future provisions has been adjusted.