Increase of Kvest bank’s share capital

Russian Central Bank approved the increase of the share capital of Hansabank’s Russian subsidiary Kvest bank by EUR 79 million through a closed share issue to the current shareholder. As a result Kvest bank’s share capital will increase to EUR 80 million. Hansabank completed the acquisition of the Moscow-based Kvest bank on 10 March. Hansabank paid 2.5 million euros for 100% of Kvest bank’s shares. Kvest bank has been focussing on serving corporate customers in the Moscow region. The bank’s total assets amounted to EUR 8.6 million and shareholders’ equity to EUR 3.2 million on 31.03.05. The Group’s strategy in Russia is to offer corporate banking and trade finance services in Moscow, St. Petersburg and Kaliningrad regions. The Group will concentrate on serving Baltic, Scandinavian and existing Russian corporate customers. Hansabank has already leasing offices in all three regions. The first bank branch will be opened in Moscow for customer service in August of this year. Branches in St. Petersburg and Kaliningrad will be opened later during the year. The Group currently employs 72 people in Russia and is planning on increasing the number to 190 by the end of the year.