Interim Results

SAMPO BANK GROUP'S INTERIM REPORT JANUARY-JUNE 2004

August 16, 2004 (www.sampo.com)

Sampo Bank Group's operating profit for January-June 2004 was EUR 111 million (84)
Net income from financial operations remained stable at EUR 182 million (178)
Efficiency improvement measures reduced operating costs; the cost to income ratio improved to 66.5 per cent (70.8)
On 30 June 2004, Sampo Bank Group's total assets were EUR 18.6 billion (16.8). Loans and advances to customers increased by EUR 2.7 billion, totalling EUR 13.4 billion

Key figures
EUR million	1 - 6 /2004	1 - 6 /2003	1 - 12 /2003

Total income	291	283	523
Total costs	-194	-201	-386
Provisions for bad and doubtful debts	10	-1	4
Operating profit	111	84	153
Cost to income ratio, %	66.5	70.8	72.5
Total assets, at end of period	18,564	16,781	16,987
Capital and reserves, at end of period	1,036	892	940
Return on equity, %	16.7	12.5	11.3
Capital adequacy, %	10.8	10.3	9.8
Staff, at end of period	3,944	3,766	3,432

The financial information in this Interim Report is unaudited.

Sampo Bank Group publishes one Interim Report during the financial year.

The Finnish Accounting Standards Board has granted credit institutions a sector-specific permit (1999/1554) which allows them to deviate from the decision of the Ministry of Finance concerning the duty of an issuer of securities to disclose information at regular intervals, and also allows them to prepare interim reports in accordance with the regulations (106.13) of the Financial Supervision Authority.

RESULTS

The operating profit of Sampo Bank Group for January-June 2004 was EUR 111 million (84). Total income amounted to EUR 291 million (283), total costs were EUR 194 million (201) and the profit before provisions for bad and doubtful debts was EUR 101 million (85). The cost to income ratio improved to 66.5 per cent (70.8). The Baltic banks, AS Sampo Pank (Estonia) and UAB Sampo bankas (Lithuania), which were transferred to the ownership of Sampo Bank at the beginning of the year, accounted for EUR 3 million of the review period's operating profit. The Baltic banks are not included in the comparison figures.

The net income from financial operations, EUR 182 million, grew compared with the second half of 2003 (165) and attained the level of the comparison period (178). The Baltic banks accounted for EUR 12 million of this growth. The interest spread between funding and lending was again narrower than in the comparison period, but the substantial increase in lending compensated for the effect of low interest rates.

Dividend income decreased, mainly due to the additional dividend received from Sampo Life being included in the figures for the comparison period. Fees and commissions receivable increased by EUR 9 million, the main increases arising from lending and payment transactions. Half of the increase was attributable to the inclusion of the Baltic banks. Other operating income was increased by a EUR 20 million VAT refund from earlier years.

Total costs decreased. Operating costs totalled EUR 183 million (189). The figures for the comparison period included a provision of EUR 9.5 million for costs related to staff reductions, while the figures for the review period were increased by operating costs of the Baltic banks totalling EUR 10 million.

Net provisions for bad and doubtful debts increased the operating profit by EUR 10 million, due to recoveries and releases of provisions being larger than the total amount written off for the period and new provisions. The total amount written off for the period and new pooled provisions were EUR 9 million (8), while recoveries and releases of provisions totalled EUR 18 million (7). At the end of the review period, non-performing loans amounted to EUR 50 million (51) and other non-interest-earning loans amounted to EUR 1 million (1).

BALANCE SHEET

At the end of June, Sampo Bank Group's total assets were EUR 18.6 billion (16.8). EUR 0.9 billion of the increase was attributable to the inclusion of the Baltic banks. Loans and advances to customers increased by EUR 2.7 billion in one year and totalled EUR 13.4 billion. The Baltic banks accounted for EUR 0.6 billion of this increase. Loans to households increased by approximately 14 per cent during the year, totalling EUR 7.1 billion (6.7). Loans to companies increased by 29 per cent, totalling EUR 5.2 billion (4.0). However, part of this growth was attributable to the renewal of loans transferred from Sampo Credit's balance sheet. Thus, the whole Sampo Group's loans to companies increased by only 10 per cent.

At the end of June, Sampo Bank Group's deposit balances totalled EUR 8.9 billion (8.4). The main growth occurred in corporate and institutional customers' giro accounts and in foreign currency deposits. Sampo Bank strengthened its capital structure by launching capital securities (tier 1) totalling EUR 125 million and subordinated bonds (lower tier 2) totalling EUR 150 million.

The volume of off-balance sheet items increased by EUR 1.3 billion to EUR 6.5 billion (5.1). EUR 0.6 billion of this was attributable to guarantees and pledges and EUR 0.7 billion to undrawn loans.

CAPITAL ADEQUACY

Sampo Bank Group's capital adequacy ratio was 10.8 per cent at the end of June. The tier 1 capital ratio was 7.1 per cent. At the end of 2003, the capital adequacy ratio had been 9.8 per cent and the tier 1 ratio 6.9 per cent. The estimated dividends for this year have been deducted from the profit of the review period. The total capital included in capital adequacy was EUR 1,413 million at the end of June (1,108 on 31 December, 2003). At the end of June, the Group's risk-weighted assets amounted to EUR 13,045 million (11,335).

Capital adequacy
EUR million	30.6.2004	31.12.2003	30.6.2003

Tier 1*	930	784	777
Tier 2	485	326	281
Tier 3	0	0	0
Total capital after deductions**	1,413	1,108	1,057

Risk weighted assets (on and off balance sheet)	13,045	11,335	10,267

Capital adequacy ratios, %
- Total capital / risk-weighted assets	10.8%	9.8%	10.3%
- Tier 1 / risk-weighted assets	7.1%	6.9%	7.6%

*The dividends decided or deduced from the general dividend policy have been deducted from capital and reserves.

** On 31 March, 2003, the Financial Supervision Authority granted Sampo Bank an exemption, pursuant to the Act on Credit Institutions (75§, 5), permitting the non-deduction from its own assets of financial institution investments in companies whose main business area is investment activity. The exemption remains valid until 31 December, 2006.

SAMPO BANK PLC'S CREDIT RATINGS

Long-term Short-term

funding funding

Moody's Investors Service A1 P-1

Standard & Poor's A- A-2

As a result of the If transaction, Standard & Poor's lowered Sampo Bank's long-term funding from A to A- with a negative outlook on 30 April, 2004, and the bank's short-term funding from A-1 to A-2 on 4 May, 2004. The ratings given to Sampo Bank by Moody's Investors Service have not changed during 2004, but 6 May 2004 Moody's confirmed the ratings with stable outlook.

STAFF

On 30 June, 2004, Sampo Bank Group's staff, excluding summer trainees, totalled 3,944 (3,766). The increase is due to the addition of the 656 employees of AS Sampo Pank (Estonia) and UAB Sampo bankas (Lithuania) when they were transferred to the ownership of Sampo Bank plc. The number of staff in the Finnish operations was reduced by 478 due to natural turnover and the staff cuts implemented in the second half of 2003. The average staff was 3,926 (3,852), of whom 3,730 (3,641) were permanent employees.

ADMINISTRATION AND GROUP STRUCTURE

On 31 March, 2004, the Annual General Meeting re-elected Ilkka Hallavo, Mika Ihamuotila, Jarmo Lankinen, Patrick Lapveteläinen, Maarit Näkyvä and Risto Tornivaara as Members of the Board of Management of Sampo Bank plc. Mika Ihamuotila serves as Chairman. The AGM elected Ernst & Young Oy, Authorised Public Accountants, as the auditors of Sampo Bank, with Tomi Englund, APA, as the responsible auditor.

On 2 January, 2004, AS Sampo Pank (Estonia) and UAB Sampo bankas (Lithuania), formerly subsidiaries of Sampo plc, were transferred to the ownership of Sampo Bank plc.

The transfer strengthened the role of the Baltic countries as part of Sampo's banking operations.

Sampo will merge Sampo Finance Ltd into Sampo Bank, to take effect from 30 September 2004. Sampo Finance is Sampo Bank's wholly owned subsidiary focusing on finance company services. The services and related agreements of Sampo Finance will remain unchanged. The staff of Sampo Finance will transfer to Sampo Bank.

OUTLOOK FOR THE YEAR

The low interest rates and the competition-induced narrow interest spread continue to limit the growth of net income from financial operations. The results for the whole year are expected to be good, however, since fees and commissions receivable are increasing, administrative expenses are decreasing and market rates are no longer falling compared with the situation one year ago. Lending continues to increase rapidly.

Helsinki, 16 August, 2004

Sampo Bank plc

Board of Directors

SAMPO BANK GROUP
PROFIT AND LOSS ACCOUNT
EUR million	January to June		Year ended
			31 December
	2004	2003	2003

Interest receivable	307,4	318,8	605,1
Interest payable	-125,1	-141,3	-262,6
Net income from financial operations	182,3	177,5	342,5
Dividend income	2,8	21,9	22,7
Fees and commissions receivable (1)	80,8	71,4	140,6
Fees and commissions payable	-10,6	-11,8	-22,4
Net income from transactions in securities and
foreign exchange dealing (2)	-1,8	1,3	3,3
Other operating income (3)	27,4	10,9	23,2
Administrative expenses (4)	-145,7	-158,4	-287,1
Depreciation and write-down of tangible
and intangible assets	-16,3	-11,3	-29,4
Other operating expenses (5)	-21,1	-19,1	-46,9
Provisions for bad and doubtful debts (6)	9,6	-0,6	3,9
Income from companies accounted for by the equity method	3,3	2,4	3,1
Operating profit	110,5	84,3	153,4
Profit before appropriations and taxes	110,5	84,3	153,4
Taxes	-32,5	-26,3	-46,5
Minority interests	-0,5	-0,6	-1,7
Profit for the period	77,5	57,4	105,2

Revenues	493,5	500,3	947,5
Total income	291,4	283,0	532,3
Total costs	-193,8	-200,5	-385,9
Cost to income ratio	66.5	70.8	72.5
Return on equity, %	16.7	12.5	11.3

FORMULAS USED IN CALCULATING THE FINANCIAL HIGHLIGHTS

Revenues:
Interest income + net leasing income + dividend income + fees and commissions receivable + net income from transactions in securities and foreign exchange dealing + other operating income

Cost to income ratio, %:
Fees and commissions payable + administrative expenses +
depreciation + other operating expenses
.............................. x 100
Net income from financial operations + dividend income + fees
and commissions receivable + net income from transactions in
securities and foreign exchange dealing + other operating income

Return on equity, % (ROE):
Operating profit/loss less taxes
.............................. x 100
Capital and reserves + minority interests + untaxed reserves and depreciation difference less deferred tax liability (average)

Preferred capital notes have not been included in capital and reserves in calculating the financial highlights.

BALANCE SHEET

EUR million	At 30 June	At 31 Dec.	At 30 June
	2004	2003	2003

ASSETS

Cash and balances at central banks	297,5	287,2	163,9
Treasury bills and other eligible bills	1 774,7	1 260,9	1 209,9
Loans and advances to credit institutions	1 016,1	1 016,4	2 263,6
Loans and advances to customers (1)	13 427,7	12 518,0	10 729,3
Lease assets	665,2	495,8	474,9
Debt securities	439,8	430,6	1 050,0
Shares and participations	8,4	5,6	6,2
Shares and participations in associated undertakings	23,8	21,9	21,7
Shares and participations in Group undertakings	37,3	37,2	37,0
Intangible assets	68,6	76,6	75,3
Tangible assets	34,5	17,8	22,2
Other assets	638,2	674,6	590,5
Prepayments and accrued income	112,4	120,0	115,0
Deferred tax assets	19,6	24,7	21,5

Total	18 563,9	16 987,4	16 780,9

LIABILITIES

Liabilities
Liabilities to credit institutions and central banks	545,9	317,6	368,7
Liabilities to customers (2)	9 726,3	10 089,7	9 597,6
Debt securities in issue	5 590,0	4 107,0	4 141,6
Other liabilities	921,1	924,3	1 148,0
Accruals and deferred income	218,1	234,9	301,5
Subordinated liabilities	490,3	334,4	290,2
Deferred tax liabilities	20,7	23,3	23,4
Minority interests	15,3	16,5	18,2
Capital and reserves
Share capital	106,0	106,0	106,0
Reserves	271,2	271,2	271,2
Other	29,1	29,1	29,1
Preferred capital notes	125,0	10,1	10,1
Profit brought forward	427,2	418,0	418,0
Profit for the period	77,5	105,2	57,4

Total	18 563,9	16 987,4	16 780,9

OFF-BALANCE SHEET ITEMS

Contingent liabilities	2 596,2	1 931,8	1 957,1
Commitments	3 874,7	3 332,6	3 188,5

TOTAL	6 470,9	5 264,4	5 145,6

NOTES TO THE PROFIT AND LOSS ACCOUNT
EUR million	January to June		Year
	2004	2003	2003
1. Fees and commissions receivable
Payment services	28,7	26,7	51,7
Securities	0,8	0,9	1,9
Asset management	2,6	1,9	3,9
Lending	16,7	14,3	29,1
Borrowing	9,8	9,6	19,3
Guarantees	5,6	4,2	8,6
Other *)	16,5	13,8	26,2
Total	80,8	71,4	140,6
Fees and commissions payable	-10,6	-11,8	-22,4
Fees and commissions, net	70,2	59,7	118,1
*) Incl. fees and commissions from subsidiaries of Sampo plc.

2. Net income from transactions in securities
and foreign exchange dealing
Net income from transactions in debt securities	-7,5	-3,6	-12,5
Net income from transactions in equity shares	0,5	0,1	6,8
Other	0,1	0,2	0,3
Total from transactions in securities	-7,0	-3,3	-5,3
Net income from foreign exchange dealing	5,2	4,5	8,6
Total	-1,8	1,3	3,3

3. Other operating income
Rental income from properties and property companies	0,6	0,1	0,1
Profits on disposal of properties and shares in property companies	-	0,1	0,2
Other income	26,8	10,6	22,9
Total	27,4	10,9	23,2

4. Administrative expenses
Wages and salaries	-65,9	-77,2	-135,7
Social security costs	-16,9	-17,4	-31,4
Total staff costs	-82,8	-94,7	-167,1
Other administrative expenses	-62,9	-63,7	-120,0
Total	-145,7	-158,4	-287,1

5. Other operating expenses
Rental expenses	-13,7	-13,7	-27,7
Expenses on properties and property companies	-0,2	-0,1	-0,3
Losses on disposal of properties and shares in property companies	-	-0,1	-0,1
Other expenses	-7,2	-5,2	-18,8
Total	-21,1	-19,1	-46,9

6. Provisions for bad and doubtful debts
Total amount written off for the period	-2,4	-5,7	-10,7
Specific provisions written off during the period	1,0	4,6	6,5
New specific provisions for the period	-7,1	-6,8	-15,0
Total	-8,6	-7,9	-19,2
Recoveries of loans and guarantees written off in previous years	8,9	0,0	13,1
Releases of provisions	9,3	7,3	10,1
Total	18,2	7,3	23,1

Charge to profit and loss account	9,6	-0,6	3,9

NOTES TO THE BALANCE SHEET

EUR million	At 30 June	At 31 Dec.	At 30 June
	2004	2003	2003

1. Loans and advances to customers
Corporations	5 195,3	4 541,4	4 029,2
Manufacturing	1 319,3	1 042,5	940,1
Transport, storage and communication	353,9	294,6	243,3
Construction	248,6	209,0	186,3
Hotels and restaurants	61,9	56,4	50,3
Wholesale and retail trade	705,4	556,4	519,7
Other corporations	2 506,1	2 382,4	2 089,6
Financial and insurance institutions	78,3	55,6	53,9
Public sector entities	109,4	898,7	124,2
Non-profit institutions	153,2	144,9	128,7
Households	7 061,8	6 672,2	6 220,3
Foreign	869,5	236,1	203,8
Bad and doubtful debt provisions pooled by customer group	-39,8	-30,9	-30,9
Total	13 427,7	12 518,0	10 729,3

2. Liabilities to customers
Demand deposits	2 416,7	2 617,5	2 465,7
Savings accounts	1 001,3	960,4	936,6
Other deposits	1 724,4	2 021,7	1 718,2
Giro accounts	3 113,6	3 212,8	3 018,9
Foreign currency deposits (other than euro)	634,4	259,8	283,6
Total deposits	8 890,5	9 072,2	8 422,9
Other liabilities	835,8	1 017,6	1 174,7
Total	9 726,3	10 089,7	9 597,6

3. Preferred capital securities	125,0	10,1	10,1

Sampo Bank issued on 18 March 2004 preferred capital securities of EUR 125 million, included in the Bank's Tier 1 capital. The loan bears interest at the rate of 5.407% for the first 10 years and thereafter 3-month Euribor plus 2.15%. The interest on the loan can be paid only from the distributable capital and is paid on interest payment dates in arrears. The loan is undated and repayable, with the consent of the Finnish Financial Supervision Authority, 10 years after the date of issue and on any interest payment date after that. The remaining principal amount of EUR 10 million of the preferred capital securities issued in 1998 was repaid on 31 March 2004, with the consent of the Finnish Financial Supervision Authority.

SAMPO BANK GROUP
NON-PERFORMING AND OTHER NON-INTEREST EARNING LOANS

EUR million	At 30 June	At 31 Dec.	At 30 June
	2004	2003	2003

Non performing loans	50,1	50,8	53,7
Other non-interest earning loans	0,8	0,9	1,9
Total	50,9	51,7	55,5

OFF-BALANCE SHEET ITEMS

EUR million	At 30 June	At 31 Dec.	At 30 June
	2004	2003	2003

Guarantees and assets pledged as collateral security	2 596,2	1 931,8	1 957,1
Undrawn loans, overdraft facilities and
commitments to lend	3 873,5	3 331,7	3 187,6
Other contingent liabilities and commitments	0,9	0,9	0,9
Total	6 470,7	5 264,4	5 145,6
of which on behalf of Group undertakings	261,6	279,2	155,5
of which on behalf of associated undertakings	1,6	1,9	8,0



SAMPO BANK GROUP
ASSETS PLEDGED AS COLLATERAL SECURITY AND SECURED LIABILITIES AND COMMITMENTS

EUR million	At 30 June	At 31 Dec.	At 30 June
	2004	2003	2003

Assets pledged as collateral security
Pledges	1 241,2	1 133,8	1 064,9

Assets pledged as collateral security
on behalf of Group undertakings	33,4	30,8	30,8

Secured liabilities and commitments
Debt securities in issue	-	-	-
Other liabilities	21,8	21,5	19,7
Off-balance sheet items	990,2	447,2	485,6
Other commitments
Intra-day overdraft limit of the Bank of Finland's
settlement account	800,0	800,0	700,0
Other	130,1	652,4	643,5
Liabilities and commitments to Group undertakings	25,6	16,0	12,3

Assets sold under agreements to
repurchase
Debt securities	28,0	7,1	9,0

DERIVATIVE CONTRACTS
EUR million	At 30 June 2004		At 31 Dec. 2003		At 30 June 2003
	Values of underlying instruments		Values of underlying instruments		Values of underlying instruments
	For hedging purposes	Other	For hedging purposes	Other	For hedging purposes	Other
Interest rate contracts
Futures and forward rate agreements	-	4 240,8	-	2 040,0	-	182,5
Options
Purchased	-	4 912,6	-	1 956,5	-	2 854,0
Written	-	8 445,0	-	2 517,8	-	3 178,9
Interest rate swaps	1 561,1	10 291,6	1 492,6	5 748,7	2 456,5	3 602,5
Total	1 561,1	27 889,9	1 492,6	12 263,1	2 456,5	9 817,8

Exchange rate contracts
Futures and forward foreign exchange	-	9 161,6	-	9 190,1	-	8 924,2
Options
Purchased*)	-	121,4	15,5	31,1	18,9	-
Written*)	-	121,4	15,5	7,8	18,9	0,4
Interest rate and cross currency swaps	771,6	203,4	780,9	198,2	765,9	197,7
Total	771,6	9 607,8	812,0	9 427,2	803,8	9 122,4

Equity contracts
Futures and forwards	-	-	-	-	-	7,2
Options
Purchased*)	-	105,6	73,4	105,1	73,4	66,6
Written*)	-	105,6	73,4	101,3	73,4	71,5
Other equity contracts	-	-	73,4	-	73,4	-
Total	0,0	211,3	220,2	206,3	220,2	145,3

Commodity Derivatives
Commodity forwards	-	106,1	-	96,4	-	20,8

	Credit equivalent amount of contracts	Risk weighted amount of contracts	Credit equivalent amount of contracts	Risk weighted amount of contracts	Credit equivalent amount of contracts	Risk weighted amount of contracts
Interest rate contracts	44,3	20,3	23,8	9,7	173,0	43,2
Exchange rate contracts	94,2	43,3	158,8	68,1	315,2	96,0
Equity contracts	-	-	22,3	4,6	18,9	4,1
Commodity contracts	9,2	4,1	11,3	4,9	21,0	14,1
Contracts settled on a net basis **)	158,2	33,2	252,8	52,7	-	-
Total	306,0	100,9	469,1	140,1	528,1	157,3

*) Options for hedging purposes are embedded options attached to funding and derivatives hedging funding. The values on underlying instruments are included both in purchased and written options and in items interest rate swaps, interest rate and cross currency swaps and other equity contracts. No separate credit equivalent amounts have been calculated for embedded options attached to derivative contracts, but the market values of the embedded options are included in the credit equivalent amounts of those contracts.
**) The netting is based on a blanket agreement between ISDA and The Finnish Bankers` Association. The comparative figures have been restated to reflect the new method.