Sampo Bank Plc Interim Report 1.1.

SAMPO BANK GROUP IN JANUARY - JUNE 2007

Changes in Group structure

Danske Bank A/S bought all shares in Sampo Bank on 1 February 2007. At the same time Baltic banks were moved directly to the consolidation group of Danske Bank. The investment services companies continued to be part of the Sampo Bank Group. The business of Mandatum & Co Ltd was sold to Danske Bank Helsinki branch on 2 May 2007. ZAO Danske Bank (formerly ZAO Profibank) in Russia continued as subsidiary of Sampo Bank.

Sales profit and result of Baltic banks as well as Mandatum & Co Ltd are presented in the income statement as discontinued operations. The changes in Group structure have effect on the comparability of the numbers.

Result

Sampo Bank Group's profit before taxes for January-June was EUR 582.0 million (176.3). The number contains the income from discontinued operations, altogether EUR 460.6 million. Return on equity before tax was 79.8 per cent (34.3). Cost-to-income-ratio was 28.3 per cent (56.7).

Continuing operations' net interest income rose to EUR 183.2 million (157.5) as growth in lending volumes continued. The net fee and commission income grew to EUR 125.2 million (120.0).

Continuing operations' total operating costs amounted to EUR 254.6 million (194.2). Growth in costs (excluding impairment losses) was EUR 33.6 million. This was largely due to integration costs.

Continuing operations' profit before taxes for January-June was EUR 121.4 million (162.0).

Balance sheet

Loans and advances increased by EUR 1,309.1 million from year-end 2006 and totalled EUR 22,868.6 million (21,559.5). Loans and advances in Baltic banks totalled EUR 2,553.3 million in 2006.

Credit quality remained firm and net impairment on loans and receivables was EUR 21.9 million (-4.7). Practice of impairment's recognition was changed. One-off impairments of EUR 17.0 million were booked

in March.

Deposits totalled EUR 11,680.1 million decreasing 7.0 per cent from year-end 2006 (12,598.1). Deposits in Baltic banks totalled EUR 1,150.0 million in 2006.

Integration

Integration of Sampo Bank into Danske Bank goes ahead as planned. The technical integration is intended to happen at Easter 2008. The integration is expected to cost approximately EUR 200 million, of which around EUR 70 million is estimated to occur in 2007.

Capital adequacy

Sampo Bank Group's capital adequacy ratio was 11.7 per cent and the Tier 1 ratio was 9,2 per cent. The total capital included in capital adequacy calculations amounted to EUR 1,903.7 million at the end of June (2,123.9). The Group's risk-weighted assets totalled EUR 16,298.3 million (17,847.3). The Tier 1 does not include the profit accumulated during the annual period.

Sampo Bank redeemed the Tier 2 debenture loan of EUR 150 million in June.

Ratings

The ratings raised when the ownership of Sampo Bank plc was transferred to Danske Bank on 1 February 2007. Moody's raised Sampo Bank plc's A1 (long-term currency debt/deposit rating) to Aa2 with stable outlook on 2 February 2007. Moody's changed its ratings methodology during the spring, consequently Sampo Bank plc's senior rating was first raised to Aaa on 23 February 2007 and on 10 April 2007 set to Aa1. Standard & Poor's raised Sampo Bank plc's ratings to AA-/A-1+ with stable outlook on 7 February 2007.

Administration

After the acquisition of all shares of Sampo Bank plc by Danske Bank A/S, Peter Straarup (chairman), Sven Lystbæk (vice chairman), Ilkka Hallavo, Lars Stensgaard Mørch, Thomas Mitchell and Maarit Näkyvä were elected as Board members in an extraordinary general meeting on 1 February 2007. The Board nominated Ilkka Hallavo as managing director for the Bank on 1 February 2007 and Maarit Näkyvä as his deputy.

The firm of authorised public accountants, Ernst & Young Oy, has acted as Auditor for Sampo Bank plc with Kunto Pekkala, APA, as responsible auditor.

Developments after the reporting period

The business of Mandatum Securities Ltd was sold to Danske Bank Helsinki branch on 1 July 2007.

Outlook for the whole year

Sampo Bank Group's result for January-June includes extraordinary items, especially the sales profit from Baltic banks. Because of this the result for the whole year is expected to be exceptionally good. Excluding these extraordinary items the operating profitability is expected to remain good in 2007.

Helsinki, 9 August 2007

SAMPO BANK PLC

Board of Directors

FINANCIAL HIGHLIGHTS
		1-6/2007	1-6/2006

Total income	EURm	842	396
Total operating expenses	EURm	238	225
Impairment on loans and receivables	EURm	22	-5
Profit before taxes *	EURm	582	176
Cost to income ratio	%	28,3	56,7
Total assets	EURm	25 845	26 627
Equity	EURm	1 737	1 114
Return on equity before tax	%	79,8	34,3
Capital adequacy	%	11,7	10,9
Full-time-equivalent staff, end of period		3 284	4 165
*) Sampo Bank plc's profit from sales of its subsidiary banks in Baltics and corporate finance as well as their operational result are included in the Group key figures; in the income statement they are presented as 'Discontinued operations'.

CONSOLIDATED INCOME STATEMENT
EURm	Note	1-6/2007	1-6/2006		Change
Continuing operations

Interest income	2	527,4	379,3	148,1
Interest expense		-344,2	-221,8	-122,4
Net trading income		43,7	33,1	10,6
Fee income		170,1	158,3	11,8
Fee expenses		-44,9	-38,3	-6,6
Net income from investments		7,1	30,9	-23,8
Other operating income		16,8	14,7	2,1
Total operating income		375,9	356,2	19,7

Staff costs		-99,0	-90,2	-8,8
Other operating expenses		-134,2	-109,3	-24,8
Impairment losses on loans and receivables		-21,4	5,3	-26,7
Total operating expenses		-254,6	-194,2	-60,3

Profit from continuing operations before taxes		121,4	162,0	-40,6

Taxes		-30,8	-40,7	9,9

Profit from continuing operations		90,6	121,3	-30,7
Discontinued operations

Profit from discontinued operations before taxes	1	460,6	14,3	446,3

Taxes		-2,2	-0,8	-1,4

Profit from discontinued operations		458,4	13,5	444,9

Profit for the period		549,0	134,9	414,2
Attributable to
Equity holders of parent company		544,6	124,9
Minority interests		4,4	9,9

CONSOLIDATED BALANCE SHEET

EURm	Note	6/2007	12/2006
Assets
Cash and balances at central banks		239,8	1 722,2
Trading portfolio assets		1 411,2	1 791,5
Financial assets at fair value through p/l		584,6	588,1
Loans and receivables	3	22 868,6	21 559,5
Investments	4	38,2	353,4
Intangible assets		34,9	64,7
Property, plant and equipment		86,2	89,9
Other assets		572,9	453,6
Tax assets		8,6	4,1
Total assets		25 845,1	26 626,9
Liabilities
Trading portfolio liabilities		707,8	507,4
Amounts owed to credit institutions and customers		12 262,4	13 255,6
Debt securities in issue		10 126,4	10 649,1
Other liabilities		1 004,7	1 013,8
Tax liabilities		6,6	4,0
Total liabilities		24 107,8	25 429,9

Equity
Share capital		106,0	106,0
Reserves		272,1	268,6
Retained earnings		1 353,2	808,6
Equity attributable to parent company's equity holders		1 731,4	1 183,2
Minority interests		5,9	13,7
Total equity		1 737,3	1 196,9

Total equity and liabilities		25 845,1	26 626,9

STATEMENT OF CHANGES IN EQUITY
EURm	Share capital	Legal reserve	Fair value reserve	Retained earnings	Total	Minority interest	Total

Equity at 1 Jan. 2006	106,0	271,1	1,8	622,0	1 001,0	16,7	1 017,7

Cash flow hedges:
- recognised in equity during the period			0,0		0,0		0,0
- recognised in p/l			-0,8		-0,8		-0,8
Financial assets available-for-sale
- change in fair value			12,1		12,1		12,1
- recognised in p/l			-4,9		-4,9		-4,9
Exchange rate translation differences
Profit for the period				124,9	124,9	9,9	134,9
Total income and expenses
recognised for the period			6,5	124,9	131,4	9,9	141,4
Dividend distribution				-50,0	-50,0	-10,2	-60,2
Equity at 30 June 2006	106,0	271,1	8,3	697,0	1 082,4	16,5	1 099,0

Equity at 1 Jan. 2007	106,0	271,1	-2,5	808,6	1 183,2	13,7	1 196,9
Cash flow hedges:
- recognised in equity during the period
- recognised in p/l			0,0		0,0		0,0
Financial assets available-for-sale			0,0		0,0		0,0
- change in fair value
- recognised in p/l			2,8		2,8		2,8
Exchange rate translation differences			0,8		0,8		0,8
Profit for the period				0,0	0,0		0,0
Total income and expenses				544,6	544,6	4,4	549,0
recognised for the period			3,5	544,6	548,1	4,4	552,6
Dividend distribution					0,0	-12,2	-12,2
Share incentives				0,1	0,1		0,1
Equity at 30 June 2007	106,0	271,1	1,0	1 353,2	1 731,4	5,9	1 737,3

CASH FLOW STATEMENT
EURm				1-6/2007		1-6/2006

Cash and cash equivalents at the beginning of the period				1 815		1 394
Cash flows from/used in operating activities				-1 520		-837
Cash flows from/used in investing activities				440		-26
Cash flows from/used in financing activities				-430		1 241
Cash and cash equivalents at the end of the period				305		1 771

The net cash flows of discontinued operations				1-6/2007		1-6/2006
Cash flows from/used in operating activities				30		49
Cash flows from/used in investing activities				0		-2
Cash flows from/used in financing activities				-24		15
Net cash flows total				6		62
The cash flow statement reports cash flows during the period classified by operating, investing and financing activities. Cash flows are reported by using the indirect method. Cash flows from operating activities derive primarily from the principal revenue-producing activities. Cash flows from investments in subsidiaries and associated undertakings and those from investments in intangible assets and property, plant and equipment are presented in investing activities. Financing activities include cash flows resulting from changes in equity and borrowings in order to conduct the business. Cash and cash equivalents consist of cash and balances with central banks and and loans and advances to credit institutions repayable on demand.

NOTES

ACCOUNTING POLICIES
Sampo Bank Group's consolidated financial statements are prepared in accordance with the IFRS-standards adopted by the EU. The interim report has not been reviewed or audited. In preparing the interim financial statements, substantially the same accounting policies and methods of computation are applied as in the financial statements for 2006. The financial statements for 2006 are available on Sampo Bank's web site http://www.sampobank.com.
SEGMENT INFORMATION
The segment reporting of Sampo Bank Group is based on internal business areas and on the organisational structure in 2007. Banking in Finland and other functions includes segments private clients, corporate and institutional clients, markets operations and other as they were reported in the financial statements for 2006. Integration costs is reported as a new segment. The East European banking is presented as discontinued operations and the profit from sales as well as the operational result are included in the Group figures. The inter-segment pricing is based on market prices. In the consolidated financial statements the inter-segment transactions, assets and liabilities have been eliminated.
JANUARY-JUNE 2007
EURm	Banking in Finland and other functions	Asset Management & Funds in Finland	Integration	Elimi-nations	Sampo Bank Group
Net interest income	181,8	0,6		0,8	183,2
Other income (net)	200,6	30,9	-0,1	-38,7	192,8
Total operating income	382,4	31,5	-0,1	-37,9	375,9
Total operating expenses	-214,5	-8,5	-13,7	3,5	-233,2
Impairment losses on loans and receivables	-21,4				-21,4
Profit before taxes from continuing oper.	146,5	22,9	-13,7	-34,4	121,4
Sales profit from discontin. oper.					460,6
JUNE 30, 2007
TOTAL ASSETS	26 406	51		-612	25 845
of which loans and advances to credit inst. & cust.	23 104	35		-271	22 869
TOTAL LIABILITIES	24 566	27		-486	24 108
of which liabilities to credit inst. & customers	12 538			-275	12 262
JANUARY-JUNE 2006
EURm	Banking in Finland and other functions	Asset Management & Funds in Finland	Integration	Eliminations	Sampo Bank Group
Net interest income	154,8	0,3		2,4	157,5
Other income (net)	194,1	27,6		-22,9	198,8
Total operating income	348,8	27,9		-20,4	356,2
Total operating expenses	-192,5	-10,2		3,2	-199,5
Impairment losses on loans and receivables	5,3				5,3
Profit before taxes from continuing oper.	161,5	17,7		-17,2	162,0
Profit before taxes from discontin. oper.					14,3
JUNE 30, 2006
TOTAL ASSETS	26 919	47		-1 369	25 598
of which loans and advances to credit inst. & cust.	21 618	27		-1 000	20 646
TOTAL LIABILITIES	25 632	27		-1 175	24 484
of which liabilities to credit inst. & customers	14 340			-1 000	13 340

OTHER NOTES

1	DISCONTINUED OPERATIONS
	EURm

	Income statement of subsidiary banks in Baltics	1-6/2007	1-6/2006

	Net interest income	4,7	22,7
	Net income from financial transactions	1,7	4,2
	Net fee and commission income	1,9	6,5
	Net income from investments	0,2	0,7
	Other operating income	0,1	1,0
	Total operating income	8,6	35,1

	Staff costs	-2,0	-10,7
	Other operating expenses	-1,9	-12,0
	Impairment losses on loans and receivables	-0,5	-0,6
	Total operating expenses	-4,4	-23,4

	Sales profit	452,3	11,7

	Income statement of Mandatum & Co Oy	1-6/2007	1-6/2006

	Net interest income	0,1	0,0
	Net income from financial transactions	0,0	0,0
	Net fee and commission income	1,3	5,0
	Other operating income	8,3	0,1
	Total operating income	9,7	5,1

	Staff costs	-1,0	-1,3
	Other operating expenses	-0,4	-1,2
	Total operating expenses	-1,4	-2,5

	Sales profit	8,3	2,6

2	NET INTEREST INCOME

	EURm	1-6/2007	1-6/2006

	Interest income, total	520,0	359,8
	Interest expenses, total	-336,8	-202,3
	Net interest income	183,2	157,5

	Net interest income in income statement, total
	In net interest income	183,2	157,5
	In net income from financial transactions	33,1	28,2
	In net income from investments	3,8	0,1
	Total	220,2	185,8

3	LOANS AND RECEIVABLES

	EURm	6/2007	12/2006
	Loans and advances to credit institutions
	Deposits	3 018,0	206,9
	Other loans	303,0	268,6
	Total	3 321,1	475,5
Loans and advances to customers
	By type of loan
	Home loans	9 165,9	9 685,0
	Consumer loans	968,8	920,4
	Other retail loans	1 780,8	1 757,3
	Finance lease assets	605,3	937,1
	Money market loans	18,1	15,0
	Other commercial loans	7 039,0	7 791,2
	Allowance for impairment	-30,3	-22,2
	Total	19 547,6	21 083,9

	Total loans and receivables	22 868,6	21 559,5

4	INVESTMENTS

	EURm	6/2007	12/2006
	Financial assets
	Investments held-to-maturity	-	61,2
	Financial assets available-for-sale	27,6	279,6
	Total	27,6	340,8

	Other assets
	Investments in associates	10,6	12,6
	Total	10,6	12,6

5	CONTINGENT LIABILITIES AND COMMITMENTS

	EURm	6/2007	12/2006
	Off-balance sheet items
	Guarantees	2 311,9	2 653,7
	Undrawn loans, overdraft facilities and other commitments to lend	3 695,3	4 092,6
	- original maturity less than one year	607,7	652,8
	- original maturity more than one year	3 087,7	3 439,8
	Other irrevocable commitments	0,1	0,1
	Total	6 007,3	6 746,5
Sampo Bank Group is continually a party to various lawsuits. The Group does not expect the outcomes of the cases pending to have any material effect on its financial position.

Sampo Bank Plc Interim Report 1.1. - 30.6.2007

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