SEB — Interim / Quarterly Report 2010

Aug 31, 2010

SEB

CONFIRMATION OF RESPONSIBLE PERSONS

Abiding by Article 22 of the Law of the Republic of Lithuania on Securities as well as by the rules of the Securities Commission of the Republic of Lithuania for the preparation and submitting of periodic and supplementary information, we hereby confirm that, in accordance with our knowledge, the information provided in the interim half-year consolidated financial reporting, that has been prepared in accordance with the International Financial Reporting Standards, is true and correctly reflects the issuer's and the consolidated companies' total assets, liabilities, financial standing, profit or loss. We also confirm that the business expansion and performance review are correctly indicated in the interim half-year consolidated report.

President of SEB Bank

Director of Business Support Division and CFO of SEB Bank

Director of Finance Department of SEB Bank

Vilnius,
August 2010

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AB SEB BANK

CONDENSED INTERIM FINANCIAL INFORMATION
FOR THE 6 MONTHS PERIOD ENDED 30 JUNE 2010

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AB SEB BANK

GENERAL INFORMATION

1. Reporting period

The report has been produced for the six months period ended 30 June 2010.

1. The Issuer's key data

Issuer's name:	SEB Bank
Share capital	LTL 1,034,575,341
Domicile address:	Gedimino ave.12, LT-01103 Vilnius
Telephone:	(8 5) 2682 800
Fax:	(8 5) 2626 557
E-mail:	info@seb.lt
Legal/organisational form:	public limited company
Registration date and place:	29 November 1990, Bank of Lithuania
Company's code:	112021238
Company's registration number:	AB90-4
Website:	www.seb.lt

(In the present Report, AB SEB Bank shall also be referred to as the 'Bank').

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AB SEB BANK

CONDENSED INTERIM INCOME STATEMENT

FOR THE 6 MONTHS PERIOD ENDED 30 JUNE 2010

(All amounts in LTL thousands unless otherwise stated)

	The Group
	January 1 - June 30 2010	Second quarter 2010	January 1 - June 30 2009	Second quarter 2009
Interest income	400,261	190,885	683,706	310,909
Interest expenses	(285,566)	(130,395)	(453,259)	(200,785)
Net interest income	114,695	60,490	230,447	110,124
Impairment losses on loans	(182,383)	(61,191)	(210,250)	(148,758)
Impairment losses on lease portfolio	(118,848)	(81,027)	(75,569)	(56,954)
Provisions for guarantees	(8,543)	(430)	(472)	(555)
Other impairment losses	-	-	256	256
Total impairment losses	(309,774)	(142,648)	(286,035)	(206,011)
Net interest income after impairment losses	(195,079)	(82,158)	(55,588)	(95,887)
Fee and commissions income	109,393	57,753	109,917	56,768
Fee and commissions expenses	(28,482)	(14,563)	(30,258)	(15,254)
Net fee and commission income	80,911	43,190	79,659	41,514
Net gain (losses) on operations with debt securities and derivative financial instruments	1,162	4,426	6,325	192
Net gain (losses) on investment securities	1,417	1,111	29,509	32,287
Net gain on disposal of subsidiaries	30,153	-	-	-
Impairment loss on investment in subsidiaries	-	-	(14,712)	(14,712)
Dividend income from subsidiaries	-	-	-	-
Net foreign exchange gain	31,419	15,002	25,970	9,407
Other income, net	4,291	2,068	2,364	218
Net investment activities	68,442	22,607	49,456	27,392
Net insurance premium revenue	-	-	45,475	22,492
Gross insurance expenses	-	-	(59,854)	(45,008)
Net life insurance income	-	-	(14,379)	(22,516)
Staff costs	(66,866)	(35,587)	(82,012)	(38,653)
Other administrative expenses	(82,375)	(43,427)	(86,560)	(45,041)
Operating (losses) profit	(194,967)	(95,375)	(109,424)	(133,191)
Impairment loss on intangible assets (goodwill)	-	-	(169,550)	(169,550)
Impairment loss on investment in subsidiaries	-	-	-	-
(Losses) profit before income tax	(194,967)	(95,375)	(278,974)	(302,741)
Income tax benefit (expenses)	34,227	14,791	54,038	61,652
(Losses) profit for the period from continuing (Losses) for the period from discontinued operations	(160,740)	(80,584)	(224,936)	(241,089)
Net (losses) profit for the period	(160,929)	(80,584)	(224,936)	(241,089)
Attributable to:
Equity holders of the parent	(160,929)	(80,584)	(224,936)	(241,089)
(Losses) profit from continuing operations	(160,740)	(80,584)	(224,936)	(241,089)
(Losses) from discontinued operations	(189)	-	-	-
Non controlling interest	-	-	-	-
(Losses) profit from continuing operations	-	-	-	-
(Losses) profit from discontinued operations	-	-	-	-
	(160,929)	(80,584)	(224,936)	(241,089)

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AB SEB BANK

CONDENSED INTERIM INCOME STATEMENT

FOR THE 6 MONTHS PERIOD ENDED 30 JUNE 2010

(All amounts in LTL thousands unless otherwise stated)

	The Bank
	January 1 - June 30 2010	Second quarter 2010	January 1 - June 30 2009	Second quarter 2009
Interest income	361,878	172,000	608,237	283,515
Interest expenses	(263,009)	(119,502)	(394,330)	(176,785)
Net interest income	98,869	52,498	213,907	106,730
Impairment losses on loans	208,616	(61,191)	(210,250)	(148,758)
Impairment losses on lease portfolio	-	-	-	-
Provisions for guarantees	(8,543)	(430)	(472)	(555)
Other impairment losses	-	-	256	255
Total impairment losses	200,073	(61,621)	(210,466)	(149,058)
Net interest income after impairment losses	298,942	(9,123)	3,441	(42,328)
Fee and commissions income	100,676	53,394	101,094	52,357
Fee and commissions expenses	(28,042)	(14,886)	(29,384)	(14,609)
Net fee and commission income	72,634	38,508	71,710	37,748
Net gain (losses) on operations with debt securities and derivative financial instruments	1,162	4,426	6,325	5
Net gain (losses) on investment securities	1,417	1,112	2,354	1,468
Net gain on disposal of subsidiaries	58,237	-	-	-
Impairment loss on investment in subsidiaries	-	-	(14,712)	(14,712)
Dividend income from subsidiaries	3,734	-	4,816	-
Net foreign exchange gain	28,801	12,504	26,511	11,763
Other income, net	3,092	1,469	3,089	1,596
Net investment activities	96,443	19,511	28,383	120
Net insurance premium revenue	-	-	-	-
Gross insurance expenses	-	-	-	-
Net life insurance income	-	-	-	-
Staff costs	(62,467)	(33,192)	(71,875)	(33,717)
Other administrative expenses	(74,867)	(38,814)	(77,441)	(40,672)
Operating (losses) profit	330,685	(23,110)	(45,782)	(78,849)
Impairment loss on intangible assets (goodwill)	-	-	(169,550)	(169,550)
Impairment loss on investment in subsidiaries	(428,045)	-	-	-
(Losses) profit before income tax	(97,360)	(23,110)	(215,332)	(248,399)
Income tax benefit (expenses)	20,404	5,572	46,818	53,313
(Losses) profit for the period from continuing (Losses) for the period from discontinued operations	(76,956)	(17,538)	(168,514)	(195,086)
Net (losses) profit for the period	(76,956)	(17,538)	(168,514)	(195,086)
Attributable to:
Equity holders of the parent	(76,956)	(17,538)	(168,514)	(195,086)
(Losses) profit from continuing operations	(76,956)	(17,538)	(168,514)	(195,086)
(Losses) from discontinued operations	-	-	-	-
Non controlling interest	-	-	-	-
(Losses) profit from continuing operations	-	-	-	-
(Losses) profit from discontinued operations	-	-	-	-
	(76,956)	(17,538)	(168,514)	(195,086)

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AB SEB BANK

CONDENSED INTERIM STATEMENT OF COMPREHENSIVE INCOME FOR THE 6 MONTHS PERIOD ENDED 30 JUNE 2010

(All amounts in LTL thousands unless otherwise stated)

The Group			The Bank
January 1 - June 30 2010	January 1 - June 30 2009		January 1 - June 30 2010	January 1 - June 30 2009
(160,929)	(224,936)	Net (losses) income for the year
Other comprehensive income:	(76,956)	(168,514)
2,211	10,348	Net gain on available for sale financial assets
- Unrealised net gain (losses) arising during the period, before taxes	2,211	10,348
2,211	10,348	- Net reclassification adjustments for realised net loss, before taxes	-	-
-	-	- Impairment loss on investment in available for sale securities recognised in income statement, before taxes	-	-
-	-	Amortisation of financial assets revaluation reserve of reclassified financial assets	1,430	1,430
1,430	1,430	Income tax relating to the components of other comprehensive income	(468)	(140)
(468)	(140)	Total other comprehensive income	3,173	11,638
3,173	11,638
(157,756)	(213,298)	Total comprehensive income	(73,783)	(156,876)

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AB SEB BANK

CONDENSED INTERIM STATEMENT OF FINANCIAL POSITION

AS OF 30 JUNE 2010

(All amounts in LTL thousands unless otherwise stated)

The Bank			0
30 June 2010	31 December 2009		30 June 2010	31 December 2009
Assets
375,071	420,403	Cash on hand	375,071	420,403
397,632	384,981	Balances with the Central Bank	397,632	384,981
2,906,142	3,118,698	Due from banks, net	2,906,142	3,118,698
52,311	65,818	Government securities available for sale	51,691	65,194
58,038	48,203	Financial assets at fair value through profit and loss	28,915	19,203
205,581	153,483	Derivative financial instruments	205,581	153,483
33,108	20,069	Loans to credit and financial institutions, net of impairment losses	440,313	348,856
16,290,133	17,185,394	Loans to customers, net of impairment losses	16,301,692	17,194,089
1,982,438	2,503,885	Finance lease receivable, net of impairment losses	-	-
1,645,432	1,719,512	Investment securities:
390	337	- loans and receivables	1,645,432	1,719,512
14,950	12,748	- available for sale	390	337
-	-	- held to maturity	14,950	12,748
195,726	169,046	Investments in subsidiaries	38,616	38,616
49,344	56,509	Intangible fixed assets	195,514	168,764
3,442	4,275	Property, plant and equipment	48,511	55,847
39,859	62,231	Assets under operating lease	-	-
311,011	277,245	Investment property	1,567	1,599
288,707	333,845	Deferred tax asset	199,380	179,444
24,849,315	26,536,682	Other assets, net of impairment losses	118,507	156,991
-	415,635		22,969,904	24,038,765
24,849,315	26,952,317	Total assets	22,969,904	24,052,590
Liabilities
46	31	Amounts owed to the Central Bank	46	31
11,695,996	13,650,723	Amounts owed to credit and financial institutions	9,873,261	11,259,609
300,825	303,643	Derivative financial instruments	300,825	303,643
9,429,194	9,669,789	Deposits from public	9,431,737	9,673,732
40,055	44,029	Accrued expenses and deferred income	38,147	41,758
-	185	Subordinated loans	-	-
596,759	597,195	Debt securities in issue	596,759	597,195
959,274	697,841	Deferred tax liabilities	959,274	699,854
114,768	78,639	Other liabilities and provisions	77,349	55,738
23,136,917	25,042,075		21,277,398	22,631,560
-	385,347		-	-
23,136,917	25,427,422	Total liabilities	21,277,398	22,631,560
Equity
Equity attributable to equity holder of the parent
1,034,575	1,034,575	Share capital	1,034,575	1,034,575
1,034	1,034	Reserve capital	2,200	2,200
(11,995)	(14,781)	Financial assets revaluation reserve	(11,995)	(14,781)
165,425	135,160	Legal reserve	163,221	133,151
10,144	9,778	General and other reserves	10,144	9,778
513,215	359,129	Retained earnings	494,361	256,107
1,712,398	1,524,895		1,692,506	1,421,030
-	-	Non controlling interest in equity	-	-
1,712,398	1,524,895	Total equity	1,692,506	1,421,030
24,849,315	26,952,317	Total liabilities and equity	22,969,904	24,052,590

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AB SEB BANK

CONDENSED INTERIM STATEMENT OF CHANGES IN EQUITY FOR THE 6 MONTHS PERIOD ENDED 30 JUNE 2010

(All amounts in LTL thousands unless otherwise stated)

The Group

31 December 2008

Net change in available for sale investments, net of deferred taxes

Amortisation of financial assets revaluation reserve of reclassified financial assets

Net profit for the year

Total comprehensive income

Transfers to reserves

30 June 2009

31 December 2009

Net change in available for sale investments, net of deferred taxes

Amortisation of financial assets revaluation reserve of reclassified financial assets

Net profit for the year

Total comprehensive income

Shareholder's contribution

Share-based compensation

Transfers to reserves

30 June 2010

Equity attributable to equity holder of the parent							Total before non controlling interest	Non controlling interest	Total
Share capital	Reserve capital	Financial assets revaluation reserve	Legal reserve	General and other reserves	Retained earnings
1,034,575	1,034	(32,559)	77,394	9,338	1,153,790	2,243,572	-	2,243,572
-	-	10,208	-	-	-	10,208	-	10,208
-	-	1,430	-	-	-	1,430	-	1,430
-	-	-	-	-	(17,538)	(17,538)	-	(17,538)
-	-	11,638	-	-	(17,538)	(5,900)	-	(5,900)
-	-	-	57,766	-	(57,766)	-	-	-
1,034,575	1,034	(20,921)	135,160	9,338	1,078,486	2,237,672	-	2,237,672
1,034,575	1,034	(14,781)	135,160	9,778	359,129	1,524,895	-	1,524,895
-	-	1,356	-	-	-	1,356	-	1,356
-	-	1,430	-	-	-	1,430	-	1,430
-	-	-	-	-	(76,956)	(76,956)	-	(76,956)
-	-	2,786	-	-	(76,956)	(74,170)	-	(74,170)
-	-	-	-	-	345,280	345,280	-	345,280
-	-	-	-	366	-	366	-	366
-	-	-	30,265	-	(30,265)	-	-	-
1,034,575	1,034	(11,995)	165,425	10,144	597,188	1,796,371	-	1,796,371

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AB SEB BANK

CONDENSED INTERIM STATEMENT OF CHANGES IN EQUITY FOR THE 6 MONTHS PERIOD ENDED 30 JUNE 2010

(All amounts in LTL thousands unless otherwise stated)

The Bank	Share capital	Reserve capital	Financial assets revaluation reserve	Legal reserve	General and other reserves	Retained earnings	Total
31 December 2008	1,034,575	2,200	(32,559)	74,639	9,338	1,170,244	2,258,437
Net change in available for sale investments, net of deferred taxes	-	-	10,208	-	-	-	10,208
Amortisation of financial assets revaluation reserve of reclassified financial assets	-	-	1,430	-	-	-	1,430
Net profit for the year	-	-	-	-	-	(195,086)	(195,086)
Total comprehensive income	-	-	11,638	-	-	(195,086)	(183,448)
Transfers to reserves	-	-	-	58,512	-	(58,512)	-
30 June 2009	1,034,575	2,200	(20,921)	133,151	9,338	916,646	2,074,989
31 December 2009	1,034,575	2,200	(14,781)	133,151	9,778	256,107	1,421,030
Net change in available for sale investments, net of deferred taxes	-	-	1,743	-	-	-	1,743
Amortisation of financial assets revaluation reserve of reclassified financial assets	-	-	1,043	-	-	-	1,043
Net profit for the year	-	-	-	-	-	(168,514)	(168,514)
Total comprehensive income	-	-	2,786	-	-	(168,514)	(165,728)
Shareholder's contribution	-	-	-	-	366	-	366
Share-based compensation	-	-	-	-	-	345,280	345,280
Transfers to reserves	-	-	-	30,070	-	(30,070)	-
30 June 2010	1,034,575	2,200	(11,995)	163,221	10,144	402,803	1,600,948

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AB SEB BANK

CONDENSED INTERIM STATEMENT OF CASH FLOWS FOR THE 6 MONTHS PERIOD ENDED 30 JUNE 2010

(All amounts in LTL thousands unless otherwise stated)

The Group			The Bank
1 January - 30 June 2010	1 January - 30 June 2009		1 January - 30 June 2010	1 January - 30 June 2009
109,287	(228,719)	Net cash from operating activities before change in operating assets	108,997	(66,903)
75,096	(76,820)	Net increase in operating assets	(61,006)	377,839
(186,971)	(958,226)	Net increase in operating liabilities	(206,577)	(805,097)
(2,588)	(1,263,765)	Net cash from (to) operating activities	(158,586)	(494,161)
(222)	(45,517)	Income tax paid	-	(44,639)
(2,810)	(1,309,282)	Net cash from (to) operating activities after income tax	(158,586)	(538,800)
441,807	577,542	Cash used in investing activities	27,041	(379,532)
(1,335,792)	(57,323)	Cash (used in) received financing activities	(765,250)	129,574
(896,795)	(789,063)	Net increase in cash	(896,795)	(788,758)
2,299,863	1,533,652	Cash 1 January	2,299,863	1,533,245
1,403,068	744,589	Cash 31 December	1,403,068	744,487
Specified as follows:
Balance available for withdrawal with the
13,448		Central Banks	-	13,448
177,899	162,994	Overnight deposits	177,899	162,994
375,071	431,683	Cash on hand	375,071	431,683
850,098	136,464	Current accounts with other banks	850,098	136,362
1,403,068	744,589		1,403,068	744,487

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AB SEB BANK

NOTES TO THE CONDENSED INTERIM FINANCIAL STATEMENTS FOR THE 6 MONTHS PERIOD ENDED 30 JUNE 2010

(All amounts in LTL thousands unless otherwise stated)

NOTE 1 GENERAL INFORMATION

AB SEB Bank (hereinafter - the Bank) was registered as a public company in the Enterprise Register of the Republic of Lithuania on 2 March 1990. The Bank is licensed by the Bank of Lithuania to perform all banking operations provided for in the Law on Banks of the Republic of Lithuania and the Statutes of the Bank. On the 21st of January, 2008 SEB Vilniaus bankas has changed its name into SEB Bank – the Register of Legal Entities of the Republic of Lithuania has registered a new version of the Articles of Association of SEB Bank, approved by the Extraordinary General Shareholders Meeting that took place on the 15th of November, 2007, and has issued the new Registration Certificate.

The Bank is licensed by the Bank of Lithuania to perform all banking operations provided for in the Law on Banks of the Republic of Lithuania and the Statutes of the Bank.

The Head Office of the Bank is located at Gedimino ave. 12, Vilnius. At the end of the reporting period the Bank had 57 customer service units.

At the end of the reporting period AB SEB Bank had 4 subsidiaries (the Bank and its subsidiaries thereafter are referred to as the Group). The subsidiaries are as follows: AB SEB Lizingas is a fully owned subsidiary engaged in the leasing activities; UAB SEB Venture Capital is a fully owned subsidiary involved in venture capital activities; UAB SEB Enskilda is a fully owned subsidiary engaged in provision of corporate finance services; UAB SEB Investicijų Valdymas is a fully owned subsidiary engaged in provision of investments' management services activities.

The Bank accepts deposits, issues loans, makes money transfers and documentary settlements, exchanges currencies for its clients, issues and processes debit and credit cards, is engaged in trade finance and investing and trading in securities as well as performs other activities set in the Law on Banks (except for operations with precious metals).

The largest shareholder of the Bank is Skandinaviska Enskilda Banken, owning 99.8 percent of the Bank's shares.

NOTE 2 BASIS OF PRESENTATION

This interim financial information is presented in national currency of Lithuania, Litas (LTL). The books and records of the Bank and other Group companies are maintained in accordance with International Financial Reporting Standards (IFRS) as adopted for use in the European Union (EU). This interim financial report has been prepared in accordance with International Accounting Standard 34.

The accounting policies adopted and methods of computation used are consistent with those of the annual financial statements for the year ended 31 December 2009, as described in the annual financial statements for the year ended 31 December 2009.

The financial statements are prepared under the historical cost convention as modified by the revaluation of available for-sale financial assets, financial assets and liabilities held at fair value through profit and loss and all derivative contracts.

The preparation of financial statements in conformity with IFRS requires the use of estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Although these estimates are based on management's best knowledge of current event and actions, actual results ultimately may differ from those estimates.

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AB SEB BANK
NOTES TO THE CONDENSED INTERIM FINANCIAL STATEMENTS FOR THE 6 MONTHS PERIOD ENDED 30 JUNE 2010
(All amounts in LTL thousands unless otherwise stated)

NOTE 3 SEGMENT REPORTING

Operating segments are reported in a manner consistent with the internal reporting provided to the Board of Directors of the Bank. The Board of Directors is responsible for resources allocation and performance assessment of the operating segments and has been identified as the chief operating decision maker.

All transactions between business segments are conducted on an arm’s length basis, with intra-segment revenue and costs being eliminated. Income and expenses directly associated with each segment are included in determining business segment performance.

For management and reporting purposes, the Group is organised into the following business groupings:

Baltic Division has overall responsibility for providing retail services to the all types of companies and individuals. Baltic division offers its clients solutions in the areas of:

• Lending;
• Leasing and factoring products;
• Liquidity management and payment services;
• Private Banking – which serves the higher end of the private individual segment with wealth management services and advisory services.

The Merchant Banking division has overall responsibility for servicing large and medium-sized companies, financial institutions, banks, and commercial real estate clients. Merchant Banking offers its clients integrated investment and corporate banking solutions, including the investment banking activities. Merchant Banking’s main areas of activity include:

• Lending and debt capital markets;
• Trading in equities, currencies, fixed income, derivatives and futures;
• Advisory services, brokerage, research and trading strategies within equity, fixed income and foreign exchange markets;
• Cash management;
• Custody and fund services;
• Venture capital.

The Asset Management division main business area is Institutional Clients division – which provides asset management services to institutions, foundations and life insurance companies and is responsible for the investment management, marketing and sales of SEB’s mutual funds.

The division offers a full spectrum of asset management and advisory services and its product range includes equity and fixed income, private equity, real estate and hedge fund management.

The Life Insurance division is responsible for all of Group’s life insurance operations. The operations comprise insurance products within the area of investments and social security for private individuals and companies. In January 2010 the Group has transferred its Life Insurance segment to the SEB Group’ company in Sweden, SEB Trygg Liv Holding AB.

The Treasury division has overall responsible for cash management, liquidity management and internal financing between the Group divisions.

Operations and IT divisions are the Group’s internal segments responsible for providing operations support and processing, as well as information technologies services for all Group’s divisions. In addition, Operations divisions handles bookings, confirmations, payments and reconciliations, and customer service and support.

Staff Functions division have dedicated responsibilities in order to support the business units within own area of expertise: HR, finance, marketing and communication, credits and risk control, security, procurement and real estate, compliance, internal audit.

A geographical segment means a constituent part of the business participating in provision of services within certain economic environment the risk and returns whereof are different from other constituent parts operating in other economic environments.

The geographical segments are not defined by the Group. All activities of the Group are performed on the territory of Republic of Lithuania. Revenues and expenses related to major non resident customers services is immaterial for the purpose of these financial statements and are not presented to the chief operating decision maker.

10

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AB SEB BANK

NOTES TO THE CONDENSED INTERIM FINANCIAL STATEMENTS

FOR THE 6 MONTHS PERIOD ENDED 30 JUNE 2010

(All amounts in LTL thousands unless otherwise stated)

Business segments of the Group for the period ended 30 June 2010 were as follows:

NOTE 3 SEGMENT REPORTING (CONTINUED)

	Baltic Division	Merchant Banking	Life insurance	Asset Management	Treasury	Operations	Staff Functions	Information Technologies	Eliminations	Total Group
Net interest income	123,060	5,513	-	113	(44,074)	-	-	-	(12)	84,600
- Internal	(130,471)	3,462	-	83	126,938	-	-	-	(12)	-
- External	253,531	2,051	-	30	(171,012)	-	-	-	-	84,600
Net commission income	69,199	7,135	-	5,553	(648)	-	-	-	-	81,239
- Internal	3,888	1,383	-	(4,671)	(600)	-	-	-	-	-
- External	65,311	5,752	-	10,224	(48)	-	-	-	-	81,239
Net financial income	10,809	50,377	-	-	583	-	-	-	-	61,769
Net life insurance income	-	-	-	-	-	-	-	-	-	-
Net other income	28,900	2,514	-	-	8	-	-	22,928	(23,014)	31,336
Net operating income	231,968	65,539	-	5,666	(44,131)	-	-	22,928	(23,026)	258,944
Total staff costs, other administrative expenses and goodwill impairment loss	(132,708)	(9,998)	-	(2,134)	(243)	306	822	(23,582)	23,026	(144,511)
Capital losses	9	-	-	-	-	-	-	-	-	9
Total impairment losses	(309,632)	-	-	-	-	-	-	-	-	(309,632)
Loss before income tax	(210,363)	55,541	-	3,532	(44,374)	306	822	(654)	-	(195,190)
Income tax benefit	33,683	111	-	467	-	-	-	-	-	34,261
Net (loss) for the year	(176,680)	55,652	-	3,999	(44,374)	306	822	(654)	-	(160,929)
30 June 2010
Total assets	19,553,050	539,486	-	17,860	13,197,759	-	-	-	(8,458,840)	24,849,315
Total liabilities	17,844,542	483,833	-	13,254	13,254,128	-	-	-	(8,458,840)	23,136,917
Acquisition of intangible assets and property, plant and equipment	30,377	-	-	-	-	-	-	-	-	30,377

---

AB SEB BANK

NOTES TO THE CONDENSED INTERIM FINANCIAL STATEMENTS

FOR THE 6 MONTHS PERIOD ENDED 30 JUNE 2010

(All amounts in LTL thousands unless otherwise stated)

For the period ended 30 June 2010 reconciliation between Group's Segment reporting and financial statements is presented below:

NOTE 3 SEGMENT REPORTING (CONTINUED)

	Segment Reporting	Eliminations
		Interest income from Hedged L&R	Litectus Adjustments	Lease Provisions Adjustment	Grouping Reclassifi-cation	Other reconciling entries	Financial Statements
Net interest income	84,600	39,727	-	-	-	(9,632)	114,695
Net commission income	81,239	-	-	-	-	(328)	80,911
Net investment activities	61,769	(39,727)	-	-	30,137	11,972	64,151
Net life insurance income	-	-	-	-	-	-	-
Net other income	31,336	-	-	-	(30,137)	3,092	4,291
Net operating income	258,944	-	-	-	-	5,104	264,048
Total staff costs, other administrative expenses and goodwill impairment loss	(144,511)	-	223	142	-	(5,095)	(149,241)
Capital losses	9	-	-	-	-	(9)	-
Total impairment losses (Losses) profit before income tax	(309,632)	-	-	(142)	-	-	(309,774)
Income tax benefit	(195,190)	-	223	-	-	-	(194,967)
Profit for the year from discontinued operations	34,251	-	(34)	-	-	-	34,227
Net (losses) for the period	(160,929)	-	-	-	-	-	(160,929)

---

AB SEB BANK

NOTES TO THE CONDENSED INTERIM FINANCIAL STATEMENTS

FOR THE 6 MONTHS PERIOD ENDED 30 JUNE 2010

(All amounts in LTL thousands unless otherwise stated)

Business segments of the Group for the period ended 30 June 2009 were as follows:

NOTE 3 SEGMENT REPORTING (CONTINUED)

	Baltic Division	Merchant Banking	Life insurance	Asset Management	Treasury	Operations	Staff Functions	Information Technologies	Eliminations	Total Group
Net interest income	161,848	2,661	-	84	38,546	-	-	-	195	203,334
- Internal	(301,309)	329	-	71	300,714	-	-	-	195	-
- External	463,157	2,332	-	13	(262,168)	-	-	-	-	203,334
Net commission income	68,705	7,907	-	5,157	-	-	-	-	(1,032)	80,737
- Internal	3,838	487	-	(3,293)	-	-	-	-	(1,032)	-
- External	64,867	7,420	-	8,450	-	-	-	-	-	80,737
Net financial income	10,410	36,339	-	-	(18,852)	-	-	-	-	27,897
Net life insurance income	-	-	15,792	-	-	-	-	-	(206)	15,586
Net other income	4,593	(2,752)	-	-	1,347	-	543	18,605	(20,451)	1,885
net operating income (losses)	245,556	44,155	15,792	5,241	21,041	-	543	18,605	(21,494)	329,439
Total staff costs and other administrative expenses	(335,849)	(13,152)	(9,747)	(3,294)	(217)	4,917	4,606	(19,948)	21,494	(351,190)
Capital (losses)	(1,034)	-	-	-	-	-	-	-	-	(1,034)
Total impairment losses	(256,189)	-	-	-	-	-	-	-	-	(256,189)
(Losses) profit before income tax	(347,516)	31,003	6,045	1,947	20,824	4,917	5,149	(1,343)	-	(278,974)
Income tax expense	54,122	483	(256)	(311)	-	-	-	-	-	54,038
Net (losses) profit for the period	(293,394)	31,486	5,789	1,636	20,824	4,917	5,149	(1,343)	-	(224,936)
31 December 2009
Total assets	21,016,135	478,116	424,559	17,876	14,933,713	-	-	-	(9,918,082)	26,952,317
Total liabilities	19,557,733	397,711	396,022	13,264	14,968,796	-	-	-	(9,906,104)	25,427,422
Acquisition of intangible assets and property, plant and equipment	123,343	-	189	30	-	-	-	-	-	123,562

---

AB SEB BANK

NOTES TO THE CONDENSED INTERIM FINANCIAL STATEMENTS

FOR THE 6 MONTHS PERIOD ENDED 30 JUNE 2010

(All amounts in LTL thousands unless otherwise stated)

NOTE 3 SEGMENT REPORTING (CONTINUED)

For the period ended, 30 June 2009 reconciliation between Group's Segment reporting and financial statements is presented below:

	Segment Reporting	Eliminations
		Interest income from Hedged L&R	UAB SEB Gyvybès draudimas Adjustments	Lease Provisions Adjustment	Grouping Reclassifi-cation	Other reconciling entries	Financial Statements
Net interest income	203,334	39,743	-	-	-	(12,630)	230,447
Net commission income	80,737	-	-	-	-	(1,078)	79,659
Net investment activities	27,897	(39,743)	-	-	-	58,938	47,092
Net life insurance income	15,586	-	198	-	-	(30,163)	(14,379)
Net other income	1,885	-	-	-	1,027	(548)	2,364
Net operating income	329,439	-	198	-	1,027	14,519	345,183
Total staff costs and other administrative expenses	(351,190)	-	(198)	182	(1,027)	14,111	(338,122)
Capital losses	(1,034)	-	-	-	-	1,034	-
Total impairment losses	(256,189)	-	-	(182)	-	(29,664)	(286,035)
Profit before income tax	(278,974)	-	-	-	-	-	(278,974)
Income tax expense	54,038	-	-	-	-	-	54,038
Net profit for the period	(224,936)	-	-	-	-	-	(224,936)

---

AB SEB BANK

NOTES TO THE CONDENSED INTERIM FINANCIAL STATEMENTS

FOR THE 6 MONTHS PERIOD ENDED 30 JUNE 2010

(All amounts in LTL thousands unless otherwise stated)

NOTE 4 ASSETS UNDER MANAGEMENT

The Group			The Bank
30 June 2010	31 December 2009		30 June 2010	31 December 2009
		Private individuals and corporate customers' assets under management	-	-
437,703	483,155		-	-
203,068	195,885	Pillar two conservative pension fund (SEB Pension 1)	-	-
774,539	726,568	Pillar two balanced pension fund (SEB Pension 2)	-	-
92,213	79,217	Pillar two equity pension fund (SEB Pension 3)	-	-
		Conservative voluntary pension fund (SEB Pension 1 Plus)	-	-
13,495	12,817	Balanced voluntary pension fund (SEB Pension 2 Plus)	-	-
42,871	41,175	World market fund of funds	-	-
115,998	110,854	SEB equity fund of funds	-	-
94,884	90,810		-	-
1,774,771	1,740,481	Total assets under management	-	-

NOTE 5 OFF BALANCE SHEET ITEMS

The Group			The Bank
30 June 2010	31 December 2009		30 June 2010	31 December 2009
1,806,282	1,983,430	Agreements to grant loans	2,191,739	2,186,797
497,482	564,861	Guarantees issued	510 286	577 432
93,053	89,458	Letters of credit issued	93 053	89 458
		Commitments to purchase assets and other commitments	-	-
314,116	306,665		-	-
-	-	Avalised bills of exchange	-	-
251	391	Commitments to sell securities	251	391
23	23	Customs guarantees collateralised by deposits	23	23

NOTE 6 RELATED PARTIES

A number of banking transactions are entered into with related parties in the normal course of business. The transactions with top parent company include loans, deposits and debt instrument transactions. Transactions with SEB group (including parent bank) during the period ended 30 June 2010 can be specified as follows:

The Group			Interest rate %	The Bank
30 June 2010	31 December 2009			30 June 2010	31 December 2009
2,875,920	3,071,547	Outstanding loan amount	0.19-2.56	2,875,453	3,071,409
51,887	29,186	Positive replacement values (HFT)	-	51,887	29,186
3,303	4,150	Other assets	-	2,670	1,708
11,576,094	13,354,393	Outstanding deposit amount	0.19-5.5	9,385,188	10,537,685
653,322	307,467	Other liabilities	-	653,142	307,622
38,078	12,420	Unused granted overdraft facilities	-	38,078	12,420
22,959	20,787	Guarantees issued	-	22,959	20,787
		For six months period ended 30 June 2010 and 2009
4,148	9,479	Interest income	-	4,141	9,479
(179,229)	(292,767)	Interest expense	-	(156,490)	(233,247)
		Other services received and cost
(3,523)	(4,087)	incurred from SEB group, net	-	(7,328)	(6,265)

---

AB SEB BANK

NOTES TO THE CONDENSED INTERIM FINANCIAL STATEMENTS

FOR THE 6 MONTHS PERIOD ENDED 30 JUNE 2010

(All amounts in LTL thousands unless otherwise stated)

NOTE 6 RELATED PARTIES (CONTINUED)

Transactions with parent bank during the period can be specified as follows:

The Group			Interest rate %	The Bank
30 June 2010	31 December 2009			30 June 2010	31 December 2009
282,032	3,052,852	Outstanding loan amount	0.19-1.77	2,799,550	3,052,714
51,887	29,186	Positive replacement values (HFT)	-	51,887	29,186
835	2,696	Other assets	-	43	345
			0.3-5.5
11,565,142	13,343,398	Outstanding deposit amount	-	9,366,273	10,526,690
653,304	307,467	Other liabilities	-	651,018	307,467
33,017	8,417	Unused granted overdraft facilities	-	33,017	8,417
2,347	4,708	Guarantees issued at the year end	-	2,347	4,708
		For six months period ended 30 June 2010 and 2009
3,970	9,086	Interest income	-	3,968	9,086
(179,182)	(292,725)	Interest expense	-	(156,443)	(233,205)
		Other services received and cost
(1,915)	(2,577)	incurred from SEB group, net	-	(5,401)	(4,616)

Transactions between the Bank and its subsidiaries during the period can be specified as follows:

	Interest rate %	The Bank
		30 June 2010	31 December 2009
Off-balance sheet commitments:
Agreements to grant loans	-	385,354	203,242
Guarantees issued	-	12,804	12,571
Letters of credit issued	-	-	-
Outstanding loan amounts:
UAB SEB Lizingas	0.275-4.62	407,206	719,787
UAB SEB Enskilda	-	-	-
UAB SEB Venture Capital	1.936-10.00	14,000	11,000
Outstanding deposit amounts:
UAB SEB Venture Capital	0.1	2,544	748
UAB SEB Investiciju Valdymas	0.1	13,997	14,153
UAB SEB Enskilda	0.05-2.1	9,529	10,402
UAB SEB Gyvybes Draudimas	-	-	6,839
UAB Litec tus	-	-	3,194
UAB SEB Lizingas	0.10-1.50	344,644	394,200
Other assets	-	2,434	2,377
Issued debt securities purchased by subsidiaries	-	-	2,013
For three months period ended 30 June 2010 and 2009
Interest income	-	4,093	17,486
Interest expense	-	(185)	(595)
Dividend income	-	3,734	4,816
Other services received and cost incurred from subsidiaries, net	-	31,960	6,665
Impairment losses for loan outstanding from AB SEB Lizingas	-	(428,045)	-

---

AB SEB BANK

NOTES TO THE CONDENSED INTERIM FINANCIAL STATEMENTS

FOR THE 6 MONTHS PERIOD ENDED 30 JUNE 2010

(All amounts in LTL thousands unless otherwise stated)

NOTE 7 DEBT SECURITIES ISSUANCE AND REDEMPTION

During the first half-year of 2010 the Bank successfully placed 32 securities issues, as presented in the table below:

Issue date	Redemption date	Duration	Currency	Amount in issue (in LTL)	Interest rate or index
2010.02.09	2011.02.21	377 days	LTL	10,000,000	5.50%
2010.02.09	2013.03.06	1121 days	LTL	37,462,600	Albia Group Inc, Avon Products Inc, Baxter International Inc, Caterpillar Inc, Cisco Systems Inc, Coca-Cola Co, Colgate-Palmolive Co, Intel Corp, International Business Machines Corp, Microsoft Corp, Oracle Corp, Pfizer Inc, Rockwell Automation Inc, Texas Instruments Inc, Tyco International Ltd, United Technologies Corp
2010.02.09	2013.03.06	1121 days	LTL	1,626,000	Itau Unibanco Holding S.A., Petroleo Brasileiro S.A., Vale S.A., China Construction Bank Corp, Teva Pharmaceutical Industries Ltd, China Communications Construction Company Ltd, China Mobile Ltd, America Movil SAB de C.V., Gazprom OAD, Hyundai Heavy Industries, Samsung Electronics Co, Taiwan Semiconductors
2010.02.09	2013.03.06	1121 days	EUR	955,390	Itau Unibanco Holding S.A., Petroleo Brasileiro S.A., Vale S.A., China Construction Bank Corp, Teva Pharmaceutical Industries Ltd, China Communications Construction Company Ltd, China Mobile Ltd, America Movil SAB de C.V., Gazprom OAD, Hyundai Heavy Industries, Samsung Electronics Co, Taiwan Semiconductors
2010.03.05	2011.03.17	377 days	LTL	10,000,000	3.95%
2010.03.05	2013.03.26	1117 days	LTL	6,278,700	Industrial and Commercial Bank of China Ltd, China Construction Bank Corp, China Life Insurance Co Ltd, Hang Seng Bank Ltd, Taiwan Semiconductor Manufacturing Company Ltd, HON HAI Precision Industry Co, Jiangxi Copper Co Ltd, China Mobile Ltd, CLP Holdings Ltd, Hutchison Whampoa Ltd, China Railway Group Ltd, PetroChina Co Ltd, China Petroleum & Chemical Corp, Tsingtao Brewery Co Ltd, Li & Fung Ltd
2010.03.05	2013.03.26	1117 days	LTL	4,193,200	Industrial and Commercial Bank of China Ltd, China Construction Bank Corp, China Life Insurance Co Ltd, Hang Seng Bank Ltd, Taiwan Semiconductor Manufacturing Company Ltd, HON HAI Precision Industry Co, Jiangxi Copper Co Ltd, China Mobile Ltd, CLP Holdings Ltd, Hutchison Whampoa Ltd, China Railway Group Ltd, PetroChina Co Ltd, China Petroleum & Chemical Corp, Tsingtao Brewery Co Ltd, Li & Fung Ltd
2010.03.05	2013.03.26	1117 days	LTL	1,687,300	Coffee, wheat, Soya beans, corn, cotton, cocoa
2010.03.05	2013.03.26	1117 days	EUR	1,639,735	Coffee, wheat, Soya beans, corn, cotton, cocoa
2010.03.31	2012.06.08	800 days	LTL	443,700	Deutsche Telekom AG
2010.03.31	2012.06.08	800 days	EUR	2,126,925	Deutsche Telekom AG
2010.04.13	2013.05.02	1115 days	LTL	1,664,600	Lyxor ETF Eastern Europe
2010.04.13	2013.05.02	1115 days	LTL	255,900	Lyxor ETF Eastern Europe
2010.04.13	2013.05.02	1115 days	EUR	279,332	Lyxor ETF Eastern Europe
2010.04.13	2012.05.02	750 days	LTL	2,486,300	AstraZeneca PLC, Svenska Handelsbanken AB and Skanska AB
2010.04.13	2012.05.02	750 days	EUR	1,246,116	AstraZeneca PLC, Svenska Handelsbanken AB and Skanska AB
2010.04.16	2011.04.28	377 days	LTL	2,077,700	2.60%
2010.05.21	2011.05.31	375 days	LTL	569,100	2.00%
2010.05.27	2012.06.20	755 days	EUR	2,802,638	Deutsche Bank AG
2010.06.01	2013.06.19	1114 days	LTL	5,659,200	Market Vectors Russia ETF, Samsung Kodex 200 Exchange Traded Fund, iShares MSCI Taiwan, iShares MSCI Brazil Index Fund, Hang Seng H-Share Index ETF, iShares MSCI Turkey Investable Market Index Fund.
2010.06.01	2013.06.19	1114 days	LTL	2,780,100	Market Vectors Russia ETF, Samsung Kodex 200 Exchange Traded Fund, iShares MSCI Taiwan, iShares MSCI Brazil Index Fund, Hang Seng H-Share Index ETF, iShares MSCI Turkey Investable Market Index Fund.
2010.06.01	2013.06.19	1114 days	EUR	2,217,043	Market Vectors Russia ETF, Samsung Kodex 200 Exchange Traded Fund, iShares MSCI Taiwan, iShares MSCI Brazil Index Fund, Hang Seng H-Share Index ETF, iShares MSCI Turkey Investable Market Index Fund.
2010.06.01	2011.12.16	563 days	LTL	2,159,100	EUR/PLN & USD
2010.06.01	2011.12.16	563 days	EUR	1,314,826	EUR/PLN & USD
2010.06.18	2011.06.28	375 days	LTL	1,235,100	2.10%
2010.06.23	2013.07.11	1114 days	LTL	2,211,700	iShares MSCI South Korea Index Fund, iShares MSCI Taiwan Index Fund and iShares MSCI Japan Index Fund
2010.06.23	2013.07.11	1114 days	LTL	814,800	iShares MSCI South Korea Index Fund, iShares MSCI Taiwan Index Fund and iShares MSCI Japan Index Fund
2010.06.23	2013.07.11	1114 days	EUR	1,429,804	iShares MSCI South Korea Index Fund, iShares MSCI Taiwan Index Fund and iShares MSCI Japan Index Fund
2010.06.23	2013.07.11	1114 days	LTL	1,716,400	Corn, Soya beans, sugar, coffee, cotton, cocoa
2010.06.23	2013.07.11	1114 days	LTL	1,076,000	Corn, Soya beans, sugar, coffee, cotton, cocoa
2010.06.23	2013.07.11	1114 days	EUR	892,549	Corn, Soya beans, sugar, coffee, cotton, cocoa

---

AB SEB BANK

NOTES TO THE CONDENSED INTERIM FINANCIAL STATEMENTS

FOR THE 6 MONTHS PERIOD ENDED 30 JUNE 2010

(All amounts in LTL thousands unless otherwise stated)

NOTE 7 DEBT SECURITIES ISSUANCE AND REDEMPTION (CONTINUED)

Besides, on 3 March, 2010 Central Securities Depository of Lithuania opened a general securities account for one SEB Bank AB issue of undated subordinated note with a total nominal value of 100 000 000 EUR (345 280 000 LTL). On 10 March, 2010 the Board of the Bank of Lithuania granted a permission to SEB Bank to include the issue into the Bank's Tier II capital. The issue of undated subordinated notes has been acquired by SEB Bank's parent bank Skandinaviska Enskilda Banken AB (publ).

During the first half-year of 2010 the Bank successfully redeemed its 41 securities issues, as presented in the table below:

Issue date	Redemption date	Duration	Currency	Amount in Issue (in LTL)	Interest rate or Index
2006.12.14	2010.01.29	1142 days	LTL	8,959,200	CECE Composite, FTSE Latibex Top, FTSE/JSE Africa TOP40, Hang Seng China Enterprises, RTX
2006.12.14	2010.01.29	1142 days	LTL	10,497,800	CECE Composite, FTSE Latibex Top, FTSE/JSE Africa TOP40, Hang Seng China Enterprises, RTX
2006.12.14	2010.01.29	1142 days	LTL	6,238,200	CECE Composite, FTSE Latibex Top, FTSE/JSE Africa TOP40, Hang Seng China Enterprises, RTX
2006.12.14	2010.01.29	1142 days	EUR	1,932,877	CECE Composite, FTSE Latibex Top, FTSE/JSE Africa TOP40, Hang Seng China Enterprises, RTX
2006.12.14	2010.01.29	1142 days	EUR	2,800,566	CECE Composite, FTSE Latibex Top, FTSE/JSE Africa TOP40, Hang Seng China Enterprises, RTX
2007.01.30	2010.02.17	1114 days	LTL	6,970,200	SEB, Danske Bank, DnB NOR Bank ASA, Nordea Bank and Swedbank
2007.01.30	2010.02.17	1114 days	LTL	10,655,500	SEB, Danske Bank, DnB NOR Bank ASA, Nordea Bank and Swedbank
2007.01.30	2010.02.17	1114 days	EUR	10,242,386	SEB, Danske Bank, DnB NOR Bank ASA, Nordea Bank and Swedbank
2007.02.07	2010.02.18	1107 days	LTL	6,326,300	Hang Seng China Enterprises, Hang Seng, MSCI Singapore Cash, MSCI Taiwan
2007.02.07	2010.02.18	1107 days	LTL	22,446,400	Hang Seng China Enterprises, Hang Seng, MSCI Singapore Cash, MSCI Taiwan
2007.02.07	2010.02.18	1107 days	LTL	69,609,600	Hang Seng China Enterprises, Hang Seng, MSCI Singapore Cash, MSCI Taiwan
2007.02.07	2010.02.18	1107 days	EUR	2,802,292	Hang Seng China Enterprises, Hang Seng, MSCI Singapore Cash, MSCI Taiwan
2007.02.07	2010.02.18	1107 days	EUR	2,964,574	Hang Seng China Enterprises, Hang Seng, MSCI Singapore Cash, MSCI Taiwan
2007.02.27	2010.03.16	1113 days	LTL	5,185,200	S&P BRIC 40
2007.02.27	2010.03.16	1113 days	LTL	9,412,100	S&P BRIC 40
2007.02.27	2010.03.16	1113 days	LTL	18,026,600	S&P BRIC 40
2007.02.27	2010.03.16	1113 days	LTL	2,326,600	New Europe Blue Chip
2007.02.27	2010.03.16	1113 days	LTL	7,472,100	New Europe Blue Chip
2007.02.27	2010.03.16	1113 days	LTL	5,405,700	New Europe Blue Chip
2008.03.08	2010.03.09	731 days	LTL	17,818,800	6.40%
2009.01.28	2010.02.05	373 days	LTL	1,573,100	9%
2009.03.21	2010.03.30	374 days	LTL	2,218,800	8.70%
2007.03.30	2010.04.20	1117 days	LTL	1,281,200	FTSE Eurotop 100, TOPIX, S&P 500
2007.03.30	2010.04.20	1117 days	LTL	3,436,600	FTSE Eurotop 100, TOPIX, S&P 500
2007.03.30	2010.04.20	1117 days	LTL	1,519,600	FTSE Eurotop 100, TOPIX, S&P 500
2007.03.30	2010.04.20	1117 days	LTL	1,529,700	S&P/ASX 200, TOPIX, KOSPI 200, MSCI Taiwan
2007.03.30	2010.04.20	1117 days	LTL	2,079,200	S&P/ASX 200, TOPIX, KOSPI 200, MSCI Taiwan
2007.03.30	2010.04.20	1117 days	LTL	2,454,300	S&P/ASX 200, TOPIX, KOSPI 200, MSCI Taiwan
2009.04.25	2010.05.04	374 days	LTL	647,300	8.50%
2009.10.01	2010.05.14	225 days	LTL	20,000,000	8.70%
2007.04.27	2010.05.17	1116 days	LTL	1,776,500	S&P CNX Nifty
2007.04.27	2010.05.17	1116 days	LTL	2,615,600	S&P CNX Nifty
2007.04.27	2010.05.17	1116 days	LTL	5,990,500	Hang Seng China Enterprises
2007.04.27	2010.05.17	1116 days	LTL	5,654,200	Hang Seng China Enterprises
2007.05.02	2010.05.21	1115 days	LTL	3,938,200	TOPIX, Dow Jones EURO STOXX 50
2007.05.02	2010.05.21	1115 days	LTL	2,634,700	TOPIX, Dow Jones EURO STOXX 50
2008.05.14	2010.06.02	749 days	LTL	6,317,600	UBS Comm-PASS Excess Return
2008.05.14	2010.06.02	749 days	LTL	9,230,800	UBS Comm-PASS Excess Return
2008.05.14	2010.06.02	749 days	EUR	4,289,759	UBS Comm-PASS Excess Return
2007.05.22	2010.06.07	1115 days	EUR	4,503,832	AB Invalde, AB Apranga, AS Tallinna Kaubamaja and AS Olympic Entertainment Group
2009.06.20	2010.06.29	374 dienos	LTL	4,380,200	8.70%

---

AB SEB BANK

NOTES TO THE CONDENSED INTERIM FINANCIAL STATEMENTS FOR THE 6 MONTHS PERIOD ENDED 30 JUNE 2010

(All amounts in LTL thousands unless otherwise stated)

NOTE 8 DISPOSAL OF SUBSIDIARIES

On 13 January 2010 100% of subsidiary shares UAB SEB Gyvybes Draudimas (Life insurance) were sold to SEB Trygg Liv Holding AB, which is a part of SEB Group Companies in Sweden, for the amount of LTL 69,000 thousands.

UAB SEB Gyvbybés draudimas

Net cash flow from disposal of subsidiary

	31 December 2009
Due from banks, net	4,296
Financial assets held for trading	59,258
Financial assets designated at fair value	349,937
Intangible fixed assets	214
Property, plant and equipment	203
Other assets, net of impairment losses	9,321
Liabilities in life insurance operations and to investment contract holders	377,703
Accrued expenses and deferred income	2,403
Other liabilities and provisions	4,260
Fair value of net assets	38,863
Sales price	69,000
Profit from disposal of subsidiary	30,137
Cash and cash equivalents in subsidiary being sold	4,296
Net cash flow from disposal of subsidiary	64,704

On 26 February 2010 100% of subsidiary shares UAB Litecus were sold to Warehold B.V., which is a part of SEB Group Companies in Sweden, for the amount of LTL 3,063 thousands.

UAB Litecus

Net cash flow from disposal of subsidiary

	26 February 2010
Property, plant and equipment	13
Other assets, net of impairment losses	3,070
Other liabilities and provisions	20
Net assets of the disposal group	3,063
Sales price	3,063
Profit on disposal of subsidiary	-
Cash and cash equivalents in subsidiary being sold	2,699
Net cash flow from disposal of subsidiary	364

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AB SEB BANK

NOTES TO THE CONDENSED INTERIM FINANCIAL STATEMENTS FOR THE 6 MONTHS PERIOD ENDED 30 JUNE 2010

(All amounts in LTL thousands unless otherwise stated)

NOTE 9 SIGNIFICANT EVENTS AFTER THE BALANCE SHEET DATE

After the balance sheet date the Bank successfully completed 1 debt securities issue with the nominal value of LTL 2 544 thousand.

After the balance sheet date the Bank successfully redeemed 13 debt securities issues with the nominal value of LTL 57 663 thousand.

After the balance sheet date the Bank started placing 4 debt securities issues that, as of 26 August 2010, amounted to LTL 6,039 and were accounted for in Other liabilities and provisions line in the balance sheet.

NOTE 10 MAJOR EVENTS IN THE ISSUER'S ACTIVITIES

On 10 February 2010, the Bank announced that, according to preliminary data, unaudited net loss suffered over the year 2009 by SEB Bank is LTL 1 546.2 million (EUR 447.8 million) and by SEB Bank Group - LTL 1 427.5 million (EUR 413.43 million). The result has been calculated in accordance with the requirements set by the acts of the Bank of Lithuania and legal acts of the Republic of Lithuania. Over the year 2008, audited net profit earned by the Bank totalled LTL 347.7 million (EUR 100.7 million) and by the group - LTL 257.8 million (EUR 74.7 million).

On 23 February 2010, the Bank announced about the Annual General Meeting of Shareholders initiated and to be convened by the Board of SEB Bank on 25 March 2010.

On 26 February 2010, SEB Bank has transferred 100 % of shares of its subsidiary company Litectus fully held by SEB Bank to company Warehold B.V., a member of the international SEB Group. Shares of the real estate management companies of the three SEB Baltic banks are assigned to Warehold B.V., which is fully owned by the SEB Group. This share acquisition is an internal optimization within SEB's Baltic operations in order to facilitate closer cooperation of real estate management activities at SEB Group level.

On 8 March, 2010 ratings agency Fitch Ratings changed SEB Bank's long-term issuer's default rating outlook from negative to stable whereas Bank's long-term issuer's default rating A, short-term issuer's default rating F1, individual rating D/E and support rating 1 remained unchanged.

On 15 March 2010 the Board of SEB Bank approved the draft decisions of the Annual General Meeting of the Shareholders of SEB Bank that will take place on 25 March 2010.

On 10 March 2010, the Board of the Bank of Lithuania granted a permission to SEB Bank to include the issue of undated subordinated notes worth EUR 100,000,000 (LTL 345, 280,000) into the bank's Tier II capital. The issue of undated subordinated notes has been acquired by SEB Bank's parent bank Skandinaviska Enskilda Banken AB (publ).

On 25 March 2010, at 10 a.m., on Gedimino 12, Vilnius, Room 511, an Annual General Meeting of Shareholders of SEB Bank (having registered office on Gedimino 12, LT-01103 Vilnius, company code 112021238) took place and decisions on all issues on the agenda were adopted: 1. Consolidated Annual Report of SEB Bank has been familiarized with; 2. Report of the auditor of SEB Bank has been heard; 3. Comments and Proposals of the Supervisory Council of SEB Bank have been heard; 4. Year 2009 Consolidated Financial Statements of SEB Bank were approved (enclosed); 5. Resolution was adopted to cover part of the losses of SEB Bank by additional contributions of shareholders in an amount no less than LTL 345,280,000 (EUR 100,000,000); 6. Distribution of the year 2009 losses of SEB Bank was approved (enclosed); 7. PricewaterhouseCoopers UAB was elected an audit company for checking SEB Bank's current-year and no more than 2 (two) further financial years' annual financial statements and President of SEB Bank was directed to execute an agreement with the audit company specifying terms and conditions for payment in consideration for its services; 8. Ted Tony Kylberg was elected to the Supervisory Council of SEB Bank as its Member until expiry of the tenure of the present Supervisory Council.

On 28 April 2010, the Bank announced that according to preliminary data, unaudited net loss sustained over the first quarter of the year 2010 by SEB Bank is LTL 59,4 million (EUR 17,2 million) and that by SEB Bank Group is LTL 80,3 million (EUR 23,3 million). The result has been calculated in accordance with the requirements set by relevant acts of the Bank of Lithuania as well as legal acts of the Republic of Lithuania. Over the first quarter of the year 2009, unaudited net profit earned by the Bank totalled LTL 26.6 million (EUR 7.7 million) and that by the group - LTL 16.2 million (EUR 4.7 million). The result of the first quarter of the year 2010 of the Bank includes sale profit resulting from transfer of shares of the Bank's subsidiary companies SEB Gyvybės Draudimas and Litectus to the SEB Group. The result of the first quarter of the year 2010 of the SEB Bank Group includes the result of Litectus in January and February; the result of SEB Gyvybės Draudimas is not included.

On 8 June 2010, the Supervisory Council of the SEB Bank resolved to accept the resignation from Vytautas Sinius from the Management Board of the SEB Bank and appointed a new Board member Virginijus Doveika. Virginijus Doveika will take his new position as member of the Management Board of the SEB Bank upon approval by the Bank of Lithuania.

20

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AB SEB BANK

NOTES TO THE CONDENSED INTERIM FINANCIAL STATEMENTS FOR THE 6 MONTHS PERIOD ENDED 30 JUNE 2010

(All amounts in LTL thousands unless otherwise stated)

NOTE 10 MAJOR EVENTS IN THE ISSUER'S ACTIVITIES (CONTINUED)

On 13 July 2010, the Bank announced that according to preliminary data, unaudited net loss suffered over the first half-year of 2010 by SEB Bank is LTL 77.0 million (EUR 22.3 million) and by SEB Bank Group – LTL 160.9 million (EUR 46.6 million). The result has been calculated in accordance with the requirements set by the acts of the Bank of Lithuania and legal acts of the Republic of Lithuania. Over the first half-year of 2009, audited net loss suffered by the Bank totalled LTL 168.5 million (EUR 48,8 million) and by the Group – LTL 224,9 million (EUR 65,1 million). The result of the first half-year of 2010 of the SEB Bank includes sale profit resulting from transfer of shares of the Bank’s subsidiary companies SEB Gyvybės Draudimas and Litectus to SEB Group concluded in the first quarter of 2010. The result of the first half-year of 2010 of the SEB Bank Group includes the result of Litectus in January and February; the result of SEB Gyvybės Draudimas is not included.

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21

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AB SEB BANK

CONSOLIDATED SEMI-ANNUAL REPORT FOR THE 6 MONTHS PERIOD 2010

(All amounts in LTL thousand, unless indicated otherwise)

AB SEB BANK

CONSOLIDATED SEMI-ANNUAL REPORT FOR THE 6 MONTHS PERIOD 2010

1. Reporting period covered by the Consolidated Annual Report

The Report has been drawn up for the first half of the year 2010.

2. Issuer Group companies, contact details and types of their core activities.

Issuer's name	AB SEB Bank
Authorised capital	LTL 1,034,575,341
Legal address	Gedimino av.12, LT-01103 Vilnius
Telephone	(8 5) 2682 800
Facsimile	(8 5) 2682 333
E-mail address	info@seb.lt
Legal form	Public limited company
Registration date and place	29 November 1990, the Bank of Lithuania
Company code	112021238
Company registration number	AB90-4
Website address	www.seb.lt

AB SEB Bank (hereinafter the 'Bank'), a public limited company, is a credit institution operating on share capital basis and is licensed to engage in such types of activities as acceptance of deposits and other refundable means from non-professional market participants and funds lending, also, it is entitled to engage in offering other financial services and assumes relevant related risks and liability.

At the end of the reporting period, the AB SEB Bank Group in Lithuania (hereinafter the 'Group') consisted of four subsidiary companies: UAB SEB Enskilda, UAB SEB Investicju Valdymas, AB SEB Lizingas and UAB SEB Venture Capital.

Name	AB SEB Lizingas
Type of core activities	Finance lease
Legal form	Public limited company
Registration date and place	19 April 1995, Vilnius
Company code	123051535
Registered and office address	Saltoniškių str. 12, LT-08105 Vilnius
Telephone	(8 5) 2390 490
Fax	(8 5) 2390 450
E-mail address	lizingas@seb.lt
Website address	www.elizingas.lt
Name	UAB SEB Venture Capital
---	---
Type of core activities	Own asset investment into other companies' equity and asset management on trust basis
Legal form	Private limited company
Registration date and place	17 October 1997, Vilnius
Company code	124186219
Registered address	Gedimino av. 12, LT-01103 Vilnius
Office address	Jogailos str. 10, LT-01116 Vilnius
Telephone	(8 5) 2682 407
Fax	(8 5) 2682 402
E-mail address	kapitalas@seb.lt
Website address	http://www.seb.se/venturecapital
Name	UAB SEB Enskilda
---	---
Type of core activities	Consultancy services related to business acquisitions, sales and mergers; management buyout (MBO) /leveraged buyout (LBO); increase in own and borrowed equity (including not limited to the initial public offerings (IPOs) and secondary placements; corporate restructuring (mergers, splits, etc.); business or share valuation
Legal form	Private limited company
Registration date and place	27 March 1993, Vilnius
Company code	221949450
Registered address	Gedimino av. 12, LT-01103 Vilnius
Office address	Islandijos str. 1, LT-01401 Vilnius
Telephone	(8 5) 2681 400
Fax	(8 5) 2681 499
E-mail address	mail@enskilda.lt
Website address	www.enskilda.lt

Page 1 of 11

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AB SEB BANK

CONSOLIDATED SEMI-ANNUAL REPORT FOR THE 6 MONTHS PERIOD 2010

(All amounts in LTL thousand, unless indicated otherwise)

Name	UAB SEB Investicių Valdymas
Type of core activities	Various investment management services, consultancy services
Legal / organisational form	Private limited company
Registration date and place	3 May 2000, Vilnius
Company code	125277981
Registered address	Gedimino av. 12, LT-01103 Vilnius
Office address	Gedimino av. 20, LT-01103 Vilnius
Telephone	(8 5) 2681 594
Fax	(8 5) 2681 575
E-mail address	info.invest@seb.lt
Website address	www.seb.lt

3. Agreements between the Issuer and securities' public offering agents

The Bank in the process of a public issue of bonds must execute an agreement with the selected public offering agent for the protection of the owners' of any relevant issue of bonds interests in accordance with the procedure established by the Company Law of the Republic of Lithuania.

As of 30 June 2010, the Bank had one effective agreement with UAB SEB Enskilda (legal entity code 2219 49450, legal address Gedimino av. 12, LT-01103, Vilnius), 53 agreement with UAB FMĮ Orion Securities, a brokerage firm (legal entity code 1220 33915, legal address A. Tumėno str. 4, 9 floor, LT-01109 Vilnius) and 37 agreements with AB bank Finasta (legal entity code 301502699, legal address Maironio str. 11, LT-01124, Vilnius).

4. Data on trade in the Issuer Group securities in the regulated markets

Shares of SEB Bank are not listed in either the main or secondary list of Nasdaq OMX Vilnius exchange or in trading lists of other regulated markets and listing hereof is not planned in the nearest future.

As of 30 June 2010, one non-equity securities issues of AB SEB Bank were listed in the debt securities list of Nasdaq OMX Vilnius exchange (see tables below).

Non-equity type of securities	Discounted bonds
ISIN code	LT0000410100
Number of securities (units)	183,040
Nominal value per unit	LTL 100.00
Total nominal value	LTL 18,304,000.00
Effective date of the issue	24 October 2009
Redemption date	2 November 2010
Interest rate	8,70 %

Securities of the Bank subsidiary companies are not traded in the regulated markets.

5. Objective overview of the Issuer Group's financial standing, performance and business development, description of major risks and uncertainties

The first half of 2010 was a stabilization period for the Lithuanian economy and it is confirmed by the Bank's half year result. During the second quarter the bank made fewer of provisions as compared to the first quarter. Although provisions still have a negative effect on overall result of the Bank, the income of the Group is stabilizing and operational effectiveness is increasing.

Unaudited net loss suffered over the first half-year of 2010 by SEB Bank is LTL 77.0 million (EUR 22.3 million) and by SEB Bank Group - LTL 160.9 million (EUR 46.6 million). The result has been calculated in accordance with the requirements set by the acts of the Bank of Lithuania and legal acts of the Republic of Lithuania. Over the first half-year of 2009, audited net loss suffered by the Bank totalled LTL 168.5 million (EUR 48,8 million) and by the Group - LTL 224,9 million (EUR 65,1 million).

The result of the first half-year of 2010 of the SEB Bank includes sale profit resulting from transfer of shares of the Bank's subsidiary companies SEB Gyvybės Draudimas and Litectus to SEB Group concluded in the first quarter of 2010. The result of the first half-year of 2010 of the SEB Bank Group includes the result of Litectus in January and February; the result of SEB Gyvybės Draudimas is not included.

Taking a conservative approach in the assessment of credit risk, in the first half of 2010 the SEB Bank Group has accounted for LTL 309,8 mln credit losses (during the same period in 2009: LTL 286 mln.).

During the first half of 2010, SEB Bank Group's assets decreased by 14.3 per cent, and as of 30 June 2010 were LTL 24,849.3 mln (as of 30 June 2009: LTL 28,394.7 mln.).

As of 30 June 2010, SEB Bank Group's total equity was LTL 1,7 mlrd. As of 30 June 2010, SEB Bank's capital adequacy ratio calculated according to the requirements of the Bank of Lithuania was 15.70 per cent (all requirements are met). SEB Bank's liquidity ratio for the period ended 30 June 2010 was 56.06 per cent (the requirement is 30 per cent).

During the first half of 2010, the Bank Group's operating expenses decreased by 11,5 per cent and were LTL 149,2 mln. (LTL 168,6 mln. over a relevant period in 2009).

For the end of the first half of 2010, SEB Bank Group's had the largest credit and leasing portfolio in Lithuania, with net value of LTL 18,3 mlrd., which over a year decreased by 19 per cent (as of 31 June 2009 portfolio was LTL 22,4 mlrd.

Page 2 of 11

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AB SEB BANK

CONSOLIDATED SEMI-ANNUAL REPORT FOR THE 6 MONTHS PERIOD 2010

(All amounts in LTL thousand, unless indicated otherwise)

During the first half of 2010, an increase in the number of customers using of SEB Bank internet banking services was 7.6 per cent, from 855 thousand to 920 thousand. Over a year, an increase in transfers via the Internet was 27.4 per cent.

For the period ended 30 June 2010 SEB Bank had 338 ATMs network. Currently, SEB Bank customers can use the largest ATMs network in Lithuania, which together with DnB NORD bank ATMs has a total of 514 ATMs.

During first half of the year 2010 there was a change in SEB Bank Management Board. In June 2010 SEB Supervisory Council has appointed Virginijus Doveika to the member of Bank Management Board and Vytautas Sinius has resigned from the Bank Management Board members.

In SEB bank's view of over the coming quarters the Lithuanian banking system should witness a gradual recovery. However, cautious optimism about Lithuania's economic recovery is hindered by several reasons, i.e. the continued deterioration of households' financial situation and complicated position of most domestic-oriented companies. Further recovery of Lithuania's economy will depend to a large extent on development of export markets and the situation on global financial markets.

One of the key priorities of the Bank is to help its customers to survive the economic downturn. The Bank will continue to search for the best solutions with a special focus on aiding those clients, who face problems paying their mortgages for their first family home.

The SEB Bank Group manages its risks in a centralised way. The main types of risks managed by the bank are credit, liquidity, market risks, which include currency rate fluctuations, interest rate risk and share price risk, as well as operational risk. Risk is managed adhering to the internal and the prudential requirements of the Bank of Lithuania. During first half of the year 2010, the Bank met all the prudential requirements of the Bank of Lithuania.

Issuer risk. The Bank's obligations against investors are not additionally secured by any guarantee and/or in any other manner, therefore investor accepts the Bank's (operational) risk related to political, economic, technical and technological as well as social factors.

Credit risk. The Group assumes credit risk, i.e., the risk of another counterparty being unable to duly meet its obligations against the Bank. The risk is assessed based on credit equivalents calculated depending on the type of a financial deal. The Group Credit Policy is applied adhering to the principle that any lending transaction may be executed only subject to credit analysis. Taking into consideration the complexity of the deal and customer's creditworthiness, various credit risk management measures are applied.

The Group loans are assessed individually as well as in total, taking into account its total portfolio. Assessment of the portfolio of homogeneous loan groups with similar risk characteristics, i.e. natural persons' mortgage loans, consumer loans, payment card account overdraft limits, also, loans to small enterprises, is performed. Special provisions for homogenous loans are formed by applying statistical methodology based on historical data on any defaults of the borrowers and sustained losses within the corresponding homogeneous loan group. Individually assessed borrowers are assigned to a relevant risk class, based on which special provisions requirement is established. The Group classifies its individually assessed borrowers based on 16 risk classes.

Risks are managed by carrying out regular analysis of the borrower's ability to meet its obligations: to repay the loan and pay interest. The Group establishes credit risk limits per single borrower, a group of borrowers or per economic activities. Borrower credit risk, taking into consideration the risk class assigned to the borrower, is revised on a regular basis, no less than once a year. Analysis of the borrower, borrower group and industry sector risks is also performed on regular basis.

Applied credit portfolio concentration risk limits are as follows:

• maximum exposure per single borrower must not exceed 25 per cent of the Bank's/ Group's equity, and the total amount of large exposures may not exceed 800 per cent of the Bank's/ Group's equity;
• total loans issued by the bank to its parent company, to other subsidiary companies of the parent company or the bank's subsidiary companies per single borrower may not exceed 75 per cent of the bank's equity, if the Bank of Lithuania performs consolidated supervision of the entire financial group. If the Bank of Lithuania does not perform any consolidated supervision of the entire financial group, the maximum exposure per each SEB Group company may not exceed 20 per cent of the bank's equity.

Below is the information on the Bank's individually assessed credit losses, on changes in the total value and the ratio to the credit portfolio over periods of historic financial information.

	31.12.2009*	30.06.2010*
Individually assessed client credits, which value has impaired, gross amount (impaired loans), in LTL'000	2,586,697	2,910,566
Client credit portfolio (without special provisions), in LTL'000	18,643,351	17,937,293
Ratio (in per cent)	14.71%	16.23%

• According to Official Letter of the Credit Institutions Supervision Department of the Bank of Lithuania No. 1203-310, dated 10 June 2008

Page 3 of 11

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AB SEB BANK

CONSOLIDATED SEMI-ANNUAL REPORT FOR THE 6 MONTHS PERIOD 2010

(All amounts in LTL thousand, unless indicated otherwise)

Impairment losses on loan portfolio (LTL'000) according to the IFRS:

	31.12.2009	30.06.2010
Impairment losses on loans to customers (special provisions)	1,459,262	1,635,601
Impairment losses on loans to credit and financial institutions as of year end (special provisions)	391,048	44
Balance of impairment losses on loans to credit and financial institutions as of year end (special provisions)	1,850,310	1,635,645
Special provisions to loan portfolio ratio	9.54%	8.90%

Market risk. It is the risk of a loss of future net income due to changes in interest rates, foreign exchange rates and share prices (including the price risk in case of sales of assets or closing of positions).

Interest rate risk is managed by forecasting market interest rates and making relevant adjustments so that there is no mismatch in the assets and liabilities within the revaluation periods. The Bank applies interest rate risk management methodologies that help to measure the Group's sensitivity to interest rate changes by computing the impact to yearly net interest income (ΔNII) and net effect on the market value of shareholders equity (delta 1%) in case of a parallel shift by one percentage point in the yield curve.

Foreign exchange risk exposure is defined by two measures: single open foreign currency position against the and aggregate open currency position - the larger one of all summed-up long and short open currency positions. Foreign exchange risk measures include net exposure of spot and forward positions, FX futures, including gold, the delta equivalent position of FX options and other balance sheet items. The currency risk control is ensured by monitoring the risk exposure against the limits established for single open currency position. The bank adheres to the open currency position limits established by the Bank of Lithuania: 1) maximum open single currency position may not exceed 15 per cent of equity; 2) maximum total open position may not exceed 25 per cent of equity.

The Group	31.12.2009	30.06.2010
Maximum open single currency position	103.53%	133.25%
Maximum aggregate open currency position	1.78%	2.29%

Share price risk is managed by establishing limits that describe acceptable share price risk, taking into consideration any possible losses related to market price volatility, by establishing the structure of the share portfolio.

Liquidity risk. Liquidity risk is the risk that the bank may be unable to timely meet its financial obligations and/or, aiming to meet them, it may have to sell its financial assets and/or close positions and will sustain losses due to a lack of liquidity in the market.

The Group adheres to conservative liquidity risk management policy that ensures adequate fulfilment of its current financial obligations, the level of obligatory reserves with the Bank of Lithuania, liquidity ratio higher than that established by the Bank of Lithuania and solvency capacity under unforeseen unfavourable circumstances. The liquidity risk management system is based on the analysis of actual and forecasted cash flows.

Changes in the Bank's liquidity ratio over recent years are shown in the table below.

Ratio	Bank
	31.12.2009	30.06.2010
Liquidity ratio (at least 30%)	60.31%	56.06%

• In 2007, the Bank of Lithuania eliminated the Group's liquidity report.

Operational risk. Operational risk is defined as the risk of a loss and good-will / credibility impairment due to external environment events or internal factors. External environment events: dissemination of adverse rumours, failures in the activities of the main suppliers, natural calamities, criminal third-party actions, etc. Internal factors: internal control drawbacks, inefficient procedures, inappropriate or inappropriately designed IT systems or technologies, non-compliance with laws or agreements, falsifications or any other illegal actions made by senior managers or employees. For the management of business process risk the Group uses advanced operational risk management instruments, strictly adheres to the envisaged policies, manuals and other requirements that ensure internal control.. The Bank applies the SEB Group methodologies and IT solutions to identify, analyse, report and manage risks and compile reports. For risk management purposes, Key Risk Indicators (KRI) are used, which indicate changes in risk levels in business areas or processes. Operational risk self-assessments are performed by the main business subdivisions themselves. Operational risk management system was launched in the year 2006. It enables all staff of the Group to register the operational risk incidents, to envisage and carry out actions plans for the elimination of operational risk sources.

Business risk. It is the risk of a decrease in income due to any unforeseen shortage of regular income that is usually determined by a drop in business volumes, price pressure or competition. Business risk also includes reputation risk, which is a risk of a decrease in income from ordinary activities and which may arise due to any adverse rumours about the bank or about the banking sector generally.

Strategy risk. It is the risk caused by unfavourable or erroneous business solutions, improper implementation of decisions or insufficient response to any political changes or changes in the regulatory acts or the banking sector.

Capital adequacy. As of 30 June 2010 the Bank's capital adequacy ratio was $15.70\%$ (as of 31 December 2009 - $12.94\%$ ) and the SEB Group's capital adequacy ratio was $14.15\%$ (as of 31 December 2009 - $11.58\%$ ) SEB Bank and SEB Group was in compliance with all Bank of Lithuania requirements).

Page 4 of 11

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AB SEB BANK

CONSOLIDATED SEMI-ANNUAL REPORT FOR THE 6 MONTHS PERIOD 2010

(All amounts in LTL thousand, unless indicated otherwise)

Securities. As of 30 June 2010, the number of effective issues of securities of SEB Bank was 149, their total nominal value being LTL 1.78 billion.

6. Analysis of the Issuer Group financial and non-financial activity results

Volume and changes of the Bank Group activity are partially reflected by the data below based on the financial position and income statements prepared in accordance with the International Financial Reporting Standards (IFRS):

LTL million	31 December 2009	30 June 2010
Loans	17,205	16,323
Investment	1,847	1,771
Lease receivables	2,504	1,982
Deposits	9,670	9,429
Amounts owed to credit and financial institutions	13,651	11,696
Equity	1,525	1,712
Assets	26,952	24,849

The Bank Group's income structure during the recent years was as follows:

LTL million	31 December 2009	30 June 2010
Net interest income (loss) after impairment losses	(1,404.6)	(195)
Other income before operating expenses, net	210.3	(149)
Result before operating expenses	(1,194.3)	(45.7)
Operating expenses	(347.7)	(149)
Net life insurance income	-	-
Profit (loss) before profit tax from continues activities	(1,711.6)	(195)
Net profit (loss) from continues activities	(1,445.5)	(161)

Main ratios of the bank activities are included in the below table:

Group		Ratio	Bank
31.12.2009	30.06.2010		31.12.2009	30.06.2010
11.58%	14.15%	Capital adequacy ratio (SEB Group and SEB Bank were in compliance with the requirement)	12.94%	15.70%
(4.99%)	(1.20%)	Return on Assets	(6.12%)	(0.64%)
(76.06%)	(19.19%)	Return on Equity	(79.55%)	(8.97%)
		Bank liquidity ratio (regulatory requirement at least 30%)
n. a.	n. a.		60.31%	56.06%
(93,61)	(10,41)	Earnings per share, LTL	(100,13)	(4,98)
98,75	(110,90)	Book value per share, LTL	92,03	109,61

7. References and additional comments on data included in the consolidated financial statements

All key financial data is included in the condensed semi-annual consolidated financial statements of the Bank.

8. Major events since the end of previous financial year

Please see note 10 of the financial statements of SEB Bank.

Page 5 of 11

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AB SEB BANK

CONSOLIDATED SEMI-ANNUAL REPORT FOR THE 6 MONTHS PERIOD 2010

(All amounts in LTL thousand, unless indicated otherwise)

9. Issuer Group activity plans and forecasts

Attention to the Customer will remain the key objective of SEB Bank Group. By providing modern services in a convenient and professional manner as well as in-depth understanding of each customer's needs and expectations, the Group will aim to achieving its objective: to be the most respected post-crises bank in Lithuania.

SEB Bank Group, with the aim to achieve these objectives, considering the SEB Group's goals, plans to work in the following main directions:

• Improvement of risk management. In this area, the Bank plans to revise its existing recesses and procedures and, if needed, to improve them. In addition, based on the gained experience, the Bank will seek to develop a strong credit and risk valuation skills (by training of client managers). In future, it will enable to make better decisions related to the risk management of the Bank.

• Restoring operational efficiency. To maintain the efficiency and competitiveness, the Bank plans to have key focus on the following areas:

• Overcome decrease in income by applying target marketing: clearly define its competitiveness in various customer segments and accordingly develop new expansion plans;

• Properly assess demand for expenditures in order to achieve its set objectives.

• Reinforcement of customer loyalty. In this area, the Bank's target is to maintain the existing and attract new customers:

• Providing flexible decisions to clients with financial difficulties, enabling them to struggle through period of decline, with the Bank's assistance;

• Development of new attractive solutions, services and products to our successful customers, to make them feel the Bank's support.

• To remain the most attractive employer. Cost optimisation required to take unattractive decisions for the employees, however, as before, the aim is to build an environment of trust and respect where people can develop and reach their full potential.

10. Financial risk management objectives

The Group manages its financial risks as described in the consolidated semi-annual financial statements. Financial risk management objectives, transaction risk hedging measures, the Group credit risk and market risk volume are also described in the above-mentioned documents.

11. Data on the acquisition of own shares by the Issuer

During the first half of 2010, SEB Bank did not acquire or redeem its own shares. The Bank's subsidiary companies have not acquired the Bank's shares. During the reporting period, the Bank and its subsidiary companies did not redeem or sell their own shares.

12. Information on the Issuer branches and representative offices

As of 30 June 2010, the Bank had a customer service network of 57 branch offices (17 branches and 40 branch offices) all over Lithuania.

13. The Issuer's authorised capital

Authorised capital registered with the Enterprise Register (amount, structure by share type and class, total nominal value) is as follows:

Type of shares	ISIN code	Number of shares	Nominal value (LTL)	Total nominal value	Share within authorized capital (in per cent)
Ordinary registered shares	LT0000101347	15,441,423	67	1,034,575,341	100.00
Total	-	15,441,423	-	1,034,575,341	100.00

All shares of SEB Bank are paid up and there are no restrictions assigned for transfer of securities.

Page 6 of 11

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AB SEB BANK

CONSOLIDATED SEMI-ANNUAL REPORT FOR THE 6 MONTHS PERIOD 2010

(All amounts in LTL thousand, unless indicated otherwise)

14. Shareholders

As of 30 June 2010, the total number of shareholders of SEB Bank was 164. Shareholders holding or controlling more than 5 per cent of the Bank's authorised capital as of 30 June 2010 were as follows:

Shareholder	Number of shares and votes	Share of authorized capital and votes (in per cent)
Skandinaviska Enskilda Banken AB (Kungsträdgårdsgatan 8, Stockholm, Sweden; code 502032-9081)	15,421,146	99.87

None of the shareholders of the Bank has special rights of control. All shareholders have equal rights, the number of shares of SEB Bank entitling to the vote at the general meeting of shareholders is 15,441,423.

The Bank has not been informed of any mutual arrangements between the shareholders resulting in restrictions applied to securities assignment and/or voting rights.

15. Employees

As of 30 June 2010, the SEB Bank Group in Lithuania (AB SEB Bank, UAB SEB Enskilda, UAB SEB Investicijų Valdymas, UAB SEB Lizingas and UAB SEB Venture Capital), had 2,122 employees, or 3.5 percent less comparing to the year ended 31 December 2009, when the Group had 2,198 employees. The number of employees has decreased as UAB Gyvybės draudimas and UAB Litecstus employees are not included in the calculation since both subsidiaries were sold to International SEB Group during the year 2010.

The number of SEB Bank employees alone decreased by 3.1 per cent, from 1,941 to 1,880 (regular employees only, working under labour contracts without a fixed term), and the number of SEB Bank's actually working employees (excluding those on maternity/paternity leave) was 1,770 i. e. 2.3 per cent less than in 2009, when their number was 1,811.

During the reporting period, the average number of the bank's employees was 2,016 employees (as of 31 December 2009: 2,128).

Tables below contain information on the Bank's employees' educational background and average monthly wages (before tax).

	Number of employees*		Average monthly wages (in LTL)
	31.12.2009	30.06.2010	31.12.2009	30.06.2010
Senior management staff	279	269	10,245	9,737
Specialists	1,741	1,761	3,569	3,396
Service staff	9	8	1,994	2,094
In total	2,029	2,038	-	-

• Number of employees contains working under labour contracts with fixed and temporary terms excluding those on maternity/paternity leave.

	Number of employees	University education		College education		Secondary education
		number	per cent	number	per cent	number	per cent
Senior management staff	269	254	94.42	6	2.23	9	3.35
Specialists	1,761	1,325	75.24	117	6.64	319	18.11
Service staff	8	3	37.5	1	12.5	4	50.00
In total	2,038	1,582	77.63	124	6.08	332	16.29

16. Procedure for amending the Issuer Articles of Association

The Company Law of the Republic of Lithuania establishes that amendment of articles of association is an exclusive right of the annual meeting of shareholders. A 2/3 qualified majority of votes of the general meeting of shareholders participating at the meeting is required for adopting a resolution on amending the articles of association.

The Bank Law of the Republic of Lithuania establishes that the amendment of a bank's articles of association regarding i) the bank's name or domicile, ii) the amount of the authorised (share) capital, iii) the number of shares, the number of shares by their class, nominal value as well as the rights granted, iv) the competence of the Bank's management bodies as well as the method of electing and revoking the management bodies, can be registered with the Enterprise Register exclusively after the permission of a supervisory authority, i.e. the Bank of Lithuania, has been obtained.

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AB SEB BANK

CONSOLIDATED SEMI-ANNUAL REPORT FOR THE 6 MONTHS PERIOD 2010

(All amounts in LTL thousand, unless indicated otherwise)

17. Management bodies of the Issuer

• The General Meeting of Shareholders of the bank (hereinafter referred to as the 'Meeting')
• The Supervisory Council of the Bank (hereinafter referred to as the 'Council')
• The Management Board of the Bank (hereinafter referred to as the 'Management Board')
• Head of the Bank administration (President) (hereinafter referred to as the 'President')

The Board and the President are the bank's management bodies.

The Council is a collegiate supervisory body carrying out the function of supervision over the bank's activities. The Council consisting of 5 members is elected by the Meeting. The Council elects the Management Board members and revokes them from their positions, supervises over the activities of the Management Board and the President and has other rights and duties attributed to its competence by acts of law of the Republic of Lithuania and Articles of Association of the bank.

The Management Board is a collegiate management body of the bank consisting of 5 members and is elected by the Council. The Management Board manages the bank, handles daily matters, represents the Bank's interests and is liable for the financial services according to the procedure established by law. The Management Board elects (appoints) and revokes the President and his deputies and has other rights and duties attributed to its competence by acts of law of the Republic of Lithuania and Articles of Association of the bank.

The President acts in the name of the bank, organizes the bank's day-to-day activities and has other rights and duties attributed to its competence by acts of law of the Republic of Lithuania and Articles of Association of the bank.

18. Information on members of collegiate bodies, Chief Executive Office and Chief Financial Officer of the company

THE BANK SUPERVISORY COUNCIL (as of 30 June 2010)

KNUT JONAS MARTIN JOHANSSON

Head of SEB Baltic Division. Education: university degree, specialisation – economics. No shares of the Bank are hold by the Member.

Member of the Supervisory Council elected by an extraordinary meeting of shareholders of SEB Bank held on 29 October 2009, Chairman of the Supervisory Council since 13 November 2009.

MARK BARRY PAYNE

Head of Finance of SEB Baltic Division. Education: university degree, specialisation – economics. No shares of the Bank are hold by the Member.

Member of the Supervisory Council elected by an extraordinary meeting of shareholders of SEB Bank held on 29 October 2009.

CARL STEFAN DAVILL

Head of Human Resources of SEB Baltic Division. Education: university degree, specialisation – economics. No shares of the Bank are hold by the Member.

Member of the Supervisory Council elected by an extraordinary meeting of shareholders of SEB Bank held on 29 October 2009.

STEFAN STIGNÄS

Head of Corporate Banking of SEB Baltic Division. Education: university degree, specialisation – economics. No shares of the Bank are hold by the Member.

Member of the Supervisory Council elected by an extraordinary meeting of shareholders of SEB Bank held on 29 October 2009.

TED TONY KYLBERG

Head of Legal, SEB Baltic Division. Education: university degree, specialisation – law. No shares of the Bank are hold by the Member.

Member of the Supervisory Council since 25 March 2010, elected at the general meeting of shareholders of SEB Bank held on 25 March 2010.

The term office of all Supervisory Council Members expires on 29 October 2013.

THE BANK MANAGEMENT BOARD (as of 30 June 2010)

RAIMONDAS KVEDARAS

Chairman of the Management Board and President of SEB Bank since 19 October 2009. Elected to the Management Board as its Member of on 4 February 2004. Education: higher, specialisation – international finance. No shares of the Bank are hold by the Member.

AIVARAS ČIČELIS

Vice President and Head of Corporate Banking Division of SEB Bank. Member of the Management Board since 19 October 2009. Education: higher, specialisation – economics. No shares of the Bank are hold by the Member.

ROBERTS BERNIS

Vice President and Head of Credit and Risk Management Division of SEB Bank. Member of the Management Board since 19 October 2009. Education: higher, specialisation – engineering. No shares of the Bank are hold by the Member.

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AB SEB BANK

CONSOLIDATED SEMI-ANNUAL REPORT FOR THE 6 MONTHS PERIOD 2010

(All amounts in LTL thousand, unless indicated otherwise)

VIRGINIJUS DOVEIKA

Vice President and Head of Retail Banking Division of SEB Bank. Elected to the Management Board as its member on 14 June 2010. Education: higher, specialisation – business administration and management. No shares of the Bank are hold by the Member.

AUŠRA MATUSEVIČIENĖ

Vice President and Head of Business Support Division and Chief Financial Officer of SEB Bank.

Member of the Management Board since 1 February 2006. Education: higher, specialisation – finances. No shares of the Bank are hold by the Member.

The term office of all Members of the Management Board expires on 4 February 2012.

CHIEF EXECUTIVE OFFICER

RAIMONDAS KVEDARAS – Chairman of the Management Board and President of SEB Bank since 19 October 2009. Elected to the Management Board as its member on 4 February 2004.

CHIEF FINANCIAL OFFICER

AUŠRA MATUSEVIČIENĖ – Vice President and Head of Business Support Division and Chief Financial Officer of SEB Bank. Member of the Management Board since 1 February 2006.

Information on disbursements to members of the Management Board during the reporting period is provided in the bale below.

	Amounts calculated over a year in connection with employment relations	Property assigned gratis	guarantees issued in the name of the company
Amounts calculated for all members of the Management Board (LTL'000), before taxes, in total of which:	1 725	-	-
amounts in connection with employment relations (LTL'000)	1 317	-	-
Annual bonus for the year 2008 (LTL'000)	-	-	-
Employer's social security contributions (LTL'000)	409	-	-
Other disbursements, including the employer's social security contributions (LTL'000)*:	1 032	-	-
Per member of the Management Board on average (LTL'000) before taxes: **	344	-	-
Amounts in connection with employment relations (LTL'000)	263	-	-
Annual bonus for the previous year (LTL'000)	-	-	-
Employer's social security contributions (LTL'000)	82	-	-

• Employment termination compensation
  ** The bank Management Board consist of 5 members.

19. Significant arrangements, the Issuer being a party thereto, which arrangements, in case of any effective changes in the Issuer's controlling stake, would change or terminate

Such significant arrangements are envisaged under loan agreements; however, the contracting parties and relevant terms and conditions are deemed confidential information with regard to both the bank and other parties.

20. Agreements between the Issuer and its management bodies or employees

On 11 February 2010, the administration of SEB Bank and representatives of the bank employees signed a two-year collective bargaining agreement. The collective bargaining agreement regulates labour relations as well as terms and conditions, defines mutual obligations of the employer and the employees, additional incentive measures for the employees as well as other labour relations terms and conditions on which the employees and the employer have mutually agreed, for instance, on a sum-total working hours time, calculation of the employment record, additional vacations, etc. The collective bargaining agreement has been signed by and between the administration of SEB Bank and representative of the Labour Council with a two-year tenure. The Labour Council of SEB Bank consists of 15 employees of the bank elected by secret vote holding different positions at the bank. The collective bargaining agreement includes the terms and conditions of work and the aspects on which it may be directly agreed with the employer.

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AB SEB BANK

CONSOLIDATED SEMI-ANNUAL REPORT FOR THE 6 MONTHS PERIOD 2010

(All amounts in LTL thousand, unless indicated otherwise)

21. Information on compliance with the Corporate Governance Code

SEB Bank in substance adheres to the recommendatory-character Corporate Governance Code on the management of companies listed by Vilnius Securities Exchange approved in August 2006.

22. Data on information in public domain

The Issuer, whose securities are admitted for trading the regulated market of the Republic of Lithuania, provides the operator of the regulated market, where the Issuer's securities are traded in, i.e. Nasdaq OXM Vilnius, as well as the Lithuanian Securities Commission with the information on each material event in accordance with the procedure established by the Lithuanian Securities Commission. Information on each material event has to be made publicly available and provided to the central database of regulated information.

Over the reporting period, the bank announced the following information on material events:

On 10 February 2010, the Bank announced that, according to preliminary data, unaudited net loss suffered over the year 2009 by SEB Bank is LTL 1 546.2 million (EUR 447.8 million) and by SEB Bank Group – LTL 1 427.5 million (EUR 413.43 million). The result has been calculated in accordance with the requirements set by the acts of the Bank of Lithuania and legal acts of the Republic of Lithuania. Over the year 2008, audited net profit earned by the Bank totalled LTL 347.7 million (EUR 100.7 million) and by the group – LTL 257.8 million (EUR 74.7 million).

On 23 February 2010, the Bank announced about the Annual General Meeting of Shareholders initiated and to be convened by the Board of SEB Bank on 25 March 2010.

On 26 February 2010, SEB Bank has transferred 100 % of shares of its subsidiary company Litectus fully held by SEB Bank to company Warehold B.V., a member of the international SEB Group. Shares of the real estate management companies of the three SEB Baltic banks are assigned to Warehold B.V., which is fully owned by the SEB Group. This share acquisition is an internal optimization within SEB's Baltic operations in order to facilitate closer cooperation of real estate management activities at SEB Group level.

On 8 March, 2010 ratings agency Fitch Ratings changed SEB Bank's long-term issuer's default rating outlook from negative to stable whereas Bank's long-term issuer's default rating A, short-term issuer's default rating F1, individual rating D/E and support rating 1 remained unchanged.

On 15 March 2010 the Board of SEB Bank approved the draft decisions of the Annual General Meeting of the Shareholders of SEB Bank that will take place on 25 March 2010.

On 10 March 2010, the Board of the Bank of Lithuania granted a permission to SEB Bank to include the issue of undated subordinated notes worth EUR 100,000,000 (LTL 345, 280,000) into the bank's Tier II capital. The issue of undated subordinated notes has been acquired by SEB Bank's parent bank Skandinaviska Enskilda Banken AB (publ).

On 25 March 2010, at 10 a.m., on Gedimino 12, Vilnius, Room 511, an Annual General Meeting of Shareholders of SEB Bank (having registered office on Gedimino 12, LT-01103 Vilnius, company code 112021238) took place and decisions on all issues on the agenda were adopted: 1. Consolidated Annual Report of SEB Bank has been familiarized with; 2. Report of the auditor of SEB Bank has been heard; 3. Comments and Proposals of the Supervisory Council of SEB Bank have been heard; 4. Year 2009 Consolidated Financial Statements of SEB Bank were approved (enclosed); 5. Resolution was adopted to cover part of the losses of SEB Bank by additional contributions of shareholders in an amount no less than LTL 345,280,000 (EUR 100,000,000); 6. Distribution of the year 2009 losses of SEB Bank was approved (enclosed); 7. PricewaterhouseCoopers UAB was elected an audit company for checking SEB Bank's current-year and no more than 2 (two) further financial years' annual financial statements and President of SEB Bank was directed to execute an agreement with the audit company specifying terms and conditions for payment in consideration for its services; 8. Ted Tony Kylberg was elected to the Supervisory Council of SEB Bank as its Member until expiry of the tenure of the present Supervisory Council.

On 28 April 2010, the Bank announced that according to preliminary data, unaudited net loss sustained over the first quarter of the year 2010 by SEB Bank is LTL 59,4 million (EUR 17,2 million) and that by SEB Bank Group is LTL 80,3 million (EUR 23,3 million). The result has been calculated in accordance with the requirements set by relevant acts of the Bank of Lithuania as well as legal acts of the Republic of Lithuania. Over the first quarter of the year 2009, unaudited net profit earned by the Bank totalled LTL 26.6 million (EUR 7.7 million) and that by the group – LTL 16.2 million (EUR 4.7 million). The result of the first quarter of the year 2010 of the Bank includes sale profit resulting from transfer of shares of the Bank's subsidiary companies SEB Gyvybės Draudimas and Litectus to the SEB Group. The result of the first quarter of the year 2010 of the SEB Bank Group includes the result of Litectus in January and February; the result of SEB Gyvybės Draudimas is not included.

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AB SEB BANK

CONSOLIDATED SEMI-ANNUAL REPORT FOR THE 6 MONTHS PERIOD 2010

(All amounts in LTL thousand, unless indicated otherwise)

On 8 June 2010, the Supervisory Council of the SEB Bank resolved to accept the resignation from Vytautas Sinius from the Management Board of the SEB Bank and appointed a new Board member Virginijus Doveika. Virginijus Doveika will take his new position as member of the Management Board of the SEB Bank upon approval by the Bank of Lithuania.

President of SEB Bank

Head of Business Support Division and Chief Financial Officer of SEB Bank

Director of Finance Department of SEB Bank

Vilnius
27 August 2010

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