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SEB — Interim / Quarterly Report 2010
May 25, 2010
2966_rns_2010-05-25_c2518c8f-d34b-428f-b4a6-07137a8a6a4e.pdf
Interim / Quarterly Report
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AB SEB BANK
CONDENSED INTERIM FINANCIAL INFORMATION
FOR THE 3 MONTHS PERIOD ENDED 31 MARCH 2010
AB SEB BANK
GENERAL INFORMATION
- Reporting period
The report has been produced for the three months period ended 31 March 2010.
- 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: | [email protected] |
| 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').
AB SEB BANK
CONDENSED INTERIM INCOME STATEMENT
FOR THE 3 MONTHS PERIOD ENDED 31 MARCH 2010
(All amounts in LTL thousands unless otherwise stated)
| The Group | The Bank | |||
|---|---|---|---|---|
| January 1 - March 31 2010 | January 1 - March 31 2009 | January 1 - March 31 2010 | January 1 - March 31 2009 | |
| 209,376 | 361,551 | Interest income | 189,878 | 315,591 |
| (155,171) | (252,474) | Interest expenses | (143,507) | (217,545) |
| 54,205 | 109,077 | Net interest income | 46,371 | 98,046 |
| (121,192) | (50,246) | Impairment losses on loans | 269,807 | (52,361) |
| (37,821) | (18,615) | Impairment losses on lease portfolio | - | - |
| (8,113) | 83 | Provisions for guarantees | (8,113) | 83 |
| - | - | Other impairment losses | - | 1 |
| (167,126) | (68,778) | Total impairment losses | 261,694 | (52,277) |
| (112,921) | 40,299 | Net interest income after impairment losses | 308,065 | 45,769 |
| 51,640 | 53,149 | Fee and commissions income | 47,282 | 48,737 |
| (13,919) | (15,004) | Fee and commissions expenses | (13,156) | (14,775) |
| 37,721 | 38,145 | Net fee and commission income | 34,126 | 33,962 |
| (3,264) | 6,133 | Net gain (losses) on operations with debt securities and derivative financial instruments | (3,264) | 6,320 |
| 306 | (2,778) | Net gain (losses) on investment securities | 305 | 886 |
| 30,137 | - | Net gain on disposal of subsidiaries | 58,237 | - |
| - | - | Dividend income from subsidiaries | 3,734 | 4,816 |
| 16,417 | 16,563 | Net foreign exchange gain | 16,297 | 14,748 |
| 2,239 | 2,146 | Other income, net | 1,623 | 1,493 |
| 45,835 | 22,064 | Net investment activities | 76,932 | 28,263 |
| - | 22,983 | Net insurance premium revenue | - | - |
| - | (14,846) | Gross insurance expenses | - | - |
| - | 8,137 | Net life insurance income | - | - |
| (31,279) | (43,359) | Staff costs | (29,275) | (38,158) |
| (38,948) | (41,519) | Other administrative expenses | (36,053) | (36,769) |
| (99,592) | 23,767 | Operating (losses) profit | 353,795 | 33,067 |
| - | - | Impairment loss on investment in subsidiaries | (428,045) | - |
| (99,592) | 23,767 | (Losses) profit before income tax | (74,250) | 33,067 |
| 19,436 | (7,614) | Income tax benefit (expenses) | 14,832 | (6,495) |
| (80,156) | 16,153 | (Losses) profit for the period from continuing | (59,418) | 26,572 |
| (189) | - | Profit for the period from discontinued operations | - | - |
| (80,345) | 16,153 | Net (losses) profit for the period | (59,418) | 26,572 |
| Attributable to: | ||||
| (80,345) | 16,153 | Equity holders of the parent | (59,418) | 26,572 |
| (80,156) | 16,153 | (Losses) profit from continuing operations | (59,418) | 26,572 |
| (189) | - | Profit from discontinued operations | - | - |
| - | - | Non controlling interest | - | - |
| - | - | (Losses) profit from continuing operations | - | - |
| - | - | (Losses) profit from discontinued operations | - | - |
| (80,345) | 16,153 | (59,418) | 26,572 |
R. Kvedaras
President
A. Matusevičić
Head of Support Division, CFO
AB SEB BANK
CONDENSED INTERIM STATEMENT OF COMPREHENSIVE INCOME FOR THE 3 MONTHS PERIOD ENDED 31 MARCH 2010
(All amounts in LTL thousands unless otherwise stated)
| The Group | The Bank | |||
|---|---|---|---|---|
| January 1 - March 31 2010 | January 1 - March 31 2009 | January 1 - March 31 2010 | January 1 - March 31 2009 | |
| (80,345) | 16,153 | Net (losses) income for the year | (59,418) | 26,572 |
| Other comprehensive income: | ||||
| 3,797 | (4,733) | Net gain on available for sale financial assets | 3,797 | (4,733) |
| - Unrealised net gain (losses) arising during the period, before taxes | ||||
| 3,797 | (4,733) | - Net reclassification adjustments for realised net loss, before taxes | 3,797 | (4,733) |
| - Impairment loss on investment in available for sale securities recognised in income statement, before taxes | - | - | ||
| - | - | Amortisation of financial assets revaluation reserve | - | - |
| 749 | 749 | of reclassified financial assets | 749 | 749 |
| Income tax relating to the components of other comprehensive income | (471) | 1,141 | ||
| (471) | 1,141 | (4,075) | (2,843) | |
| 4,075 | (2,843) | Total other comprehensive income | ||
| (76,270) | 13,310 | Total comprehensive income | (55,343) | 23,729 |
R. Kvedaras
President
A. Matusevičić
Head of Support Division, CFO
4
AB SEB BANK
(All amounts in LTL thousands unless otherwise stated)
CONDENSED INTERIM STATEMENT OF FINANCIAL POSITION
AS OF 31 MARCH 2010
| The Group | The Bank | |||
|---|---|---|---|---|
| 31 March 2010 | 31 December 2009 | 31 March 2010 | 31 December 2009 | |
| Assets | ||||
| 368,195 | 420,403 | Cash on hand | 368,195 | 420,403 |
| 429,140 | 384,981 | Balances with the Central Bank | 429,140 | 384,981 |
| 2,314,898 | 3,118,698 | Due from banks, net | 2,314,898 | 3,118,698 |
| 69,287 | 65,818 | Government securities available for sale | 68,674 | 65,194 |
| 70,415 | 48,203 | Financial assets at fair value through profit and loss | 41,416 | 19,203 |
| 182,549 | 153,483 | Derivative financial instruments | 182,549 | 153,483 |
| 42,200 | 20,069 | Loans to credit and financial institutions, net of impairment losses | 386,160 | 348,856 |
| 16,669,977 | 17,185,394 | Loans to customers, net of impairment losses | 16,678,604 | 17,194,089 |
| 2,250,317 | 2,503,885 | Finance lease receivable, net of impairment losses | - | - |
| 1,728,370 | 1,719,512 | Investment securities: | ||
| 431 | 337 | - loans and receivables | 1,728,370 | 1,719,512 |
| 13,534 | 12,748 | - available for sale | 431 | 337 |
| - | - | - held to maturity | 13,534 | 12,748 |
| 185,084 | 169,046 | Investments in subsidiaries | 38,616 | 38,616 |
| 53,386 | 56,509 | Intangible fixed assets | 184,839 | 168,764 |
| 3,854 | 4,275 | Property, plant and equipment | 52,491 | 55,847 |
| - | - | Assets under operating lease | - | - |
| 44,166 | 62,231 | Non-current assets held for sale | - | - |
| 296,355 | 277,245 | Investment property | 1,583 | 1,599 |
| 280,967 | 333,845 | Deferred tax asset | 193,805 | 179,444 |
| 25,003,125 | 26,536,682 | Other assets, net of impairment losses | 120,236 | 156,991 |
| - | 415,635 | Assets classified as held for sale and discontinued operations | - | 13,825 |
| 25,003,125 | 26,952,317 | Total assets | 22,803,541 | 24,052,590 |
| Liabilities | ||||
| 36 | 31 | Amounts owed to the Central Bank | 36 | 31 |
| 11,900,634 | 13,650,723 | Amounts owed to credit and financial institutions | 9,814,206 | 11,259,609 |
| 329,689 | 303,643 | Derivative financial instruments | 329,688 | 303,643 |
| 9,253,470 | 9,669,789 | Deposits from public | 9,253,783 | 9,673,732 |
| - | - | Liabilities in life insurance operations | - | - |
| - | - | Liabilities to investment contract holders | - | - |
| 41,031 | 44,029 | Accrued expenses and deferred income | 39,299 | 41,758 |
| - | 185 | Income tax payable | - | - |
| 600,141 | 597,195 | Subordinated loans | 600,141 | 597,195 |
| 975,181 | 697,841 | Debt securities in issue | 975,181 | 699,854 |
| - | - | Deferred tax liabilities | - | - |
| 108,873 | 78,639 | Other liabilities and provisions | 80,075 | 55,738 |
| 23,209,055 | 25,042,075 | Liabilities included in assets classified as held for sale and discontinued operations | 21,092,409 | 22,631,560 |
| - | 385,347 | Total liabilities | 21,092,409 | 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 |
| (10,706) | (14,781) | Financial assets revaluation reserve | (10,706) | (14,781) |
| 165,425 | 135,160 | Legal reserve | 163,221 | 133,151 |
| 9,943 | 9,778 | General and other reserves | 9,943 | 9,778 |
| 593,799 | 359,129 | Retained earnings | 511,899 | 256,107 |
| 1,794,070 | 1,524,895 | 1,711,132 | 1,421,030 | |
| - | - | Non controlling interest in equity | - | - |
| 1,794,070 | 1,524,895 | Total equity | 1,711,132 | 1,421,030 |
| 25,003,125 | 26,952,317 | Total liabilities and equity | 22,803,541 | 24,052,590 |
R. Kvedaras
President
A. Matusevičić
Head of Support Division, CFO
AB SEB BANK
CONDENSED INTERIM STATEMENT OF CHANGES IN EQUITY FOR THE 3 MONTHS PERIOD ENDED 31 MARCH 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
31 March 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
31 March 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 | |
| - | - | (3,592) | - | - | - | (3,592) | - | (3,592) | |
| - | - | 749 | - | - | - | 749 | - | 749 | |
| - | - | - | - | - | 16,153 | 16,153 | - | 16,153 | |
| - | - | (2,843) | - | - | 16,153 | 13,310 | - | 13,310 | |
| - | - | - | 57,766 | - | (57,766) | - | - | - | |
| 1,034,575 | 1,034 | (35,402) | 135,160 | 9,338 | 1,112,177 | 2,256,882 | - | 2,256,882 | |
| 1,034,575 | 1,034 | (14,781) | 135,160 | 9,778 | 359,129 | 1,524,895 | - | 1,524,895 | |
| - | - | 3,326 | - | - | - | 3,326 | - | 3,326 | |
| - | - | 749 | - | - | - | 749 | - | 749 | |
| - | - | - | - | - | (80,345) | (80,345) | - | (80,345) | |
| - | - | 4,075 | - | - | (80,345) | (76,270) | - | (76,270) | |
| - | - | - | - | - | 345,280 | 345,280 | - | 345,280 | |
| - | - | - | - | 165 | - | 165 | - | 165 | |
| - | - | - | 30,265 | - | (30,265) | - | - | - | |
| 1,034,575 | 1,034 | (10,706) | 165,425 | 9,943 | 593,799 | 1,794,070 | - | 1,794,070 |
R. Kvedaras
President
A. Matusevičić
Head of Support Division, CFO
AB SEB BANK
CONDENSED INTERIM STATEMENT OF CHANGES IN EQUITY FOR THE 3 MONTHS PERIOD ENDED 31 MARCH 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 | - | - | (3,592) | - | - | - | (3,592) |
| Amortisation of financial assets revaluation reserve of reclassified financial assets | - | - | 749 | - | - | - | 749 |
| Net profit for the year | - | - | - | - | - | 26,572 | 26,572 |
| Total comprehensive income | - | - | (2,843) | - | - | 26,572 | 23,729 |
| Transfers to reserves | - | - | - | 58,512 | - | (58,512) | - |
| 31 March 2009 | 1,034,575 | 2,200 | (35,402) | 133,151 | 9,338 | 1,138,304 | 2,282,166 |
| 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 | - | - | 3,326 | - | - | - | 3,326 |
| Amortisation of financial assets revaluation reserve of reclassified financial assets | - | - | 749 | - | - | - | 749 |
| Net profit for the year | - | - | - | - | - | (59,418) | (59,418) |
| Total comprehensive income | - | - | 4,075 | - | - | (59,418) | (55,343) |
| Shareholder's contribution | - | - | - | - | 165 | - | 165 |
| Share-based compensation | - | - | - | - | - | 345,280 | 345,280 |
| Transfers to reserves | - | - | - | 30,070 | - | (30,070) | - |
| 31 March 2010 | 1,034,575 | 2,200 | (10,706) | 163,221 | 9,943 | 511,899 | 1,711,132 |
R. Kvedaras
President
A. Matusevičić
Head of Support Division, CFO
AB SEB BANK
CONDENSED INTERIM STATEMENT OF CASH FLOWS FOR THE 3 MONTHS PERIOD ENDED 31 MARCH 2010
(All amounts in LTL thousands unless otherwise stated)
| The Group | The Bank | |||
|---|---|---|---|---|
| 1 January - 31 March 2010 | 1 January - 31 March 2009 | 1 January - 31 March 2010 | 1 January - 31 March 2009 | |
| 51,841 | 54,749 | Net cash from operating activities before change in operating assets | 35,375 | 12,158 |
| 649,787 | (677,439) | Net increase in operating assets | 581,510 | (457,269) |
| (399,402) | (110,303) | Net increase in operating liabilities | (398,550) | (76,957) |
| 302,226 | (732,993) | Net cash from (to) operating activities | 218,335 | (522,068) |
| (222) | (23,089) | Income tax paid | - | (22,320) |
| 302,004 | (756,082) | Net cash from (to) operating activities after income tax | 218,335 | (544,388) |
| 244,132 | 78,737 | Cash used in investing activities | 25,694 | (212,114) |
| (1,126,422) | 36,657 | Cash (used in) received financing activities | (824,316) | 115,976 |
| (580,286) | (640,688) | Net increase in cash | (580,287) | (640,526) |
| 2,299,863 | 1,533,652 | Cash 1 January | 2,299,863 | 1,533,245 |
| 1,719,577 | 892,964 | Cash 31 December | 1,719,576 | 892,719 |
| Specified as follows: | ||||
| - | 16 | Balance available for withdrawal with the Central Banks | - | 16 |
| 221,166 | 381,293 | Overnight deposits | 221,165 | 381,293 |
| 368,194 | 408,714 | Cash on hand | 368,195 | 408,714 |
| 1,130,217 | 102,941 | Current accounts with other banks | 1,130,216 | 102,696 |
| 1,719,577 | 892,964 | 1,719,576 | 892,719 |
R. Kvedaras
President
A. Matusevičić
Head of Support Division, CFO
AB SEB BANK
NOTES TO THE CONDENSED INTERIM FINANCIAL STATEMENTS FOR THE 3 MONTHS PERIOD ENDED 31 MARCH 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: UAB 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 99.7 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.
AB SEB BANK
NOTES TO THE CONDENSED INTERIM FINANCIAL STATEMENTS FOR THE 3 MONTHS PERIOD ENDED 31 MARCH 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's 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
AB SEB BANK
NOTES TO THE CONDENSED INTERIM FINANCIAL STATEMENTS
FOR THE 3 MONTHS PERIOD ENDED 31 MARCH 2010
(All amounts in LTL thousands unless otherwise stated)
NOTE 3 SEGMENT REPORTING (CONTINUED)
Business segments of the Group for the year ended 31 March 2010 were as follows:
| Baltic Division | Merchant Banking | Life insurance | Asset Management | Treasury | Operations | Staff Functions | Information Technologies | Eliminations | Total Group | |
|---|---|---|---|---|---|---|---|---|---|---|
| Net interest income | 63,160 | 3,414 | - | 96 | (25,380) | - | - | - | (5) | 41,285 |
| - Internal | (65,227) | 2,380 | - | 89 | 62,763 | - | - | - | (5) | - |
| - External | 128,387 | 1,034 | - | 7 | (88,143) | - | - | - | - | 41,285 |
| Net commission income | 31,595 | 3,054 | - | 2,803 | (300) | - | - | - | - | 37,152 |
| - Internal | 1,828 | 665 | - | (2,193) | (300) | - | - | - | - | - |
| - External | 29,767 | 2,389 | - | 4,996 | - | - | - | - | - | 37,152 |
| Net financial income | 3,840 | 24,980 | - | - | (1,528) | - | - | - | - | 27,292 |
| Net life insurance income | - | - | - | - | - | - | - | - | - | - |
| Net other income | 29,909 | 2 | - | - | 8 | - | - | 10,124 | (10,180) | 29,863 |
| Net operating income | 128,504 | 31,450 | - | 2,899 | (27,200) | - | - | 10,124 | (10,185) | 135,592 |
| Total staff costs, other administrative expenses and goodwill impairment loss | (63,862) | (4,143) | - | (964) | (119) | 462 | 1,143 | (10,653) | 10,185 | (67,951) |
| Capital losses | (6) | - | - | - | - | - | - | - | - | (6) |
| Total impairment losses | (167,449) | - | - | - | - | - | - | - | - | (167,449) |
| Loss before income tax | (102,813) | 27,307 | - | 1,935 | (27,319) | 462 | 1,143 | (529) | - | (99,814) |
| Income tax benefit | 19,299 | 106 | - | 64 | - | - | - | - | - | 19,469 |
| Net (loss) for the year | (83,514) | 27,413 | - | 1,999 | (27,319) | 462 | 1,143 | (529) | - | (80,345) |
| 31 March 2009 | ||||||||||
| Total assets | 20,085,517 | 533,019 | - | 19,405 | 13,441,893 | - | - | - | (9,076,709) | 25,003,125 |
| Total liabilities | 18,328,063 | 505,606 | - | 16,799 | 13,479,917 | - | - | - | (9,121,330) | 23,209,055 |
| Acquisition of intangible assets and property, plant and equipment | 20,294 | - | - | - | - | - | - | - | - | 20,294 |
AB SEB BANK
NOTES TO THE CONDENSED INTERIM FINANCIAL STATEMENTS
FOR THE 3 MONTHS PERIOD ENDED 31 MARCH 2010
(All amounts in LTL thousands unless otherwise stated)
NOTE 3 SEGMENT REPORTING (CONTINUED)
For the year ended, 31 March 2010 reconciliation between Group's Segment reporting and financial statements is presented below:
| 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 | 41,285 | 19,932 | - | - | - | (7,012) | 54,205 |
| Net commission income | 37,152 | - | - | - | - | 569 | 37,721 |
| Net investment activities | 27,292 | (19,932) | - | - | 30,137 | 6,099 | 43,596 |
| Net life insurance income | - | - | - | - | - | - | - |
| Net other income | 29,863 | - | - | - | (30,137) | 2,513 | 2,239 |
| Net operating income | 135,592 | - | - | - | - | 2,169 | 137,761 |
| Total staff costs, other administrative expenses and goodwill impairment loss | (67,951) | - | 222 | (323) | - | (2,175) | (70,227) |
| Capital losses | (6) | - | - | - | - | 6 | - |
| Total impairment losses | (167,449) | - | - | 323 | - | - | (167,126) |
| (Losses) profit before income tax | (99,814) | - | 222 | - | - | - | (99,592) |
| Income tax benefit | 19,469 | - | (33) | - | - | - | 19,436 |
| Profit for the year from discontinued operations | - | - | (189) | - | - | - | (189) |
| Net (losses) for the period | (80,345) | - | - | - | - | - | (80,345) |
AB SEB BANK
NOTES TO THE CONDENSED INTERIM FINANCIAL STATEMENTS
FOR THE 3 MONTHS PERIOD ENDED 31 MARCH 2010
(All amounts in LTL thousands unless otherwise stated)
NOTE 3 SEGMENT REPORTING (CONTINUED)
Business segments of the Group for the year ended 31 March 2009 were as follows:
| Baltic Division | Merchant Banking | Life insurance | Asset Management | Treasury | Operations | Staff Functions | Information Technologies | Eliminations | Total Group | |
|---|---|---|---|---|---|---|---|---|---|---|
| Net interest income | 85,080 | 2,575 | - | 49 | 17,959 | - | - | - | 107 | 105,770 |
| - Internal | (177,306) | 5,889 | - | 42 | 171,268 | - | - | - | 107 | - |
| - External | 262,386 | (3,314) | - | 7 | (153,309) | - | - | - | - | 105,770 |
| Net commission income | 32,909 | 3,718 | - | 2,588 | - | - | - | - | (627) | 38,588 |
| - Internal | 1,795 | 233 | - | (1,401) | - | - | - | - | (627) | - |
| - External | 31,114 | 3,485 | - | 3,989 | - | - | - | - | - | 38,588 |
| Net financial income | 5,251 | 22,848 | - | - | (3,880) | - | - | - | - | 24,219 |
| Net life insurance income | - | - | 8,048 | - | - | - | - | - | (109) | 7,939 |
| Net other income | 2,477 | (2,753) | - | - | 6 | 39 | 344 | 8,605 | (9,593) | (875) |
| Net operating income (losses) | 125,717 | 26,388 | 8,048 | 2,637 | 14,085 | 39 | 344 | 8,605 | (10,222) | 175,641 |
| Total staff costs and other administrative expenses | (73,989) | (6,521) | (4,741) | (1,611) | (102) | (39) | 2,204 | (9,258) | 10,222 | (83,835) |
| Capital (losses) | 557 | - | - | - | - | - | - | - | - | 557 |
| Total impairment losses | (68,596) | - | - | - | - | - | - | - | - | (68,596) |
| (Losses) profit before income tax | (16,311) | 19,867 | 3,307 | 1,026 | 13,983 | - | 2,548 | (653) | - | 23,767 |
| Income tax expense | (7,630) | 203 | (66) | (121) | - | - | - | - | - | (7,614) |
| Net (losses) profit for the period | (23,941) | 20,070 | 3,241 | 905 | 13,983 | - | 2,548 | (653) | - | 16,153 |
| 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 3 MONTHS PERIOD ENDED 31 MARCH 2010
(All amounts in LTL thousands unless otherwise stated)
NOTE 3 SEGMENT REPORTING (CONTINUED)
For the year ended, 31 March 2009 reconciliation between Group's Segment reporting and financial statements is presented below:
| Segment Reporting | Eliminations | ||||||
|---|---|---|---|---|---|---|---|
| Interest income from Hedged L&R | UAB SEB Gyvybes draudimas Adjustments | Lease Provisions Adjustment | Grouping Reclassifi-cation | Other reconciling entries | Financial Statements | ||
| Net interest income | 105,770 | 19,888 | - | - | - | (16,581) | 109,077 |
| Net commission income | 38,588 | - | - | - | - | (443) | 38,145 |
| Net investment activities | 24,219 | (19,888) | - | - | - | 15,587 | 19,918 |
| Net life insurance income | 7,939 | - | 198 | - | - | - | 8,137 |
| Net other income | (875) | - | - | - | 1,027 | 1,994 | 2,146 |
| Net operating income | 175,641 | - | 198 | - | 1,027 | 557 | 177,423 |
| Total staff costs and other administrative expenses | (83,835) | - | (198) | 182 | (1,027) | - | (84,878) |
| Capital losses | 557 | - | - | - | - | (557) | - |
| Total impairment losses | (68,596) | - | - | (182) | - | - | (68,778) |
| Profit before income tax | 23,767 | - | - | - | - | - | 23,767 |
| Income tax expense | (7,614) | - | - | - | - | - | (7,614) |
| Net profit for the period | 16,153 | - | - | - | - | - | 16,153 |
AB SEB BANK
NOTES TO THE CONDENSED INTERIM FINANCIAL STATEMENTS
FOR THE 3 MONTHS PERIOD ENDED 31 MARCH 2010
(All amounts in LTL thousands unless otherwise stated)
NOTE 4 ASSETS UNDER MANAGEMENT
| The Group | The Bank | |||
|---|---|---|---|---|
| 31 March 2010 | 31 December 2009 | 31 March 2010 | 31 December 2009 | |
| Private individuals and corporate customers' assets | ||||
| 495,095 | 483,155 | under management | - | - |
| 201,382 | 195,885 | Pillar two conservative pension fund (SEB Pension 1) | - | - |
| 783,692 | 726,568 | Pillar two balanced pension fund (SEB Pension 2) | - | - |
| 90,699 | 79,217 | Pillar two equity pension fund (SEB Pension 3) | - | - |
| Conservative voluntary pension fund | ||||
| 13,511 | 12,817 | (SEB Pension 1 Plus) | - | - |
| Balanced voluntary pension fund | ||||
| 44,587 | 41,175 | (SEB Pension 2 Plus) | - | - |
| - | CIS equity fund | - | - | |
| - | CIS bond fund | - | - | |
| 119,670 | 110,854 | World market fund of funds | - | - |
| 100,441 | 90,810 | SEB equity fund of funds | - | - |
| 1,849,077 | 1,740,481 | Total assets under management | - | - |
NOTE 5 OFF BALANCE SHEET ITEMS
| The Group | The Bank | |||
|---|---|---|---|---|
| 31 March 2010 | 31 December 2009 | 31 March 2010 | 31 December 2009 | |
| 1,901,297 | 1,983,430 | Agreements to grant loans | 2,344,527 | 2,186,797 |
| 503,656 | 564,861 | Guarantees issued | 516,246 | 577,432 |
| 66,614 | 89,458 | Letters of credit issued | 66,614 | 89,458 |
| Commitments to purchase assets and other | ||||
| 314,076 | 306,665 | commitments | - | - |
| - | - | Avalised bills of exchange | - | - |
| 421 | 391 | Commitments to sell securities | 421 | 391 |
| 26 | 23 | Customs guarantees collateralised by deposits | 26 | 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 year can be specified as follows:
| The Group | Interest | The Bank | |||
|---|---|---|---|---|---|
| 31 March 2010 | 31 December 2009 | rate % | 31 March 2010 | 31 December 2009 | |
| 2,222,875 | 3,071,547 | Outstanding loan amount | 0.24-2.56 | 2,222,372 | 3,071,409 |
| 51,038 | 29,186 | Positive replacement values (HFT) | - | 51,038 | 29,186 |
| 2,617 | 4,150 | Other assets | - | 1,972 | 1,708 |
| 11,841,675 | 13,354,393 | Outstanding deposit amount | 0.24-5.5 | 9,438,749 | 10,537,685 |
| 679,810 | 307,467 | Other liabilities | - | 679,514 | 307,622 |
| 43,145 | 12,420 | Unused granted overdraft facilities | - | 43,145 | 12,420 |
| 24,828 | 20,787 | Guarantees issued | - | 24,828 | 20,787 |
| For three months period ended | |||||
| 31 March 2010 and 2009 | |||||
| 1,959 | 4,537 | Interest income | - | 1,956 | 4,537 |
| (90,669) | (161,468) | Interest expense | - | (78,857) | (126,206) |
| Other services received and cost | |||||
| 188 | (1,787) | incurred from SEB group, net | - | (1,647) | (2,983) |
AB SEB BANK
NOTES TO THE CONDENSED INTERIM FINANCIAL STATEMENTS
FOR THE 3 MONTHS PERIOD ENDED 31 MARCH 2010
(All amounts in LTL thousands unless otherwise stated)
NOTE 6 RELATED PARTIES (CONTINUED)
Transactions with parent bank during the year can be specified as follows:
| 31 March 2010 | 31 December 2009 | rate % | 31 March 2010 | 31 December 2009 | |
|---|---|---|---|---|---|
| 2,196,050 | 3,052,852 | Outstanding loan amount | 0.24-1.77 | 2,189,936 | 3,052,714 |
| 51,038 | 29,186 | Positive replacement values (HFT) | - | 51,038 | 29,186 |
| 1,321 | 2,696 | Other assets | - | 257 | 345 |
| 0.25-5.5 | |||||
| 11,830,457 | 13,343,398 | Outstanding deposit amount | 9,420,187 | 10,526,690 | |
| 679,396 | 307,467 | Other liabilities | - | 677,040 | 307,467 |
| 33,017 | 8,417 | Unused granted overdraft facilities | - | 33,017 | 8,417 |
| 3,918 | 4,708 | Guarantees issued at the year end | - | 3,918 | 4,708 |
| For three months period ended 31 March 2010 and 2009 | |||||
| 1,905 | 4,233 | Interest income | - | 1,904 | 4,233 |
| (90,650) | (161,444) | Interest expense | - | (78,838) | (126,182) |
| Other services received and cost | |||||
| (858) | (858) | incurred from SEB group, net | - | (2,509) | (1,523) |
Transactions between the Bank and its subsidiaries during the year can be specified as follows:
| Interest rate % | The Bank | ||
|---|---|---|---|
| 31 March 2010 | 31 December 2009 | ||
| Off-balance sheet commitments: | |||
| Agreements to grant loans | - | 443,126 | 203,242 |
| Guarantees issued | - | 12,590 | 12,571 |
| Letters of credit issued | - | - | - |
| Outstanding loan amounts: | |||
| UAB SEB Lizingas | 0.22-11.50 | 343,960 | 719,787 |
| UAB SEB Enskilda | - | - | - |
| UAB SEB Venture Capital | 6.89-10.00 | 11,000 | 11,000 |
| Outstanding deposit amounts: | |||
| UAB SEB Venture Capital | 0.15 | 313 | 748 |
| UAB SEB Investicių Valdymas | 0.1-0.15 | 15,746 | 14,153 |
| UAB SEB Enskilda | 0.1-2.10 | 10,168 | 10,402 |
| UAB SEB Gyvybės Draudimas | - | - | 6,839 |
| UAB Litecitus | - | - | 3,194 |
| UAB SEB Lizingas | 0.10-1.40 | 290,557 | 394,200 |
| Other assets | - | 5,923 | 2,377 |
| Issued debt securities purchased by subsidiaries | - | - | 2,013 |
| For three months period ended 31 March 2010 and 2009 | |||
| Interest income | - | 2,590 | 9,595 |
| Interest expense | - | (151) | (336) |
| Dividend income | - | 3,734 | 4,816 |
| Other services received and cost incurred from subsidiaries, net | - | (34,618) | 3,430 |
| Impairment losses for loan outstanding from UAB SEB Lizingas | - | (428,045) | - |
AB SEB BANK
NOTES TO THE CONDENSED INTERIM FINANCIAL STATEMENTS
FOR THE 3 MONTHS PERIOD ENDED 31 MARCH 2010
(All amounts in LTL thousands unless otherwise stated)
NOTE 7 DEBT SECURITIES ISSUANCE AND REDEMPTION
During the first quarter of the year 2010 the Bank successfully placed 11 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 | Altria 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 OAO, 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 OAO, 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 |
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).
17
AB SEB BANK
NOTES TO THE CONDENSED INTERIM FINANCIAL STATEMENTS
FOR THE 3 MONTHS PERIOD ENDED 31 MARCH 2010
(All amounts in LTL thousands unless otherwise stated)
NOTE 7 DEBT SECURITIES ISSUANCE AND REDEMPTION (CONTINUED)
During the first quarter of the year 2010 the Bank successfully redeemed its 22 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 ir Swedbank |
| 2007.01.30 | 2010.02.17 | 1114 days | LTL | 10,655,500 | SEB, Danske Bank, DnB NOR Bank ASA, Nordea Bank ir Swedbank |
| 2007.01.30 | 2010.02.17 | 1114 days | EUR | 10,242,385 | SEB, Danske Bank, DnB NOR Bank ASA, Nordea Bank ir 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 | 8.7% |
18
AB SEB BANK
NOTES TO THE CONDENSED INTERIM FINANCIAL STATEMENTS
FOR THE 3 MONTHS PERIOD ENDED 31 MARCH 2010
(All amounts in LTL thousands unless otherwise stated)
NOTE 8 DISPOSAL OF SUBSIDIARIES
On 13 January 2010 100% of subsidiary shares UAB SEB Gyvybès 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 Gyvbybès 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 Litec tus 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 Litec tus
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 |
AB SEB BANK
NOTES TO THE CONDENSED INTERIM FINANCIAL STATEMENTS FOR THE 3 MONTHS PERIOD ENDED 31 MARCH 2010
(All amounts in LTL thousands unless otherwise stated)
NOTE 9 SIGNIFICANT EVENTS AFTER THE BALANCE SHEET DATE
After 31 March 2010 the Bank successfully completed 6 debt securities issues with the nominal value of LTL 8,58 mil.
After 31 March 2010 the Bank successfully redeemed 8 debt securities issues with the nominal value of LTL 55,558 thousand.
After 31 March 2010 date the Bank started placing 6 debt securities issues that, as of 24 April 2010, amounted to LTL 12,209 thousand 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.