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SEB Interim / Quarterly Report 2009

Feb 26, 2010

2966_rns_2010-02-26_3cb6f3e6-cbf8-48c7-9020-c813a26b8a45.pdf

Interim / Quarterly Report

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AB SEB BANK

CONDENSED INTERIM FINANCIAL INFORMATION
FOR THE 12 MONTHS PERIOD ENDED 31 DECEMBER 2009


AB SEB BANK

GENERAL PROVISIONS

  1. Reporting period

The report has been produced for the twelve months period ended 31 December 2009

  1. The issuer's key data
Issuer's name: SEB Bank
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 venue 29 November 1990, Bank of Lithuania
Company code 112021238
Company registration number AB90-4
Website: www.seb.lt.

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


AB SEB BANK

CONDENSED INTERIM INCOME STATEMENT

FOR THE 12 MONTHS PERIOD ENDED 31 DECEMBER 2009

(All amounts in LTL thousands unless otherwise stated)

The Bank
2009 2008
Forth quarter ended 31 December 2009 Year ended 31 December 2009 Forth quarter ended 31 December 2009 Year ended 31 December 2009
Interest income 209,348 1,039,856 379,269 1,414,468
Interest expenses (174,180) (734,983) (231,381) (833,230)
Net interest income 35,168 304,873 147,888 581,238
Impairment losses on loans (749,832) (1,551,380) (109,912) (151,185)
Impairment losses on lease portfolio - - - -
Provisions for guarantees (737) (17,010) (834) (1,378)
Other impairment losses 2 3 88 7
Total impairment losses (750,567) (1,568,387) (110,658) (152,556)
Net interest income after impairment losses (715,399) (1,263,514) 37,230 428,682
Fee and commissions income 53,682 206,922 55,775 227,155
Fee and commissions expenses (16,647) (64,512) (17,449) (67,421)
Net fee and commission income 37,035 142,410 38,326 159,734
Net gain (loss) on operations with debt securities and derivative financial instruments (10,636) (24,450) (27,710) (34,063)
Net gain (loss) on investment securities 5,773 10,720 3,010 2,837
Impairment loss on investment securities available for sale - (14,712) - -
Dividend income from subsidiaries - 4,816 - 58,591
Net foreign exchange gain 18,991 73,592 27,839 89,144
Other income, net 1,738 6,549 74 6,995
Net investment activities 15,866 56,515 3,213 123,504
Net insurance premium revenue - - - -
Gross insurance expenses - - - -
Net life insurance income - - - -
Staff costs (39,309) (144,247) (25,056) (147,890)
Other administrative expenses (59,384) (177,136) (49,042) (170,669)
Operating (loss) profit (761,191) (1,385,972) 4,671 393,361
Impairment loss on intangible assets (goodwill) - (169,550) - -
Impairment loss on investment in subsidiaries (175,105) (175,105) - -
(Loss) Profit before income tax (936,296) (1,730,627) 4,671 393,361
Income tax benefit (expenses) 16,555 184,442 (1,606) (45,633)
(Loss) Profit for the year from continuing operations (919,741) (1,546,185) 3,065 347,728
Profit for the year from discontinued operations - - - -
Net (loss) profit for the year (919,741) (1,546,185) 3,065 347,728
Attributable to:
Equity holders of the parent (919,741) (1,546,185) 3,065 347,728
(Loss) Profit for the year from continuing operations (919,741) (1,546,185) 3,065 347,728
Profit for the year from discontinued operations - - - -
Non controlling interest
(Loss) Profit for the year from continuing operations
(Loss) Profit for the year from discontinued operations

R. Kvedaras

President

A. Matusevičić

Head of Support Division, CFO


AB SEB BANK

CONDENSED INTERIM INCOME STATEMENT

FOR THE 12 MONTHS PERIOD ENDED 31 DECEMBER 2009

(All amounts in LTL thousands unless otherwise stated)

The Group
2009 2008
Forth quarter ended 31 December 2009 Year ended 31 December 2009 Forth quarter ended 31 December 2009 Year ended 31 December 2009
Interest income 219,594 1,150,049 441,230 1,639,325
Interest expenses (186,363) (821,331) (274,350) (987,173)
Net interest income 33,231 328,718 166,880 652,152
Impairment losses on loans (360,333) (1,161,881) (109,912) (151,185)
Impairment losses on lease portfolio (225,354) (552,477) (94,676) (104,094)
Provisions for guarantees (737) (17,010) (834) (1,378)
Other impairment losses (850) (1,921) 88 7
Total impairment losses (587,274) (1,733,289) (205,334) (256,650)
Net interest income after impairment losses (554,043) (1,404,571) (38,454) 395,502
Fee and commissions income 56,344 224,559 61,816 257,093
Fee and commissions expenses (17,817) (67,581) (17,882) (69,348)
Net fee and commission income 38,527 156,978 43,934 187,745
Net gain (loss) on operations with debt securities and derivative financial instruments (10,636) (24,450) (30,274) (35,836)
Net gain (loss) on investment securities 5,286 9,741 (84,832) (89,611)
Impairment loss on investment securities available for sale - (14,712) - -
Dividend income from subsidiaries - - - -
Net foreign exchange gain 19,131 72,883 30,438 90,928
Other income, net 17,183 9,858 3,599 10,671
Net investment activities 30,964 53,320 (81,069) (23,848)
Net insurance premium revenue (121,964) - 74,521 144,311
Gross insurance expenses 100,617 - 15,308 (35,649)
Net life insurance income (21,347) - 89,829 108,662
Staff costs (36,404) (156,954) (30,887) (176,024)
Other administrative expenses (59,545) (190,777) (58,664) (193,736)
Operating (loss) profit (601,848) (1,542,004) (75,311) 298,301
Impairment loss on intangible assets (goodwill) - (169,550) - -
Impairment loss on investment in subsidiaries - - - -
(Loss) Profit before income tax (601,848) (1,711,554) (75,311) 298,301
Income tax benefit (expenses) 99,087 266,041 12,198 (40,521)
(Loss) Profit for the year from continuing operations (502,761) (1,445,513) (63,113) 257,780
Profit for the year from discontinued operations 18,058 - - -
Net (loss) profit for the year (484,703) (1,445,513) (63,113) 257,780
Attributable to:
Equity holders of the parent (484,703) (1,445,513) (63,113) 257,780
(Loss) Profit for the year from continuing operations (502,761) (1,445,513) (63,113) 257,780
Profit for the year from discontinued operations - 18,058 - -
Non controlling interest
(Loss) Profit for the year from continuing operations - - - -
(Loss) Profit for the year from discontinued operations - - - -
(502,761) (1,427,455) (63,113) 257,780

R. Kvedaras

President

A. Matusevičić

Head of Support Division, CFO


AB SEB BANK

(All amounts in LTL thousands unless otherwise stated)

CONDENSED INTERIM STATEMENT OF FINANCIAL POSITION AS OF 31 DECEMBER 2009

The Group The Bank
2009 2008 Assets 2009 2008
420,403 497,629 Cash on hand 420,403 497,629
384,981 729,273 Balances with the Central Banks 384,981 729,273
3,118,698 830,593 Due from banks, net 3,118,698 830,186
65,818 63,612 Financial assets held for trading 65,194 62,987
48,203 399,232 Financial assets designated at fair value 19,203 95,124
153,483 114,792 Derivative financial instruments 153,483 114,792
Loans to credit and financial institutions, net of impairment losses 348,856 937,335
20,069 39,651
17,185,394 20,280,295 Loans to customers, net of impairment losses 17,194,089 20,287,969
2,503,885 4,223,542 Finance lease receivable, net of impairment losses - -
Investment securities:
1,719,512 1,750,534 - loans and receivables 1,719,512 1,750,534
337 18,468 - available for sale 337 18,467
12,748 12,989 - held to maturity 12,748 12,989
- - Investments in subsidiaries 38,616 62,441
169,046 240,238 Intangible fixed assets 168,764 239,578
56,509 65,001 Property, plant and equipment 55,847 63,232
4,275 7,547 Assets under operating lease - -
- 25,411 Non-current assets held for sale - 1,524
62,231 - Investment property 1,599 -
277,245 15,682 Deferred tax asset 179,444 -
333,845 210,546 Other assets, net of impairment losses 156,991 126,437
26,536,682 29,525,035 24,038,765 25,830,497
415,635 - Assets classified as held for sale and discontinued operations 13,825 -
26,952,317 29,525,035 Total assets 24,052,590 25,830,497
Liabilities
31 24 Amounts owed to the Central Banks 31 24
13,650,723 15,156,610 Amounts owed to credit and financial institutions 11,259,609 11,764,275
303,643 293,293 Derivative financial instruments 303,643 293,293
9,669,789 10,203,009 Deposits from the public 9,673,732 10,208,909
- 219,919 Liabilities in life insurance operations - -
- 45,296 Liabilities to investment contract holders - -
44,029 51,309 Accrued expenses and deferred income 41,758 43,522
185 3,203 Income tax payable - -
597,195 603,187 Subordinated loans 597,195 603,187
697,841 607,793 Debt securities in issue 699,854 608,576
- 403 Deferred tax liabilities - 403
78,639 97,417 Other liabilities and provisions 55,738 49,871
25,042,075 27,281,463 22,631,560 23,572,060
385,347 - Liabilities included in assets classified as held for sale and discontinued operations - -
25,427,422 27,281,463 Total liabilities 22,631,560 23,572,060
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
(14,781) (32,559) Financial assets revaluation reserve (14,781) (32,559)
135,160 77,394 Legal reserve 133,151 74,639
9,778 9,338 General and other reserves 9,778 9,338
359,129 1,153,790 Retained earnings 256,107 1,170,244
1,524,895 2,243,572 1,421,030 2,258,437
- - Non controlling interest in equity - -
1,524,895 2,243,572 Total equity 1,421,030 2,258,437
26,952,317 29,525,035 Total liabilities and equity 24,052,590 25,830,497

R. Kvedaras

President

A. Matusevičić

Head of Support Division, CFO


AB SEB BANK

CONDENCED INTERIM STATEMENT OF CHANGES IN EQUITY FOR THE 12 MONTHS PERIOD ENDED 31 DECEMBER 2009

(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 2007 1,034,575 2,200 (7,442) 31,348 9,338 865,807 1,935,826
Net change in available for sale investments, net of deferred tax - - (26,616) - - - (26,616)
Amortisation of financial assets revaluation reserve of reclassified financial assets - - 1,499 - - - 1,499
Net profit for the year - - - - - 347,728 347,728
Total comprehensive income - - (25,117) - - 347,728 322,611
Transfers to reserves - - - 43,291 - (43,291) -
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 tax - - 14,841 - - - 14,841
Amortisation of financial assets revaluation reserve of reclassified financial assets - - 2,937 - - - 2,937
Net profit for the year - - - - - (1,546,185) (1,546,185)
Total comprehensive income - - 17,778 - - (1,546,185) (1,528,407)
Share-based compensation - - - - 440 - 440
Shareholder's contribution - - - - - 690,560 690,560
Transfers to reserves - - - 58,512 - (58,512) -
31 December 2009 1,034,575 2,200 (14,781) 133,151 9,778 256,107 1,421,030

R. Kvedaras
President

A. Matusevičić
Head of Support Division, CFO


AB SEB BANK

CONDENCED INTERIM STATEMENT OF CHANGES IN EQUITY FOR THE 12 MONTHS PERIOD ENDED 31 DECEMBER 2009

(All amounts in LTL thousands unless otherwise stated)

The Group Share capital Reserve capital Financial assets revaluation reserve Legal reserve General and other reserves Retained earnings Non controlling interest Total
31 December 2007 1,034,575 1,034 (7,442) 35,215 9,338 938,189 - 2,010,909
Net change in available for sale investments, net of deferred tax - - (26,616) - - - - (26,616)
Amortisation of financial assets revaluation reserve of reclassified financial assets - - 1,499 - - - - 1,499
Net profit for the year - - - - - 257,780 - 257,780
Total comprehensive income - - (25,117) - - 257,780 - 232,663
Transfers to reserves - - - 42,179 - (42,179) - -
31 December 2008 1,034,575 1,034 (32,559) 77,394 9,338 1,153,790 - 2,243,572
Net change in available for sale investments, net of deferred tax - - 14,841 - - - - 14,841
Amortisation of financial assets revaluation reserve of reclassified financial assets - - 2,937 - - - - 2,937
Net profit for the year - - - - - (1,427,455) - (1,427,455)
Total comprehensive income - - 17,778 - - (1,427,455) - (1,409,677)
Shareholder's contribution - - - - - 690,560 - 690,560
Share-based compensation - - - - 440 - - 440
Transfers to reserves - - - 57,766 - (57,766) - -
31 December 2009 1,034,575 1,034 (14,781) 135,160 9,778 359,129 - 1,524,895

R. Kvedaras
President

A. Matusevičić
Head of Support Division, CFO


AB SEB BANK

CONDENSED INTERIM STATEMENT OF CASH FLOWS

FOR THE 12 MONTHS PERIOD ENDED 31 DECEMBER 2009

(All amounts in LTL thousands unless otherwise stated)

The Group The Bank
2009 2008 2009 2008
276,034 441,291 Net cash from operating activities before change in operating assets 184,388 498,418
2,282,120 (2,144,868) Net increase in operating assets 1,242,810 (1,526,961)
(594,784) (750,492) Net increase in operating liabilities (574,763) (715,741)
1,963,370 (2,454,069) Net cash from (to) operating activities 852,435 (1,744,284)
(36,299) (110,471) Income tax paid (34,394) (99,393)
1,927,071 (2,564,540) Net cash from (to) operating activities after income tax 818,041 (1,843,677)
(137,531) 513,179 Cash used in investing activities (2,915) 462,604
(638,348) 2,294,565 Cash (used in) received financing activities 336,473 1,624,164
1,151,192 243,204 Net increase in cash 1,151,599 243,091
1,533,652 1,290,448 Cash 1 January 1,533,245 1,290,154
2,684,844 1,533,652 Cash 31 December 2,684,844 1,533,245
Specified as follows:
Balance available for withdrawal with the
384,981 277,457 Central Banks 384,980 277,457
125,677 186,856 Overnight deposits 125,677 186,856
420,403 497,629 Cash on hand 420,404 497,629
1,753,783 571,710 Current accounts with other banks 1,753,783 571,303
2,684,844 1,533,652 2,684,844 1,533,245

R. Kvedaras

President

A. Matusevičić

Head of Support Division, CFO


AB SEB BANK

NOTES TO THE CONDENSED INTERIM FINANCIAL STATEMENTS FOR THE 12 MONTHS PERIOD ENDED 31 DECEMBER 2009

(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 Head Office of the Bank is located at Gedimino pr. 12, Vilnius. As of 31 December 2009 the Bank had 57 customer service branches (as of 31 December 2008 – 77).

As of 31 December 2009 AB SEB Bank had 6 subsidiaries (as of 31 December 2008 – 6). The Bank and its subsidiaries thereafter are referred as the Group.

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 is investing and trading in securities as well as performs other activities set in the Law on Banks (except for operations with precious metals).

The Bank's shares are included in the non-listed list of shares of the NASDAQ OMX Vilnius. As of 31 December 2009 the largest shareholder is Skandinaviska Enskilda Banken, owning 99.71 percent of the Bank's shares.

NOTE 2 BASIS OF PRESENTATION

The books and records of the Bank and the Group are maintained in accordance with International Financial Reporting Standards (IFRS) as adopted for use in the European Union. This condensed 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 2008, as described in the annual financial statements for the year ended 31 December 2008. No new standards, amendments to standards or interpretations are mandatory for financial year ending 31 December 2009, other than already described in the annual financial statements for the year ended 31 December 2008.

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.

In the current year, the Bank and the Group has adopted all of the new and revised Standards and Interpretations issued by the International Accounting Standards Board (the IASB) and the International Financial Reporting Interpretations Committee (IFRIC) and endorsed by EU, that are relevant to the Group and the Bank operations and effective for accounting periods beginning on 1 January 2009.

The following amendments to existing standards and interpretations to published standards as adopted by EU are mandatory for accounting periods beginning on or after 1 January 2009 but are not relevant to the Bank and the Group's operations:

  • IAS 23 (Revised) 'Borrowing Costs', including amendment published by IASB in May 2008 as part of annual improvement project (effective from 1 January 2009);
  • IAS 32 (Amendment), 'Financial instruments: Presentation', and IAS 1 (Amendment), 'Presentation of financial statements' – 'Puttable financial instruments and obligations arising on liquidation' (effective from 1 January 2009);
  • IFRS 1 (Amendment) 'First time adoption of IFRS' and IAS 27 'Consolidated and separate financial statements' (effective from 1 January 2009);
  • IFRS 2 (Amendment), 'Share-based payment' (effective from 1 January 2009);
  • IFRIC 13, 'Customer loyalty programmes' (effective from 1 July 2008);

On the 23 January 2009, the EU endorsed the Improvements to IFRSs standard published in May 2008 which amends 20 existing standards, basis of conclusions and guidance. These improvements include changes in presentation, recognition and measurement as well as terminology and editorial changes. Most of these changes are effective for periods beginning on or after 1 January 2009. These amendments are not expected to have significant impact on the Bank and the Group's financial statements.

9


AB SEB BANK

NOTES TO THE CONDENSED INTERIM FINANCIAL STATEMENTS FOR THE 12 MONTHS PERIOD ENDED 31 DECEMBER 2009

(All amounts in LTL thousands unless otherwise stated)

NOTE 2 BASIS OF PRESENTATION

The following standards and amendments to existing standards have been published and are mandatory for the Bank's and the Group's accounting periods beginning on or after 1 January 2010 or later periods, but the Group and the Bank have not early adopted them:

  • IFRS 3 'Business Combinations' (revised January 2008; effective for business combinations for which the acquisition date is on or after the beginning of the first annual reporting period beginning on or after 1 July 2009);
  • IFRIC 15 'Agreements for the Construction of Real Estate' (effective for annual periods beginning on or after 1 January 2009; IFRIC 15 as adopted by the EU is effective for annual periods beginning after 31 December 2009, with early adoption permitted);
  • IFRIC 16 'Hedges of a Net Investment in a Foreign Operation' (effective for annual periods beginning on or after 1 October 2008; IFRIC 16 as adopted by the EU is effective for annual periods beginning after 30 June 2009, with early adoption permitted);
  • IAS 27 'Consolidated and Separate Financial Statements' (revised January 2008; effective for annual periods beginning on or after 1 July 2009);
  • Eligible Hedged Items—Amendment to IAS 39 'Financial Instruments: Recognition and Measurement' (effective with retrospective application for annual periods beginning on or after 1 July 2009);
  • IFRIC 17 'Distribution of Non-Cash Assets to Owners' (effective for annual periods beginning on or after 1 July 2009; IFRIC 17 as adopted by the EU is effective for annual periods beginning after 31 October 2009, with early adoption permitted);
  • IFRS 1 'First-time Adoption of International Financial Reporting Standards' (following an amendment in December 2008, effective for the first IFRS financial statements for a period beginning on or after 1 July 2009; restructured IFRS 1 as adopted by the EU is effective for annual periods beginning after 31 December 2009, with early adoption permitted);
  • IFRIC 18 'Transfers of Assets from Customers' (effective prospectively to transfers of assets from customers received on or after 1 July 2009, earlier application permitted; IFRIC 18 as adopted by the EU is effective for annual periods beginning after 31 October 2009, with early adoption permitted);
  • Embedded Derivatives - Amendments to IFRIC 9 and IAS 39 (effective for annual periods ending on or after 30 June 2009; amendments to IFRIC 19 and IAS 39 as adopted by the EU are effective for annual periods beginning after 31 December 2009, with early adoption permitted);
  • Classification of Rights Issues - Amendment to IAS 32 'Financial Instruments: Presentation' (effective for annual periods beginning on or after 1 February 2010);
  • Group Cash-settled Share-based Payment Transactions - Amendments to IFRS 2 'Share-based Payment' (effective for annual periods beginning on or after 1 January 2010, not yet adopted by the EU);
  • Additional Exemptions for First-time Adopters - Amendments to IFRS 1 'First-time Adoption of IFRS' (effective for annual periods beginning on or after 1 January 2010; not yet adopted by the EU);
  • IAS 24 'Related Party Disclosures' (amended November 2009, effective for annual periods beginning on or after 1 January 2011; not yet adopted by the EU);
  • IFRS 9 'Financial Instruments' (issued in November 2009, effective for annual periods beginning on or after 1 January 2013, with earlier application permitted; not yet adopted by the EU);
  • IFRIC 19 'Extinguishing Financial Liabilities with Equity Instruments' (effective for annual periods beginning on or after 1 July 2010; not yet adopted by the EU);
  • Prepayments of a Minimum Funding Requirement - Amendment to IFRIC 14 (effective for annual periods beginning on or after 1 January 2011; not yet adopted by the EU).

10


AB SEB BANK

NOTES TO THE CONDENSED INTERIM FINANCIAL STATEMENTS

FOR THE 12 MONTHS PERIOD ENDED 31 DECEMBER 2009

(All amounts in LTL thousands unless otherwise stated)

NOTE 3 SEGMENT REPORTING

Primary reporting format – business segments. The Group is organised into main business segments: banking, leasing, venture capital, investment management, corporate finance and life insurance. Transactions between the business segments are on normal commercial terms and conditions. The twelve months period ended 31 December 2009

Consolidated segments Elimina-tions and adjustments Total
Banking Leasing Venture capital Investment management Corporate finance Life insurance Real estate company
Revenues:
Internal 49,955 942 7 581 422 311 176 (52,394) -
External 1,502,025 150,155 1,203 18,678 3,848 163,086 44 - 1,839,039
1,551,980 151,097 1,210 19,259 4,270 163,397 220 (52,394) 1,839,039
Expenses:
Internal (2,219) (29,212) (1,152) (8,778) (215) (5,983) (19) 47,578 -
External (1,142,150) (119,053) (1,825) (6,475) (3,583) (46,410) (449) - (1,319,945)
(1,144,369) (148,265) (2,977) (15,253) (3,798) (52,393) (468) 47,578 (1,319,945)
Depreciation and amortisation (26,042) (2,580) (6) (76) (31) (604) - - (29,339)
Impairment losses on loans and finance lease (1,568,387) (552,477) (1,501) - - - - 391,000 (1,731,365)
Impairment loss on intangible assets (goodwill) (169,550) - - - - - - - (169,550)
Impairment loss on investment in subsidiaries (175,105) - - - - - - 175,105 -
Impairment loss on investment securities available for sale (14,712) - - - - - - - (14,712)
Life insurance technical provisions - - - - - (97,609) - - (97,609)
Enskilda 2008 adjustment - - 2,242 - - - - - 2,242
Deferred tax asset on leasing - 93,784 - - - - - - 93,784
Result for the year (1,546,185) (458,441) (1,032) 3,930 441 12,791 (248) 561,289 (1,427,455)
Assets 24,052,590 3,141,527 33,481 17,605 11,825 424,560 3,265 (732,536) 26,952,317
Liabilities 22,631,560 3,559,572 11,082 3,364 1,013 385,697 13 (1,164,879) 25,427,422
Investments in fixed assets 122,872 451 2 30 4 189 14 - 123,562
Consolidated segments Elimina-tions and adjustments Total
--- --- --- --- --- --- --- --- --- ---
Banking Leasing Venture capital Investment management Corporate finance Life insurance Real estate company
Revenues:
Internal 67,996 307 209 304 173 (122) - (127,457) (58,590)
External 1,697,344 288,188 377 24,496 12,794 139,512 - - 2,162,711
1,765,340 288,495 586 24,800 12,967 139,390 - (127,457) 2,104,121
Expenses:
Internal (862) (48,587) (350) (12,642) (238) (6,188) - 68,867 -
External (1,239,131) (173,959) (713) (7,045) (7,903) (78,614) - - (1,507,365)
(1,239,993) (222,546) (1,063) (19,687) (8,141) (84,802) - 68,867 (1,507,365)
Depreciation and amortisation (27,900) (3,780) (7) (44) (19) (602) - - (32,352)
Impairment losses on loans and finance lease (152,556) (104,094) - - - - - - (256,650)
Net gain (loss) on investment securities 2,837 - 270 - 9 (92,727) - - (89,611)
Life insurance technical provisions - - - - - 39,637 - - 39,637
Result for the year 347,728 (41,925) (214) 5,069 4,816 896 - (58,590) 257,780
Assets 25,830,497 4,342,692 39,782 18,617 13,956 298,565 3,501 (1,022,575) 27,988,743
Liabilities 23,572,060 4,373,617 14,110 3,490 5,825 272,494 - (960,133) 25,977,834
Investments in fixed assets 88,792 3,407 2 176 72 734 - - 93,183

AB SEB BANK

NOTES TO THE CONDENSED INTERIM FINANCIAL STATEMENTS

FOR THE 12 MONTHS PERIOD ENDED 31 DECEMBER 2009

(All amounts in LTL thousands unless otherwise stated)

NOTE 4 ASSETS UNDER MANAGEMENT

The Group The Bank
2009 2008 2009 2008
Private individuals and corporate customers' assets under management - -
483,155 536,016 - -
195,885 157,077 Pillar two conservative pension fund (SEB Pension 1) - -
726,568 475,882 Pillar two balanced pension fund (SEB Pension 2) - -
79,217 37,529 Pillar two equity pension fund (SEB Pension 3) - -
Conservative voluntary pension fund (SEB Pension 1 Plus) - -
12,817 10,726 Balanced voluntary pension fund (SEB Pension 2 Plus) - -
41,175 28,352 - -
- 50,964 CIS equity fund - -
- 35,119 CIS bond fund - -
110,854 77,737 World market fund of funds - -
90,810 39,275 SEB equity fund of funds - -
1,740,481 1,448,677 Total assets under management - -

NOTE 5 OFF BALANCE SHEET ITEMS

The Group The Bank
2009 2008 2009 2008
1,983,430 3,680,068 Agreements to grant loans 2,186,797 4,056,480
564,861 665,796 Guarantees issued 577,432 677,821
89,458 112,330 Letters of credit issued 89,458 114,066
Commitments to purchase assets and other commitments - -
306,665 389,301 - -
- 4,025 Avalised bills of exchange - 4,025
391 127,996 Commitments to sell securities 391 127,996
23 224 Customs guarantees collateralised by deposits 23 224

The Banks and the Group's derivative financial instruments portfolio as of 31 December 2009 was as follows:

31 December 2009 Notional amount Fair value
Purchase Sale Assets Liabilities
Foreign exchange derivatives
Currency forwards 381,353 388,403 1,479 6,600
Currency swaps 1,011,679 1,005,554 7,120 3,018
Put options 19,215 19,034 466 213
Call options 2,301 2,470 44 2
Interest rate derivatives
Forward deposit - 81,831 - -
Futures - - - -
Interest rate swaps 3,095,111 3,095,111 104,660 104,657
Interest rate swaps for hedging purposes 1,387,925 1,387,925 - 157,053
Currency interest rate swaps 1,669,250 1,669,250 7,904 -
Interest rate options 2,677,398 2,677,398 10,362 10,362
Equity derivatives
Index linked debt securities option 877,950 877,950 10,505 10,915
Derivative part of index linked deposit - - 104 -
Other derivatives
Commodity options 46,272 46,272 10,839 10,823
Total derivatives assets/liabilities 11,168,454 11,251,198 153,483 303,643

AB SEB BANK

NOTES TO THE CONDENSED INTERIM FINANCIAL STATEMENTS FOR THE 12 MONTHS PERIOD ENDED 31 DECEMBER 2009

(All amounts in LTL thousands unless otherwise stated)

NOTE 5 OFF BALANCE SHEET ITEMS (CONTINUED)

The future lease and investment property rental payments under non-cancellable operating lease where the Bank and the Group act as lessor, can be specified as follows:

The Group
2009 2008
1,497 2,145 Short term deferred income (up to 1 year)
1,164 2,677 Long term deferred income (up to 5 years)
Total future lease and rental payments under
2,661 4,822 non-cancellable operating lease
The Bank
--- ---
2009 2008
- -
- -
- -

As of 31 December 2009 rental off balance sheet commitments of the Group amounted to LTL 239,886 thousand (2008: LTL 200,612 thousand) and rental off balance sheet commitments of the Bank amounted to LTL 170,720 thousand (2008: LTL 198,753 thousand). All non-cancellable commitments fall into the period within ten years.

13


AB SEB BANK

NOTES TO THE CONDENSED INTERIM FINANCIAL STATEMENTS

FOR THE 12 MONTHS PERIOD ENDED 31 DECEMBER 2009

(All amounts in LTL thousands unless otherwise stated)

NOTE 6 DEBT SECURITIES ISSUANCE AND REDEMPTION

During the year 2009 the Bank successfully issued its 44 securities issues, as presented in the table below:

Issue date Redemption date Duration Currency Amount in issue (in LTL) Interest rate or index
2009.01.28 2010.02.05 373 days LTL 1,573,100 9%
2009.02.26 2012.03.16 1114 days LTL 1,706,500 BNP Paribas Millenium New World
2009.02.26 2012.03.16 1114 days LTL 179,400 BNP Paribas Millenium New World
2009.02.26 2012.03.16 1114 days EUR 355,984 BNP Paribas Millenium New World
2009.03.21 2010.03.30 374 days LTL 2,218,800 8.70%
2009.04.25 2010.05.04 374 days LTL 647,300 8.50%
2009.04.29 2012.05.18 1115 days LTL 2,266,100 BNP Paribas Platinum EUR Excess Return
2009.04.29 2012.05.18 1115 days EUR 126,027 BNP Paribas Platinum EUR Excess Return
2009.04.29 2011.05.18 749 days LTL 33,800 BNP Paribas Emerging Infrastructure Excess Return
2009.04.29 2011.05.18 749 days EUR 224,087 BNP Paribas Emerging Infrastructure Excess Return
2009.06.02 2012.06.21 1115 days LTL 1,709,500 Renewable Energy Corp. AS, Norsk Hydro ASA, Outokumpu Oyj, Rautaruukki Oyj, SSAB Svenskt Stal AB, Neste Oil Oyj, StatoilHydro ASA, Svenska Cellulosa AB (SCA), Stora Enso Oyj, Seadrill Ltd.
2009.06.02 2012.06.21 1115 days LTL 238,200 Renewable Energy Corp. AS, Norsk Hydro ASA, Outokumpu Oyj, Rautaruukki Oyj, SSAB Svenskt Stal AB, Neste Oil Oyj, StatoilHydro ASA, Svenska Cellulosa AB (SCA), Stora Enso Oyj, Seadrill Ltd.
2009.06.02 2012.06.21 1115 days EUR 1,027,553 Renewable Energy Corp. AS, Norsk Hydro ASA, Outokumpu Oyj, Rautaruukki Oyj, SSAB Svenskt Stal AB, Neste Oil Oyj, StatoilHydro ASA, Svenska Cellulosa AB (SCA), Stora Enso Oyj, Seadrill Ltd.
2009.06.20 2010.06.29 374 days LTL 4,380,200 8.70%
2009.06.30 2012.01.19 933 days LTL 3,934,800 Citi COMET Volatility Target Index
2009.06.30 2012.01.19 933 days LTL 178,300 Citi COMET Volatility Target Index
2009.06.30 2012.01.19 933 days EUR 1,329,328 Citi COMET Volatility Target Index
2009.07.24 2010.08.03 375 days LTL 5,998,100 10.00%
2009.08.25 2012.09.13 1115 days LTL 1,598,100 Renewable Energy Corp. AS, Norsk Hydro ASA, Outokumpu Oyj, Vestas Wind Systems A/S, SSAB Svenskt Stal AB, Neste Oil Oyj, StatoilHydro ASA, Svenska Cellulosa AB (SCA), Stora Enso Oyj, Seadrill Ltd.
2009.08.25 2012.09.13 1115 days LTL 529,200 Renewable Energy Corp. AS, Norsk Hydro ASA, Outokumpu Oyj, Vestas Wind Systems A/S, SSAB Svenskt Stal AB, Neste Oil Oyj, StatoilHydro ASA, Svenska Cellulosa AB (SCA), Stora Enso Oyj, Seadrill Ltd.
2009.08.25 2012.09.13 1115 days EUR 900,836 Renewable Energy Corp. AS, Norsk Hydro ASA, Outokumpu Oyj, Vestas Wind Systems A/S, SSAB Svenskt Stal AB, Neste Oil Oyj, StatoilHydro ASA, Svenska Cellulosa AB (SCA), Stora Enso Oyj, Seadrill Ltd.
2009.08.26 2010.09.03 373 days LTL 3,631,500 10.00%
2009.09.24 2010.10.01 372 days LTL 59,419,300 9.80%
2009.09.30 2012.10.19 1115 days LTL 3,453,100 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
2009.09.30 2012.10.19 1115 days LTL 859,900 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
2009.09.30 2012.10.19 1115 days EUR 1,326,911 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
2009.09.30 2012.10.19 1115 days LTL 1,826,100 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
2009.10.01 2010.05.14 225 days LTL 20,000,000 8.70%
2009.10.23 2010.11.02 375 days LTL 64,399,000 9.50%
2009.10.24 2010.11.02 374 days LTL 18,304,000 8.70%

AB SEB BANK

NOTES TO THE CONDENSED INTERIM FINANCIAL STATEMENTS

FOR THE 12 MONTHS PERIOD ENDED 31 DECEMBER 2009

(All amounts in LTL thousands unless otherwise stated)

NOTE 6 DEBT SECURITIES ISSUANCE AND REDEMPTION (CONTINUED)

During the year 2009 the Bank successfully issued its 44 securities issues, as presented in the table below (continued):

Issue date Redemption date Duration Currency Amount in issue (in LTL) Interest rate or index
2009.11.03 2012.11.21 1114 days EUR 3,360,956 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
2009.11.03 2012.11.21 1114 days LTL 627,100 Nafta, auksas, sidabras, aliuminis, cinkas, varis, nikelis, kukurūzai, kviečiai ir cukrus
2009.11.03 2012.11.21 1114 days EUR 1,879,359 Nafta, auksas, sidabras, aliuminis, cinkas, varis, nikelis, kukurūzai, kviečiai ir cukrus
2009.12.01 2012.11.30 1095 days LTL 465,800 Petroleo Brasileiro SA, Vale SA, Itau Unibanco Holding SA, Banco Bradesco SA, Cia Siderurgica Nacional SA, Cia Energetica de Minas Gerais, CLP Holdings Ltd, Hang Seng Bank Ltd, Hutchison Whampoa Ltd, China Mobile Ltd, Taiwan Semiconductor Manufacturing Company Ltd, HON HAI Precision Industry Co
2009.12.01 2012.11.30 1095 days EUR 1,737,104 Petroleo Brasileiro SA, Vale SA, Itau Unibanco Holding SA, Banco Bradesco SA, Cia Siderurgica Nacional SA, Cia Energetica de Minas Gerais, CLP Holdings Ltd, Hang Seng Bank Ltd, Hutchison Whampoa Ltd, China Mobile Ltd, Taiwan Semiconductor Manufacturing Company Ltd, HON HAI Precision Industry Co
2009.12.02 2010.12.10 373 days LTL 79,642,600 9.10%
2009.12.22 2013.02.08 1144 days LTL 15,338,200 Petroleo Brasileiro S.A., Vale S.A., Itau Unibanco Holding S.A., Banco Bradesco S.A., Cia Siderurgica Nacional S.A., Empresa Brasileira de Aeronautica S.A., Tele Norte Leste Participacoes S.A., Cia Energetica de Minas Gerais, BRF - Brasil Foods S.A., Cia de Bebidas das Americas
2009.12.22 2013.02.08 1144 days LTL 2,318,800 Petroleo Brasileiro S.A., Vale S.A., Itau Unibanco Holding S.A., Banco Bradesco S.A., Cia Siderurgica Nacional S.A., Empresa Brasileira de Aeronautica S.A., Tele Norte Leste Participacoes S.A., Cia Energetica de Minas Gerais, BRF - Brasil Foods S.A., Cia de Bebidas das Americas
2009.12.22 2013.02.08 1144 days EUR 2,295,076 Petroleo Brasileiro S.A., Vale S.A., Itau Unibanco Holding S.A., Banco Bradesco S.A., Cia Siderurgica Nacional S.A., Empresa Brasileira de Aeronautica S.A., Tele Norte Leste Participacoes S.A., Cia Energetica de Minas Gerais, BRF - Brasil Foods S.A., Cia de Bebidas das Americas
2009.12.22 2011.07.12 567 days LTL 510,600 EUR/PLN kursas
2009.12.22 2011.07.12 567 days LTL 916,700 EUR/PLN kursas
2009.12.24 2011.01.04 376 days LTL 10,000,000 8.00%

AB SEB BANK

NOTES TO THE CONDENSED INTERIM FINANCIAL STATEMENTS

FOR THE 12 MONTHS PERIOD ENDED 31 DECEMBER 2009

(All amounts in LTL thousands unless otherwise stated)

Also during the same year the Bank successfully redeemed its 55 securities issues as presented in the table below:

NOTE 6 DEBT SECURITIES ISSUANCE AND REDEMPTION (CONTINUED)

Issue date Redemption date Duration Currency Amount in issue (in LTL) Interest rate or index
2006.03.01 2009.03.12 1107 dienos LTL 3,295,900 RTX/CECE Composite (25/75)
2006.03.01 2009.03.12 1107 dienos LTL 8,420,400 RTX/CECE Composite (25/75)
2006.03.01 2009.03.12 1107 dienos LTL 10,991,100 RTX/CECE Composite (25/75)
2006.04.26 2009.05.05 1105 dienos LTL 7,253,000 TOPIX
2006.04.26 2009.05.05 1105 dienos LTL 18,212,500 TOPIX
2006.04.26 2009.05.05 1105 dienos LTL 23,718,900 TOPIX
2006.04.26 2009.05.05 1105 dienos LTL 924,600 SP500
2006.04.26 2009.05.05 1105 dienos LTL 2,298,500 SP500
2006.04.26 2009.05.05 1105 dienos LTL 4,138,700 SP500
2006.04.26 2009.05.05 1105 dienos EUR 1,026,172 TOPIX
2006.04.26 2009.05.05 1105 dienos EUR 2,000,552 TOPIX
2006.04.26 2009.05.05 1105 dienos EUR 2,583,385 TOPIX
2006.06.28 2009.07.10 1108 dienos LTL 1,334,500 TOPIX, S&P 500, FTSE 100, CAC-40, DAX, SMI
2006.06.28 2009.07.10 1108 dienos LTL 3,814,300 TOPIX, S&P 500, FTSE 100, CAC-40, DAX, SMI
2006.06.28 2009.07.10 1108 dienos LTL 1,293,800 TOPIX, S&P 500, FTSE 100, CAC-40, DAX, SMI
2006.06.28 2009.07.10 1108 dienos EUR 2,005,732 TOPIX, S&P 500, FTSE 100, CAC-40, DAX, SMI
2006.08.21 2009.09.01 1107 dienos LTL 3,728,800 FTSE Latibex Top
2006.08.21 2009.09.01 1107 dienos LTL 2,610,500 FTSE Latibex Top
2006.08.21 2009.09.01 1107 dienos LTL 3,747,600 FTSE Latibex Top
2006.08.21 2009.09.01 1107 dienos EUR 699,537 FTSE Latibex Top
2006.09.12 2009.09.24 1108 dienos LTL 2,093,300 TOPIX
2006.09.27 2009.10.07 1106 dienos LTL 7,155,000 FTSE/Xinhua China 25
2006.09.27 2009.10.07 1106 dienos LTL 15,932,100 FTSE/Xinhua China 25
2006.09.27 2009.10.07 1106 dienos LTL 7,369,600 FTSE/Xinhua China 25
2006.09.27 2009.10.07 1106 dienos EUR 4,921,276 FTSE/Xinhua China 25
2006.09.27 2009.10.07 1106 dienos EUR 3,000,828 FTSE/Xinhua China 25
2006.09.27 2009.10.07 1106 dienos EUR 1,236,448 FTSE/Xinhua China 25
2006.10.03 2009.10.13 1106 dienos LTL 2,033,400 AB TEO LT
2006.11.16 2009.11.26 1106 dienos LTL 7,108,700 CAC 40, DAX, S&P/MIB, S&P/TSX 60, S&P 500, TOPIX, FTSE 100
2006.11.16 2009.11.26 1106 dienos LTL 6,661,100 CAC 40, DAX, S&P/MIB, S&P/TSX 60, S&P 500, TOPIX, FTSE 100
2006.11.16 2009.11.26 1106 dienos LTL 2,577,200 CAC 40, DAX, S&P/MIB, S&P/TSX 60, S&P 500, TOPIX, FTSE 100
2006.11.16 2009.11.26 1106 dienos EUR 1,208,480 CAC 40, DAX, S&P/MIB, S&P/TSX 60, S&P 500, TOPIX, FTSE 100
2006.11.16 2009.11.26 1106 dienos EUR 1,460,534 CAC 40, DAX, S&P/MIB, S&P/TSX 60, S&P 500, TOPIX, FTSE 100
2007.01.02 2009.01.08 736 dienos LTL 150,000,000 4.00%
2007.08.01 2009.02.20 569 dienos LTL 6,857,800 Dow Jones EURO STOXX 50
2007.08.01 2009.02.20 569 dienos LTL 7,769,500 Dow Jones Euro STOXX 50
2007.09.04 2009.03.23 566 dienos EUR 768,248 S&P/ASX 200, KOSPI 200, MSCI Taiwan
2007.09.04 2009.03.23 566 dienos LTL 6,229,200 S&P/ASX 200, KOSPI 200, MSCI Taiwan
2007.09.04 2009.03.23 566 dienos LTL 11,902,700 S&P/ASX 200, KOSPI 200, MSCI Taiwan
2008.03.01 2009.03.09 373 dienos LTL 25,498,700 6.10%
2008.04.05 2009.04.14 374 dienos LTL 3,239,700 5.70%
2008.06.28 2009.07.07 374 dienos LTL 12,740,900 5.75%
2008.07.26 2009.08.04 374 dienos LTL 6,007,100 5.85%
2008.08.26 2009.09.04 374 dienos LTL 10,884,100 5.95%
2008.09.23 2009.10.02 374 dienos LTL 26,327,500 6.50%
2008.09.30 2009.12.16 442 dienos LTL 623,200 WTI Crude Oil
2008.10.25 2009.11.03 374 dienos LTL 6,879,400 6.50%
2008.10.25 2009.11.03 374 dienos EUR 2,296,457 5.50%
2008.10.29 2009.12.17 414 dienq LTL 266,800 25% DJ EUROSTOXX 50, 25% SPDR Trust Series 1, 25% Topix, 25% Hang Seng China Enterprises
2008.10.29 2009.12.17 414 dienq LTL 102,900 25% DJ EUROSTOXX 50, 25% SPDR Trust Series 1, 25% Topix, 25% Hang Seng China Enterprises
2008.10.29 2009.12.17 414 dienq EUR 76,997 25% DJ EUROSTOXX 50, 25% SPDR Trust Series 1, 25% Topix, 25% Hang Seng China Enterprises
2008.11.22 2009.12.01 374 dienos LTL 3,765,600 7.00%
2008.11.22 2009.12.01 374 dienos EUR 3,309,509 5.70%
2008.12.20 2009.12.29 374 dienos LTL 336,300 8.00%
2008.12.20 2009.12.29 374 dienos EUR 1,026,172 5.70%

AB SEB BANK

NOTES TO THE CONDENSED INTERIM FINANCIAL STATEMENTS

FOR THE 12 MONTHS PERIOD ENDED 31 DECEMBER 2009

(All amounts in LTL thousands unless otherwise stated)

NOTE 7 ASSETS CLASSIFIED AS HELD FOR SALE AND DISCONTINUED OPERATIONS

As of 31 December 2009 and 2008 assets classified as held for sale and discontinued operations accounted by the Bank were as follows:

2009 2008
Shares of UAB SEB Gyvybes Draudimas 10,325 -
Shares UAB Litecus 3,500 -
Total assets classified as held for sale and discontinued operations 13,825 -

The assets and liabilities related to the Companies UAB SEB Gyvybes Draudimas and UAB Litecus that are a part of Life insurance and Asset management segments have been presented as held for sale following the approval of the Group's management and shareholders.

As of 31 December 2009 and 2008 assets and liabilities of disposal group classified as held for sales by the Group were as follows:

UAB SEB Gyvybes Draudimas

Assets 2009 2008
Due from banks, net 220 407
Financial assets held for trading 4,710 -
Financial assets designated at fair value 399,709 274,110
Intangible fixed assets 214 548
Property, plant and equipment 113 194
Other assets, net of impairment losses 10,598 10,875
Total assets 415,564 286,134
Liabilities
Liabilities in life insurance operations and to investment contract holders 379,034 265,215
Accrued expenses and deferred income 1,187 1,498
Other liabilities and provisions 5,115 5,572
Total liabilities 385,336 272,285
Net assets of the disposal group 30,228 13,849

UAB Litecus

Assets 2009 2008
Property, plant and equipment 13 -
Other assets, net of impairment losses 59 -
Total assets 72 -
Liabilities
Accrued expenses and deferred income 1 -
Other liabilities and provisions 11 -
Total liabilities 12 -
Net assets of the disposal group 60 -

AB SEB BANK

NOTES TO THE CONDENSED INTERIM FINANCIAL STATEMENTS

FOR THE 12 MONTHS PERIOD ENDED 31 DECEMBER 2009

(All amounts in LTL thousands unless otherwise stated)

NOTE 7 ASSETS CLASSIFIED AS HELD FOR SALE AND DISCONTINUED OPERATIONS (CONTINUED)

For the year ended 31 December 2009 and 2008 profit (losses) from discontinued operations of the Group were as follows:

UAB SEB Gyvybes Draudimas

2009 2008
Revenues 162,770 138,860
Expenses (134,432) (124,692)
Operating profit 28,338 14,168
Other income and expenses (276) 1,993
Administrative expenses (9,389) (9,214)
Profit before tax of discontinued operations 18,673 6,947
Income tax benefit (expense) (210) 260
Profit from discontinued operations 18,463 7,207

UAB Litec tus

2009 2008
Revenues - -
Expenses - -
Operating profit - -
Other income and expenses - -
Administrative expenses (449) -
Profit before tax of discontinued operations (449) -
Income tax benefit (expense) 44 -
Profit from discontinued operations (405) -

AB SEB BANK

NOTES TO THE CONDENSED INTERIM FINANCIAL STATEMENTS FOR THE 12 MONTHS PERIOD ENDED 31 DECEMBER 2009

(All amounts in LTL thousands unless otherwise stated)

NOTE 8 SIGNIFICANT EVENTS AFTER THE BALANCE SHEET DATE

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.

After the balance sheet date the Bank successfully completed 4 debt securities issues with the nominal value of LTL 50,044 thousand.

After the balance sheet date fourteen debt securities issue with the nominal value of LTL 164,019 thousand were redeemed.

NOTE 9 MAJOR EVENTS IN THE ISSUER'S ACTIVITIES

On 5 February 2009, the Bank announced that, according to the preliminary data, unaudited net profit earned over the year 2008 by SEB Bank is LTL 347.7 million and by SEB Bank Group - LTL 257.8 million. The profit 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. Audited net profit earned by the bank over the year 2007 was LTL 496.1 million and by the group - LTL 509.7 million.

On 18 February 2009, the Bank announced about the Annual General Meeting of Shareholders initiated and to be convened by the Board of SEB Bank on 20 March 2009.

On 10 March 2009, the Bank announced that the Board of SEB Bank approved the draft decisions of the Extraordinary General Meeting of the Shareholders of SEB Bank that will take place on 20 March 2009.

On 23 March 2009, the Bank announced that on the 20th of March 2009, 10 a.m. in Gedimino 12, Vilnius, room 511, the Annual General Meeting of the Shareholders of SEB Bank (having registered office at Gedimino 12, LT-01103 Vilnius, company code 112021238) took place, where all the decisions provided on the agenda were adopted: 1. the Annual Report of SEB Bank has been familiarised with; 2. the Report of the auditor of SEB Bank has been heard; 3. the Comments and Proposals of the Supervisory Council of SEB Bank have been heard; 4. the Year 2008 Financial Reporting of SEB Bank was approved; 5. the Distribution of the Year 2008 profit of SEB Bank was approved; 6. Bo Magnusson was revoked from the Supervisory Council Members of SEB Bank and Mats Emil Torstendahl was elected the new member of the Supervisory Council.

On 10 April 2009, the Bank announced that on 9 April, 2009 ratings agency Fitch Ratings affirmed SEB Bank's long-term issuer's default rating A and short term issuer's default rating F1. The agency changed its SEB Bank's long-term issuer's default rating outlook from stable to negative following the downgrade of the long-term foreign currency issuer default rating of the Republic of Lithuania from BBB+ to BBB (negative outlook) on 8 April 2009.

On 17 April 2009, the Bank announced that on 16 April, 2009 ratings agency Fitch Ratings affirmed SEB Bank's long-term issuer's default rating A (rating outlook negative), short term issuer's default rating F1 and support rating 1. The agency downgraded its SEB Bank's individual rating from C/D to D/E.

On 24 April 2009, the Bank announced that, according to preliminary data, unaudited net profit earned over the first quarter of the year 2009 by SEB Bank is LTL 26.6 million (EUR 7.7 million) and by SEB Bank Group - LTL 16.2 million (EUR 4.7 million). The profit 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. Unaudited net profit earned by the bank over the first quarter of the year 2008 was LTL 133.7 million (EUR 38.7 million) and by the group - LTL 93.9 million (EUR 27.2 million).

On 20 July 2009, the Bank announced that, according to preliminary data, unaudited net loss suffered over the first half-year of 2009 by SEB Bank is LTL 168,5 million (EUR 48,8 million) and by SEB Bank Group - LTL 224,9 million (EUR 65,1 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 2008, audited net profit earned by the Bank totalled LTL 255.5 million (EUR 74 million) and by the Group - LTL 225.6 million (EUR 65.3 million). The result of the first half-year of 2009 of the Bank and the Bank Group includes impairment of intangible asset (goodwill) amounting LTL 169.5 million (EUR 49.1 million) resulting from acquisition of bank Hermis in year 2000.

On 29 September 2009, the Bank announced about the Extraordinary General Meeting of Shareholders initiated and to be convened by the Board of SEB Bank on 29 October 2009.

On 19 October 2009, the Bank announced that on 19 October 2009 the Board of SEB Bank approved the draft decisions of the Extraordinary General Meeting of the Shareholders of SEB Bank that will take place on 29 October 2009.

19


AB SEB BANK

NOTES TO THE CONDENSED INTERIM FINANCIAL STATEMENTS FOR THE 12 MONTHS PERIOD ENDED 31 DECEMBER 2009

(All amounts in LTL thousands unless otherwise stated)

NOTE 9 MAJOR EVENTS IN THE ISSUER'S ACTIVITIES (CONTINUED)

On 21 October 2009, the Bank announced that, according to preliminary data, unaudited net loss suffered over the three quarters of 2009 by SEB Bank is LTL 626.4 million (EUR 181.4 million) and by SEB Bank Group - LTL 942.8 million (EUR 273.0 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 three quarters of 2008, unaudited net profit earned by the Bank totalled LTL 342.0 million (EUR 99.0 million) and by the Group - LTL 320.9 million (EUR 92.9 million).

On 21 October 2009, the Bank announced that the Supervisory Council of the SEB bankas, AB revoked Audrius Žiugžda (Chairman) and Arturas Feiferas (Board member) from the Management Board of the SEB bankas and appointed these new Board members - Aivaras Čičelis and Roberts Bernis. The Management Board of the SEB bankas revoked Audrius Žiugžda as of CEO and appointed for this position Raimondas Kvedaras (Chairman of the Board/CEO).

On 29 October 2009, the Bank announced that on the 29th of October 2009, 10 a.m. in Gedimino 12, Vilnius, room 511, the Extraordinary General Meeting of the Shareholders of SEB Bank (having registered office at Gedimino 12, LT-01103 Vilnius, company code 112021238) took place, where all the decisions provided on the agenda were adopted: 1. The resolution 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), was adopted; 2. The entire SEB Bank's Supervisory Council (in corpore) was revoked; 3. SEB Bank's Supervisory Board of a new composition was elected for a new 4-year tenure. Members of the new composed Supervisory Board were elected: Knut Jonas Martin Johansson, Mark Barry Payne, Carl Stefan Davill and Stefan Stignäs.

On 17 December 2009, the Bank announced about the Extraordinary General Meeting of Shareholders initiated and to be convened by the Board of SEB Bank on 30 December 2009.

On 18 December 2009, the Bank announced that on 18 December 2009 the Board of SEB Bank approved the draft decisions of the Extraordinary General Meeting of the Shareholders of SEB Bank that will take place on 30 December 2009 (see attached the draft decisions).

On 23 December 2009, the Bank announced that on 22 December 2009, ratings agency Fitch Ratings announced that it affirmed unchanged SEB Bank's long-term issuer's default rating A (rating outlook negative), short term issuer's default rating F1, individual rating D/E and support rating 1.

On 30 December 2009, the Bank announced that on 30 December 2009, at 10.00 a.m., on Gedimino 12, Vilnius, Room 511, an Extraordinary General Meeting of Shareholders of SEB Bank (having registered office on Gedimino 12, LT-01103 Vilnius, company code 112021238) took place. The Meeting adopted a resolution on the issue of the Agenda of the Meeting, namely, 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).

On 31 December 2009, the Bank announced that SEB Bank is transferring 100 % of shares of its subsidiary company SEB Gyvybės Draudimas fully held by the SEB Bank to company SEB Trygg Liv Holding AB, registered in the Kingdom of Sweden, a member of the international SEB Group. According to the terms of the Share Transfer Agreement concluded as of 30 December 2009, the transfer of shares should be finalised in January 2010. The shares are transferred seeking to strengthen management and coordination of the life insurance business in the international SEB Group. This change will not make any effect on the clients of SEB Gyvybės Draudimas.

Over the year 2009, the Bank has also made 33 announcements of additional (in accordance with requirements of Part 5, Article 25 of The Securities Law of the Republic of Lithuania) and periodic (in accordance with requirements of Article 20 of The Securities Law of the Republic of Lithuania) information.

SEB Bank provides information on each major event to the Securities Commission and Vilnius Stock Exchange in accordance with the established procedure. Based on SEB Bank's Articles of Association, information on each major event is announced in daily Verslo Žinios and communicated to news agency BNS.


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