SEB — Interim / Quarterly Report 2012

Nov 28, 2012

SEB

AB SEB BANKAS

CONDENSED INTERIM INFORMATION FOR THE NINE-MONTH PERIOD 2012

TABLE OF CONTENTS

1. CONFIRMATION OF RESPONSIBLE PERSONS REGARDING INTERIM NINE-MONTH CONSOLIDATED FINANCIAL REPORTING
2. CONDENSED INTERIM FINANCIAL INFORMATION FOR THE 9 MONTH PERIOD ENDED SEPTEMBER 2012

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SEB

CONFIRMATION OF RESPONSIBLE PERSONS

Abiding by Article 22 of the Law of the Republic of Lithuania on Securities as well as by the rules of the Securities Commission of the Republic of Lithuania for the preparation and submitting of periodic and supplementary information, we hereby confirm that, in accordance with our knowledge, the information provided in the interim nine-month consolidated financial reporting, that has been prepared in accordance with the International Financial Reporting Standards, is true and correctly reflects the issuer’s and the consolidated companies’ total assets, liabilities, financial standing, profit or loss and cash flows.

President of SEB Bank

Head of Business Support Division and CFO of SEB Bank

Director of Finance Department of SEB Bank

Vilnius,
November 2012

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AB SEB BANKAS

CONDENSED INTERIM FINANCIAL INFORMATION
FOR THE 9 MONTHS PERIOD ENDED 30 SEPTEMBER 2012

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AB SEB BANKAS

GENERAL INFORMATION

1. Reporting period

The report has been produced for the 9 months period ended 30 September 2012.

2. The issuer's key data

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

2

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AB SEB BANKAS

CONDENSED INTERIM INCOME STATEMENT FOR THE 9 MONTHS PERIOD ENDED 30 SEPTEMBER 2012

(All amounts in LTL thousands unless otherwise stated)

The Group				The Bank
January 1 - September 30, 2012	The third quarter 2012	January 1 - September 30, 2012	The third quarter 2011	January 1 - September 30, 2012	The third quarter 2012	January 1 - September 30, 2011	The third quarter 2011
494,539
(273,098)
221,451
(34,700)
22,808
4,514
-
(7,7378)	145,652
(75,433)
70,219
70,219
7,753
7,753
7,753
7,753	554,743
(290,758)
263,985
263,985
3,110
3,110
3,110
329,214
329,214
329,214
329,214
329	193,194
1,044,363
88,831
5,405
(1)
329,214
329,214
30,747
123,332
42,316	Interest income
Interest expenses
Net interest income
Impairment (losses) reversals on loans
Impairment reversals on lease portfolio
Provisions for guarantees and other off balance sheet
Horns
Other impairment losses
Total impairment (losses) reversals
Net interest income after impairment losses
Fee and commission income
Fee and commission expenses
Net fee and commission income
Net gain (loss) on operations with debt securities
and derivative financial instruments
Net gain (loss) on investment securities
Net gain (loss) on disposal of subsidiaries
Dividend income from subsidiaries
Net foreign exchange gain
Other income, net
Net investment activities
Staff costs
Other administrative expenses
Operating profit
Profit before income tax
Income tax expenses
Net profit for the year	452,107
(298,505)
68,534
3,110
3,110
3,110
3,110
3,110
3,110
3,110
3,110
3,110
3,110
3,110
3,110	132,607
(71,364)
238,084
128,362
4,670
5,405
(1)
3,405
3,405
3,405
3,405
3,405
3,405
3,405
3,405
3,405
3,405	500,327
(264,263)
4,670
4,670
4,670
4,670
4,670
4,670
4,670
4,670
4,670
4,670
4,670
4,670
4,670
214,073
(182,980
(49,360)
133,520
(7,761)
(754)
-
52,908
4,983
49,276
(106,631)
(133,791)
157,447
157,447
157,447
137,049	77,972
68,304
12,869
(151,141)
30,369
14,617
36,403
4,543
30,269
56,692	593,199
168,839
45,537
42,316
13,961
15,909
13,069
13,069
13,069
431,482	119,578
58,497
168,898
42,316
15,909
15,909
13,069
13,069
74,980	Attributable to:
Equity holders of the parent
(Loss) Profit for the year from continuing operations
(Loss) Profit for the year from discontinuing operations
(Loss) Profit for the year from continuing operations
(Loss) Profit for the year from continuing operations
Net profit for the year	103,416
14,471
48,968
125,511
4,166
1,279
4,166
1,279
4,166
1,279
4,166
1,279
4,166
1,279
4,166	62,522
62,531
116,996
45,535
127,525
1,414
6,376
1,414
6,376
1,414
6,376
1,414
6,376
1,414
6,376
1,414
6,376	369,830
369,830
115,672
39,817
39,817
39,817
39,817
39,817
39,817
39,817
39,817
39,817
137,049
(137,049
137,049
137,049
137,049	56,692
56,692
56,692
56,692
56,692	431,482
431,482
431,482
431,482
431,482	74,980
74,980
74,980
74,980
74,980	Attributable to:
Equity holders of the parent
(Loss) Profit for the year from continuing operations
(Loss) Profit for the year from continuing operations
(Loss) Profit for the year from continuing operations
Net profit for the year	103,090
103,090
103,090
103,090
103,090	43,625
43,625
43,625
43,625
43,625	246,717
246,717
246,717
246,717
246,717

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AB SEB BANKAS

CONDENSED INTERIM STATEMENT OF COMPREHENSIVE INCOME FOR THE 9 MONTHS PERIOD ENDED 30 SEPTEMBER 2012

(All amounts in LTL thousands unless otherwise stated)

The Group			The Bank
January 1 - September 30, 2012	January 1 - September 30, 2011		January 1 - September 30, 2012	January 1 - September 30, 2011
137,049	431,482	Net income for the year
Other comprehensive income:	103,090	246,717
3,264	(1,901)	Net gain on available for sale assets	3,264	(1,901)
3,264	(1,901)	- Net gain, before taxes	3,264	(1,901)
		- Impairment loss on investment in available for sale securities recognised in income statement, before taxes	(401)	-
(401)	-	Amortisation of financial assets revaluation reserve
1,317	2,298	of reclassified financial assets	1,317	2,298
		Income tax relating to the components of other comprehensive income	(687)	(27)
(687)	(27)	Total other comprehensive income	3,894	370
3,894	370
140,943	431,852	Total comprehensive income	106,984	247,087

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AB SEB BANKAS

CONDENSED INTERIM STATEMENT OF FINANCIAL POSITION AS OF 30 SEPTEMBER 2012

(All amounts in LTL thousands unless otherwise stated)

The Group			The Bank
30 September	31 December		30 September	31 December
2012	2011		2012	2011
Assets
336,636	634,922	Cash on hand	336,636	634,922
716,266	3,438,209	Balances with the Central Bank	716,266	3,438,209
3,309,244	2,718,507	Due from banks, net	3,309,244	2,718,507
58,349	52,911	Government securities available for sale	57,691	51,921
		Financial assets at fair value through profit and loss
503,238	69,881		461,035	28,376
450,470	193,054	Derivative financial instruments	450,470	193,054
		Loans to credit and financial institutions, net of impairment losses
37,650	12,706		437,405	439,302
15,732,079	15,649,121	Loans to customers, net of impairment losses	15,757,120	15,678,432
		Finance lease receivable, net of impairment losses
1,551,823	1,673,486	Investment securities:
383,047	1,588,260	- loans and receivables	383,047	1,588,260
648	376	- available for sale	648	376
14,199	14,148	- held to maturity	14,199	14,148
-	-	Investments in subsidiaries	224,900	224,900
120,849	132,970	Intangible fixed assets	120,621	132,730
25,106	33,121	Property, plant and equipment	24,526	32,357
652	841	Assets under operating lease	-	-
23,190	27 960	Non-current assets held for sale	-	29
15,246	40,702	Investment property	1,347	1,471
193,496	213,596	Deferred tax asset	143,503	157,440
138,853	147,390	Other assets, net of impairment losses	110,319	143,139
23,611,041	26,642,161	Total assets	22,548,977	25,477,573
Liabilities
51	32	Amounts owed to the Central Bank	51	32
7,650,544	10,135,681	Amounts owed to credit and financial institutions	6,834,997	9,176,873
467,284	239,686	Derivative financial instruments	467,284	239,686
12,173,047	12,152,999	Deposits from public	12,173,354	12,158,994
29,725	36,016	Accrued expenses and deferred income	28,053	33,659
985	-	Income tax payable	-	-
-	244,218	Subordinated loans	-	244,218
575,422	565,598	Debt securities in issue	575,422	565,598
-	937,172	Other liabilities and provisions	-	916,735
241,057			219,830
21,138,115	24,311,402	Total liabilities	20,298,991	23,335,795
Equity
Equity attributable to equity holder of the parent
1,034,575	1,034,575	Share capital	1,034,575	1,034,575
2,200	2,200	Reserve capital	2,200	2,200
(5,843)	(9,737)	Financial assets revaluation reserve	(5,843)	(9,737)
240,324	194,708	Legal reserve	236,737	191,184
13,721	12,497	General and other reserves	13,721	12,497
1,187,949	1,096,516	Retained earnings	968,596	911,059
2,472,926	2,330,759		2,249,986	2,141,778
-	-	Non controlling interest in equity	-	-
2,472,926	2,330,759	Total equity	2,249,986	2,141,778
23,611,041	26,642,161	Total liabilities and equity	22,548,977	25,477,573

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AB SEB BANKAS

CONDENSED INTERIM STATEMENT OF CHANGES IN EQUITY FOR THE 9 MONTHS PERIOD ENDED 30 SEPTEMBER 2012

(All amounts in LTL thousands unless otherwise stated)

The group

31 December 2010

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

Amortisation of financial assets revaluation reserve of reclassified financial assets

Net profit for the year

Total comprehensive income

Sale of UAB SEB Enskilda p

Share-based compensation

Transfers to reserves

30 September 2011

31 December 2011

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

Amortisation of financial assets revaluation reserve of reclassified financial assets

Net profit for the year

Total comprehensive income

Share-based compensation

Transfers to reserves

30 September 2012

Equity attributable to equity holder of the parent
Share capital	Reserve capital	Financial assets revaluation reserve	Legal reserve	General and other reserves	Retained earnings	Total before noncontrolling interest	Non controlling interest
1,034,575	1,034	(8,850)	165,425	10,846	656,148	1,859,178	-
-	-	(1,928)	-	-	-	(1,928)	-
-	-	2,298	-	-	-	2,298	-
-	-	-	-	-	431,482	431,482	-
-	-	370	-	-	431,482	431,852	-
-	1,166	-	-	-	-	1,166	-
-	-	-	-	1,162	-	1,162	-
-	-	-	29,283	-	(29,283)	-	-
1,034,575	2,200	(8,480)	194,708	12,008	1,058,347	2,293,358	-
1,034,575	2,200	(9,737)	194,708	12,497	1,096,516	2,330,759	-
-	-	2,577	-	-	-	2,577	-
-	-	1,317	-	-	-	1,317	-
-	-	-	-	-	137,049	137,049	-
-	-	3,894	-	-	137,049	140,943	-
-	-	-	-	1,224	-	1,224	-
-	-	-	45,616	-	(45,616)	-	-
1,034,575	2,200	(5,843)	240,324	13,721	1,187,949	2,472,926	-

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AB SEB BANKAS
CONDENSED INTERIM STATEMENT OF CHANGES IN EQUITY FOR THE 9 MONTHS PERIOD ENDED 30 SEPTEMBER 2012
(All amounts in LTL thousands unless otherwise stated)

The Bank	Financial
	Share capital	Reserve capital	assets revaluation reserve	Legal reserve	General and other reserves	Retained earnings	Total Equity
31 December 2010	1,034,575	2,200	(8,850)	163,221	10,846	559,260	1,761,252
Net change in available for sale investments, net of deferred tax	-	-	(1,928)	-	-	-	(1,928)
Amortisation of financial assets revaluation reserve of reclassified financial assets	-	-	2,298	-	-	-	2,298
Net profit for the year	-	-	-	-	-	246,717	246,717
Total comprehensive income	-	-	370	-	-	246,717	247,087
Shareholder's contribution	-	-	-	-	-	-	-
Share-based compensation	-	-	-	-	1,162	-	1,162
Transfers to reserves	-	-	-	27,963	-	(27,963)	-
30 September 2011	1,034,575	2,200	(8,480)	191,184	12,008	778,014	2,009,501
31 December 2011	1,034,575	2,200	(9,737)	191,184	12,497	911,059	2,141,778
Net change in available for sale investments, net of deferred tax	-	-	2,577	-	-	-	2,577
Amortisation of financial assets revaluation reserve of reclassified financial assets	-	-	1,317	-	-	-	1,317
Net profit for the year	-	-	-	-	-	103,090	103,090
Total comprehensive income	-	-	3,894	-	-	103,090	106,984
Share-based compensation	-	-	-	-	1,224	-	1,224
Transfers to reserves	-	-	-	45,553	-	(45,553)	-
30 September 2012	1,034,575	2,200	(5,843)	236,737	13,721	968,596	2,249,986

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AB SEB BANKAS

CONDENSED INTERIM STATEMENT OF CASH FLOWS FOR THE 9 MONTHS PERIOD ENDED 30 SEPTEMBER 2012

(All amounts in LTL thousands unless otherwise stated)

The Group			The Bank
January 1 - September 30, 2012	January 1 - September 30, 2011		January 1 - September 30, 2012	January 1 - September 30, 2011
172,575	168,872	Net cash from operating activities before change in operating assets	156,212	150,233
2,088,132	(1,734,006)	Net change in operating assets	2,133,578	(1,574,274)
(688,823)	(313,544)	Net change in operating liabilities	(686,239)	(283,117)
1,571,884	(1,878,678)	Net cash from (to) operating activities before income tax	1,603,551	(1,707,158)
-	(222)	Income tax paid	-	-
1,571,884	(1,878,900)	Net cash from (to) operating activities after income tax	1,603,551	(1,707,158)
886,300	407,493	Cash used in investing activities	720,736	86,407
(2,672,820)	1,318,272	Cash (used in) received from financing activities	(2,538,923)	1,467,616
(214,636)	(153,135)	Net (decrease) increase in cash	(214,636)	(153,135)
3,396,418	1,523,655	Cash at the beginning of the period	3,396,418	1,523,655
3,181,782	1,370,520	Cash at the end of the period	3,181,782	1,370,520
Specified as follows:
114,311	12,472	Balance available for withdrawal with the Central Bank	114,311	12,472
454,437	230,190	Overnight deposits	454,437	230,190
336,636	330,163	Cash on hand	336,636	330,163
2,276,398	797,695	Current accounts with other banks	2,276,398	797,695
3,181,782	1,370,520		3,181,782	1,370,520

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AB SEB BANKAS
NOTES TO THE CONDENSED INTERIM FINANCIAL STATEMENTS FOR THE 9 MONTHS PERIOD ENDED 30 SEPTEMBER 2012
(All amounts in LTL thousands unless otherwise stated)

NOTE 1 GENERAL INFORMATION

AB SEB Bankas (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 AB SEB Vilniaus bankas has changed its name into AB SEB Bankas – the Register of Legal Entities of the Republic of Lithuania has registered a new version of the Articles of Association of AB SEB Bankas, 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 ave. 12, Vilnius. At the end of the reporting period the Bank had 48 customer service units.

At the end of the reporting period AB SEB Bankas had 3 subsidiaries (the Bank and its subsidiaries thereafter are referred to as the Group). The subsidiaries are as follows: AB SEB Lizingas is a fully owned subsidiary engaged in the finance lease activities; UAB SEB Venture Capital is a fully owned subsidiary involved in venture capital activities; 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).

At the end of the reporting period the shareholder of the Bank is Skandinaviska Enskilda Banken, owning 100 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 2011, as described in the annual financial statements for the year ended 31 December 2011.

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.

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 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.

9

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AB SEB BANKAS

NOTES TO THE CONDENSED INTERIM FINANCIAL STATEMENTS FOR THE 9 MONTHS PERIOD ENDED 30 SEPTEMBER 2012

(All amounts in LTL thousands unless otherwise stated)

NOTE 3 SEGMENT REPORTING (CONTINUED)

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

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

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

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

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

10

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AB SEB BANKAS

NOTES TO THE CONDENSED INTERIM FINANCIAL STATEMENTS

FOR THE 9 MONTHS PERIOD ENDED 30 SEPTEMBER 2012

(All amounts in LTL thousands unless otherwise stated)

NOTE 3 SEGMENT REPORTING (CONTINUED)

Business segments of the Group for the period ended 30 September 2012 were as follows:

	Baltic Division	Merchant Banking	Asset Management	Treasury	Operations	Staff Functions	Information Technologies	Eliminations	Total Group
Interest income	518,739	767	92	301,331	-	-	-	(325,046)	495,883
- Internal	83,722	1	67	241,256	-	-	-	(325,046)	-
- External	435,017	766	25	60,075	-	-	-	-	495,883
Interest expense	(303,620)	(918)	(2)	(312,753)	-	-	-	325,046	(292,247)
- Internal	(241,324)	(918)	(2)	(82,802)	-	-	-	325,046	-
- External	(62,296)	-	-	(229,951)	-	-	-	-	(292,247)
Net commission income	123,428	180	8,892	(933)	-	-	-	-	131,567
- Internal	6,641	-	(5,796)	(845)	-	-	-	-	-
- External	116,787	180	14,688	(88)	-	-	-	-	131,567
Net financial income	62,495	-	8	(190)	-	-	-	-	62,319
Net other income	(758)	-	1	1,438	(44)	(14)	-	-	623
Net operating income	400,284	29	8,991	(11,107)	(44)	(14)	-	-	398,139
Total staff costs and other administrative expenses	(210,844)	(647)	(2,486)	(366)	1,347	2,902	2,602	-	(207,492)
Depreciation and amortisation	(21,675)	(40)	(43)	(1)	(594)	(601)	(2,659)	-	(25,613)
Capital losses	(228)	-	-	-	(21)	41	-	-	(208)
Total reversal of impairment losses	(7,379)	-	-	-	-	-	-	-	(7,379)
Profit before income tax	160,158	(658)	6,462	(11,474)	688	2,328	(57)	-	157,447
Income tax benefit (expenses)	(19,515)	94	(977)	-	-	-	-	-	(20,398)
Net profit for the year	140,643	(564)	5,465	(11,474)	688	2,328	(57)	-	137,049
Total Assets	19,183,277	53,842	20,050	8,155,674	688	2,328	-	(3,804,818)	23,611,041
Total Liabilities	16,701,904	54,406	13,575	8,172,991	-	-	57	(3,804,818)	21,138,115
Acquisition of intangible assets and property, plant and equipment	7,147	-	-	-	-	-	-	-	7,147

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AB SEB BANKAS
NOTES TO THE CONDENSED INTERIM FINANCIAL STATEMENTS
FOR THE 9 MONTHS PERIOD ENDED 30 SEPTEMBER 2012
(All amounts in LTL thousands unless otherwise stated)

NOTE 3 SEGMENT REPORTING (CONTINUED)

For the period ended 30 September 2012 reconciliation between Group’s Segment reporting and financial statements is presented below:

| | Segment
Reporting | Eliminations | | |
| --- | --- | --- | --- | --- |
| | | Interest
income
from Hodged
L&R | Other
reconciling
entries | Financial
Statements |
| Interest income | 495,883 | | (1,344) | 494,539 |
| Interest expence | (292,247) | 18,627 | 532 | (273,088) |
| Net commission income | 131,567 | | 1,953 | 133,520 |
| Net financial income | 62,313 | (18,627) | 521 | 44,207 |
| Net other income | 623 | - | 4,446 | 5,069 |
| Net operating income | 398,139 | - | 6,108 | 404,247 |
| Total staff costs and other
administrative expenses | (207,492) | - | (5,581) | (213,073) |
| Depreciation and amortisation | (25,613) | | (528) | (26,141) |
| Capital losses | (208) | | | (208) |
| Total reversal of impairment losses | (7,379) | - | 1 | (7,378) |
| Profit before income tax | 157,447 | - | - | 157,447 |
| Income tax benefit (expenses) | (20,398) | - | - | (20,398) |
| Net profit for the year | 137,049 | - | - | 137,049 |

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AB SEB BANKAS

NOTES TO THE CONDENSED INTERIM FINANCIAL STATEMENTS

FOR THE 9 MONTHS PERIOD ENDED 30 SEPTEMBER 2012

(All amounts in LTL thousands unless otherwise stated)

NOTE 3 SEGMENT REPORTING (CONTINUED)

Business segments of the Group for the period ended 30 September 2011 were as follows:

	Baltic Division	Merchant Banking	Asset Management	Treasury	Operations	Staff Functions	Information Technologies	Eliminations	Total Group
Interest income	563,130	587	97	373,231	-	-	-	(380,405)	556,640
- Internal	85,497	3	77	294,828	-	-	-	(380,405)	-
- External	477,633	584	20	78,403	-	-	-	-	556,640
Interest expence	(344,235)	(462)	(4)	(367,821)	-	-	-	380,405	(332,117)
- Internal	(294,908)	(462)	(4)	(85,031)	-	-	-	380,405	-
- External	(49,327)	-	-	(282,790)	-	-	-	-	(332,117)
Net commission income	112,688	-	9,041	(77)	-	-	-	-	121,652
- Internal	6,197	-	(6,197)	-	-	-	-	-	-
- External	106,491	-	15,238	(77)	-	-	-	-	121,652
Net financial income	50,740	(2)	(1)	174	-	-	-	-	50,911
Net other income	(6,780)	-	-	365	(2)	(26)	-	-	(6,443)
Net operating income	375,543	123	9,133	5,872	(2)	(26)	-	-	390,643
Total staff costs and other administrative expenses	(207,063)	(724)	(2,576)	(457)	2,429	3,137	4,195	-	(201,059)
Depreciation and amortisation	(24,233)	(39)	(114)	(2)	(763)	(756)	(4,195)	-	(30,102)
Capital losses	(3)	-	-	-	-	-	-	-	(3)
Total reversal of impairment losses	329,214	-	-	-	-	-	-	-	329,214
Profit before income tax	473,458	(640)	6,443	5,413	1,664	2,355	-	-	488,693
Income tax benefit (expenses)	(57,283)	91	(19)	-	-	-	-	-	(57,211)
Net profit for the year	416,175	(549)	6,424	5,413	1,664	2,355	-	-	431,482
Total Assets	18,866,522	52,276	20,272	11,781,590	1,664	2,355	-	(6,863,729)	23,860,950
Total Liabilities	16,580,918	52,825	12,921	11,784,657	-	-	-	(6,863,729)	21,567,592
Acquisition of intangible assets and property, plant and equipment	9,287	93	382	-	-	-	-	-	9,762

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AB SEB BANKAS
NOTES TO THE CONDENSED INTERIM FINANCIAL STATEMENTS FOR THE 9 MONTHS PERIOD ENDED 30 SEPTEMBER 2012
(All amounts in LTL thousands unless otherwise stated)

NOTE 3 SEGMENT REPORTING (CONTINUED)

For the period ended, 30 September 2011 reconciliation between Group’s Segment reporting and financial statements is presented below:

| | Segment
Reporting | Eliminations | | |
| --- | --- | --- | --- | --- |
| | | Interest
income
from Hedged
L&R | Other
reconciling
entries | Financial
Statements |
| Interest income | 556,640 | - | (1,897) | 554,743 |
| Interest expence | (332,117) | 40,577 | 782 | (290,758) |
| Net commission income | 121,652 | - | 1,680 | 123,332 |
| Net financial income | 50,911 | (40,577) | (390) | 9,944 |
| Net other income | (6,443) | - | 10,168 | 3,725 |
| Net operating income | 390,643 | - | 10,343 | 400,986 |
| Total staff costs and other
administrative expenses | (201,059) | - | (10,343) | (211,402) |
| Depreciation and amortisation | (30,102) | - | - | (30,102) |
| Capital losses | (3) | - | - | (3) |
| Total reversal of impairment losses | 329,214 | - | - | 329,214 |
| Profit before income tax | 488,693 | - | - | 488,693 |
| Income tax benefit (expenses) | (57,211) | - | - | (57,211) |
| Net profit for the year | 431,482 | - | - | 431,482 |

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AB SEB BANKAS

NOTES TO THE CONDENSED INTERIM FINANCIAL STATEMENTS FOR THE 9 MONTHS PERIOD ENDED 30 SEPTEMBER 2012

(All amounts in LTL thousands unless otherwise stated)

NOTE 4 ASSETS UNDER MANAGEMENT

The Group			The Bank
30 September 2012	31 December 2011		30 September 2012	31 December 2011
511,612	504,964	Private individuals and corporate customers' assets under management	-	-
234,289	218,060	Pillar two conservative pension fund (SEB Pension 1)	-	-
993,081	863,312	Pillar two balanced pension fund (SEB Pension 2)	-	-
139,748	116,285	Pillar two equity pension fund (SEB Pension 3)	-	-
14,774	13,818	Conservative voluntary pension fund (SEB Pension 1 Plus)	-	-
47,343	43,947	Balanced voluntary pension fund (SEB Pension 2 Plus)	-	-
137,298	122,965	SEB Actively Managed Fund Porfolio 60	-	-
107,836	96,169	SEB Actively Managed Fund Porfolio 100	-	-
2,185,981	1,979,520	Total assets under management	-	-

NOTE 5 OFF BALANCE SHEET ITEMS

The Group			The Bank
30 September 2012	31 December 2011		30 September 2012	31 December 2011
2,076,838	2,089,755	Agreements to grant loans	2,214,760	2,191,682
557,259	512,979	Guarantees issued	558,540	514,766
199,750	212,417	Letters of credit issued	199,750	212,417
		Commitments to purchase assets and other commitments	-	-
73,617	24,866
66	-	Commitments to sell securities	66	-
38	38	Customs guarantees collateralised by deposits	38	38

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) can be specified as follows:

The Group			The Bank
30 September 2012	31 December 2011		Interest rate %	30 September 2012	31 December 2011
3,265,451	2,627,846	Outstanding loan amount at the end of the period	0.20-2.14	3,264,478	2,626,894
256,114	35,153	Derivative financial instruments at the end of the period	-	256,114	35,153
3,302	2,919	Other assets at the end of the period	-	2,584	2,390
		Outstanding deposit amount at the end of the period	0.1-5.5	6,068,395	8,280,131
6,901,318	9,433,469			614,208	611,328
614,603	611,913	Other liabilities at the end of the period	-
		Commitments to grant loans at the end of the period	-	18,324	72
18,324	72			200	6,437
200	6,437	Guarantees issued at the end of the period	-
For 9 month period ended 30 September 2012 and 2011
28,549	13,717	Interest income	-	28,522	13,693
(192,461)	(255,024)	Interest expense	-	(177,262)	(227,488)
		Other services received and cost incurred from SEB group, net	-	(14,914)	(7,398)
(9,962)	(2,690)

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AB SEB BANKAS

NOTES TO THE CONDENSED INTERIM FINANCIAL STATEMENTS FOR THE 9 MONTHS PERIOD ENDED 30 SEPTEMBER 2012

(All amounts in LTL thousands unless otherwise stated)

NOTE 6 RELATED PARTIES (CONTINUED)

Transactions with parent bank can be specified as follows:

The Group			The Bank
30 September 2012	31 December 2011		Interest rate %	30 September 2012	31 December 2011
3,147,072	2,538,753	Outstanding loan amount at the end of the period	0.20-2.14	3,146,763	2,538,342
256,114	35,153	Derivative financial instruments at the end of the period	-	256,114	35,153
-	498	Other assets at the end of the period	-	-	38
6,841,789	9,378,204	Outstanding deposit amount at the end of the period	0.17-5.5	6,008,865	8,224,866
-	597,936	Other liabilities at the end of the period	-	-	597,936
18,272	17	Commitments to grant loans at the end of the period	-	18,272	17
200	464	Guarantees issued at the end of the period	-	200	464
For 9 month period ended 30 June 2012 and 2011
27,994	13,236	Interest income	-	27,984	13,227
(192,249)	(254,802)	Interest expense	-	(177,050)	(227,266)
(7,204)	173	Other services received and cost incurred from SEB group, net	-	(11,525)	(3,969)

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

	Interest rate %	The Bank
		30 September 2012	31 December 2011
Off-balance sheet commitments
Agreements to grant loans	-	137,922	101,927
Guarantees issued	-	1,281	1,787
Outstanding loan amounts
AB SEB Lizingas	0.30-0.976	399,755	426,596
UAB SEB Venture Capital	1.55	36,500	40,004
Outstanding deposit amounts
UAB SEB Venture Capital	0	307	5,995
UAB SEB Investiciju Valdymas	0.37	16,965	18,344
AB SEB Lizingas	0	412	176,185
Other assets at period end	-	(1,876)	1,916
Other liabilities at period end	-	-	9
For 9 month period ended 30 September 2012 and 2010
Interest income	-	4,178	3,452
Interest expense	-	(613)	(1,041)
Dividend income	-	8,344	6,064
Other services received and cost incurred from subsidiaries, net	-	8,335	8,923

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AB SEB BANKAS

NOTES TO THE CONDENSED INTERIM FINANCIAL STATEMENTS FOR THE 9 MONTHS PERIOD ENDED 30 SEPTEMBER 2012

(All amounts in LTL thousands unless otherwise stated)

NOTE 7 DEBT SECURITIES ISSUANCE AND REDEMPTION

During the nine months of 2012 the Bank successfully placed 22 securities issues, as presented in the table below:

Issue date	Redemption date	Duration	Currency	Amount in issue (in LTL)	Interest rate or index
2012.01.30	2014.02.03	735 days	LTL	1,001,800	USD/CNY FX rates
2012.01.30	2014.02.03	735 days	LTL	524,300	USD/CNY FX rates
2012.02.28	2015.03.05	1 101 days	LTL	513,200	S&P Southeast Asia 40 Risk Control 18% EUR Excess Return
2012.02.28	2015.03.05	1 101 days	LTL	72,300	S&P Southeast Asia 40 Risk Control 18% EUR Excess Return
2012.02.28	2015.03.05	1 101 days	EUR	379,463	S&P Southeast Asia 40 Risk Control 18% EUR Excess Return
2012.04.03	2015.04.13	1 105 days	LTL	479,800	Consumer Staples Select Sector SPDR ETF
2012.04.03	2015.04.13	1 105 days	LTL	478,300	Consumer Staples Select Sector SPDR ETF
2012.04.03	2015.04.13	1 105 days	EUR	166,425	Consumer Staples Select Sector SPDR ETF
2012.04.03	2015.04.08	1 110 days	LTL	1,252,600	"Brent" oil, gold, sugar, corn
2012.04.05	2015.04.08	1 098 days	LTL	840,000	Copper, gold, sugar, corn
2012.04.05	2015.04.08	1 098 days	EUR	3,925,834	Copper, gold, sugar, corn
2012.05.03	2014.05.23	750 days	LTL	238,900	EUR/TRY, EUR/BRL, EUR/KRW FX rates
2012.05.03	2014.05.23	750 days	LTL	145,200	EUR/TRY, EUR/BRL, EUR/KRW FX rates
2012.05.24	2013.06.11	383 days	EUR	4,672,329	Daimler AG (IL)
2012.05.30	2017.06.13	1 840 days	LTL	4,703,200	Carmignac Patrimoine A
2012.06.12	2015.07.01	1 114 days	LTL	2,181,600	S&P BRIC 40 EUR Price Return
2012.06.12	2015.07.01	1 114 days	LTL	670,000	S&P BRIC 40 EUR Price Return
2012.06.12	2015.07.01	1 114 days	EUR	458,532	S&P BRIC 40 EUR Price Return
2012.06.27	2013.07.15	383 days	EUR	4,203,439	Bank of America (BAC UN)
2012.07.31	2016.02.17	1296 days	LTL	2,616,800	Consumer Staples Select Sector SPDR ETF
2012.08.22	2013.09.09	383 days	EUR	1,711,553	Samsung (SMSN LI)
			LTL		Apple Inc, International Business Machines Corp, Microsoft Corp, AT&T Inc, Google Inc, Intel Corp
2012.08.30	2016.02.17	1266 days		1,684,600

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AB SEB BANKAS

NOTES TO THE CONDENSED INTERIM FINANCIAL STATEMENTS FOR THE 9 MONTHS PERIOD ENDED 30 SEPTEMBER 2012

(All amounts in LTL thousands unless otherwise stated)

NOTE 7 DEBT SECURITIES ISSUANCE AND REDEMPTION (CONTINUED)

During the nine months of 2012 the Bank successfully redeemed its 23 securities issues, as presented in the table below:

Issue date	Redemption date	Duration	Currency	Amount in issue (in LTL)	Interest rate or index
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
2008.12.19	2012.02.06	1 144 days	LTL	157,100	BNP Paribas Platinium EUR Excess Return
2008.12.19	2012.02.06	1 144 days	LTL	463,000	BNP Paribas Platinium EUR Excess Return
2008.12.19	2012.02.06	1 144 days	LTL	102,600	BNP Paribas Platinium EUR Excess Return
2008.12.19	2012.02.06	1 144 days	EUR	157,793	BNP Paribas Platinium EUR Excess Return
2009.02.26	2012.03.16	1 114 days	LTL	1,706,500	BNP Paribas Millenium New World
2009.02.26	2012.03.16	1 114 days	LTL	179,400	BNP Paribas Millenium New World
2009.02.26	2012.03.16	1 114 days	EUR	355,984	BNP Paribas Millenium New World
2010.04.13	2012.05.02	750 days	LTL	2,486,300	AstraZeneca PLC, Svenska Handelsbanken AB ir Skanska AB
2010.04.13	2012.05.02	750 days	EUR	1,246,116	AstraZeneca PLC, Svenska Handelsbanken AB ir Skanska AB
2009.04.29	2012.05.18	1 115 days	LTL	2,266,100	BNP Paribas Platinium EUR Excess Return
2009.04.29	2012.05.18	1 115 days	EUR	126,027	BNP Paribas Platinium EUR Excess Return
2010.03.31	2012.06.08	800 days	LTL	443,700	Deutsche Telekom AG
2010.03.31	2012.06.08	800 days	EUR	2,126,925	Deutsche Telekom AG
2010.05.27	2012.06.20	755 days	EUR	2,802,638	Deutsche Bank AG
2009.06.02	2012.06.21	1 115 days	LTL		Renewable Energy Corp. AS, Norsk Hydro ASA, Outokumpu Oyj, Rautaruski 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	1 115 days	LTL	1,709,500	Renewable Energy Corp. AS, Norsk Hydro ASA, Outokumpu Oyj, Rautaruski 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	1 115 days	EUR	238,200	Renewable Energy Corp. AS, Norsk Hydro ASA, Outokumpu Oyj, Rautaruski Oyj, SSAB Svenskt Stal AB, Neste Oil Oyj, StatoilHydro ASA, Svenska Cellulosa AB (SCA), Stora Enso Oyj, Seadrill Ltd.
2009.08.25	2012.09.13	1 115 dienu	LTL	1,027,553	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	1 115 dienu	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	1 115 dienu	EUR	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.
				900,836

NOTE 8 SIGNIFICANT EVENTS AFTER THE BALANCE SHEET DATE

After 30 September 2012 the Bank successfully completed 3 non-equity securities issues with the nominal value of LTL 7 514 thousand.

After 30 September 2012 the Bank successfully redeemed 4 non-equity securities issues with the nominal value of LTL 7 466 thousand.

After 30 September 2012 the Bank started placing 3 non-equity securities issues that, as of 21 November 2012, amounted to LTL 277 thousand and were accounted for in Other liabilities and provisions line in the balance sheet.

NOTE 9 MAJOR EVENTS IN THE ISSUER'S ACTIVITIES

On 7 February 2012, the Bank announced that According to preliminary data, unaudited net profit earned over the year 2011 by AB SEB bankas is LTL 379.8 million (EUR 110.0 million) and by AB SEB bankas Group is LTL 469.7 million (EUR 136.0 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 year 2010, audited net loss suffered by AB SEB bankas totaled LTL 12.1 million (EUR 3.5 million) and by the Bank's Group - LTL 18.0 million (EUR 5.2 million). The result of the year 2011 of AB SEB bankas includes sale profit resulting from transfer of shares of the Bank's subsidiary company UAB "SEB Enskilda" to SEB Group. The result of the year 2011 of the AB SEB bankas Group doesn't include the result of UAB "SEB Enskilda".

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AB SEB BANKAS

NOTES TO THE CONDENSED INTERIM FINANCIAL STATEMENTS FOR THE 9 MONTHS PERIOD ENDED 30 SEPTEMBER 2012

(All amounts in LTL thousands unless otherwise stated)

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

On 9 February 2012, the Bank announced that On 8 February, 2012 the Supervisory Council of the AB SEB bankas has resolved to reelect the Management Board of AB SEB bankas for a new four-year tenure. Current Members of the Management Board – Raimondas Kvedaras, Jonas Iržikevičius, Roberts Bernis, Aivaras Ččelis and Virginijus Doveikas were appointed as members of the Management Board of AB SEB bankas for the new four-year tenure. The Management Board was reelected due to the expiry of the four-year tenure of the Management Board determined in the Articles of Association of AB SEB bankas. On 8 February, 2012 the Management Board of AB SEB bankas appointed Raimondas Kvedaras as a Chairman of the Management Board of AB SEB bankas.

On 13 March 2012, the Bank announced that on the 30th of March 2012, the Annual General Meeting of Shareholders of AB SEB bankas (hereinafter – the Bank) will take place. The Annual General Meeting is initiated and convened by the Board of the Bank. 100 % of shares of the Bank is owned by Skandinaviska Enskilda Banken AB.

Issues on the agenda:

1. Regarding the Annual Report of the Bank;
2. Regarding the Report of the Auditor of the Bank;
3. Regarding the comments and proposals of the Supervisory Council of the Bank;
4. Regarding approval of the Consolidated Financial Statements of the Bank for the Year 2011;
5. Regarding appropriation of the Year 2011 profit (loss) of the Bank.

The Board of the Bank also approved the draft decisions of the Annual General Meeting of Shareholders of the Bank.

On 30 March 2012, the Bank announced that on the 30th March 2012, the Annual General Meeting of Shareholders of AB SEB bankas (hereinafter – the SEB Bank) took place and decisions on all issues on the agenda were adopted:

1. SEB Bank Group's year 2011 Consolidated Annual Report and its Annex "Disclosure form concerning the compliance with the Corporate Governance Code for the Companies Listed on NASDAQ OMX Vilnius" have been familiarized with;
2. Report of the audit company UAB "PricewaterhouseCoopers", which has performed the audit, have been familiarized with;
3. Comments and proposals of the Supervisory Council of SEB Bank regarding SEB Bank's Activity Strategy, its Annual Consolidated Financial Statements, Draft Profit (Loss) Appropriation and SEB Bank's Consolidated Annual Report as well as the activities of SEB Bank's Management Board and President have been familiarized with;
4. SEB Bank's and SEB Bank Group's year 2011 Consolidated Financial Statements produced in accordance with the International Financial Reporting Standards (enclosed) were approved;
5. Appropriation of the year 2011 profit (loss) of SEB Bank was approved.

On 24 April 2012, the Bank announced that according to preliminary data, unaudited net profit earned over the first quarter of the year 2012 by AB SEB bankas is LTL 30.7 million (EUR 8.9 million) and by AB SEB bankas Group is LTL 41.5 million (EUR 12.0 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 first quarter of the year 2011, unaudited net profit earned by AB SEB bankas totalled LTL 97.6 million (EUR 28.3 million) and by the Bank's Group – LTL 174.1 million (EUR 50.4 million).

On 11 July 2012, the Bank announced that on 10 July 2012 AB SEB bankas received from the Competition Council of the Republic of Lithuania (hereinafter the Competition Council) the Statement of Objections on the investigation performed regarding compatibility of the actions of AB SEB bankas and several other entities with the requirements of the Article 5 of the Competition Law of Republic of Lithuania and requirements of the Article 101 of the Treaty on the Functioning of European Union (hereinafter the Statement of Objections). According to the preliminary view of the investigators who prepared the Statement of Objections, the actions of AB SEB bankas allegedly harmed competition in cash handling and collection services markets.

The sending of the Statement of Objections to the parties involved in the investigation does not mean that it is already determined that the infringement was made by AB SEB bankas and the findings of the investigation do not restrain the Competition Council taking the final decision after completing all the procedures associated with this investigation. If the Competition Council acknowledges the evidence of the infringement to be sufficient, it may require AB SEB bankas to cease the infringement and impose the fine up to 10 percent of the total annual revenue of the last financial year.

On 16 July 2012, the Bank announced that according to preliminary data, unaudited net profit earned over the first half-year of the year 2012 by AB SEB bankas is LTL 59.5 million (EUR 17.2 million) and by AB SEB bankas Group is LTL 80.4 million (EUR 23.3 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 the year 2011, unaudited net profit earned by AB SEB bankas totaled LTL 199.5 million (EUR 57.8 million) and by the Bank's Group – LTL 356.5 million (EUR 103.2 million).

On 25 October 2012, the Bank announced that according to preliminary data, unaudited net profit earned over the three quarters of the year 2012 by AB SEB bankas is LTL 103.1 million (EUR 29.9 million) and by AB SEB bankas Group – LTL 137.0 million (EUR 39.7 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 the year 2011, unaudited net profit earned by AB SEB bankas totaled LTL 246.7 million (EUR 71.4 million) and by the Bank's Group – LTL 431.5 million (EUR 125.0 million).

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