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SEB Interim / Quarterly Report 2013
2966_rns_2013-11-29_e4cc35ad-a922-48df-98ab-d3a05fd9028b.pdf
Interim / Quarterly Report
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SEB
AB SEB bankas condensed interim financial information for the 9 months period ended 30 September 2013
SEB
AB SEB BANKAS
CONDENSED INTERIM INFORMATION FOR THE NINE-MONTH PERIOD 2013
TABLE OF CONTENTS
- CONFIRMATION OF RESPONSIBLE PERSONS REGARDING INTERIM NINE-MONTH CONSOLIDATED FINANCIAL REPORTING
- CONDENSED INTERIM FINANCIAL INFORMATION FOR THE 9 MONTH PERIOD ENDED SEPTEMBER 2013
SEB
AB SEB bankas
Gedimino ave. 12
LT-01103 Vilnius
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 9 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 AB SEB bankas
(Handwritten signature)
Head of Business Support Division and CFO of SEB bankas
(Handwritten signature)
Director of Finance Department of AB SEB bankas
(Handwritten signature)
Raimondas Kvedaras
(Handwritten signature)
Jonas Iržikevičius
(Handwritten signature)
Saulius Salda
(Handwritten signature)
Vilnius,
November 2013
AB SEB bankas
Address: Gedimino ave. 12, LT-01103 Vilnius
Information by telephone: 1528. (8 5) 268 2800, fax: (8 5) 268 2333. e-mail: [email protected]
AB SEB bankas, company code 112021238
www.seb.lt
AB SEB bankas
GENERAL INFORMATION
- Reporting period
The report has been produced for the 9 months period ended 30 September 2013.
- The issuer's key data
Issuer's name
Share capital
Domicile address
Telephone
Fax
E-mail
Legal organisational form
Registration date and place
Company's code
Company's registration number
Website
AB SEB bankas
LTL 1,034,575,341
Gedimino ave.12, LT-01103 Vilnius
(8 5) 2682 800
(8 5) 2682 333
[email protected]
Public limited company
29 November 1990, Bank of Lithuania
112021238
AB90-4
www.seb.lt
2
AB SEB bankas
CONDENSED INTERIM INCOME STATEMENT
FOR THE 9 MONTHS PERIOD ENDED 30 SEPTEMBER 2013
(All amounts in LTL thousands unless otherwise stated)
| The Group | |||
|---|---|---|---|
| January 1-September 30, 2013 | The third quarter 2013 | January 1-September 30, 2012 | The third quarter 2012 |
| 355,828 | |||
| (139,621) | 129,635 | ||
| (45,418) | 434,530 | ||
| (273,550) | 141,652 | ||
| (75,433) | |||
| 216,285 | |||
| (17,843) | |||
| (4,740) | 79,219 | ||
| 6,579 | 19,219 | ||
| 22,858 | 6,474 | ||
| 3,138 | |||
| 2,685 | |||
| (1) | 2,377 | ||
| (7) | 4,314 | - | |
| (17,843) | |||
| (1,689) | 3,665 | 17,576 | 17,576 |
| 196,567 | |||
| (18,208) | 82,864 | ||
| (17,771) | 214,677 | ||
| (16,957) | 124,957 | ||
| (51,183) | |||
| 196,208 | |||
| (59,182) | 67,255 | ||
| (17,733) | 182,980 | ||
| (48,362) | 165,644 | ||
| (17,133) | |||
| 146,824 | |||
| (8,253) | |||
| (646) | 49,462 | ||
| 1,305 | 130,539 | ||
| 4,883 | 48,271 | ||
| 1,001 | |||
| 8,053 | |||
| (646) | 1,801 | ||
| (70) | (7,761) | ||
| (754) | 4,166 | ||
| (25) | |||
| 53,378 | |||
| 4,197 | 17,407 | ||
| 1,335 | 52,958 | ||
| 4,883 | 14,612 | ||
| (1,001) | |||
| 65,182 | |||
| (56,099) | 29,464 | ||
| (32,132) | 49,279 | ||
| (198,631) | 28,289 | ||
| (15,045) | |||
| (114,181) | |||
| (19,361) | 28,300 | ||
| (27,511) | 110,747 | ||
| (48,117) | 66,454 | ||
| (9,762) | |||
| 151,455 | |||
| (107,691) | 69,944 | ||
| (12,251) | 137,049 | ||
| (20,388) | 66,882 | ||
| (10,499) | |||
| The Bank | |||
| --- | --- | --- | --- |
| January 1-September 30, 2013 | The third quarter 2013 | January 1-September 30, 2012 | The third quarter 2012 |
| 329,555 | |||
| (138,352) | 219,385 | ||
| (88,632) | 432,107 | ||
| (258,658) | 132,667 | ||
| (71,364) | |||
| 192,283 | |||
| (17,842) | 132,763 | ||
| (7,155) | 183,682 | ||
| (34,700) | 61,243 | ||
| (1,831) | |||
| - | - | - | - |
| 2,685 | |||
| (1,63) | 1,632 | ||
| (14,957) | 4,514 | ||
| (5,183) | 3,138 | ||
| (1,279) | |||
| 171,246 | |||
| (17,389) | 121,589 | ||
| (20,186) | 165,426 | ||
| (17,421) | 43,523 | ||
| (42,53) | |||
| 107,366 | |||
| (49,573) | 125,702 | ||
| (34,408) | 174,471 | ||
| (48,960) | 62,535 | ||
| (48,998) | |||
| 137,783 | |||
| (10,271) | 92,284 | ||
| (24,658) | 125,513 | ||
| (48,888) | 45,535 | ||
| (48,958) | |||
| 7,580 | |||
| (640) | 12,588 | ||
| (726) | (7,761) | ||
| (756) | 4,166 | ||
| (18) | |||
| 7,351 | |||
| (4,82) | 36,241 | ||
| (2,779) | 52,841 | ||
| (4,566) | - | ||
| 53,810 | |||
| 4,815 | 36,241 | ||
| (2,779) | 52,841 | ||
| (4,566) | 14,566 | ||
| 1,589 | |||
| 72,826 | |||
| (51,511) | 56,990 | ||
| (61,926) | 57,294 | ||
| (110,352) | 28,305 | ||
| (33,705) | |||
| 188,542 | |||
| (27,132) | 136,597 | ||
| (22,673) | 116,243 | ||
| (137,185) | 103,445 | ||
| 183,445 | |||
| 109,418 | |||
| (15,434) | 125,809 | ||
| (103,809) | 61,025 | ||
| (103,809) | 61,025 | ||
| (103,809) |
AB SEB bankas
CONDENSED INTERIM STATEMENT OF COMPREHENSIVE INCOME
FOR THE 9 MONTHS PERIOD ENDED 30 SEPTEMBER 2013
(All amounts in LTL thousands unless otherwise stated)
| The Group | The Bank | |||
|---|---|---|---|---|
| January 1 - September 30 2013 | January 1 - September 30 2012 | January 1 - September 30 2013 | January 1 - September 30 2012 | |
| 167,455 | 137,049 | Net gain (losses) for the year | ||
| Rems that may subsequently be reclassified to the income statement: | 159,410 | 103,090 | ||
| 985 | 3,264 | Net gain (loss) on available for sale financial assets | ||
| Amortization of financial assets revaluation reserve | 985 | 3,264 | ||
| 205 | 1,317 | of reclassified financial assets | ||
| Income tax relating to the components of other | 205 | 1,317 | ||
| (178) | (687) | comprehensive income | ||
| Rems that will not be reclassified to the income statement: | (178) | (687) | ||
| - | - | - | - | - |
| 1,012 | 3,894 | Total other comprehensive income | 1,012 | 3,894 |
| 168,467 | 140,943 | Total comprehensive income | 160,422 | 106,984 |
| Attributable to: | ||||
| 168,467 | 140,943 | Owners of the Bank | 160,422 | 106,984 |
| - | - | Non controlling interest | - | - |
AB SEB bankas
CONDENSED INTERIM STATEMENT OF FINANCIAL POSITION
AS OF 30 SEPTEMBER 2013
(All amounts in LTL thousands unless otherwise stated)
| The Group | The Bank | |||
|---|---|---|---|---|
| 30 September 2013 | 31 December 2012 | 30 September 2013 | 31 December 2012 | |
| Assets | ||||
| 332,479 | 443,393 | Cash on hand | 332,479 | 443,393 |
| 416,080 | 1,002,933 | Balances with the Central Bank | 416,080 | 1,002,933 |
| 3,592,571 | 2,666,929 | Due from banks, net | 3,592,571 | 2,666,929 |
| 59,076 | 60,900 | Government securities available for sale | 58,417 | 60,234 |
| Financial assets at fair value through profit and loss | 866,491 | 608,544 | ||
| 910,622 | 651,603 | 244,455 | 326,230 | |
| 244,455 | 326,230 | Derivative financial instruments | ||
| Loans to credit institutions, net of impairment losses | 100,037 | 6,242 | ||
| 100,037 | 6,242 | 16,749,327 | 16,400,604 | |
| 15,654,260 | 15,643,522 | Loans to customers, net of impairment losses | - | - |
| Finance lease receivable, net of impairment losses | ||||
| 1,422,430 | 1,502,759 | |||
| Investment securities: | ||||
| 189,658 | 386,010 | - loans and receivables | 189,658 | 386,010 |
| 200 | 200 | - available for sale | 200 | 200 |
| 13,562 | 13,812 | - held to maturity | 13,562 | 13,812 |
| Investments in subsidiaries | 307,900 | 307,900 | ||
| 50,590 | 58,260 | Intangible fixed assets | 50,096 | 57,827 |
| 18,503 | 22,645 | Property, plant and equipment | 18,094 | 22,127 |
| 375 | Assets under operating lease | - | - | |
| 4,894 | 23,686 | Non-current assets held for sale | - | - |
| 19,956 | 14,232 | Investment property | 1,287 | 1,332 |
| 166,055 | 195,802 | Deferred tax asset | 120,558 | 147,868 |
| 134,032 | 113,842 | Other assets, net of Impairment losses | 101,825 | 107,275 |
| 23,329,460 | 23,133,375 | Total assets | 23,163,037 | 22,559,460 |
| Liabilities | ||||
| 49 | 37 | Amounts owed to the Central Bank | 49 | 37 |
| 7,953,717 | 6,789,296 | Amounts owed to credit institutions | 7,953,717 | 6,368,066 |
| 274,193 | 380,892 | Derivative financial instruments | 274,193 | 380,892 |
| 12,219,930 | 12,797,100 | Deposits from public | 12,239,054 | 12,816,799 |
| 30,203 | 61,181 | Accrued expenses and deferred income | 28,794 | 59,150 |
| 2,338 | 1,316 | Income tax payable | - | - |
| 124,790 | 561,016 | Debt securities in issue | 124,790 | 561,016 |
| 157,432 | 145,409 | Other liabilities and provisions | 132,689 | 125,384 |
| 20,762,652 | 20,736,247 | Total liabilities | 20,753,286 | 20,311,344 |
| 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 |
| (3,086) | (4,098) | Financial assets revaluation reserve | (3,086) | (4,098) |
| 289,202 | 239,612 | Legal reserve | 286,327 | 236,737 |
| 15,345 | 14,132 | General and other reserves | 15,345 | 14,132 |
| 1,228,572 | 1,110,707 | Retained earnings | 1,074,390 | 964,570 |
| 2,566,808 | 2,397,128 | 2,409,751 | 2,248,116 | |
| Non controlling interest in equity | ||||
| 2,566,808 | 2,397,128 | Total equity | 2,409,751 | 2,248,116 |
| 23,329,460 | 23,133,375 | Total liabilities and equity | 23,163,037 | 22,559,460 |
AB SEB bankas
CONDENSED INTERIM STATEMENT OF CHANGES IN EQUITY FOR THE 9 MONTHS PERIOD ENDED 30 SEPTEMBER 2013
(All amounts in LTL thousands unless otherwise stated)
| The Group | 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 non controlling interest | Non controlling interest | Total | |
| 31 December 2011 | 1,034,575 | 2,200 | (9,737) | 194,708 | 12,497 | 1,096,516 | 2,338,759 | - | 2,338,759 |
| Net change in available for sale investments, net of deferred taxes | - | - | 2,577 | - | - | - | 2,577 | - | 2,577 |
| Amortisation of financial assets revaluation reserve of reclassified financial assets | - | - | 1,317 | - | - | - | 1,317 | - | 1,317 |
| Net profit for the year | - | - | - | - | - | 137,049 | 137,049 | - | 137,049 |
| Total comprehensive income | - | - | 3,894 | - | - | 137,049 | 140,943 | - | 140,943 |
| Share-based compensation | - | - | - | - | 1,224 | - | 1,224 | - | 1,224 |
| Transfers to reserves | - | - | - | 45,616 | - | (45,616) | - | - | - |
| 30 September 2012 | 1,034,575 | 2,200 | (5,843) | 240,324 | 13,721 | 1,187,949 | 2,472,926 | - | 2,472,926 |
| 31 December 2012 | 1,034,575 | 2,200 | (4,998) | 239,612 | 14,132 | 1,137,930 | 2,424,351 | - | 2,424,351 |
| Change in fair value measurement of financial assets | - | - | - | - | - | (27,223) | (27,223) | - | (27,223) |
| Adjusted balance as of 31 December 2012 | 1,034,575 | 2,200 | (4,998) | 239,612 | 14,132 | 1,110,707 | 2,397,128 | - | 2,397,128 |
| Net change in available for sale investments, net of deferred taxes | - | - | 807 | - | - | - | 807 | - | 807 |
| Amortisation of financial assets revaluation reserve of reclassified financial assets | - | - | 205 | - | - | - | 205 | - | 205 |
| Net profit for the year | - | - | - | - | - | 167,455 | 167,455 | - | 167,455 |
| Total comprehensive income | - | - | 1,012 | - | - | 167,455 | 168,467 | - | 168,467 |
| Share-based compensation | - | - | - | - | 1,213 | - | 1,213 | - | 1,213 |
| Transfers to reserves | - | - | - | 49,590 | - | (49,590) | - | - | - |
| 30 September 2013 | 1,034,575 | 2,200 | (3,086) | 289,202 | 15,345 | 1,228,572 | 2,566,808 | - | 2,566,808 |
AB SEB bankas
CONDENSED INTERIM STATEMENT OF CHANGES IN EQUITY FOR THE 9 MONTHS PERIOD ENDED 30 SEPTEMBER 2013
(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 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 taxes | - | - | 2,577 | - | - | - | 2,577 |
| Amortisation of financial assets revaluation reserve of reclassified financial assets | - | - | 1,317 | - | - | - | 1,317 |
| Net profit for the year | - | - | - | - | - | 183,090 | 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 |
| 31 December 2012 | 1,034,575 | 2,200 | (4,098) | 236,737 | 14,132 | 991,793 | 2,275,339 |
| Change in fair value measurement of financial assets | - | - | - | - | - | (27,223) | (27,223) |
| Adjusted balance as of 31 December 2012 | 1,034,575 | 2,200 | (4,098) | 236,737 | 14,132 | 964,570 | 2,248,116 |
| Net change in available for sale investments, net of deferred taxes | - | - | 807 | - | - | - | 807 |
| Amortisation of financial assets revaluation reserve of reclassified financial assets | - | - | 205 | - | - | - | 205 |
| Net profit for the year | - | - | - | - | - | 159,410 | 159,410 |
| Total comprehensive income | - | - | 1,012 | - | - | 159,410 | 160,422 |
| Share-based compensation | - | - | - | - | 1,213 | - | 1,213 |
| Shareholder's contribution | - | - | - | - | - | - | - |
| Transfers to reserves | - | - | - | 49,590 | - | (49,590) | - |
| 30 September 2013 | 1,034,575 | 2,200 | (3,086) | 286,327 | 15,345 | 1,074,390 | 2,409,751 |
AB SEB bankas
CONDENSED INTERIM STATEMENT OF CASH FLOWS FOR THE 9 MONTHS PERIOD ENDED 30 SEPTEMBER 2013
(All amounts in LTL thousands unless otherwise stated)
| The Group | The Bank | |||
|---|---|---|---|---|
| January 1 - September 30, 2013 | January 1 - September 30, 2012 | January 1 - September 30, 2013 | January 1 - September 30, 2012 | |
| 139,918 | 172,575 | Net cash from operating activities before change in operating assets | 125,210 | 158,212 |
| (2,479,037) | 2,086,132 | Net decrease (increase) in operating assets | (2,801,869) | 2,133,578 |
| (550,810) | (686,823) | Net (decrease) increase in operating liabilities | (558,188) | (688,238) |
| (2,889,729) | 1,571,884 | Net cash from (to) operating activities | (3,234,847) | 1,603,551 |
| (2,889,729) | 1,571,884 | Net cash from (to) operating activities after income tax | (3,234,847) | 1,603,551 |
| 39,891 | 686,300 | Cash (used) received from in investing activities | (38,320) | 720,736 |
| 741,825 | (2,672,820) | Cash (used in) received from financing activities | 1,156,162 | (2,538,923) |
| (2,117,013) | (214,636) | Net (decrease) increase in cash | (2,117,013) | (214,636) |
| 3,118,790 | 3,396,418 | Cash at the beginning of the period | 3,118,790 | 3,396,418 |
| 1,001,777 | 3,181,782 | Cash at the end of the period | 1,001,777 | 3,181,782 |
| Specified as follows: | ||||
| (81,124) | 114,311 | Balance available for withdrawal with the Central Banks | (81,124) | 114,311 |
| 90,591 | 454,437 | Overnight deposits | 90,591 | 454,437 |
| 332,479 | 336,636 | Cash on hand | 332,479 | 336,636 |
| 659,831 | 2,276,398 | Current accounts with other banks | 659,831 | 2,276,398 |
| 1,001,777 | 3,181,782 | 1,001,777 | 3,181,782 |
AB SEB bankas
NOTES TO THE CONDENSED INTERIM FINANCIAL STATEMENTS FOR THE 9 MONTHS PERIOD ENDED 30 SEPTEMBER 2013
(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.
The Head Office of the Bank is located at Gedimino ave. 12, Vilnius. At the end of the reporting period the Bank had 46 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 AB (publ), 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 2012, as described in the annual financial statements for the year ended 31 December 2012.
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 the all types of companies and individuals. Baltic division offers it's 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.
All depreciation and amortization expenses (except for Asset Management) are attributed to this segment.
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 is overall responsible for cash management, liquidity management and internal financing between the Group divisions.
9
AB SEB bankas
NOTES TO THE CONDENSED INTERIM FINANCIAL STATEMENTS FOR THE 9 MONTHS PERIOD ENDED 30 SEPTEMBER 2013
(All amounts in LTL thousands unless otherwise stated)
NOTE 3 SEGMENT REPORTING (CONTINUED)
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.
The geographical segments are not defined by the Group. All activities of the Group are performed on the territory of Republic of Lithuania. Revenues and expenses related to major non resident customers services is immaterial for the purpose of these financial statements and are not presented to the chief operating decision maker.
10
AB SEB bankas
NOTES TO THE CONDENSED INTERIM FINANCIAL STATEMENTS
FOR THE 9 MONTHS PERIOD ENDED 30 SEPTEMBER 2013
(All amounts in LTL thousands unless otherwise stated)
NOTE 3 SEGMENT REPORTING (CONTINUED)
Business segments of the Group for the period ended 30 September 2013 were as follows:
| Baltic Division | Merchant Banking | Asset Management | Treasury | Operations | Staff Functions | Information Technologies | Eliminations | Total Group | |
|---|---|---|---|---|---|---|---|---|---|
| Interest income | 347,273 | 763 | 31 | 151,205 | - | - | - | (142,397) | 356,875 |
| - Internal | 11,009 | - | 8 | 131,380 | - | - | - | (142,397) | - |
| - External | 336,264 | 763 | 23 | 19,825 | - | - | - | - | 356,875 |
| Interest expense | (148,164) | (422) | (3) | (140,594) | - | - | - | 142,397 | (146,786) |
| - Internal | (130,960) | (422) | (3) | (11,012) | - | - | - | 142,397 | - |
| - External | (17,204) | - | - | (129,582) | - | - | - | - | (146,786) |
| Net commission income | 136,587 | 180 | 8,823 | (469) | - | - | - | - | 145,121 |
| - Internal | 6,870 | - | (6,401) | (469) | - | - | - | - | - |
| - External | 129,717 | 180 | 15,224 | - | - | - | - | - | 145,121 |
| Net financial income | 68,183 | 218 | (33) | (335) | - | - | - | - | 68,033 |
| Net other income | (1,916) | - | - | 262 | (6) | (8) | - | - | (1,668) |
| Net operating income | 401,963 | 739 | 8,818 | 10,069 | (6) | (8) | - | - | 421,575 |
| Total staff costs and other administrative expenses | (191,528) | (962) | (2,311) | (416) | 1,327 | 3,306 | 2,033 | - | (188,551) |
| Depreciation and amortisation | (12,596) | (34) | (27) | (1) | (193) | (702) | (1,758) | - | (15,311) |
| Capital losses | 24 | - | - | - | - | 7 | - | - | 31 |
| Total impairment losses | (19,698) | - | - | - | - | - | - | - | (19,698) |
| Loss before income tax | 178,165 | (257) | 6,480 | 9,652 | 1,128 | 2,603 | 275 | - | 198,046 |
| Income tax benefit | (29,562) | (8) | (1,021) | - | - | - | - | - | (30,591) |
| Net (loss) for the year | 148,603 | (265) | 5,459 | 9,652 | 1,128 | 2,603 | 275 | - | 167,455 |
| Total assets | 18,197,837 | 56,717 | 21,968 | 8,434,950 | 1,128 | 2,603 | 1,091 | (3,386,834) | 23,329,460 |
| Total liabilities | 15,647,785 | 56,982 | 15,519 | 8,428,384 | - | - | 816 | (3,386,834) | 20,762,652 |
| Acquisition of intangible assets and property, plant and equipment | 3,204 | - | 92 | - | - | - | - | - | 3,296 |
AB SEB bankas
NOTES TO THE CONDENSED INTERIM FINANCIAL STATEMENTS
FOR THE 9 MONTHS PERIOD ENDED 30 SEPTEMBER 2013
(All amounts in LTL thousands unless otherwise stated)
NOTE 3 SEGMENT REPORTING (CONTINUED)
For the period ended 30 September 2013 reconciliation between Group's Segment reporting and financial statements is presented below:
| Eliminations | ||||
|---|---|---|---|---|
| Segment Reporting | Interest income from Hedged L&R | Other reconciling entries | Financial Statements | |
| Interest income | 356,875 | - | (1,049) | 355,826 |
| Interest expence | (146,786) | 7,140 | 25 | (139,621) |
| Net commission income | 145,121 | - | 903 | 146,024 |
| Net financial income | 68,033 | (7,140) | (347) | 60,546 |
| Net other income | (1,668) | - | 6,224 | 4,556 |
| Net operating income | 421,575 | - | 5,756 | 427,331 |
| Total staff costs, other administrative expenses | (188,551) | - | (5,731) | (194,282) |
| Depreciation and amortisation | (15,311) | - | (25) | (15,336) |
| Capital losses | 31 | - | - | 31 |
| Total impairment losses | (19,698) | - | - | (19,698) |
| (Losses) profit before income tax | 198,046 | - | - | 198,046 |
| Income tax benefit | (30,591) | - | - | (30,591) |
| Net (losses) for the period | 167,455 | - | - | 167,455 |
AB SEB bankas
NOTES TO THE CONDENSED INTERIM FINANCIAL STATEMENTS
FOR THE 9 MONTHS PERIOD ENDED 30 SEPTEMBER 2013
(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) |
| 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) | - | - | - | - | 62,313 |
| Net other income | (758) | - | 1 | 1,438 | (44) | (14) | - | - | 623 |
| Net operating income (losses) | 400,284 | 29 | 8,991 | (11,107) | (44) | (14) | - | - | 398,139 |
| Total staff costs, 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 impairment losses | (7,379) | - | - | - | - | - | - | - | (7,379) |
| (Losses) profit before income tax | 160,158 | (658) | 6,462 | (11,474) | 688 | 2,328 | (57) | - | 157,447 |
| Income tax expense | (19,515) | 94 | (977) | - | - | - | - | - | (20,398) |
| Net (losses) profit for the period | 140,643 | (564) | 5,485 | (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 |
AB SEB bankas
NOTES TO THE CONDENSED INTERIM FINANCIAL STATEMENTS
FOR THE 9 MONTHS PERIOD ENDED 30 SEPTEMBER 2013
(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 Hedged 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 impairment losses | (7,379) | - | 1 | (7,378) |
| Profit before income tax | 157,447 | - | - | 157,447 |
| Income tax | (20,398) | - | - | (20,398) |
| Net profit for the period | 137,049 | - | - | 137,049 |
AB SEB BANKAS
NOTES TO THE CONDENSED INTERIM FINANCIAL STATEMENTS
FOR THE 9 MONTHS PERIOD ENDED 30 SEPTEMBER 2013
(All amounts in LTL thousands unless otherwise stated)
NOTE 4 FINANCIAL SSETS AND LIABILITIES
The table below presents the carrying amounts and fair values of those financial assets and liabilities presented in the Group's statement of financial position at amortized cost:
| 30 September 2013 | ||
|---|---|---|
| Book value | Fair value | |
| Balances with the Central Bank | 416,080 | 416,624 |
| Loans to credit institutions | 3,692,608 | 3,697,121 |
| Loans to customers | 15,654,260 | 15,169,278 |
| Investment securities - loans and receivables | 189,658 | 193,854 |
| Finance lease receivable | 1,422,430 | 1,441,286 |
| Investment securities – held to maturity | 13,562 | 13,345 |
| Total financial assets valued at amortised cost | 21,388,598 | 20,931,508 |
| Due to the Central Bank | 49 | 49 |
| Due to credit institutions | 7,953,717 | 8,076,908 |
| Deposits from the public | 12,219,930 | 12,234,481 |
| Debt securities in issue | 117,564 | 119,330 |
| Total financial liabilities valued at amortised cost | 20,291,260 | 20,430,768 |
The table below presents the carrying amounts and fair values of those financial assets and liabilities presented in the Bank's statement of financial position at amortized cost:
| 30 September 2013 | ||
|---|---|---|
| Book value | Fair value | |
| Balances with the Central Bank | 416,080 | 416,624 |
| Loans to credit institutions | 3,692,608 | 3,697,121 |
| Loans to customers | 16,749,327 | 16,260,629 |
| Investment securities - loans and receivables | 189,658 | 193,854 |
| Investment securities – held to maturity | 13,562 | 13,345 |
| Total financial assets valued at amortised cost | 21,061,235 | 20,581,573 |
| Due to the Central Bank | 49 | 49 |
| Due to credit institutions | 7,953,717 | 8,076,908 |
| Deposits from the public | 12,239,054 | 12,253,607 |
| Debt securities in issue | 117,564 | 119,330 |
| Total financial liabilities valued at amortised cost | 20,310,384 | 20,449,894 |
The table below summarizes the hierarchy of fair value measurement of asset and liabilities presented on the Group's statement of financial position at fair value:
| 30 September 2013 | Fair value measurement at the end of reporting period based on: | ||
|---|---|---|---|
| Quoted price in active markets for the same instrument | Valuation techniques for which all significant inputs are based on observable market data | Valuation techniques for which any significant input is not based on observable market data | |
| Government securities available for sale | 59,076 | - | - |
| Financial assets at fair value through profit and loss | 866,491 | - | 44,131 |
| Derivative financial instruments (assets) | 51 | 244,384 | 20 |
| Investment securities – available for sale | - | - | 200 |
| Derivative financial instruments (liabilities) | (402) | (273,771) | (20) |
| Debt securities in issue | - | (7,226) | - |
| Total | 925,216 | (36,613) | 44,331 |
AB SEB bankas
NOTES TO THE CONDENSED INTERIM FINANCIAL STATEMENTS
FOR THE 9 MONTHS PERIOD ENDED 30 SEPTEMBER 2013
(All amounts in LTL thousands unless otherwise stated)
NOTE 4 FINANCIAL SSETS AND LIABILITIES (CONTINUED)
The table below summarizes the hierarchy of fair value measurement of asset and liabilities presented on the Bank's statement of financial position at fair value:
| 30 September 2013 | Fair value measurement at the end of reporting period based on: | ||
|---|---|---|---|
| Quoted price in active markets for the same instrument | Valuation techniques for which all significant inputs are based on observable market data | Valuation techniques for which any significant input is not based on observable market data | |
| Government securities available for sale | 58,417 | - | - |
| Financial assets at fair value through profit and loss | 866,491 | - | - |
| Derivative financial instruments (assets) | 51 | 244,384 | 20 |
| Investment securities – available for sale | - | - | 200 |
| Derivative financial instruments (liabilities) | (402) | (273,771) | (20) |
| Debt securities in issue | - | (7,226) | - |
| Total | 924,557 | (36,613) | 200 |
NOTE 5 FINANCIAL ASSETS AND LIABILITIES SUBJECT TO OFFSETTING OR NETTING ARRANGEMENTS
The table below shows recognised financial assets and liabilities that are presented net in the statement of financial position or with potential rights to off-set associated with enforceable master netting arrangements or similar arrangements.
30 September 2013
| Assets | Financial assets and liabilities subject to offsetting or netting arrangements | |||||
|---|---|---|---|---|---|---|
| Gross amounts of recognised financial assets | Gross amounts of recognised financial liabilities set off in the balance sheet | Net amounts of financial assets recognised in the balance sheet | Related amounts not set off in the balance sheet | Cash collateral received | Net amount | |
| Derivative assets | -5,654,132 | 5,404,309 | -249,823 | 452 | - | -249,371 |
| Reversed repo receivable | - | - | - | - | - | - |
| Securities borrowing | - | - | - | - | - | - |
| Other | - | - | - | - | - | - |
| TOTAL | -5,654,132 | 5,404,309 | -249,823 | 452 | 0 | -249,371 |
| Liabilities | Gross amounts of recognised financial liabilities | Gross amounts of recognised financial assets set off in the balance sheet | Net amounts of financial liabilities recognised in the balance sheet | Related amounts not set off in the balance sheet | Cash collateral pledged | Net amount |
| --- | --- | --- | --- | --- | --- | --- |
| Derivative liabilities | 5,669,565 | -5,404,309 | 265,256 | -452 | - | 264,884 |
| Repo payable | - | - | - | - | - | - |
| Securities lending | - | - | - | - | - | - |
| Other | - | - | - | - | - | - |
| TOTAL | 5,669,565 | -5,404,309 | 265,256 | -452 | 0 | 264,884 |
| NET | 15,433 | 0 | 15,433 | 0 | 0 | 15,433 |
NOTE 6 ASSETS UNDER MANAGEMENT
| The Group | ||
|---|---|---|
| 30 September 2013 | 31 December 2012 | |
| 31,067 | 39,770 | Customers funds |
| 768,053 | 767,647 | Financial instruments acquired at customer account |
| 1,806,780 | 1,703,602 | Accounts receivable from customer assets managed on trust basis |
| 2,605,900 | 2,511,019 | Total assets under management |
| The Bank | ||
| --- | --- | |
| 30 September 2013 | 31 December 2012 | |
| - | - | |
| - | - | |
| - | - | |
| - | - |
AB SEB bankas
NOTES TO THE CONDENSED INTERIM FINANCIAL STATEMENTS
FOR THE 9 MONTHS PERIOD ENDED 30 SEPTEMBER 2013
(All amounts in LTL thousands unless otherwise stated)
NOTE 7 OFF BALANCE SHEET ITEMS
| The Group | The Bank | ||
|---|---|---|---|
| 30 September 2013 | 31 December 2012 | 30 September 2013 | 31 December 2012 |
| 2,766,378 | 2,544,274 | Agreements to grant loans | 2,850,754 |
| 614,785 | 554,414 | Guarantees issued | 615,968 |
| 134,345 | 180,215 | Letters of credit issued | 136,165 |
| Commitments to purchase assets and other commitments | - | ||
| 75,768 | 32,601 | - | |
| - | 80 | Other commitments | - |
| 38 | 38 | Customs guarantees collateralised by deposits | 38 |
NOTE 8 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 AB SEB bankas group (including parent bank) can be specified as follows:
| The Group | Interest rate % | The Bank | |||
|---|---|---|---|---|---|
| 30 September 2013 | 31 December 2012 | 30 September 2013 | 31 December 2012 | ||
| 3,577,882 | 2,536,274 | Outstanding loan amount | 0.02-0.90 | 3,577,136 | 2,535,996 |
| 79,173 | 166,964 | Positive replacement values (HFT) | - | 79,173 | 166,964 |
| 3,735 | 23 | Other assets | - | 3,001 | 23 |
| 7,522,297 | 6,309,920 | Outstanding deposit amount | 0.05-5.49 | 7,522,297 | 5,888,690 |
| 198,203 | 593,106 | Other liabilities | - | 197,688 | 593,106 |
| 26,350 | 48,402 | Unused granted overdraft facilities | - | 26,350 | 48,402 |
| - | 200 | Guarantees issued | - | - | 200 |
| For 9 months period ended | |||||
| 30 September 2013 and 2012 | |||||
| 6,479 | 28,549 | Interest income | - | 6,458 | 28,522 |
| (90,645) | (192,461) | Interest expense | - | (87,366) | (177,262) |
| Other services received and cost | |||||
| (4,647) | (9,962) | incurred from SEB group, net | - | (9,846) | (14,914) |
Transactions with parent bank can be specified as follows:
| The Group | Interest rate % | The Bank | |||
|---|---|---|---|---|---|
| 30 September 2013 | 31 December 2012 | 30 September 2013 | 31 December 2012 | ||
| 3,495,192 | 2,536,274 | Outstanding loan amount | 0.02-0.90 | 3,494,446 | 2,535,996 |
| 79,173 | 166,964 | Positive replacement values (HFT) | - | 79,173 | 166,964 |
| 1,061 | 23 | Other assets | - | 327 | 23 |
| 7,479,886 | 6,309,920 | Outstanding deposit amount | 0.05-5.49 | 7,479,886 | 5,888,690 |
| - | 593,106 | Other liabilities | - | - | 593,106 |
| 26,333 | 48,402 | Unused granted overdraft facilities | - | 26,333 | 48,402 |
| - | 200 | Guarantees issued at the year end | - | - | 200 |
| For 9 months period ended | |||||
| 30 September 2013 and 2012 | |||||
| 6,075 | 27,994 | Interest income | - | 6,065 | 27,984 |
| (90,606) | (192,249) | Interest expense | - | (87,327) | (177,050) |
| Other services received and cost | |||||
| (182) | (7,204) | incurred from SEB group, net | - | (4,756) | (11,525) |
AB SEB bankas
NOTES TO THE CONDENSED INTERIM FINANCIAL STATEMENTS
FOR THE 9 MONTHS PERIOD ENDED 30 SEPTEMBER 2013
(All amounts in LTL thousands unless otherwise stated)
NOTE 8 RELATED PARTIES (CONTINUED)
Transactions between the Bank and its subsidiaries can be specified as follows:
| Interest rate % | The Bank | ||
|---|---|---|---|
| 30 September 2013 | 31 December 2012 | ||
| Off-balance sheet commitments: | |||
| Agreements to grant loans | 0.23-1.42 | 84,376 | 149,677 |
| Guarantees issued | - | 1,183 | 1,082 |
| Letters of credit issued | - | 1,820 | - |
| Outstanding loan amounts: | |||
| AB SEB Lizingas | 0.23-0.86 | 1,068,033 | 731,124 |
| UAB SEB Venture Capital | 1.42 | 39,440 | 37,600 |
| Outstanding deposit amounts: | |||
| UAB SEB Venture Capital | 17 | 138 | |
| UAB SEB Investicij; Valdymas | 0.15 | 18,499 | 19,379 |
| AB SEB Lizingas | 609 | 182 | |
| Other assets | - | 2,132 | 1,964 |
| For 9 months period ended 30 September 2013 and 2012 | |||
| Interest income | - | 4,385 | 4,178 |
| Interest expense | - | (8) | (613) |
| Dividend income | - | 7,351 | 8,344 |
| Other services received and cost incurred from subsidiaries, net | - | 8,413 | 8,335 |
AB SEB bankas
NOTES TO THE CONDENSED INTERIM FINANCIAL STATEMENTS
FOR THE 9 MONTHS PERIOD ENDED 30 SEPTEMBER 2013
(All amounts in LTL thousands unless otherwise stated)
NOTE 9 DEBT SECURITIES ISSUANCE AND REDEMPTION
During the nine months of 2013 the Bank successfully placed 21 securities issues, as presented in the table below:
| Issue date | Redemption date | Duration | Currency | Amount in issue (in LTL) | Interest rate or index |
|---|---|---|---|---|---|
| 2013.02.05 | 2014.02.20 | 360 days | EUR | 2,172,847 | „Brent“ Oil |
| 2013.02.19 | 2016.03.08 | 1 113 days | LTL | Stock basket of global companies - AT&T Inc, E.ON SE, Johnson & Johnson, Procter & Gamble Co, Royal Dutch Shell PLC, Coca-Cola Co, ConocoPhillips, Verizon Communications Inc, Vodafone Group PLC and Total SA | |
| 2013.02.19 | 2016.03.08 | 1 113 days | EUR | 1,429,900 | Stock basket of global companies - AT&T Inc, E.ON SE, Johnson & Johnson, Procter & Gamble Co, Royal Dutch Shell PLC, Coca-Cola Co, ConocoPhillips, Verizon Communications Inc, Vodafone Group PLC and Total SA |
| 2013.04.16 | 2016.05.04 | 1 114 days | LTL | 1,214,004 | S&P Pan Asia Low Volatility Price Return EUR index measuring the performance of Asian and Australian stocks |
| 2013.04.16 | 2016.05.04 | 1 114 days | LTL | 3,466,600 | S&P Pan Asia Low Volatility Price Return EUR index measuring the performance of Asian and Australian stocks |
| 2013.04.16 | 2016.05.04 | 1 114 days | EUR | 1,310,700 | S&P Pan Asia Low Volatility Price Return EUR index measuring the performance of Asian and Australian stocks |
| 2013.05.28 | 2016.06.03 | 1 102 days | LTL | 1,494,372 | Stock basket of German companies: Bayerische Metoren Werke (BMW) AG, Deutsche Telekom AG, Muenchener |
| 2013.05.28 | 2016.06.03 | 1 102 days | LTL | 403,100 | Rueckoversicherungs-Gesellschaft AG (MunichRe) a nd Siemens AG |
| 2013.05.28 | 2016.06.03 | 1 102 days | EUR | 264,600 | Rueckoversicherungs-Gesellschaft AG (MunichRe) a nd Siemens AG |
| 2013.06.05 | 2016.06.23 | 1 114 days | EUR | 1,627,995 | DAXK index measuring performance of German stocks |
| 2013.07.02 | 2016.07.21 | 1 115 days | LTL | 1,535,800 | Stock fund iShares STOXX Europe 600 Health Care ETF |
| 2013.07.02 | 2016.07.21 | 1 115 days | LTL | 1,577,500 | Stock fund iShares STOXX Europe 600 Health Care ETF |
| 2013.07.02 | 2016.07.21 | 1 115 days | EUR | 461,639 | Stock fund iShares STOXX Europe 600 Health Care ETF |
| 2013.07.15 | 2014.07.31 | 361 days | EUR | 1,829,639 | Shande PLC shares |
| 2013.07.15 | 2014.07.31 | 361 days | EUR | 3,762,861 | Nokia OYJ shares |
| 2013.08.27 | 2016.09.13 | 1 113 days | LTL | Asian real estate companies' shares - Swire Properties Ltd, Sun Hung Kai Properties Ltd, Hongkong Land Holdings Ltd, The Link REIT, Sino Land Co Ltd, CapitaMall Trust, Kerry Properties Ltd, Keppel Land Ltd, Hysan | |
| 2013.08.27 | 2016.09.13 | 1 113 days | LTL | 1,916,400 | Development Co Ltd and Champion REIT |
| 2013.08.27 | 2016.09.13 | 1 113 days | EUR | Asian real estate companies' shares - Swire Properties Ltd, Sun Hung Kai Properties Ltd, Hongkong Land Holdings Ltd, The Link REIT, Sino Land Co Ltd, CapitaMall Trust, Kerry Properties Ltd, Keppel Land Ltd, Hysan | |
| 2013.09.24 | 2016.10.12 | 1 114 days | LTL | 688,000 | iShares MSCI Malaysia ETF |
| 2013.09.24 | 2016.10.12 | 1 114 days | EUR | 136,040 | iShares MSCI Malaysia ETF |
AB SEB bankas
NOTES TO THE CONDENSED INTERIM FINANCIAL STATEMENTS
FOR THE 9 MONTHS PERIOD ENDED 30 SEPTEMBER 2013
(All amounts in LTL thousands unless otherwise stated)
NOTE 9 DEBT SECURITIES AND REDEMPTION (CONTINUED)
During the nine months of 2013 the Bank successfully redeemed its 34 securities issues, as presented in the table below:
| Issue date | Redemption date | Duration | Currency | Amount in issue (in LTL) | Interest rate or index |
|---|---|---|---|---|---|
| 2011.01.11 | 2013.01.23 | 743 days | LTL | 763,100 | EUR/BRL and EUR/MXN FX rates |
| 2011.01.11 | 2013.01.23 | 743 days | EUR | 888,060 | EUR/BRL and EUR/MXN FX rates |
| 2009.12.12 | 2013.02.08 | 1 144 days | LTL | Stock basket of Brazilian companies- Petroleo Brasiliando S.A., Vale S.A., Itau Unibanco Holding S.A., Banco Bradesco S.A., Cia Siderurgica Nacional S.A., Empresa Brasilianda de Aeronautica S.A., Tele Norte Leste Participacoes S.A., Cia Energetica de Minas Gerais, BRF - Brasil Fonds S.A., Cia de Bebidas das Americas | 15,338,200 |
| 2009.12.12 | 2013.02.08 | 1 144 days | LTL | Stock basket of Brazilian companies- Petroleo Brasiliando S.A., Vale S.A., Itau Unibanco Holding S.A., Banco Bradesco S.A., Cia Siderurgica Nacional S.A., Empresa Brasilianda de Aeronautica S.A., Tele Norte Leste Participacoes S.A., Cia Energetica de Minas Gerais, BRF - Brasil Fonds S.A., Cia de Bebidas das Americas | 2,318,600 |
| 2009.12.12 | 2013.02.08 | 1 144 days | EUR | Stock basket of Brazilian companies- Petroleo Brasiliando S.A., Vale S.A., Itau Unibanco Holding S.A., Banco Bradesco S.A., Cia Siderurgica Nacional S.A., Empresa Brasilianda de Aeronautica S.A., Tele Norte Leste Participacoes S.A., Cia Energetica de Minas Gerais, BRF - Brasil Fonds S.A., Cia de Bebidas das Americas | 2,295,076 |
| 2010.02.09 | 2013.03.06 | 1 121 days | LTL | Stock basket of U.S. exporting companies - Altria Group Inc, Avon Products Inc, Baxter International Inc, Caterpillar Inc, Cisco Systems Inc, Coca-Cola Co, Colgate-Palmolive Co, Intel Corp, International Business Machines Corp, Microsoft Corp, Oracle Corp, Pfizer Inc, Rockwell Automation Inc, Texas Instruments Inc, Tyco International Ltd, United Technologies Corp | 37,462,600 |
| 2010.02.09 | 2013.03.06 | 1 121 days | LTL | Stock basket of U.S. exporting companies - Altria Group Inc, Avon Products Inc, Baxter International Inc, Caterpillar Inc, Cisco Systems Inc, Coca-Cola Co, Colgate-Palmolive Co, Intel Corp, International Business Machines Corp, Microsoft Corp, Oracle Corp, Pfizer Inc, Rockwell Automation Inc, Texas Instruments Inc, Tyco International Ltd, United Technologies Corp | 1,626,000 |
| 2010.02.09 | 2013.03.06 | 1 121 days | EUR | Stock basket of U.S. exporting companies - Altria Group Inc, Avon Products Inc, Baxter International Inc, Caterpillar Inc, Cisco Systems Inc, Coca-Cola Co, Colgate-Palmolive Co, Intel Corp, International Business Machines Corp, Microsoft Corp, Oracle Corp, Pfizer Inc, Rockwell Automation Inc, Texas Instruments Inc, Tyco International Ltd, United Technologies Corp | 955,390 |
| 2011.02.23 | 2013.03.13 | 749 days | EUR | 2,336,510 | Swedish companies shares - AstraZeneca PLC, Sundbank AB and Skanska AB |
| 2011.02.23 | 2013.03.13 | 749 days | EUR | 1,815,137 | Swedish companies shares - AstraZeneca PLC, Sundbank AB and Skanska AB |
| 2010.03.05 | 2013.03.26 | 1 117 days | LTL | Stock basket of Chinese companies - Industrial and Commercial Bank of China Ltd, China Construction Bank Corp, China Life Insurance Co Ltd, Hang Seng Bank Ltd, Taixian Semiconductor Manufacturing Company Ltd, HON HAI Precision Industry Co, Jiangxi Copper Co Ltd, China Mobile Ltd, CLP Holdings Ltd, Hutchison Whampua Ltd, China Railway Group Ltd, PetroChina Co Ltd, China Petroleum & Chemical Corp, Tsingtao Brewery Co Ltd, Li & Fung Ltd | 6,278,700 |
| 2010.03.05 | 2013.03.26 | 1 117 days | LTL | Stock basket of Chinese companies - Industrial and Commercial Bank of China Ltd, China Construction Bank Corp, China Life Insurance Co Ltd, Hang Seng Bank Ltd, Taixian Semiconductor Manufacturing Company Ltd, HON HAI Precision Industry Co, Jiangxi Copper Co Ltd, China Mobile Ltd, CLP Holdings Ltd, Hutchison Whampua Ltd, China Railway Group Ltd, PetroChina Co Ltd, China Petroleum & Chemical Corp, Tsingtao Brewery Co Ltd, Li & Fung Ltd | 4,193,200 |
| 2010.03.05 | 2013.03.26 | 1 117 days | LTL | 1,667,300 | Coffee, wheat, soybeans, corn, cotton and cocoa |
| 2010.03.05 | 2013.03.26 | 1 117 days | EUR | 1,639,735 | Coffee, wheat, soybeans, corn, cotton and cocoa |
| 2010.04.13 | 2013.05.02 | 1 115 days | LTL | Basket of Russian, Polish and Check Republic companies stocks: Mobile Telosystems OJSC, Mechel, Sberbank of Russia, Federal Hydrogenarating Co JSC, Lukoil OAO, Surgutneftegau OJSC, Severstal OAO, KGHM Polska Miedz SA, Telekomunikacja Polska SA and Komercni Banka AS | 1,664,600 |
| 2010.04.13 | 2013.05.02 | 1 115 days | LTL | Basket of Russian, Polish and Check Republic companies stocks: Mobile Telosystems OJSC, Mechel, Sberbank of Russia, Federal Hydrogenarating Co JSC, Lukoil OAO, Surgutneftegau OJSC, Severstal OAO, KGHM Polska Miedz SA, Telekomunikacja Polska SA and Komercni Banka AS | 255,900 |
| 2010.04.13 | 2013.05.02 | 1 115 days | EUR | Basket of Russian, Polish and Check Republic companies stocks: Mobile Telosystems OJSC, Mechel, Sberbank of Russia, Federal Hydrogenarating Co JSC, Lukoil OAO, Surgutneftegau OJSC, Severstal OAO, KGHM Polska Miedz SA, Telekomunikacja Polska SA and Komercni Banka AS | 279,332 |
| 2011.04.29 | 2013.05.15 | 747 days | EUR | 2,109,316 | Basket of Scandinavian companies stocks: AP Moller-Maersk A/S, Norsk Hydro ASA and Sundbank AB |
| 2011.04.29 | 2013.05.15 | 747 days | EUR | 2,640,011 | Basket of Scandinavian companies stocks: AP Moller-Maersk A/S, Norsk Hydro ASA and Sundbank AB |
| 2012.05.24 | 2013.06.11 | 383 days | EUR | 4,672,329 | Daimler AG shares |
| 2010.06.01 | 2013.06.19 | 1 114 days | LTL | Funds basket: Market Vectors Russia ETF, Samsung Kodex 200 Exchange Traded Fund, iShares MSCI Taixian, iShares MSCI Brazil Index Fund, Hang Seng H-Share Index ETF, iShares MSCI Turkey Irreestable Market Index Fund. | 5,659,200 |
| 2010.06.01 | 2013.06.19 | 1 114 days | LTL | Funds basket: Market Vectors Russia ETF, Samsung Kodex 200 Exchange Traded Fund, iShares MSCI Taixian, iShares MSCI Brazil Index Fund, Hang Seng H-Share Index ETF, iShares MSCI Turkey Irreestable Market Index Fund. | 2,760,100 |
| 2010.06.01 | 2013.06.19 | 1 114 days | EUR | Funds basket: Market Vectors Russia ETF, Samsung Kodex 200 Exchange Traded Fund, iShares MSCI Taixian, iShares MSCI Brazil Index Fund, Hang Seng H-Share Index ETF, iShares MSCI Turkey Irreestable Market Index Fund. | 2,217,043 |
| 2010.06.23 | 2013.07.11 | 1 114 days | LTL | Asian countries funds: South Korean fund iShares MSCI South Korea Index Fund, Taiwanese fund iShares MSCI Taixian Index Fund and Japanese fund iShares MSCI Japan Index Fund | 2,211,700 |
| 2010.06.23 | 2013.07.11 | 1 114 days | LTL | Asian countries funds: South Korean fund iShares MSCI South Korea Index Fund, Taiwanese fund iShares MSCI Taixian Index Fund and Japanese fund iShares MSCI Japan Index Fund | 814,600 |
| 2010.06.23 | 2013.07.11 | 1 114 days | EUR | Asian countries funds: South Korean fund iShares MSCI South Korea Index Fund, Taiwanese fund iShares MSCI Taixian Index Fund and Japanese fund iShares MSCI Japan Index Fund | 1,429,804 |
| 2010.06.23 | 2013.07.11 | 1 114 days | LTL | 1,716,400 | Corn, soybeans, sugar, coffee, cotton and cocoa |
| 2010.06.23 | 2013.07.11 | 1 114 days | LTL | 1,076,000 | Corn, soybeans, sugar, coffee, cotton and cocoa |
AB SEB bankas
NOTES TO THE CONDENSED INTERIM FINANCIAL STATEMENTS FOR THE 9 MONTHS PERIOD ENDED 30 SEPTEMBER 2013
(All amounts in LTL thousands unless otherwise stated)
NOTE 9 DEBT SECURITIES AND REDEMPTION (CONTINUED)
| Issue date | Redemption date | Duration | Currency | Amount in issue (in LTL) | Interest rate or index |
|---|---|---|---|---|---|
| 2010.08.23 | 2013.07.11 | 1 114 days | EUR | 892,549 | Com, soybeans, sugar, coffee, cotton and cocoa |
| 2012.08.27 | 2013.07.15 | 383 days | EUR | 14,513,633 | Bank of America Corp shares |
| 2010.08.26 | 2013.08.29 | 1 099 days | LTL | Russian and Central Eastern European companies' shares: NovaTek OAO, Mechel, Erraz Group SA, XS Retail Group NV, Mobile Telesystems OJSC, Telekomunikacja Polska SA, KGHM Polska Miedz SA, MOL Hungarian Oil and Gas PLC, CEZ AS and Komercini Banka AS | |
| 2010.08.26 | 2013.08.29 | 1 099 days | LTL | 3,075,400 | Russian and Central Eastern European companies' shares: NovaTek OAO, Mechel, Erraz Group SA, XS Retail Group NV, Mobile Telesystems OJSC, Telekomunikacja Polska SA, KGHM Polska Miedz SA, MOL Hungarian Oil and Gas PLC, CEZ AS and Komercini Banka AS |
| 2010.08.26 | 2013.08.29 | 1 099 days | EUR | 1,583,500 | Russian and Central Eastern European companies' shares: NovaTek OAO, Mechel, Erraz Group SA, XS Retail Group NV, Mobile Telesystems OJSC, Telekomunikacja Polska SA, KGHM Polska Miedz SA, MOL Hungarian Oil and Gas PLC, CEZ AS and Komercini Banka AS |
| 2012.08.22 | 2013.09.09 | 383 days | EUR | 5,909,650 | Samsung Electronics Co shares |
NOTE 10 SIGNIFICANT EVENTS AFTER THE BALANCE SHEET DATE
After 30 September 2013 the Bank successfully completed 3 debt securities issues with the nominal value of LTL 1,305 thousand.
After 30 September 2013 reorganization of AB SEB bankas by merging AB "SEB lizingas" into AB SEB bankas has been successfully completed
NOTE 11 MAJOR EVENTS IN THE ISSUER'S ACTIVITIES
On 31 January 2013, the Bank announced that According to preliminary data, unaudited net profit earned over the year 2012 by AB SEB bankas is LTL 126,3 million (EUR 36,6 million) and by AB SEB bankas Group - LTL 89,3 million (EUR 25,0 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 2011, audited net profit earned by AB SEB bankas totaled LTL 379,8 million (EUR 110,0 million) and by AB SEB bankas Group - LTL 469,7 million (EUR 136,0 million).
On 19 March 2013, the Bank announced that on the 29th of March 2013, 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 Management Board of the Bank. 100% of shares of the Bank is owned by the bank Skandinaviska Enskilda Banken AB.
Issues on the agenda:
- Regarding the Annual Report of the Bank;
- Regarding the Report of the Auditor of the Bank;
- Regarding the comments and proposals of the Supervisory Council of the Bank;
- Regarding approval of the Consolidated Financial Statements of the Bank for the Year 2012;
- Regarding appropriation of the Year 2012 profit (loss) of the Bank.
- Regarding appointment of audit company of the Bank and approval of payment terms for audit services;
- Regarding reorganization of AB "SEB lizingas".
The Management Board of the Bank endorsed the draft resolutions of the Annual General Meeting of Shareholders of the Bank
On 29 March 2013, the Bank announced that on the 29th March 2013, 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:
- Bank Group's year 2012 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;
- Report of the audit company UAB "PricewaterhouseCoopers", which has performed the audit, has been familiarized with;
- Comments and proposals of the Supervisory Council of the Bank regarding the Bank's Activity Strategy, its Annual Consolidated Financial Statements, Draft Profit (Loss) Appropriation and the Bank's Consolidated Annual Report as well as the activities of the Bank's Management Board and President have been familiarized with;
- Bank's and Bank Group's year 2012 Consolidated Financial Statements produced in accordance with the International Financial Reporting Standards were approved;
- Appropriation of the year 2012 profit (loss) of the Bank was approved;
- The audit company UAB "PricewaterhouseCoopers" was appointed to verify the Bank's Financial Statements of current and no more than 2 (two) upcoming financial years and the President of the Bank was authorized to enter into an agreement with UAB "PricewaterhouseCoopers" regarding rendering of audit services and to establish the terms of payment for the services therein;
- Pursuant to part 1 of article 63 and part 1 of article 70 of the Law on Companies of the Republic of Lithuania, reorganization of AB "SEB lizingas", a company established and acting pursuant to the laws of the Republic of Lithuania, which data is kept at the Register of Legal Entities of the Republic of Lithuania, with code 123051535, and with registered office address Saltoniškiy street 12, Vilnius, was approved by merging AB "SEB lizingas" into the Bank. The Management Board of the Bank was assigned to prepare the Terms of Reorganization whereby AB "SEB lizingas" would be merged into the Bank. The Management Board of the Bank and the chairman of the Management Board (the President) were authorized to take any and all actions related thereto.
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AB SEB bankas
NOTES TO THE CONDENSED INTERIM FINANCIAL STATEMENTS FOR THE 9 MONTHS PERIOD ENDED 30 SEPTEMBER 2013
(All amounts in LTL thousands unless otherwise stated)
NOTE 11 MAJOR EVENTS IN THE ISSUER'S ACTIVITIES (CONTINUED)
On 23 April 2013, the Bank announced that according to preliminary data, unaudited net profit earned over the first quarter of the year 2013 by AB SEB bankas is LTL 44.0 million (EUR 12.7 million) and by AB SEB bankas Group is LTL 38.7 million (EUR 11.2 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 2012, unaudited net profit earned by AB SEB bankas totalled LTL 30.7 million (EUR 8.9 million) and by AB SEB bankas Group – LTL 41.5 million (EUR 12.0 million).
On 15 July 2013, the Bank announced that according to preliminary data, unaudited net profit earned over the first half of the year 2013 by AB SEB bankas is LTL 102.3 million (EUR 29.6 million) and by AB SEB bankas Group is LTL 97.5 million (EUR 28.2 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 of the year 2012, unaudited net profit earned by AB SEB bankas totaled LTL 59.5 million (EUR 17.2 million) and by AB SEB bankas Group – LTL 80.4 million (EUR 23.3 million).
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