SEB — Interim / Quarterly Report 2013

May 31, 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 3 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
Valnius,
May 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: info@seb.lt
AB SEB bankas, company code: 11207123R
www.seb.lt

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SEB

AB SEB bankas condensed interim financial information for the first quarter 2013

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AB SEB bankas

GENERAL INFORMATION

1. Reporting period

The report has been produced for the 3 months period ended 31 March 2013.

1. 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 3 MONTHS PERIOD ENDED 31 MARCH 2013

(All amounts in LTL thousands unless otherwise stated)

The Group			The Bank
January 1 - March 31 2013	January 1 - March 31 2012		January 1 - March 31 2013	January 1 - March 31 2012
119,149	183,805	Interest Income	109,170	168,589
(52,365)	(105,384)	Interest expenses	(49,730)	(99,117)
66,784	70,421	Net Interest Income	59,440	69,472
(10,727)	(13,995)	Impairment losses on loans	(10,727)	(13,995)
(4,390)	14,068	Impairment (losses), reversals on lease portfolio	-	-
		Provisions for guarantees and other off balance sheet
953	(184)	Items	953	(184)
(14,164)	(111)	Total Impairment (losses), reversals	(9,774)	(14,179)
52,620	78,310	Net Interest Income after Impairment losses	49,666	55,293
63,243	56,803	Fee and commissions income	60,664	54,010
(15,314)	(15,571)	Fee and commissions expenses	(15,165)	(15,427)
47,929	41,232	Net fee and commission income	45,499	38,583
(4,485)	(12,806)	Net losses on operations with debt securities and derivative financial instruments	(4,708)	(12,806)
99	59	Net gain (losses) on investment securities	99	57
-	-	Dividend income from subsidiaries	7,351	8,344
17,282	19,530	Net foreign exchange gain	17,269	19,539
1,615	1,284	Other income, net	1,845	993
14,511	8,067	Net investment activities	21,856	16,127
(31,439)	(35,982)	Staff costs	(29,951)	(34,621)
(38,260)	(44,204)	Other administrative expenses	(37,035)	(42,272)
45,361	47,423	Profit before income tax	50,035	33,110
(6,690)	(5,908)	Income tax expenses	(6,059)	(2,409)
38,671	41,515	Net profit for the period	43,976	30,701
Attributable to:
38,671	41,515	Owners of the bank	43,976	30,701
-	-	Non controlling interest	-	-

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AB SEB bankas

CONDENSED INTERIM STATEMENT OF COMPREHENSIVE INCOME FOR THE 3 MONTHS PERIOD ENDED 31 MARCH 2013

(All amounts in LTL thousands unless otherwise stated)

The Group			The Bank
January 1 - March 31 2013	January 1 - March 31 2012		January 1 - March 31 2013	January 1 - March 31 2012
38,671	41,515	Net gain (losses) for the year
Items that may subsequently be reclassified to the income statement:	43,976	30,701
(78)	4,206	Net gain (loss) on available for sale financial assets
Amortisation of financial assets revaluation reserve	(78)	4,206
104	829	of reclassified financial assets
Income tax relating to the components of other	104	829
(4)	(755)	comprehensive income
Items that will not be reclassified to the income statement:	(4)	(755)
-	-		-	-
22	4,280	Total other comprehensive income	22	4,280
38,693	45,795	Total comprehensive income	43,998	34,981
Attributable to:
38,693	45,795	Owners of the Bank	43,998	34,981
-	-	Non controlling interest	-	-

4

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AB SEB bankas

CONDENSED INTERIM STATEMENT OF FINANCIAL POSITION

AS OF 31 MARCH 2013

(All amounts in LTL thousands unless otherwise stated)

The Group			The Bank
31 March 2013	31 December 2012		31 March 2013	31 December 2012
Assets
380,144	443,393	Cash on hand	380,144	443,393
1,047,449	1,002,933	Balances with the Central Bank	1,047,449	1,002,933
3,053,862	2,666,929	Due from banks, net	3,053,862	2,666,929
58,140	60,900	Government securities available for sale	57,465	60,234
		Financial assets at fair value through
719,633	651,603	profit and loss	676,352	608,544
384,148	326,230	Derivative financial instruments	384,148	326,230
		Loans to credit and financial institutions,
10,022	6,802	net of impairment losses	894,555	737,926
15,521,159	15,642,962	Loans to customers, net of impairment losses	15,546,865	15,668,920
		Finance lease receivable, net of impairment
1,450,201	1,502,759	losses	-	-
		Investment securities:
187,689	386,010	- loans and receivables	187,689	386,010
200	200	- available for sale	200	200
14,302	13,812	- held to maturity	14,302	13,812
-	-	Investments in subsidiaries	307,900	307,900
55,757	58,260	Intangible fixed assets	55,330	57,827
21,200	22,645	Property, plant and equipment	20,708	22,127
6	375	Assets under operating lease	-	-
19,297	23,686	Non-current assets held for sale	-	-
12,233	14,232	Investment property	1,317	1,332
189,429	195,802	Deferred tax asset	141,806	147,868
137,009	113,842	Other assets, net of impairment losses	133,274	107,275
23,261,880	23,133,375	Total assets	22,903,366	22,559,460
Liabilities
37	37	Amounts owed to the Central Bank	37	37
7,853,510	7,193,144	Amounts owed to credit and financial institutions	7,658,733	6,791,475
418,685	380,892	Derivative financial instruments	418,685	380,892
11,804,677	12,393,252	Deposits from public	11,804,754	12,393,390
26,395	61,181	Accrued expenses and deferred income	25,057	59,150
1,637	1,316	Income tax payable	-	-
-	-	Subordinated loans	-	-
492,119	561,016	Debt securities in issue	492,119	561,016
228,568	145,409	Other liabilities and provisions	211,436	125,384
20,825,628	20,736,247	Total liabilities	20,610,821	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
(4,076)	(4,098)	Financial assets revaluation reserve	(4,076)	(4,098)
289,202	239,612	Legal reserve	286,327	236,737
14,563	14,132	General and other reserves	14,563	14,132
1,099,788	1,110,707	Retained earnings	958,956	964,570
2,436,252	2,397,128		2,292,545	2,248,116
-	-	Non controlling interest in equity	-	-
2,436,252	2,397,128	Total equity	2,292,545	2,248,116
23,261,880	23,133,375	Total liabilities and equity	22,903,366	22,559,460

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AB SEB bankas

CONDENSED INTERIM STATEMENT OF CHANGES IN EQUITY FOR THE 3 MONTHS PERIOD ENDED 31 MARCH 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	2,330,759	-	2,330,759
Net change in available for sale investments, net of deferred taxes	-	-	3,451	-	-	-	3,451	-	3,451
Amortisation of financial assets revaluation reserve of reclassified financial assets	-	-	829	-	-	-	829	-	829
Net profit for the year	-	-	-	-	-	41,515	41,515	-	41,515
Total comprehensive income	-	-	4,280	-	-	41,515	45,795	-	45,795
Share-based compensation	-	-	-	-	407	-	407	-	407
Transfers to reserves	-	-	-	45,616	-	(45,616)	-	-	-
31 March 2012	1,034,575	2,200	(5,457)	240,324	12,904	1,092,415	2,376,961	-	2,376,961
31 December 2012	1,034,575	2,200	(4,098)	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	(4,098)	239,612	14,132	1,110,707	2,397,128	-	2,397,128
Net change in available for sale investments, net of deferred taxes	-	-	(82)	-	-	-	(82)	-	(82)
Amortisation of financial assets revaluation reserve of reclassified financial assets	-	-	104	-	-	-	104	-	104
Net profit for the year	-	-	-	-	-	38,671	38,671	-	38,671
Total comprehensive income	-	-	22	-	-	38,671	38,693	-	38,693
Share-based compensation	-	-	-	-	431	-	431	-	431
Transfers to reserves	-	-	-	49,590	-	(49,590)	-	-	-
31 March 2013	1,034,575	2,200	(4,076)	289,282	14,563	1,099,788	2,436,252	-	2,436,252

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AB SEB bankas

CONDENSED INTERIM STATEMENT OF CHANGES IN EQUITY FOR THE 3 MONTHS PERIOD ENDED 31 MARCH 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	-	-	3,451	-	-	-	3,451
Amortisation of financial assets revaluation reserve of reclassified financial assets	-	-	829	-	-	-	829
Net profit for the year	-	-	-	-	-	30,701	30,701
Total comprehensive income	-	-	4,280	-	-	30,701	34,981
Share-based compensation	-	-	-	-	407	-	407
Transfers to reserves	-	-	-	45,553	-	(45,553)	-
31 March 2012	1,034,575	2,200	(5,457)	236,737	12,904	896,207	2,177,166
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	-	-	(82)	-	-	-	(82)
Amortisation of financial assets revaluation reserve of reclassified financial assets	-	-	104	-	-	-	104
Net profit for the year	-	-	-	-	-	43,976	43,976
Total comprehensive income	-	-	22	-	-	43,976	43,998
Share-based compensation	-	-	-	-	431	-	431
Shareholder's contribution	-	-	-	-	-	-	-
Transfers to reserves	-	-	-	49,590	-	(49,590)	-
31 March 2013	1,034,575	2,200	(4,076)	286,327	14,563	958,956	2,292,545

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AB SEB bankas

CONDENSED INTERIM STATEMENT OF CASH FLOWS FOR THE 3 MONTHS PERIOD ENDED 31 MARCH 2013

(All amounts in LTL thousands unless otherwise stated)

The Group			The Bank
January 1 - March 31, 2013	January 1 - March 31, 2012		January 1 - March 31, 2013	January 1 - March 31, 2012
	57,697	Net cash from operating activities before change in operating assets		54,563
11,452			4,318
23,127	(675,416)	Net decrease (increase) in operating assets	(132,830)	(740,651)
(495,078)	(711,928)	Net (decrease) increase in operating liabilities	(495,881)	(716,255)
(460,499)	(1,329,647)	Net cash from (to) operating activities	(624,393)	(1,402,343)
-	-	Income tax paid	-	-
(460,499)	(1,329,647)	Net cash from (to) operating activities after income tax	(624,393)	(1,402,343)
190,339	471,930	Cash used in investing activities	145,244	407,383
576,987	(519,174)	Cash (used in) received from financing activities	785,976	(381,931)
306,827	(1,376,891)	Net (decrease) increase in cash	306,827	(1,376,891)
3,118,790	3,396,418	Cash at the beginning of the period	3,118,790	3,396,418
3,425,617	2,019,527	Cash at the end of the period	3,425,617	2,019,527
		Specified as follows:
591,948	348,621	Balance available for withdrawal with the Central Banks	591,948	348,621
-	41,747	Overnight deposits	-	41,747
380,144	317,333	Cash on hand	380,144	317,333
2,453,525	1,311,826	Current accounts with other banks	2,453,525	1,311,826
3,425,617	2,019,527		3,425,617	2,019,527

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AB SEB bankas

NOTES TO THE CONDENSED INTERIM FINANCIAL STATEMENTS FOR THE 3 MONTHS PERIOD ENDED 31 MARCH 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 has overall responsible for cash management, liquidity management and internal financing between the Group divisions.

9

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AB SEB bankas

NOTES TO THE CONDENSED INTERIM FINANCIAL STATEMENTS FOR THE 3 MONTHS PERIOD ENDED 31 MARCH 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.

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AB SEB bankas

NOTES TO THE CONDENSED INTERIM FINANCIAL STATEMENTS

FOR THE 3 MONTHS PERIOD ENDED 31 MARCH 2013

(All amounts in LTL thousands unless otherwise stated)

NOTE 3 SEGMENT REPORTING (CONTINUED)

Business segments of the Group for the period ended 31 March 2013 were as follows:

	Baltic Division	Merchant Banking	Asset Management	Treasury	Operations	Staff Functions	Information Technologies	Eliminations	Total Group
Interest income	118,237	252	10	50,784	-	-	-	(49,793)	119,490
- Internal	4,372	-	2	45,419	-	-	-	(49,793)	-
- External	113,865	252	8	5,365	-	-	-	-	119,490
Interest expence	(54,365)	(138)	(1)	(50,736)	-	-	-	49,793	(55,447)
- Internal	(45,282)	(138)	(1)	(4,372)	-	-	-	49,793	-
- External	(9,083)	-	-	(46,364)	-	-	-	-	(55,447)
Net commission income	45,396	60	2,636	(282)	-	-	-	-	47,810
- Internal	2,285	-	(2,003)	(282)	-	-	-	-	-
- External	43,111	60	4,639	-	-	-	-	-	47,810
Net financial income	15,786	219	4	103	-	-	-	-	16,112
Net other income	(788)	-	-	-	(6)	(1)	-	-	(795)
Net operating income	124,266	393	2,649	(131)	(6)	(1)	-	-	127,170
Total staff costs and other administrative expenses	(63,169)	(165)	(855)	(98)	428	657	836	-	(62,366)
Depreciation and amortisation	(4,268)	(14)	(12)	-	(85)	(243)	(666)	-	(5,288)
Capital losses	4	-	-	-	-	7	-	-	11
Total impairment losses	(14,165)	-	-	-	-	-	-	-	(14,165)
Loss before income tax	42,668	214	1,782	(229)	337	420	170	-	45,362
Income tax benefit	(6,375)	2	(318)	-	-	-	-	-	(6,691)
Net (loss) for the year	36,293	216	1,464	(229)	337	420	170	-	38,671
31 March 2013
Total assets	18,339,250	55,235	24,460	8,351,687	337	420	170	(3,509,679)	23,261,880
Total liabilities	15,902,244	55,019	22,006	8,355,992	-	-	-	(3,509,633)	20,825,628
Acquisition of intangible assets and property, plant and equipment	1,324	-	-	-	-	-	-	-	1,324

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AB SEB bankas

NOTES TO THE CONDENSED INTERIM FINANCIAL STATEMENTS

FOR THE 3 MONTHS PERIOD ENDED 31 MARCH 2013

(All amounts in LTL thousands unless otherwise stated)

NOTE 3 SEGMENT REPORTING (CONTINUED)

For the period ended 31 March 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	119,490	-	(341)	119,149
Interest expence	(55,447)	3,064	18	(52,365)
Net commission income	47,810	-	119	47,929
Net financial income	16,112	(3,064)	(195)	12,853
Net other income	(795)	-	2,453	1,658
Net operating income	127,170	-	2,054	129,224
Total staff costs, other administrative expenses	(62,366)	-	(2,037)	(64,403)
Depreciation and amortisation	(5,288)	-	(19)	(5,307)
Capital losses	11	-	-	11
Total impairment losses	(14,165)	-	1	(14,164)
(Losses) profit before income tax	45,362	-	(1)	45,361
Income tax benefit	(6,691)	-	1	(6,690)
Net (losses) for the period	38,671	-	-	38,671

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AB SEB bankas

NOTES TO THE CONDENSED INTERIM FINANCIAL STATEMENTS

FOR THE 3 MONTHS PERIOD ENDED 31 MARCH 2013

(All amounts in LTL thousands unless otherwise stated)

NOTE 3 SEGMENT REPORTING (CONTINUED)

Business segments of the Group for the period ended 31 March 2012 were as follows:

	Baltic Division	Merchant Banking	Asset Management	Treasury	Operations	Staff Functions	Information Technologies	Eliminations	Total Group
Interest income	190,433	255	49	122,278	-	-	-	(128,723)	184,292
- Internal	35,730	1	39	92,953	-	-	-	(128,723)	-
- External	154,703	254	10	29,325	-	-	-	-	184,292
Interest expence	(115,799)	(339)	(1)	(128,048)	-	-	-	128,723	(115,464)
- Internal	(92,993)	(339)	(1)	(35,390)	-	-	-	128,723	-
- External	(22,806)	-	-	(92,658)	-	-	-	-	(115,464)
Commission income	37,664	60	2,969	(304)	-	-	-	-	40,389
- Internal	2,212	-	(1,930)	(282)	-	-	-	-	-
- External	35,452	60	4,899	(22)	-	-	-	-	40,389
Net financial income	17,610	-	4	(631)	-	-	-	-	16,983
Net other income	(338)	-	1	-	(7)	(2)	-	-	(346)
Net operating income (losses)	129,570	(24)	3,022	(6,705)	(7)	(2)	-	-	125,854
Total staff costs, other administrative expenses	(69,242)	(172)	(803)	(122)	345	552	126	-	(69,316)
Depreciation and amortisation	(7,641)	(12)	(15)	-	(211)	(126)	(934)		(8,939)
Capital (losses)	(65)	-	-	-	-	-	-	-	(65)
Total impairment losses	(111)	-	-	-	-	-	-	-	(111)
(Losses) profit before income tax	52,511	(208)	2,204	(6,827)	127	424	(808)	-	47,423
Income tax expense	(5,608)	43	(343)	-	-	-	-	-	(5,908)
Net (losses) profit for the period	46,903	(165)	1,861	(6,827)	127	424	(808)	-	41,515
31 March 2012
Total assets	18,675,770	52,572	23,900	10,415,093	127	424	-	(3,547,298)	25,620,588
Total liabilities	16,288,954	52,737	21,049	10,427,377	-	-	808	(3,547,298)	23,243,627
Acquisition of intangible assets and property, plant and equipment	841	-	-	-	-	-	-	-	841

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AB SEB bankas

NOTES TO THE CONDENSED INTERIM FINANCIAL STATEMENTS

FOR THE 3 MONTHS PERIOD ENDED 31 MARCH 2013

(All amounts in LTL thousands unless otherwise stated)

NOTE 3 SEGMENT REPORTING (CONTINUED)

For the period ended, 31 March 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	184,292	-	(487)	183,805
Interest expence	(115,464)	9,969	111	(105,384)
Net commission income	40,389	-	843	41,232
Net financial income	16,983	(9,969)	(262)	6,752
Net other income	(346)	-	1,661	1,315
Net operating income	125,854	-	1,866	127,720
Total staff costs and other administrative expenses	(69,316)	-	(1,754)	(71,070)
Depreciation and amortisation	(8,939)	-	(112)	(9,051)
Capital losses	(65)	-	-	(65)
Total impairment losses	(111)	-	-	(111)
Profit before income tax	47,423	-	-	47,423
Income tax	(5,908)	-	-	(5,908)
Net profit for the period	41,515	-	-	41,515

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AB SEB BANKAS

NOTES TO THE CONDENSED INTERIM FINANCIAL STATEMENTS

FOR THE 3 MONTHS PERIOD ENDED 31 MARCH 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:

	31 March 2013
	Book value	Fair value
Balances with the Central Bank	1,047,449	1,047,798
Loans to credit and financial institutions	3,063,884	3,064,658
Loans to customers	15,521,159	15,058,834
Investment securities - loans and receivables	187,689	191,567
Finance lease receivable	1,450,201	1,394,605
Investment securities – held to maturity	14,302	13,914
Total financial assets valued at amortised cost	21,284,684	20,771,376
Due to the Central Bank	37	37
Due to credit and financial institutions	7,853,510	7,985,527
Deposits from the public	11,804,677	11,810,249
Debt securities in issue	485,105	487,409
Total financial liabilities valued at amortised cost	20,143,329	20,283,222

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:

	31 March 2013
	Book value	Fair value
Balances with the Central Bank	1,047,449	1,047,798
Loans to credit and financial institutions	3,948,417	3,942,131
Loans to customers	15,546,865	15,084,546
Investment securities - loans and receivables	187,689	191,567
Investment securities – held to maturity	14,302	13,914
Total financial assets valued at amortised cost	20,744,722	20,279,956
Due to the Central Bank	37	37
Due to credit and financial institutions	7,658,733	7,790,665
Deposits from the public	11,804,754	11,810,316
Debt securities in issue	485,105	487,409
Total financial liabilities valued at amortised cost	19,948,629	20,088,427

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:

31 March 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	58,140	-	-
Financial assets at fair value through profit and loss	676,351	-	43,282
Derivative financial instruments (assets)	110	382,430	1,608
Investment securities – available for sale	-	-	200
Derivative financial instruments (liabilities)	(117)	(416,960)	(1,608)
Debt securities in issue	-	7,014	-
Total	734,484	(27,516)	43,482

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AB SEB bankas

NOTES TO THE CONDENSED INTERIM FINANCIAL STATEMENTS

FOR THE 3 MONTHS PERIOD ENDED 31 MARCH 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:

31 March 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	57,465	-	-
Financial assets at fair value through profit and loss	676,352	-	-
Derivative financial instruments (assets)	110	382,430	1,608
Investment securities – available for sale	-	-	200
Derivative financial instruments (liabilities)	(117)	(416,960)	(1,608)
Debt securities in issue	-	7,014	-
Total	733,810	(27,516)	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.

31 March 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	-6,612,575	6,220,776	-391,799	203	-	-391,596
Reversed repo receivable	-	-	-	-	-	-
Securities borrowing	-	-	-	-	-	-
Other	-	-	-	-	-	-
TOTAL	-6,612,575	6,220,776	-391,799	203	-	-391,596
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	6,629,369	-6,220,776	408,593	-203	-	408,390
Repo payable	-	-	-	-	-	-
Securities lending	-	-	-	-	-	-
Other	-	-	-	-	-	-
TOTAL	6,629,369	-6,220,776	408,593	-203	-	408,390
NET	16,794	-	16,794	-	-	16,794

NOTE 6 ASSETS UNDER MANAGEMENT

The Group			The Bank
31 March 2013	31 December 2012		31 March 2013	31 December 2012
71,489	39,770	Customers funds	-	-
743,070	767,647	Financial instruments acquired at customer account	-	-
1,769,097	1,703,602	Accounts receivable from customer assets managed on trust basis	-	-
2,583,656	2,511,019	Total assets under management	-	-

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AB SEB bankas

NOTES TO THE CONDENSED INTERIM FINANCIAL STATEMENTS

FOR THE 3 MONTHS PERIOD ENDED 31 MARCH 2013

(All amounts in LTL thousands unless otherwise stated)

NOTE 7 OFF BALANCE SHEET ITEMS

The Group		The Bank
31 March 2013	31 December 2012	31 March 2013	31 December 2012
2,658,479	2,544,274	Agreements to grant loans	2,932,307
587,598	554,414	Guarantees issued	588,928
203,734	180,215	Letters of credit issued	203,734
		Commitments to purchase assets and other commitments	-
51,495	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
31 March 2013	31 December 2012			31 March 2013	31 December 2012
2,793,820	2,536,274	Outstanding loan amount	0.10-1.15	2,793,031	2,535,996
221,398	166,964	Positive replacement values (HFT)	-	221,398	166,964
3,572	23	Other assets	-	2,962	23
6,925,494	6,309,920	Outstanding deposit amount	0.01-5.49	6,709,335	5,888,690
566,022	593,106	Other liabilities	-	566,022	593,106
2,035	48,402	Unused granted overdraft facilities	-	2,035	48,402
200	200	Guarantees issued	-	200	200
For 3 months period ended
31 March 2013 and 2012
607	12,292	Interest income	-	599	12,283
(35,235)	(80,315)	Interest expense	-	(32,598)	(73,463)
		Other services received and cost
(868)	(3,534)	incurred from SEB group, net	-	(2,658)	(5,099)

17

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AB SEB bankas

NOTES TO THE CONDENSED INTERIM FINANCIAL STATEMENTS

FOR THE 3 MONTHS PERIOD ENDED 31 MARCH 2013

(All amounts in LTL thousands unless otherwise stated)

NOTE 8 RELATED PARTIES (CONTINUED)

Transactions with parent bank can be specified as follows:

The Group			Interest rate %	The Bank
31 March 2013	31 December 2012			31 March 2013	31 December 2012
2,698,296	2,536,274	Outstanding loan amount	0.10-1.15	2,698,043	2,535,996
221,398	166,964	Positive replacement values (HFT)	-	221,398	166,964
878	23	Other assets	-	323	23
6,886,696	6,309,920	Outstanding deposit amount	0.21-5.49	6,670,539	5,888,690
-	593,106	Other liabilities	-	-	593,106
17	48,402	Unused granted overdraft facilities	-	17	48,402
200	200	Guarantees issued at the year end	-	200	200
For 3 months period ended
31 March 2013 and 2012
469	12,130	Interest income	-	466	12,126
(35,226)	(80,256)	Interest expense	-	(32,589)	(73,404)
		Other services received and cost
(83)	(2,376)	incurred from SEB group, net	-	(1,663)	(3,742)

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

	Interest rate %	The Bank
		31 March 2013	31 December 2012
Off-balance sheet commitments:
Agreements to grant loans	-	273,827	149,677
Guarantees issued	-	1,329	1,082
Outstanding loan amounts:
AB SEB Lizingas	0.24-0.91	884,533	731,124
UAB SEB Venture Capital	1.45	37,600	37,600
Outstanding deposit amounts:
UAB SEB Venture Capital		76	138
UAB SEB Investiciţi, Valdymas	0	21,022	19,379
AB SEB Lizingas		361	182
Other assets	-	9,300	1,964
For 3 months period ended 31 March 2013 and 2012
Interest income	-	1,304	1,661
Interest expense	-	(2)	(584)
Dividend income	-	7,351	8,344
Other services received and cost incurred from subsidiaries, net	-	2,710	2,799

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AB SEB bankas

NOTES TO THE CONDENSED INTERIM FINANCIAL STATEMENTS

FOR THE 3 MONTHS PERIOD ENDED 31 MARCH 2013

(All amounts in LTL thousands unless otherwise stated)

NOTE 9 DEBT SECURITIES ISSUANCE AND REDEMPTION

During the three months of 2013 the Bank successfully placed 3 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	380 days	EUR	2,172,847.04	,Brent' Oil
2013.02.19	2016.03.08	1113 days	LTL	1,429,900.00	Global companies's shares - 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	1113 days	EUR	1,214,004.48	Global companies's shares - 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

During the three months of 2013 the Bank successfully redeemed its 14 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	763,100.00	EUR/BRL and EUR/MXN FX rates
2011.01.11	2013.01.23	743 days	EUR	888,060.16	EUR/BRL and EUR/MXN FX rates
2009.12.12	2013.02.08	1144 days	LTL	15,338,200.00	Brazilian companies' shares - Petroleo Brasileiro S.A., Vale S.A., Itau Unibanco Holding S.A., Banco Bradesco S.A., Cia Siderurgica Nacional S.A., Empresa Brasileira de Aeronautica S.A., Tele Norte Leste Participacoes S.A., Cia Energetica de Minas Gerais, BRF - Brasil Foods S.A., Cia de Bebidas das Americas
2009.12.12	2013.02.08	1144 days	LTL	2,318,800.00	Brazilian companies' shares - Petroleo Brasileiro S.A., Vale S.A., Itau Unibanco Holding S.A., Banco Bradesco S.A., Cia Siderurgica Nacional S.A., Empresa Brasileira de Aeronautica S.A., Tele Norte Leste Participacoes S.A., Cia Energetica de Minas Gerais, BRF - Brasil Foods S.A., Cia de Bebidas das Americas
2009.12.12	2013.02.08	1144 days	EUR	2,295,076.16	Brazilian companies' shares - Petroleo Brasileiro S.A., Vale S.A., Itau Unibanco Holding S.A., Banco Bradesco S.A., Cia Siderurgica Nacional S.A., Empresa Brasileira de Aeronautica S.A., Tele Norte Leste Participacoes S.A., Cia Energetica de Minas Gerais, BRF - Brasil Foods S.A., Cia de Bebidas das Americas
2010.02.09	2013.03.06	1121 days	LTL	37,462,600.00	U.S. exporting companies' shares - Altria Group Inc, Avon Products Inc, Baxter International Inc, Caterpillar Inc, Cisco Systems Inc, Coca-Cola Co, Colgate-Palmolive Co, Intel Corp, International Business Machines Corp, Microsoft Corp, Oracle Corp, Pfizer Inc, Rockwell Automation Inc, Texas Instruments Inc, Tyco International Ltd, United Technologies Corp
2010.02.09	2013.03.06	1121 days	LTL	1,626,000.00	Emerging countries companies' shares - MMC Norilsk Nickel, Reliance Industries Ltd, Itau Unibanco Holding S.A., Petroleo Brasileiro S.A., BRF - Brasil Foods S.A., Tele Norte Leste Participacoes S.A., Vale S.A., Guangdong Investment Ltd, China Construction Bank Corp, China Railway Construction Corp Ltd, Bank of China Ltd, Hyundai Motor Co, Samsung Electronics Co, HON HAI Precision Industry Co
2010.02.09	2013.03.06	1121 days	EUR	955,389.76	Emerging countries companies' shares - MMC Norilsk Nickel, Reliance Industries Ltd, Itau Unibanco Holding S.A., Petroleo Brasileiro S.A., BRF - Brasil Foods S.A., Tele Norte Leste Participacoes S.A., Vale S.A., Guangdong Investment Ltd, China Construction Bank Corp, China Railway Construction Corp Ltd, Bank of China Ltd, Hyundai Motor Co, Samsung Electronics Co, HON HAI Precision Industry Co
2011.02.23	2013.03.13	749 days	EUR	2,336,509.76	Swedish company shares - AstraZeneca PLC, Swedbank AB ir Skanska AB
2011.02.23	2013.03.13	749 days	EUR	1,815,136.96	Swedish company shares - AstraZeneca PLC, Swedbank AB ir Skanska AB
2010.03.05	2013.03.26	1117 days	LTL	6,278,700.00	China stock basket - Industrial and Commercial Bank of China Ltd, China Construction Bank Corp, China Life Insurance Co Ltd, Hong Seng Bank Ltd, Taiwan Semiconductor Manufacturing Company Ltd, HON HAI Precision Industry Co, Jiangxi Copper Co Ltd, China Mobile Ltd, CLP Holdings Ltd, Hutchison Whampoo Ltd, China Railway Group Ltd, PetroChina Co Ltd, China Petroleum & Chemical Corp, Tsingtao Brewery Co Ltd, Li & Fung Ltd
2010.03.05	2013.03.26	1117 days	LTL	4,193,200.00	China stock basket - Industrial and Commercial Bank of China Ltd, China Construction Bank Corp, China Life Insurance Co Ltd, Hong Seng Bank Ltd, Taiwan Semiconductor Manufacturing Company Ltd, HON HAI Precision Industry Co, Jiangxi Copper Co Ltd, China Mobile Ltd, CLP Holdings Ltd, Hutchison Whampoo Ltd, China Railway Group Ltd, PetroChina Co Ltd, China Petroleum & Chemical Corp, Tsingtao Brewery Co Ltd, Li & Fung Ltd
2010.03.05	2013.03.26	1117 days	LTL	1,687,300.00	Coffee, wheat, soybeans, corn, cotton and cocoa
2010.03.05	2013.03.26	1117 days	EUR	1,639,734.72	Coffee, wheat, soybeans, corn, cotton and cocoa

NOTE 10 SIGNIFICANT EVENTS AFTER THE BALANCE SHEET DATE

After 31 March 2013 the Bank successfully completed 3 debt securities issues with the nominal value of LTL 6,272 thousand.

After 31 March 2013 the Bank successfully redeemed 5 debt securities issues with the nominal value of LTL 6,949 thousand.

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:

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 2012;
5. Regarding appropriation of the Year 2012 profit (loss) of the Bank.
6. regarding appointment of audit company of the Bank and approval of payment terms for audit services;
7. 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

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AB SEB bankas

NOTES TO THE CONDENSED INTERIM FINANCIAL STATEMENTS FOR THE 3 MONTHS PERIOD ENDED 31 MARCH 2013

(All amounts in LTL thousands unless otherwise stated)

NOTE 11 MAJOR EVENTS IN THE ISSUER'S ACTIVITIES (CONTINUED)

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:

1. 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;
2. Report of the audit company UAB "PricewaterhouseCoopers", which has performed the audit, has been familiarized with;
3. 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;
4. Bank's and Bank Group's year 2012 Consolidated Financial Statements produced in accordance with the International Financial Reporting Standards were approved;
5. Appropriation of the year 2012 profit (loss) of the Bank was approved;
6. 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;
7. 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 Saltoniškių 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.

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).

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