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SEB Interim / Quarterly Report 2012
2966_rns_2013-02-27_653ba6ac-d8f1-4474-957e-6d6a8c4decd6.PDF
Interim / Quarterly Report
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SEB
CONFIRMATION OF RESPONSIBLE PERSONS
Abiding by Article 22 of the Law of the Republic of Lithuania on Securities as well as by the rules of the Securities Commission of the Republic of Lithuania for the preparation and submitting of periodic and supplementary information, we hereby confirm that, in accordance with our knowledge, the information provided in the interim twelve-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
Raimondas Kvedaras
Head of Support Division, CFO of SEB Bank
Jonas Iržikevičius
Director of Finance Department of SEB Bank
Saulius Salda
Vilnius,
February 2013
AB SEB BANKAS
CONDENSED INTERIM FINANCIAL INFORMATION
FOR THE 12 MONTH PERIOD ENDED 31 DECEMBER 2012
AB SEB BANKAS
GENERAL INFORMATION
- Reporting period
The report has been produced for the twelve months period ended 31 December 2012.
- 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: | [email protected] |
| Legal/organisational form: | public limited company |
| Registration date and place: | 29 November 1990, Bank of Lithuania |
| Company's code: | 112021238 |
| Company's registration number: | AB90-4 |
| Website: | www.seb.lt |
(In the present Report, AB SEB Bankas shall also be referred to as the 'Bank').
AB SEB BANKAS
CONDENSED INTERIM INCOME STATEMENT
FOR THE 12 MONTHS PERIOD ENDED 31 DECEMBER 2012
(All amounts in LTL thousands unless otherwise stated)
| The Group | ||||
|---|---|---|---|---|
| January 1 - December 31 2012 | Fourth quarter 2012 | January 1 - December 31 2011 | Fourth quarter 2011 | |
| Interest income | 625,451 | 130,912 | 751,997 | 197,254 |
| Interest expenses | (335,802) | (62,714) | (398,850) | (108,092) |
| Net interest income | 289,649 | 68,198 | 353,147 | 89,162 |
| Impairment (losses), reversals on loans | (55,031) | (20,331) | 124,092 | (4,270) |
| Impairment (losses), reversals on lease portfolio | 27,412 | 4,604 | 201,630 | 6,182 |
| Provisions for guarantees and other off balance sheet items | 2,380 | (2,134) | 5,789 | 384 |
| Other impairment (losses), reversals | - | - | - | 1 |
| Total impairment (losses), reversals | (25,239) | (17,861) | 331,511 | 2,297 |
| Net interest income after impairment losses | 264,410 | 50,337 | 684,658 | 91,459 |
| Fee and commissions income | 251,454 | 68,574 | 229,013 | 60,174 |
| Fee and commissions expenses | (66,806) | (17,446) | (61,948) | (16,441) |
| Net fee and commission income | 184,648 | 51,128 | 167,065 | 43,733 |
| Net gain (losses) on operations with debt securities and derivative financial instruments | (7,031) | 730 | (38,671) | (11,146) |
| Net gain (losses) on investment securities | (979) | (225) | 1,121 | (293) |
| Net loss on disposal of subsidiaries | - | - | (1,166) | - |
| Impairment loss on investment in AFS securities | - | - | (390) | (390) |
| Net foreign exchange gain | 67,833 | 14,925 | 54,738 | 18,335 |
| Other income, net | 6,492 | 1,609 | 6,113 | 1,570 |
| Net investment activities | 66,315 | 17,039 | 21,745 | 8,076 |
| Staff costs | (141,720) | (35,089) | (140,201) | (37,799) |
| Other administrative expenses | (264,564) | (131,773) | (203,477) | (64,372) |
| Profit (Loss) before income tax | 109,089 | (48,358) | 529,790 | 41,097 |
| Income tax benefit (expenses) | (22,771) | (2,373) | (60,139) | (2,928) |
| (Losses) profit for the period from continuing (Losses) for the period from discontinued operations | 86,318 | (50,731) | 469,651 | 38,169 |
| Net (losses) profit for the period | 86,318 | (50,731) | 469,651 | 38,169 |
| Attributable to: | ||||
| Equity holders of the parent | 86,318 | (50,731) | 469,651 | 38,169 |
| (Losses) profit from continuing operations | 86,318 | (50,731) | 469,651 | 38,169 |
| (Losses) from discontinued operations | - | - | - | - |
| Non controlling interest | - | - | - | - |
| (Losses) profit from continuing operations | - | - | - | - |
| (Losses) profit from discontinued operations | - | - | - | - |
| 86,318 | (50,731) | 469,651 | 38,169 |
AB SEB BANKAS
CONDENSED INTERIM INCOME STATEMENT
FOR THE 12 MONTHS PERIOD ENDED 31 DECEMBER 2012
(All amounts in LTL thousands unless otherwise stated)
| The Bank | ||||
|---|---|---|---|---|
| January 1 - December 31 2012 | Fourth quarter 2012 | January 1 - December 31 2011 | Fourth quarter 2011 | |
| Interest income | 572,113 | 120,006 | 680,314 | 179,987 |
| Interest expenses | (318,361) | (59,856) | (364,335) | (100,072) |
| Net interest income | 253,752 | 60,150 | 315,979 | 79,915 |
| Impairment (losses), reversals on loans | (55,031) | (20,331) | 124,092 | (4,270) |
| Impairment (losses), reversals on lease portfolio | - | - | - | - |
| Provisions for guarantees and other off balance sheet items | 2,380 | (2,134) | 5,789 | 384 |
| Other impairment (losses), reversals | - | - | - | 1 |
| Total impairment (losses), reversals | (52,651) | (22,465) | 129,881 | (3,885) |
| Net interest income after impairment losses | 201,101 | 37,685 | 445,860 | 76,030 |
| Fee and commissions income | 239,939 | 65,468 | 218,227 | 57,794 |
| Fee and commissions expenses | (66,263) | (17,303) | (61,431) | (16,670) |
| Net fee and commission income | 173,676 | 48,165 | 156,796 | 41,124 |
| Net gain (losses) on operations with debt securities and derivative financial instruments | (7,031) | 730 | (38,671) | (11,146) |
| Net gain (losses) on investment securities | (859) | (103) | 1,399 | (15) |
| Net gain on disposal of subsidiaries | - | - | 6,376 | - |
| Impairment loss on investment in AFS securities | - | - | (390) | (390) |
| Dividend income from subsidiaries | 8,344 | - | 6,064 | - |
| Net foreign exchange gain | 67,850 | 15,009 | 54,778 | 18,323 |
| Other income, net | 6,342 | 1,816 | 5,020 | 1,157 |
| Net investment activities | 74,646 | 17,452 | 34,576 | 7,929 |
| Staff costs | (136,078) | (33,481) | (134,415) | (36,043) |
| Other administrative expenses | (256,678) | (129,493) | (194,547) | (61,902) |
| Operating (losses) profit | 56,667 | (59,672) | 308,270 | 27,138 |
| Impairment (loss)/reversal on investment in subsidiaries | 83,000 | 83,000 | 107,000 | 107,000 |
| Profit before income tax | 139,667 | 23,328 | 415,270 | 134,138 |
| Income tax benefit (expenses) | (13,380) | (131) | (35,508) | (1,093) |
| Profit for the period from continuing operations | 126,287 | 23,197 | 379,762 | 133,045 |
| Profit (losses) for the period from discontinued operations | - | - | - | - |
| Net profit (losses) for the period | 126,287 | 23,197 | 379,762 | 133,045 |
| Attributable to: | ||||
| Equity holders of the parent | 126,287 | 23,197 | 379,762 | 133,045 |
| (Losses) profit from continuing operations | 126,287 | 23,197 | 379,762 | 133,045 |
| (Losses) from discontinued operations | - | - | - | - |
| Non controlling interest | - | - | - | - |
| (Losses) profit from continuing operations | - | - | - | - |
| (Losses) profit from discontinued operations | - | - | - | - |
| 126,287 | 23,197 | 379,762 | 133,045 |
AB SEB BANKAS
CONDENSED INTERIM STATEMENT OF COMPREHENSIVE INCOME FOR THE 12 MONTHS PERIOD ENDED 31 DECEMBER 2012
(All amounts in LTL thousands unless otherwise stated)
| The Group | The Bank | ||
|---|---|---|---|
| January 1 - December 31 2012 | January 1 - December 31 2011 | January 1 - December 31 2012 | January 1 - December 31 2011 |
| 86,318 | 469,651 | Net gain (losses) for the year | 126,287 |
| 5,184 | (4,157) | Other comprehensive income: | 379,762 |
| 1,450 | 3,075 | Net gain (loss) on available for sale financial assets | 5,184 |
| (995) | 195 | Amortisation of financial assets revaluation reserve | |
| of reclassified financial assets | 1,450 | ||
| 5,639 | (887) | Income tax relating to the components of other | |
| comprehensive income | (995) | ||
| 91,957 | 468,764 | Total other comprehensive income | 5,639 |
| (887) | |||
| 131,926 | |||
| 378,875 |
AB SEB BANKAS
CONDENSED INTERIM STATEMENT OF FINANCIAL POSITION
AS OF 31 DECEMBER 2012
(All amounts in LTL thousands unless otherwise stated)
| The Group | The Bank | |||
|---|---|---|---|---|
| 31 December 2012 | 31 December 2011 | 31 December 2012 | 31 December 2011 | |
| Assets | ||||
| 443,393 | 634,922 | Cash on hand | 443,393 | 634,922 |
| 1,002,933 | 3,438,209 | Balances with the Central Bank | 1,002,933 | 3,438,209 |
| 2,666,929 | 2,718,507 | Due from banks, net | 2,666,929 | 2,718,507 |
| 60,900 | 52,911 | Government securities available for sale | 60,234 | 51,921 |
| Financial assets at fair value through profit and loss | 608,544 | 28,376 | ||
| 651,603 | 69,881 | 355,201 | 193,054 | |
| 355,201 | 193,054 | Derivative financial instruments | ||
| Loans to credit and financial institutions, net of impairment losses | 737,926 | 439,302 | ||
| 6,802 | 12,706 | 15,668,920 | 15,678,432 | |
| 15,642,962 | 15,649,121 | Loans to customers, net of impairment losses | ||
| Finance lease receivable, net of impairment losses | - | - | ||
| 1,502,759 | 1,673,486 | |||
| Investment securities: | ||||
| 386,010 | 1,588,260 | - loans and receivables | 386,010 | 1,588,260 |
| 200 | 376 | - available for sale | 200 | 376 |
| 13,812 | 14,148 | - held to maturity | 13,812 | 14,148 |
| - | - | Investments in subsidiaries | 307,900 | 224,900 |
| 58,260 | 132,970 | Intangible fixed assets | 57,827 | 132,730 |
| 22,645 | 33,121 | Property, plant and equipment | 22,127 | 32,357 |
| 375 | 841 | Assets under operating lease | - | - |
| 23,686 | 27,960 | Non-current assets held for sale | - | 29 |
| 14,232 | 40,702 | Investment property | 1,332 | 1,471 |
| 190,998 | 213,596 | Deferred tax asset | 143,064 | 157,440 |
| 113,842 | 147,390 | Other assets, net of impairment losses | 107,275 | 143,139 |
| 23,157,542 | 26,642,161 | Total assets | 22,583,627 | 25,477,573 |
| Liabilities | ||||
| 37 | 32 | Amounts owed to the Central Bank | 37 | 32 |
| 7,193,144 | 10,135,681 | Amounts owed to credit and financial institutions | 6,791,475 | 9,176,873 |
| 377,836 | 239,686 | Derivative financial instruments | 377,836 | 239,686 |
| 12,393,252 | 12,152,999 | Deposits from public | 12,393,390 | 12,158,994 |
| 61,181 | 36,016 | Accrued expenses and deferred income | 59,150 | 33,659 |
| 1,316 | - | Income tax payable | - | - |
| - | 244,218 | Subordinated loans | - | 244,218 |
| 561,016 | 565,598 | Debt securities in issue | 561,016 | 565,598 |
| 145,409 | 937,172 | Other liabilities and provisions | 125,384 | 916,735 |
| 20,733,191 | 24,311,402 | Total liabilities | 20,308,288 | 23,335,795 |
| Equity | ||||
| Equity attributable to equity holder of the parent | ||||
| 1,034,575 | 1,034,575 | Share capital | 1,034,575 | 1,034,575 |
| 2,200 | 2,200 | Reserve capital | 2,200 | 2,200 |
| (4,098) | (9,737) | Financial assets revaluation reserve | (4,098) | (9,737) |
| 239,612 | 194,708 | Legal reserve | 236,737 | 191,184 |
| 14,132 | 12,497 | General and other reserves | 14,132 | 12,497 |
| 1,137,930 | 1,096,516 | Retained earnings | 991,793 | 911,059 |
| 2,424,351 | 2,330,759 | 2,275,339 | 2,141,778 | |
| - | - | Non controlling interest in equity | - | - |
| 2,424,351 | 2,330,759 | Total equity | 2,275,339 | 2,141,778 |
| 23,157,542 | 26,642,161 | Total liabilities and equity | 22,583,627 | 25,477,573 |
AB SEB BANKAS
CONDENSED INTERIM STATEMENT OF CHANGES IN EQUITY FOR THE 12 MONTHS PERIOD ENDED 31 DECEMBER 2012
(All amounts in LTL thousands unless otherwise stated)
| The Group | Equity attributable to equity holder of the parent | Total before non controlling interest | Non controlling interest | Total | |||||
|---|---|---|---|---|---|---|---|---|---|
| Share capital | Reserve capital | Financial assets revaluation reserve | Legal reserve | General and other reserves | Retained earnings | ||||
| 31 December 2010 | 1,034,575 | 1,034 | (8,850) | 165,425 | 10,846 | 656,148 | 1,859,178 | - | 1,859,178 |
| Net change in available for sale investments, net of deferred taxes | - | - | (3,962) | - | - | - | (3,962) | - | (3,962) |
| Amortisation of financial assets revaluation reserve of reclassified financial assets | - | - | 3,075 | - | - | - | 3,075 | - | 3,075 |
| Net profit for the year | - | - | - | - | - | 469,651 | 469,651 | - | 469,651 |
| Total comprehensive income | - | - | (887) | - | - | 469,651 | 468,764 | - | 468,764 |
| Sales of UAB SEB Enskilda | - | 1,166 | - | - | - | - | 1,166 | - | 1,166 |
| Share-based compensation | - | - | - | - | 1,651 | - | 1,651 | - | 1,651 |
| Transfers to reserves | - | - | - | 29,283 | - | (29,283) | - | - | - |
| 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 | - | - | 4,189 | - | - | - | 4,189 | - | 4,189 |
| Amortisation of financial assets revaluation reserve of reclassified financial assets | - | - | 1,450 | - | - | - | 1,450 | - | 1,450 |
| Net profit for the year | - | - | - | - | - | 86,318 | 86,318 | - | 86,318 |
| Total comprehensive income | - | - | 5,639 | - | - | 86,318 | 91,957 | - | 91,957 |
| UAB SEB Enskilda legal reserve transfer | - | - | - | (711) | - | 711 | - | - | - |
| Share-based compensation | - | - | - | - | 1,635 | - | 1,635 | - | 1,635 |
| Transfers to reserves | - | - | - | 45,615 | - | (45,615) | - | - | - |
| 31 December 2012 | 1,034,575 | 2,200 | (4,098) | 239,612 | 14,132 | 1,137,930 | 2,424,351 | - | 2,424,351 |
AB SEB BANKAS
CONDENSED INTERIM STATEMENT OF CHANGES IN EQUITY FOR THE 12 MONTHS PERIOD ENDED 31 DECEMBER 2012
(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 2010 | 1,034,575 | 2,200 | (8,850) | 163,221 | 10,846 | 559,260 | 1,761,252 |
| Net change in available for sale investments, net of deferred taxes | - | - | (3,962) | - | - | - | (3,962) |
| Amortisation of financial assets revaluation reserve of reclassified financial assets | - | - | 3,075 | - | - | - | 3,075 |
| Net profit for the year | - | - | - | - | - | 379,762 | 379,762 |
| Total comprehensive income | - | - | (887) | - | - | 379,762 | 378,875 |
| Shareholder's contribution | - | - | - | - | - | - | - |
| Share-based compensation | - | - | - | - | 1,651 | - | 1,651 |
| Transfers to reserves | - | - | - | 27,963 | - | (27,963) | - |
| 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 | - | - | 4,189 | - | - | - | 4,189 |
| Amortisation of financial assets revaluation reserve of reclassified financial assets | - | - | 1,450 | - | - | - | 1,450 |
| Net profit for the year | - | - | - | - | - | 126,287 | 126,287 |
| Total comprehensive income | - | - | 5,639 | - | - | 126,287 | 131,926 |
| Share-based compensation | - | - | - | - | 1,635 | - | 1,635 |
| Shareholder's contribution | - | - | - | - | - | - | - |
| Transfers to reserves | - | - | - | 45,553 | - | (45,553) | - |
| 31 December 2012 | 1,034,575 | 2,200 | (4,098) | 236,737 | 14,132 | 991,793 | 2,275,339 |
AB SEB BANKAS
CONDENSED INTERIM STATEMENT OF CASH FLOWS FOR THE 12 MONTHS PERIOD ENDED 31 DECEMBER 2012
(All amounts in LTL thousands unless otherwise stated)
| The Group | The Bank | ||
|---|---|---|---|
| 1 January - 31 December 2012 | 1 January - 31 December 2011 | 1 January - 31 December 2012 | 1 January - 31 December 2011 |
| 212,928 | 203,898 | Net cash from operating activities before change in operating assets | 159,714 |
| 2,567,669 | (2,162,720) | Net decrease (increase) in operating assets | 2,069,710 |
| (548,323) | 3,311,853 | Net (decrease) increase in operating liabilities | (555,021) |
| 2,232,274 | 1,353,031 | Net cash from (to) operating activities | 1,674,403 |
| - | - | Income tax paid | - |
| 2,232,274 | 1,353,031 | Net cash from (to) operating activities after income tax | 1,674,403 |
| 663,728 | 103,228 | Cash used in investing activities | 673,705 |
| (3,181,680) | 416,504 | Cash (used in) received from financing activities | (2,633,786) |
| (285,678) | 1,872,763 | Net (decrease) increase in cash | (285,678) |
| 3,396,418 | 1,523,655 | Cash 1 January | 3,396,418 |
| 3,110,740 | 3,396,418 | Cash 31 December | 3,110,740 |
| Specified as follows: | |||
| 424,169 | 2,184,595 | Balance available for withdrawal with the Central Banks | 424,169 |
| 42,550 | 29,812 | Overnight deposits | 42,550 |
| 443,393 | 634,922 | Cash on hand | 443,393 |
| 2,200,628 | 547,089 | Current accounts with other banks | 2,200,628 |
| 3,110,740 | 3,396,418 | 3,110,740 |
AB SEB BANKAS
NOTES TO THE CONDENSED INTERIM FINANCIAL STATEMENTS FOR THE 12 MONTHS PERIOD ENDED 31 DECEMBER 2012
(All amounts in LTL thousands unless otherwise stated)
NOTE 1 GENERAL INFORMATION
AB SEB Bankas (hereinafter - the Bank) was registered as a public company in the Enterprise Register of the Republic of Lithuania on 2 March 1990. The Bank is licensed by the Bank of Lithuania to perform all banking operations provided for in the Law on Banks of the Republic of Lithuania and the Statutes of the Bank.
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 Bank 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 leasing activities; UAB SEB Venture Capital is a fully owned subsidiary involved in venture capital activities; UAB SEB Investicijų Valdymas is a fully owned subsidiary engaged in provision of investments' management services activities.
The Bank accepts deposits, issues loans, makes money transfers and documentary settlements, exchanges currencies for its clients, issues and processes debit and credit cards, is engaged in trade finance and investing and trading in securities as well as performs other activities set in the Law on Banks (except for operations with precious metals).
At the end of the reporting period the shareholder of the Bank is Skandinaviska Enskilda Banken, owning 100 percent of the Bank's shares.
NOTE 2 BASIS OF PRESENTATION
This interim financial information is presented in national currency of Lithuania, Litas (LTL). The books and records of the Bank and other Group companies are maintained in accordance with International Financial Reporting Standards (IFRS) as adopted for use in the European Union (EU). This interim financial report has been prepared in accordance with International Accounting Standard 34.
The accounting policies adopted and methods of computation used are consistent with those of the annual financial statements for the year ended 31 December 2011, as described in the annual financial statements for the year ended 31 December 2011.
The financial statements are prepared under the historical cost convention as modified by the revaluation of available for-sale financial assets, financial assets and liabilities held at fair value through profit and loss and all derivative contracts.
The preparation of financial statements in conformity with IFRS requires the use of estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Although these estimates are based on management's best knowledge of current event and actions, actual results ultimately may differ from those estimates.
NOTE 3 SEGMENT REPORTING
Operating segments are reported in a manner consistent with the internal reporting provided to the Board of Directors of the Bank. The Board of Directors is responsible for resources allocation and performance assessment of the operating segments and has been identified as the chief operating decision maker.
All transactions between business segments are conducted on an arm's length basis, with intra-segment revenue and costs being eliminated. Income and expenses directly associated with each segment are included in determining business segment performance.
For management and reporting purposes, the Group is organised into the following business groupings:
Baltic Division has overall responsibility for providing retail services to all types of companies and individuals. Baltic division offers its clients solutions in the areas of:
- Lending;
- Leasing and factoring products;
- Liquidity management and payment services;
- Private Banking – which serves the higher end of the private individual segment with wealth management services and advisory services.
All depreciation and amortization expenses (except for Asset Management) are attributed to this segment.
AB SEB BANKAS
NOTES TO THE CONDENSED INTERIM FINANCIAL STATEMENTS FOR THE 12 MONTHS PERIOD ENDED 31 DECEMBER 2012
(All amounts in LTL thousands unless otherwise stated)
NOTE 3 SEGMENT REPORTING (CONTINUED)
The Merchant Banking division has overall responsibility for servicing large and medium-sized companies, financial institutions, banks, and commercial real estate clients. Merchant Banking offers its clients integrated investment and corporate banking solutions, including the investment banking activities. Merchant Banking’s main areas of activity include:
- Lending and debt capital markets;
- Trading in equities, currencies, fixed income, derivatives and futures;
- Advisory services, brokerage, research and trading strategies within equity, fixed income and foreign exchange markets;
- Cash management;
- Custody and fund services;
- Venture capital.
The Asset Management division’s main business area is Institutional Clients – 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 responsibility for cash management, liquidity management and internal financing between the Group divisions.
Operations and IT divisions are the Group’s internal segments responsible for providing operations support and processing, as well as information technologies services for all Group’s divisions. In addition, Operations divisions handles bookings, confirmations, payments and reconciliations, and customer service and support.
Staff Functions division have dedicated responsibilities in order to support the business units within own area of expertise: HR, finance, marketing and communication, credits and risk control, security, procurement and real estate, compliance, internal audit.
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 for services related to major non resident customers are immaterial for the purpose of these financial statements and are not presented to the chief operating decision maker.
11
AB SEB BANKAS
NOTES TO THE CONDENSED INTERIM FINANCIAL STATEMENTS FOR THE 12 MONTHS PERIOD ENDED 31 DECEMBER 2012
(All amounts in LTL thousands unless otherwise stated)
NOTE 3 SEGMENT REPORTING (CONTINUED)
Business segments of the Group for the period ended 31 December 2012 were as follows:
| Baltic Division | Merchant Banking | Asset Management | Treasury | Operations | Staff Functions | Information Technologies | Eliminations | Total Group | |
|---|---|---|---|---|---|---|---|---|---|
| Interest income | 654,025 | 1,024 | 104 | 360,944 | - | - | - | (388,758) | 627,339 |
| - Internal | 95,152 | 1 | 71 | 293,534 | - | - | - | (388,758) | - |
| - External | 558,873 | 1,023 | 33 | 67,410 | - | - | - | - | 627,339 |
| Interest expence | (369,706) | (1,063) | (3) | (376,551) | - | - | - | 388,758 | (358,565) |
| - Internal | (293,606) | (1,063) | (3) | (94,086) | - | - | - | 388,758 | - |
| - External | (76,100) | - | - | (282,465) | - | - | - | - | (358,565) |
| Net commission income | 170,181 | 276 | 12,064 | (1,214) | - | - | - | - | 181,307 |
| - Internal | 8,963 | - | (7,837) | (1,126) | - | - | - | - | - |
| - External | 161,218 | 276 | 19,901 | (88) | - | - | - | - | 181,307 |
| Net financial income | 82,750 | (121) | (3) | (174) | - | - | - | - | 82,452 |
| Net other income | (1,604) | - | 1 | 1,438 | (60) | (16) | - | - | (241) |
| Net operating income | 535,646 | 116 | 12,163 | (15,557) | (60) | (16) | - | - | 532,292 |
| Total staff costs and other administrative expenses | (307,997) | (908) | (3,448) | (485) | 928 | 2,613 | 3,760 | - | (305,537) |
| Depreciation and amortisation | (87,053) | (53) | (56) | (2) | (758) | (878) | (3,433) | - | (92,233) |
| Capital losses | (214) | - | - | - | (21) | 41 | - | - | (194) |
| Total impairment losses | (25,239) | - | - | - | - | - | - | - | (25,239) |
| Loss before income tax | 115,143 | (845) | 8,659 | (16,044) | 89 | 1,760 | 327 | - | 109,089 |
| Income tax benefit | (20,542) | (921) | (1,308) | - | - | - | - | - | (22,771) |
| Net (loss) for the year | 94,601 | (1,766) | 7,351 | (16,044) | 89 | 1,760 | 327 | - | 86,318 |
| 31 December 2012 | |||||||||
| Total assets | 18,578,762 | 54,979 | 22,959 | 7,692,018 | 89 | 1,760 | 327 | (3,193,352) | 23,157,542 |
| Total liabilities | 16,143,020 | 56,745 | 14,618 | 7,712,160 | - | - | - | (3,193,352) | 20,733,191 |
| Acquisition of intangible assets and property, plant and equipment | 6,781 | - | 12 | - | - | - | - | - | 6,793 |
AB SEB BANKAS
NOTES TO THE CONDENSED INTERIM FINANCIAL STATEMENTS FOR THE 12 MONTHS PERIOD ENDED 31 DECEMBER 2012
(All amounts in LTL thousands unless otherwise stated)
NOTE 3 SEGMENT REPORTING (CONTINUED)
For the period ended 31 December 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 | 627,339 | - | (1,888) | 625,451 |
| Interest expense | (358,565) | 22,162 | 601 | (335,802) |
| Net commission income | 181,307 | - | 3,341 | 184,648 |
| Net financial income | 82,452 | (22,162) | (1,752) | 58,538 |
| Net other income | (241) | - | 8,018 | 7,777 |
| Net operating income | 532,292 | - | 8,320 | 540,612 |
| Total staff costs, other administrative expenses | (305,537) | - | (7,723) | (313,260) |
| Depreciation and amortisation | (92,233) | - | (597) | (92,830) |
| Capital losses | (194) | - | - | (194) |
| Total impairment losses | (25,239) | - | - | (25,239) |
| (Losses) profit before income tax | 109,089 | - | - | 109,089 |
| Income tax benefit | (22,771) | - | - | (22,771) |
| Profit for the year from discontinued operations | - | - | - | - |
| Net (losses) for the period | 86,318 | - | - | 86,318 |
AB SEB BANKAS
NOTES TO THE CONDENSED INTERIM FINANCIAL STATEMENTS
FOR THE 12 MONTHS PERIOD ENDED 31 DECEMBER 2012
(All amounts in LTL thousands unless otherwise stated)
NOTE 3 SEGMENT REPORTING (CONTINUED)
Business segments of the Group for the period ended 31 December 2011 were as follows:
| Baltic Division | Merchant Banking | Asset Management | Treasury | Operations | Staff Functions | Information Technologies | Eliminations | Total Group | |
|---|---|---|---|---|---|---|---|---|---|
| Interest income | 764,548 | 901 | 150 | 508,729 | - | - | - | (519,944) | 754,384 |
| - Internal | 120,336 | 5 | 124 | 399,479 | - | - | - | (519,944) | - |
| - External | 644,212 | 896 | 26 | 109,250 | - | - | - | - | 754,384 |
| Interest expense | (467,830) | (813) | (7) | (503,384) | - | - | - | 519,944 | (452,090) |
| - Internal | (399,608) | (813) | (7) | (119,516) | - | - | - | 519,944 | - |
| - External | (68,222) | - | - | (383,868) | - | - | - | - | (452,090) |
| Commission income | 154,122 | 44 | 11,952 | (1,226) | - | - | - | - | 164,892 |
| - Internal | 9,265 | (1) | (8,138) | (1,126) | - | - | - | - | - |
| - External | 144,857 | 45 | 20,090 | (100) | - | - | - | - | 164,892 |
| Net financial income | 69,108 | (296) | (3) | 533 | - | - | - | - | 69,342 |
| Net other income | (4,675) | - | 52 | 365 | (3) | (29) | - | - | (4,290) |
| Net operating income (losses) | 515,273 | (164) | 12,144 | 5,017 | (3) | (29) | - | - | 532,238 |
| Total staff costs, other administrative expenses | (298,293) | (988) | (3,586) | (623) | 1,078 | 2,750 | 5,180 | - | (294,482) |
| Depreciation and amortisation | (32,150) | (44) | (128) | (3) | (999) | (968) | (5,180) | - | (39,472) |
| Capital (losses) | (5) | - | - | - | - | - | - | - | (5) |
| Total impairment losses (Losses) profit before income tax | 331,511 | - | - | - | - | - | - | - | 331,511 |
| Income tax | 516,336 | (1,196) | 8,430 | 4,391 | 76 | 1,753 | - | - | 529,790 |
| Income tax expense | (60,288) | 172 | (23) | - | - | - | - | - | (60,139) |
| Net (losses) profit for the period | 456,048 | (1,024) | 8,407 | 4,391 | 76 | 1,753 | - | - | 469,651 |
| 31 December 2011 | |||||||||
| Total assets | 18,833,394 | 52,199 | 22,166 | 10,943,454 | - | - | - | (3,209,052) | 26,642,161 |
| Total liabilities | 16,505,598 | 53,223 | 12,832 | 10,948,800 | - | - | - | (3,209,051) | 24,311,402 |
| Acquisition of intangible assets and property, plant and equipment | 17,102 | - | 8 | - | - | - | - | - | 17,110 |
AB SEB BANKAS
NOTES TO THE CONDENSED INTERIM FINANCIAL STATEMENTS FOR THE 12 MONTHS PERIOD ENDED 31 DECEMBER 2012
(All amounts in LTL thousands unless otherwise stated)
NOTE 3 SEGMENT REPORTING (CONTINUED)
For the period ended, 31 December 2011 reconciliation between Group’s Segment reporting and financial statements is presented below:
| | Segment
Reporting | Eliminations | | |
| --- | --- | --- | --- | --- |
| | | Interest
income
from Hedged
L&R | Other
reconciling
entries | Financial
Statements |
| Interest income | 754,384 | - | (2,387) | 751,997 |
| Interest expence | (452,090) | 52,339 | 901 | (398,850) |
| Net commission income | 164,892 | - | 2,173 | 167,065 |
| Net financial income | 69,342 | (52,339) | (558) | 16,445 |
| Net other income | (4,290) | - | 9,590 | 5,300 |
| Net operating income | 532,238 | - | 9,719 | 541,957 |
| Total staff costs and other
administrative expenses | (294,482) | - | (8,822) | (303,304) |
| Depreciation and amortisation | (39,472) | - | (897) | (40,369) |
| Capital losses | (5) | - | - | (5) |
| Total impairment losses | 331,511 | - | - | 331,511 |
| Profit before income tax | 529,790 | - | - | 529,790 |
| Income tax expense | (60,139) | - | - | (60,139) |
| Profit for the year from
discontinued operations | - | - | - | - |
| Net profit for the period | 469,651 | - | - | 469,651 |
AB SEB BANKAS
NOTES TO THE CONDENSED INTERIM FINANCIAL STATEMENTS FOR THE 12 MONTHS PERIOD ENDED 31 DECEMBER 2012
(All amounts in LTL thousands unless otherwise stated)
NOTE 4 ASSETS UNDER MANAGEMENT
| The Group | The Bank | |||
|---|---|---|---|---|
| 2012 | 2011 | 2012 | 2011 | |
| 39,770 | 35,893 | Customers funds | - | - |
| 767,647 | 704,709 | Financial instruments acquired at customer account | - | - |
| Accounts receivable from customer assets managed on trust | ||||
| 1,703,602 | 1,474,512 | basis | - | - |
| 2,511,019 | 2,215,114 | Total assets under management | - | - |
NOTE 5 OFF BALANCE SHEET ITEMS
| The Group | The Bank | |||
|---|---|---|---|---|
| 31 December 2012 | 31 December 2011 | 31 December 2012 | 31 December 2011 | |
| 2,544,274 | 2,089,755 | Agreements to grant loans | 2,693,951 | 2,191,682 |
| 554,414 | 512,979 | Guarantees issued | 555,495 | 514,766 |
| 180,215 | 212,417 | Letters of credit issued | 180,215 | 212,417 |
| Commitments to purchase assets and other commitments | ||||
| 32,601 | 24,866 | - | - | |
| 80 | - | Other commitments | 80 | - |
| 38 | 38 | Customs guarantees collateralised by deposits | 38 | 38 |
NOTE 6 RELATED PARTIES
A number of banking transactions are entered into with related parties in the normal course of business. The transactions with top parent company include loans, deposits and debt instrument transactions. Transactions with SEB group (including parent bank) during the period ended 31 December 2012 can be specified as follows:
| The Group | Interest rate % | The Bank | |||
|---|---|---|---|---|---|
| 31 December 2012 | 31 December 2011 | 31 December 2012 | 31 December 2011 | ||
| 2,565,586 | 2,627,846 | Outstanding loan amount | 0.18-1.54 | 2,564,682 | 2,626,895 |
| 166,964 | 35,153 | Positive replacement values (HFT) | - | 166,964 | 35,153 |
| 3,128 | 2,919 | Other assets | - | 2,275 | 2,390 |
| 6,381,392 | 9,433,469 | Outstanding deposit amount | 0.17-5.5 | 5,960,162 | 8,280,131 |
| 606,107 | 611,913 | Other liabilities | - | 605,481 | 611,328 |
| 48,454 | 72 | Unused granted overdraft facilities | - | 48,454 | 72 |
| 200 | 6,437 | Guarantees issued | - | 200 | 6,437 |
| For twelve months period ended 31 December 2012 and 2011 | |||||
| 30,210 | 23,544 | Interest income | - | 30,173 | 23,509 |
| (232,771) | (347,231) | Interest expense | - | (214,709) | (311,267) |
| Other services received and cost | |||||
| (13,585) | (18,651) | incurred from SEB group, net | - | (20,224) | (25,008) |
AB SEB BANKAS
NOTES TO THE CONDENSED INTERIM FINANCIAL STATEMENTS FOR THE 12 MONTHS PERIOD ENDED 31 DECEMBER 2012
(All amounts in LTL thousands unless otherwise stated)
NOTE 6 RELATED PARTIES (CONTINUED)
Transactions with parent bank during the period can be specified as follows:
| The Group | Interest rate % | The Bank | |||
|---|---|---|---|---|---|
| 31 December 2012 | 31 December 2011 | 31 December 2012 | 31 December 2011 | ||
| 2,536,274 | 2,538,753 | Outstanding loan amount | 0.20-1.543 | 2,535,996 | 2,538,342 |
| 166,964 | 35,153 | Positive replacement values (HFT) | - | 166,964 | 35,153 |
| 23 | 498 | Other assets | - | 23 | 38 |
| 6,309,920 | 9,378,204 | Outstanding deposit amount | 0.17-5.5 | 5,888,690 | 8,224,866 |
| 593,106 | 597,936 | Other liabilities | - | 593,106 | 597,936 |
| 48,402 | 17 | Unused granted overdraft facilities | - | 48,402 | 17 |
| 200 | 464 | Guarantees issued at the year end | - | 200 | 464 |
| For twelve months period ended 31 December 2012 and 2011 | |||||
| 29,503 | 22,865 | Interest income | - | 29,490 | 22,852 |
| (232,537) | (346,920) | Interest expense | - | (214,475) | (310,956) |
| Other services received and cost | |||||
| (9,502) | (8,201) | incurred from SEB group, net | - | (15,284) | (13,802) |
Transactions between the Bank and its subsidiaries during the period can be specified as follows:
| Interest rate % | The Bank | ||
|---|---|---|---|
| 31 December 2012 | 31 December 2011 | ||
| Off-balance sheet commitments: | |||
| Agreements to grant loans | - | 149,677 | 101,927 |
| Guarantees issued | - | 1,082 | 1,787 |
| Letters of credit issued | - | - | - |
| Outstanding loan amounts: | |||
| AB SEB Lizingas | 0.30-0.92 | 731,124 | 426,596 |
| UAB SEB Venture Capital | 1.51 | 37,600 | 40,004 |
| Outstanding deposit amounts: | |||
| UAB SEB Venture Capital | - | 138 | 5,995 |
| UAB SEB Investiciu Valdymas | 0.04 | 19,379 | 18,344 |
| AB SEB Lizingas | - | 182 | 176,185 |
| Other assets | - | 1,964 | 1,916 |
| Other liabilities | - | - | 9 |
| For twelve months period ended 31 December 2012 and 2011 | |||
| Interest income | - | 5,094 | 5,094 |
| Interest expense | - | (617) | (1,446) |
| Dividend income | - | 8,344 | 6,064 |
| Other services received and cost incurred from subsidiaries, net | - | 11,176 | 11,849 |
AB SEB BANKAS
NOTES TO THE CONDENSED INTERIM FINANCIAL STATEMENTS FOR THE 12 MONTHS PERIOD ENDED 31 DECEMBER 2012
(All amounts in LTL thousands unless otherwise stated)
NOTE 7 DEBT SECURITIES ISSUANCE AND REDEMPTION
During 2012 the Bank successfully placed 28 securities issues, as presented in the table below:
| Issue date | Redemption date | Duration | Currency | Amount in issue LTL | (in Interest rate or index) |
|---|---|---|---|---|---|
| 2012.01.30 | 2014.02.03 | 735 days | LTL | 1,001,800 | USD/CNY rates |
| 2012.01.30 | 2014.02.03 | 735 days | LTL | 524,300 | USD/CNY rates |
| 2012.02.28 | 2015.03.05 | 1 101 days | LTL | 513,200 | S&P Southeast Asia 40 Risk Control 18% EUR Excess Return |
| 2012.02.28 | 2015.03.05 | 1 101 days | LTL | 72,300 | S&P Southeast Asia 40 Risk Control 18% EUR Excess Return |
| 2012.02.28 | 2015.03.05 | 1 101 days | EUR | 379,463 | S&P Southeast Asia 40 Risk Control 18% EUR Excess Return |
| 2012.04.03 | 2015.04.13 | 1 105 days | LTL | 479,800 | Consumer Staples Select Sector SPDR ETF |
| 2012.04.03 | 2015.04.13 | 1 105 days | LTL | 478,300 | Consumer Staples Select Sector SPDR ETF |
| 2012.04.03 | 2015.04.13 | 1 105 days | EUR | 166,425 | Consumer Staples Select Sector SPDR ETF |
| 2012.04.03 | 2015.04.08 | 1 110 days | LTL | 1,252,600 | "Brent" oil, gold, sugar, corn |
| 2012.04.05 | 2015.04.08 | 1 098 days | LTL | 840,000 | Copper, gold, sugar, corn |
| 2012.04.05 | 2015.04.08 | 1 098 days | EUR | 3,925,834 | Copper, gold, sugar, corn |
| 2012.05.03 | 2014.05.23 | 750 days | LTL | 238,900 | EUR/TRY, EUR/BRL, EUR/KRW FX rates |
| 2012.05.03 | 2014.05.23 | 750 days | LTL | 145,200 | EUR/TRY, EUR/BRL, EUR/KRW FX rates |
| 2012.05.24 | 2013.06.11 | 383 days | EUR | 4,672,329 | Daimler AG (IL) |
| 2012.05.30 | 2017.06.13 | 1 840 days | LTL | 4,703,200 | Carmignac Patrimoine A |
| 2012.06.12 | 2015.07.01 | 1 114 days | LTL | 2,181,600 | S&P BRIC 40 EUR Price Return |
| 2012.06.12 | 2015.07.01 | 1 114 days | LTL | 670,000 | S&P BRIC 40 EUR Price Return |
| 2012.06.12 | 2015.07.01 | 1 114 days | EUR | 458,532 | S&P BRIC 40 EUR Price Return |
| 2012.06.27 | 2013.07.15 | 383 days | EUR | 4,203,439 | Bank of America (BAC UN) |
| 2012.07.31 | 2016.02.17 | 1 296 days | LTL | 2,616,800 | Consumer Staples Select Sector SPDR ETF |
| 2012.08.22 | 2013.09.09 | 383 days | EUR | 1,711,553 | Samsung (SMSN LI) |
| 1 266 days | LTL | 1,684,600 | Apple Inc, International Business Machines Corp, Microsoft Corp, AT&T Inc, Google Inc, Intel Corp | ||
| 2012.08.30 | 2016.02.17 | ||||
| 2012.10.25 | 2013.11.12 | 383 days | EUR | 3,247,358 | Neste Oil |
| 2012.10.25 | 2013.11.12 | 383 days | USD | 1,760,260 | Neste Oil |
| 2012.11.14 | 2017.06.14 | 1 673 days | LTL | 2,500,000 | Consumer Staples Select Sector SPDR ETF |
| 2012.12.18 | 2016.01.08 | 1116 days | LTL | 1,054,000 | "Brent" oil, nickel and cotton |
| 2012.12.18 | 2016.01.08 | 1116 days | EUR | 70,437 | "Brent" oil, nickel and cotton |
| 2012.12.18 | 2016.01.08 | 1116 days | LTTL | 74,800 | "Brent" oil |
AB SEB BANKAS
NOTES TO THE CONDENSED INTERIM FINANCIAL STATEMENTS
FOR THE 12 MONTHS PERIOD ENDED 31 DECEMBER 2012
(All amounts in LTL thousands unless otherwise stated)
NOTE 7 DEBT SECURITIES ISSUANCE AND REDEMPTION (CONTINUED)
During 2012 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 |
|---|---|---|---|---|---|
| 2009.06.30 | 2012.01.19 | 933 days | LTL | 3,934,800 | Citi COMET Volatility Target Index |
| 2009.06.30 | 2012.01.19 | 933 days | LTL | 178,300 | Citi COMET Volatility Target Index |
| 2009.06.30 | 2012.01.19 | 933 days | EUR | 1,329,328 | Citi COMET Volatility Target Index |
| 2008.12.19 | 2012.02.06 | 1 144 days | LTL | 157,100 | BNP Paribas Platinium EUR Excess Return |
| 2008.12.19 | 2012.02.06 | 1 144 days | LTL | 463,000 | BNP Paribas Platinium EUR Excess Return |
| 2008.12.19 | 2012.02.06 | 1 144 days | LTL | 102,600 | BNP Paribas Platinium EUR Excess Return |
| 2008.12.19 | 2012.02.06 | 1 144 days | EUR | 157,793 | BNP Paribas Platinium EUR Excess Return |
| 2009.02.26 | 2012.03.16 | 1 114 days | LTL | 1,706,500 | BNP Paribas Millenium New World |
| 2009.02.26 | 2012.03.16 | 1 114 days | LTL | 179,400 | BNP Paribas Millenium New World |
| 2009.02.26 | 2012.03.16 | 1 114 days | EUR | 355,984 | BNP Paribas Millenium New World |
| 2010.04.13 | 2012.05.02 | 750 days | LTL | 2,486,300 | AstraZeneca PLC, Svenska Handelsbanken AB ir Skanska AB |
| 2010.04.13 | 2012.05.02 | 750 days | EUR | 1,246,116 | AstraZeneca PLC, Svenska Handelsbanken AB ir Skanska AB |
| 2009.04.29 | 2012.05.18 | 1 115 days | LTL | 2,266,100 | BNP Paribas Platinium EUR Excess Return |
| 2009.04.29 | 2012.05.18 | 1 115 days | EUR | 126,027 | BNP Paribas Platinium EUR Excess Return |
| 2010.03.31 | 2012.06.08 | 800 days | LTL | 443,700 | Deutsche Telekom AG |
| 2010.03.31 | 2012.06.08 | 800 days | EUR | 2,126,925 | Deutsche Telekom AG |
| 2010.05.27 | 2012.06.20 | 755 days | EUR | 2,802,638 | Deutsche Bank AG |
| 2009.06.02 | 2012.06.21 | 1 115 days | LTL | 1,709,500 | Renewable Energy Corp. AS, Norsk Hydro ASA, Outokumpu Oyj, Rautaruukki Oyj, SSAB Svenskt Stal AB, Neste Oil Oyj, StatoilHydro ASA, Svenska Cellulosa AB (SCA), Stora Enso Oyj, Seadrill Ltd. |
| 2009.06.02 | 2012.06.21 | 1 115 days | LTL | 238,200 | Renewable Energy Corp. AS, Norsk Hydro ASA, Outokumpu Oyj, Rautaruukki Oyj, SSAB Svenskt Stal AB, Neste Oil Oyj, StatoilHydro ASA, Svenska Cellulosa AB (SCA), Stora Enso Oyj, Seadrill Ltd. |
| 2009.06.02 | 2012.06.21 | 1 115 days | EUR | 1,027,553 | Renewable Energy Corp. AS, Norsk Hydro ASA, Outokumpu Oyj, Rautaruukki Oyj, SSAB Svenskt Stal AB, Neste Oil Oyj, StatoilHydro ASA, Svenska Cellulosa AB (SCA), Stora Enso Oyj, Seadrill Ltd. |
| 2009.08.25 | 2012.09.13 | 1 115 days | LTL | 1,598,100 | Renewable Energy Corp. AS, Norsk Hydro ASA, Outokumpu Oyj, Vestas Wind Systems A/S, SSAB Svenskt Stal AB, Neste Oil Oyj, StatoilHydro ASA, Svenska Cellulosa AB (SCA), Stora Enso Oyj, Seadrill Ltd. |
| 2009.08.25 | 2012.09.13 | 1 115 days | LTL | 529,200 | Renewable Energy Corp. AS, Norsk Hydro ASA, Outokumpu Oyj, Vestas Wind Systems A/S, SSAB Svenskt Stal AB, Neste Oil Oyj, StatoilHydro ASA, Svenska Cellulosa AB (SCA), Stora Enso Oyj, Seadrill Ltd. |
| 2009.08.25 | 2012.09.13 | 1 115 days | EUR | 900,835 | Renewable Energy Corp. AS, Norsk Hydro ASA, Outokumpu Oyj, Vestas Wind Systems A/S, SSAB Svenskt Stal AB, Neste Oil Oyj, StatoilHydro ASA, Svenska Cellulosa AB (SCA), Stora Enso Oyj, Seadrill Ltd. |
| 2009.09.30 | 2012.10.19 | 1 115 days | LTL | 3,453,100 | Itau Unibanco Holding S.A., Petroleo Brasileiro S.A., Vale S.A., China Construction Bank Corp, Teva Pharmaceutical Industries Ltd, China Communications Construction Company Ltd, China Mobile Ltd, America Movil SAB de C.V., Gazprom OAO, Hyundai Heavy Industries, Samsung Electronics Co, Taiwan Semiconductors |
| 2009.09.30 | 2012.10.19 | 1 115 days | LTL | 859,900 | Itau Unibanco Holding S.A., Petroleo Brasileiro S.A., Vale S.A., China Construction Bank Corp, Teva Pharmaceutical Industries Ltd, China Communications Construction Company Ltd, China Mobile Ltd, America Movil SAB de C.V., Gazprom OAO, Hyundai Heavy Industries, Samsung Electronics Co, Taiwan Semiconductors |
| 2009.09.30 | 2012.10.19 | 1 115 days | EUR | 1,326,911 | Itau Unibanco Holding S.A., Petroleo Brasileiro S.A., Vale |
AB SEB BANKAS
NOTES TO THE CONDENSED INTERIM FINANCIAL STATEMENTS
FOR THE 12 MONTHS PERIOD ENDED 31 DECEMBER 2012
(All amounts in LTL thousands unless otherwise stated)
NOTE 7 DEBT SECURITIES ISSUANCE AND REDEMPTION (CONTINUED)
| Issue date | Redemption date | Duration | Currency | Amount in issue (in LTL) | Interest rate or index |
|---|---|---|---|---|---|
| 2009.09.30 | 2012.10.19 | 1 115 days | LTL | 1,826,100 | Itau Unibanco Holding S.A., Petroleo Brasileiro S.A., Vale S.A., China Construction Bank Corp, Teva Pharmaceutical Industries Ltd, China Communications Construction Company Ltd, China Mobile Ltd, America Movil SAB de C.V., Gazprom OAO, Hyundai Heavy Industries, Samsung Electronics Co, Taiwan Semiconductors |
| 2009.11.03 | 2012.11.21 | 1 114 days | LTL | 7,927,100 | Industrial and Commercial Bank of China Ltd, China Construction Bank Corp, China Life Insurance Co Ltd, Hang Seng Bank Ltd, Taiwan Semiconductor Manufacturing Company Ltd, HON HAI Precision Industry Co, Jiangxi Copper Co Ltd, China Mobile Ltd, CLP Holdings Ltd, Hutchison Whampoa Ltd, China Railway Group Ltd, PetroChina Co Ltd, China Petroleum & Chemical Corp, Tsingtao Brewery Co Ltd, Li & Fung Ltd |
| 2009.11.03 | 2012.11.21 | 1 114 days | LTL | 1,747,800 | Industrial and Commercial Bank of China Ltd, China Construction Bank Corp, China Life Insurance Co Ltd, Hang Seng Bank Ltd, Taiwan Semiconductor Manufacturing Company Ltd, HON HAI Precision Industry Co, Jiangxi Copper Co Ltd, China Mobile Ltd, CLP Holdings Ltd, Hutchison Whampoa Ltd, China Railway Group Ltd, PetroChina Co Ltd, China Petroleum & Chemical Corp, Tsingtao Brewery Co Ltd, Li & Fung Ltd |
| 2009.11.03 | 2012.11.21 | 1 114 days | EUR | 3,360,955 | Industrial and Commercial Bank of China Ltd, China Construction Bank Corp, China Life Insurance Co Ltd, Hang Seng Bank Ltd, Taiwan Semiconductor Manufacturing Company Ltd, HON HAI Precision Industry Co, Jiangxi Copper Co Ltd, China Mobile Ltd, CLP Holdings Ltd, Hutchison Whampoa Ltd, China Railway Group Ltd, PetroChina Co Ltd, China Petroleum & Chemical Corp, Tsingtao Brewery Co Ltd, Li & Fung Ltd |
| 2009.11.03 | 2012.11.21 | 1 114 days | LTL | 627,100 | Oil, gold, silver, aluminium, zinc, coper, nickel, corn, wheat and sugar |
| 2009.11.03 | 2012.11.21 | 1 114 days | EUR | 1,879,359 | Oil, gold, silver, aluminium, zinc, coper, nickel, corn, wheat and sugar |
| 2009.12.01 | 2012.11.30 | 1 095 days | LTL | 465,800 | Petroleo Brasileiro SA, Vale SA, Itau Unibanco Holding SA, Banco Bradesco SA, Cia Siderurgica Nacional SA, Cia Energetica de Minas Gerais, CLP Holdings Ltd, Hang Seng Bank Ltd, Hutchison Whampoa Ltd, China Mobile Ltd, Taiwan Semiconductor Manufacturing Company Ltd, HON HAI Precision Industry Co |
| 2009.12.01 | 2012.11.30 | 1 095 days | EUR | 1,737,103 | Petroleo Brasileiro SA, Vale SA, Itau Unibanco Holding SA, Banco Bradesco SA, Cia Siderurgica Nacional SA, Cia Energetica de Minas Gerais, CLP Holdings Ltd, Hang Seng Bank Ltd, Hutchison Whampoa Ltd, China Mobile Ltd, Taiwan Semiconductor Manufacturing Company Ltd, HON HAI Precision Industry Co |
NOTE 8 SIGNIFICANT EVENTS AFTER THE BALANCE SHEET DATE
After the balance sheet date the Bank successfully completed 3 debt securities issues with the nominal value of LTL 4,817 thousand.
Starting from February, 26 2013 the Bank started placing 3 debt securities issues.
AB SEB BANKAS
NOTES TO THE CONDENSED INTERIM FINANCIAL STATEMENTS FOR THE 12 MONTHS PERIOD ENDED 31 DECEMBER 2012
(All amounts in LTL thousands unless otherwise stated)
NOTE 9 MAJOR EVENTS IN THE ISSUER'S ACTIVITIES
On 7 February 2012, the Bank announced that According to preliminary data, unaudited net profit earned over the year 2011 by AB SEB bankas is LTL 379.8 million (EUR 110.0 million) and by AB SEB bankas Group is LTL 469.7 million (EUR 136.0 million). The result has been calculated in accordance with the requirements set by the acts of the Bank of Lithuania and legal acts of the Republic of Lithuania. Over the year 2010, audited net loss suffered by AB SEB bankas totaled LTL 12.1 million (EUR 3.5 million) and by the Bank's Group – LTL 18.0 million (EUR 5.2 million). The result of the year 2011 of AB SEB bankas includes sale profit resulting from transfer of shares of the Bank's subsidiary company UAB "SEB Enskilda" to SEB Group. The result of the year 2011 of the AB SEB bankas Group doesn't include the result of UAB "SEB Enskilda".
On 9 February 2012, the Bank announced that On 8 February, 2012 the Supervisory Council of the AB SEB bankas has resolved to reelect the Management Board of AB SEB bankas for a new four-year tenure. Current Members of the Management Board – Raimondas Kvedaras, Jonas Iržikevičius, Roberts Bernis, Alvaras Čičelis and Virginijus Doveika were appointed as members of the Management Board of AB SEB bankas for the new four-year tenure. The Management Board was reelected due to the expiry of the four-year tenure of the Management Board determined in the Articles of Association of AB SEB bankas. On 8 February, 2012 the Management Board of AB SEB bankas appointed Raimondas Kvedaras as a Chairman of the Management Board of AB SEB bankas.
On 13 March 2012, the Bank announced that on the 30th of March 2012, the Annual General Meeting of Shareholders of AB SEB bankas (hereinafter – the Bank) will take place. The Annual General Meeting is initiated and convened by the Board of the Bank. 100 % of shares of the Bank is owned by Skandinaviska Enskilda Banken AB.
Issues on the agenda:
- 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 2011;
- Regarding appropriation of the Year 2011 profit (loss) of the Bank.
The Board of the Bank also approved the draft decisions of the Annual General Meeting of Shareholders of the Bank.
On 30 March 2012, the Bank announced that on the 30th March 2012, the Annual General Meeting of Shareholders of AB SEB bankas (hereinafter – the SEB Bank) took place and decisions on all issues on the agenda were adopted:
- SEB Bank Group's year 2011 Consolidated Annual Report and its Annex "Disclosure form concerning the compliance with the Corporate Governance Code for the Companies Listed on NASDAQ OMX Vilnius" have been familiarized with;
- Report of the audit company UAB "PricewaterhouseCoopers", which has performed the audit, have been familiarized with;
- Comments and proposals of the Supervisory Council of SEB Bank regarding SEB Bank's Activity Strategy, its Annual Consolidated Financial Statements, Draft Profit (Loss) Appropriation and SEB Bank's Consolidated Annual Report as well as the activities of SEB Bank's Management Board and President have been familiarized with;
- SEB Bank's and SEB Bank Group's year 2011 Consolidated Financial Statements produced in accordance with the International Financial Reporting Standards (enclosed) were approved;
- Appropriation of the year 2011 profit (loss) of SEB Bank was approved.
On 24 April 2012, the Bank announced that according to preliminary data, unaudited net profit earned over the first quarter of the year 2012 by AB SEB bankas is LTL 30.7 million (EUR 8.9 million) and by AB SEB bankas Group is LTL 41.5 million (EUR 12.0 million). The result has been calculated in accordance with the requirements set by the acts of the Bank of Lithuania and legal acts of the Republic of Lithuania. Over the first quarter of the year 2011, unaudited net profit earned by AB SEB bankas totalled LTL 97.6 million (EUR 28.3 million) and by the Bank's Group – LTL 174.1 million (EUR 50.4 million).
On 11 July 2012, the Bank announced that on 10 July 2012 AB SEB bankas received from the Competition Council of the Republic of Lithuania (hereinafter the Competition Council) the Statement of Objections on the investigation performed regarding compatibility of the actions of AB SEB bankas and several other entities with the requirements of the Article 5 of the Competition Law of Republic of Lithuania and requirements of the Article 101 of the Treaty on the Functioning of European Union (hereinafter the Statement of Objections). According to the preliminary view of the investigators who prepared the Statement of Objections, the actions of AB SEB bankas allegedly harmed competition in cash handling and collection services markets.
The sending of the Statement of Objections to the parties involved in the investigation does not mean that it is already determined that the infringement was made by AB SEB bankas and the findings of the investigation do not restrain the Competition Council taking the final decision after completing all the procedures associated with this investigation. If the Competition Council acknowledges the evidence of the infringement to be sufficient, it may require AB SEB bankas to cease the infringement and impose the fine up to 10 percent of the total annual revenue of the last financial year.
On 16 July 2012, the Bank announced that according to preliminary data, unaudited net profit earned over the first half-year of the year 2012 by AB SEB bankas is LTL 59.5 million (EUR 17.2 million) and by AB SEB bankas Group is LTL 80.4 million (EUR 23.3 million). The result has been calculated in accordance with the requirements set by the acts of the Bank of Lithuania and legal acts of the Republic of Lithuania. Over the first half-year of the year 2011, unaudited net profit earned by AB SEB bankas totaled LTL 199.5 million (EUR 57.8 million) and by the Bank's Group – LTL 356.5 million (EUR 103.2 million).
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AB SEB BANKAS
NOTES TO THE CONDENSED INTERIM FINANCIAL STATEMENTS FOR THE 12 MONTHS PERIOD ENDED 31 DECEMBER 2012
(All amounts in LTL thousands unless otherwise stated)
NOTE 9 MAJOR EVENTS IN THE ISSUER'S ACTIVITIES (CONTINUED)
On 25 October 2012, the Bank announced that according to preliminary data, unaudited net profit earned over the three quarters of the year 2012 by AB SEB bankas is LTL 103.1 million (EUR 29.9 million) and by AB SEB bankas Group - LTL 137.0 million (EUR 39.7 million). The result has been calculated in accordance with the requirements set by the acts of the Bank of Lithuania and legal acts of the Republic of Lithuania. Over the three quarters of the year 2011, unaudited net profit earned by AB SEB bankas totaled LTL 246.7 million (EUR 71.4 million) and by the Bank's Group - LTL 431.5 million (EUR 125.0 million).
On 20 December 2012, the Bank announced that on 20 December 2012 the Competition Council of the Republic of Lithuania (hereinafter the Competition Council) adopted a decision whereby after considering all the circumstances under investigation has found AB SEB bankas and several other entities in breach of Article 5 of the Law on Competition, prohibiting anticompetitive agreements, and in view of the nature and the scope of the actions concerned, the agreements concluded between AB SEB bankas and several other entities have been found to have impact on the trade between the EU member countries and thus violate Article 101 of the Treaty on the Functioning of the European Union.
The Competition Council imposed fines exceeding LTL 57 million on AB SEB bankas and several other entities for agreements which restricted competition in cash-in-transit (CIT) and cash handling services' markets. AB SEB bankas was imposed with a LTL 24 808 200 fine. SEB bankas will appeal the decision of the Competition Council.
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