SEB — Interim / Quarterly Report 2015

Nov 30, 2015

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 approved by the board of the bank of the Republic of Lithuania for the preparation and submitting of periodic and supplementary information, we hereby confirm that, in accordance with our knowledge, the information provided in the 9 month condensed interim consolidated financial reporting, that has been prepared in accordance with the International Financial Reporting Standards, is true and correctly reflects the issuer’s and the consolidated companies’ total assets, liabilities, financial standing, profit or loss and cash flows.

President of AB SEB bankas
Raimondas Kvedaras

Head of Business Support Division and CFO of SEB bankas
Jonas Iržikevičius

Director of Finance Department of AB SEB bankas
Saulius Salda

Vilnius,
November 2015

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SEB

AB SEB bankas condensed interim financial information for the 9 months period ended 30 September 2015

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AB SEB bankas

GENERAL INFORMATION

1. Reporting period

The report has been produced for the 9 months period ended 30 September 2015.

1. The issuer's key data

Issuer's name	AB SEB bankas
Share capital	EUR 299,563,606
Domicile address	Gedimino ave.12, LT-01103 Vilnius
Telephone	(8 5) 2682 800
Fax	(8 5) 2682 333
E-mail	info@seb.lt
Legal organisational form	Public limited company
Registration date and place	29 November 1990, Bank of Lithuania
Company's code	112021238
Company's registration number	AB90-4
Website	www.seb.lt

2

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AB SEB bankas

CONDENSED INTERIM INCOME STATEMENT FOR THE 9 MONTHS PERIOD ENDED 30 SEPTEMBER 2015

(AB amounts in EUR thousands unless otherwise stated)

The Group
January 1 - September 30 2015	The third quarter 2015	January 1 - September 30 2014	The third quarter 2014
89,626	29,885	101,267	33,320	Interest income
(29,760)	(9,322)	(32,261)	(10,101)	Interest expenses
59,866	20,563	69,006	23,410	Net interest income
(2,220)	(441)	(4,970)	(843)	Impairment (losses) reversals on loans
381	(213)	3,393	391	Impairment reversals on lease portfolio
				Provisions for guarantees and other off balance sheet
(155)	(9)	(581)	(451)	Items
21	15	3	-	Other impairment reversals
(1,973)	(648)	(2,255)	(904)	Total impairment losses
57,883	19,935	66,851	22,535	Net interest income after impairment losses
55,645	19,448	58,102	20,420	Fee and commissions income
(17,165)	(6,107)	(14,659)	(5,047)	Fee and commissions expenses
38,488	13,241	45,443	15,273	Net fee and commission income
1,662	(764)	3,754	1,039	Net gain (loss) on operations with debt securities and derivative financial instruments
1,983	-	(131)	(97)	Net gain (loss) on equity securities
-	-	-	-	Dividend income from subsidiaries
12,326	3,664	12,866	4,870	Net foreign exchange gain
1,034	341	842	112	Other income, net
17,007	3,241	17,230	5,024	Net investment activities
(50,141)	(10,194)	(28,449)	(9,504)	Staff costs
(29,700)	(9,778)	(26,560)	(10,507)	Other administrative expenses
54,539	16,615	72,616	23,001	Profit before income tax
(7,780)	(2,545)	(9,056)	(3,255)	Income tax expenses
45,759	14,878	63,560	20,546	Net profit for the period
46,759	14,878	63,560	20,546	Attributable to: Owners of the bank Non-controlling interest
The Bank
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January 1 - September 30 2015	The third quarter 2015	January 1 - September 30 2014	The third quarter 2014
89,607	29,874	101,277	33,336
(29,760)	(9,323)	(32,266)	(10,103)
59,847	20,551	69,852	23,434
(2,220)	(441)	(4,970)	(843)
381	(213)	3,393	391
(155)	(9)	(581)	(451)
21	15	3	-
(1,973)	(648)	(2,255)	(904)
57,874	19,903	66,856	22,530
52,962	18,509	55,449	19,444
(16,466)	(5,831)	(14,590)	(4,969)
38,496	12,658	41,069	14,475
1,663	(764)	2,309	1,039
1	-	(131)	(97)
6,855	-	2,165	-
12,261	3,642	12,872	4,875
1,221	401	1,004	166
21,991	3,279	16,219	5,983
(29,863)	(10,013)	(28,062)	(9,414)
(28,541)	(9,680)	(26,508)	(10,431)
50,157	16,147	71,774	23,144
(7,575)	(2,466)	(9,063)	(3,420)
50,582	13,681	62,712	19,724
59,582	13,681	62,712	19,724

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AB SEB bankas

CONDENSED INTERIM STATEMENT OF COMPREHENSIVE INCOME FOR THE 9 MONTHS PERIOD ENDED 30 SEPTEMBER 2015

(All amounts in EUR thousands unless otherwise stated)

The Group			The Bank
January 1 - September 30 2015	January 1 - September 30 2014		January 1 - September 30 2015	January 1 - September 30 2014
46,759	63,560	Net gain for the year	50,582	62,712
		Items that may subsequently be reclassified to the income statement:
192	485	Net gain on available for sale financial assets	189	485
		Amortisation of financial assets revaluation reserve
44	43	of reclassified financial assets	44	43
		Income tax relating to the components of other
(36)	(80)	comprehensive income	(36)	(80)
		Items that will not be reclassified to the income statement:
-	-		-	-
199	448	Total other comprehensive income	197	448
46,958	64,008	Total comprehensive income	50,779	63,160
Attributable to:
46,958	64,008	Owners of the Bank	50,779	63,160
-	-	Non controlling interest	-	-

4

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AB SEB bankas

CONDENSED INTERIM STATEMENT OF FINANCIAL POSITION

AS OF 30 SEPTEMBER 2015

(All amounts in EUR thousands unless otherwise stated)

The Group			The Bank
30 September 2015	31 December 2014		30 September 2015	31 December 2014
Assets
89,636	99,203	Cash on hand	89,636	99,203
46,501	1,065,922	Balances with the Central Bank	46,501	1,065,922
1,072,385	241,193	Due from banks, net	1,072,385	241,193
17,253	17,789	Government securities available for sale	17,163	17,604
		Financial assets at fair value through profit and loss	286,896	346,358
290,634	367,136		102,565	117,592
102,565	117,592	Derivative financial instruments	9,403	11,063
		Loans to credit institutions, net of impairment losses	4,470,132	4,302,834
9,403	11,063	Loans to customers, net of impairment losses	389,327	393,080
4,471,306	4,293,166	Finance lease receivable, net of impairment losses
389,266	393,013	Investment securities:
53,715	54,785	- loans and receivables	53,715	54,785
58	58	- available for sale	58	58
-	4,357	- held to maturity	-	4,357
-	-	Investments in subsidiaries	10,111	10,108
9,845	11,211	Intangible fixed assets	9,845	11,211
6,739	7,832	Property, plant and equipment	6,616	7,721
328	649	Non-current assets held for sale	328	649
3,478	3,159	Investment property	3,478	3,159
32,445	37,375	Deferred tax asset	32,324	37,372
37,722	23,709	Other assets, net of impairment losses	35,793	23,487
6,633,279	6,749,214	Total assets	6,636,276	6,747,758
Liabilities
19	17	Amounts owed to the Central Bank	19	17
1,345,483	1,271,662	Amounts owed to credit institutions	1,345,483	1,271,662
101,972	119,680	Derivative financial instruments	101,972	119,680
4,324,480	4,468,133	Deposits from public	4,331,807	4,475,148
11,367	13,928	Accrued expenses and deferred income	11,129	13,102
10,461	10,702	Income tax payable	10,420	10,524
17,368	20,965	Debt securities in issue	17,368	20,965
43,387	47,291	Other liabilities and provisions	42,943	47,254
5,854,537	5,952,378	Total liabilities	5,861,141	5,958,351
Equity
Equity attributable to equity holder of the parent
299,564	299,634	Share capital	299,564	299,634
637	637	Reserve capital	637	637
18	(181)	Financial assets revaluation reserve	16	(181)
121,280	102,047	Legal reserve	120,737	101,504
3,064	3,150	General and other reserves	3,064	3,150
354,179	391,549	Retained earnings	351,117	384,663
778,742	796,835		775,135	789,407
-	-	Non controlling interest in equity	-	-
778,742	796,835	Total equity	775,135	789,407
6,633,279	6,749,214	Total liabilities and equity	6,636,276	6,747,758

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AB SEB bankas

CONDENSED INTERIM STATEMENT OF CHANGES IN EQUITY

FOR THE 9 MONTHS PERIOD ENDED 30 SEPTEMBER 2015

(All amounts in EUR 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 2013	299,634	637	(739)	83,759	4,556	365,607	753,454	-	753,454
Net change in available for sale investments, net of deferred taxes	-	-	405	-	-	-	405	-	405
Amortisation of financial assets revaluation reserve of reclassified financial assets	-	-	43	-	-	-	43	-	43
Net profit for the year	-	-	-	-	-	63,560	63,560	-	63,560
Total comprehensive income	-	-	448	-	-	63,560	64,008	-	64,008
Share-based compensation	-	-	-	-	354	-	354	-	354
Transfers to reserves	-	-	-	18,288	-	(18,288)	-	-	-
Dividends	-	-	-	-	-	(30,000)	(30,000)	-	(30,000)
30 September 2014	299,634	637	(291)	102,047	4,910	380,879	787,816	-	787,816
31 December 2014	299,634	637	(181)	102,047	3,150	391,549	796,835	-	796,835
Net change in available for sale investments, net of deferred taxes	-	-	155	-	-	-	155	-	155
Amortisation of financial assets revaluation reserve of reclassified financial assets	-	-	44	-	-	-	44	-	44
Net profit for the year	-	-	-	-	-	46,759	46,759	-	46,759
Total comprehensive income	-	-	199	-	-	46,759	46,958	-	46,958
Adjustment of share capital due to conversion to euro	(70)	-	-	-	-	-	(70)	-	(70)
Share-based compensation	-	-	-	-	360	-	360	-	360
Other movements	-	-	-	-	(446)	446	-	-	-
Transfers to reserves	-	-	-	19,233	-	(19,233)	-	-	-
Dividends	-	-	-	-	-	(65,341)	(65,341)	-	(65,341)
30 September 2015	299,564	637	18	121,280	3,064	354,179	778,742	-	778,742

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AB SEB bankas

CONDENSED INTERIM STATEMENT OF CHANGES IN EQUITY FOR THE 9 MONTHS PERIOD ENDED 30 SEPTEMBER 2015

(All amounts in EUR 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 2013	299,634	637	(739)	83,216	4,556	365,759	753,063
Net change in available for sale investments, net of deferred taxes	-	-	405	-	-	-	405
Amortisation of financial assets revaluation reserve of reclassified financial assets	-	-	43	-	-	-	43
Net profit for the year	-	-	-	-	-	62,712	62,712
Total comprehensive income	-	-	448	-	-	62,712	63,160
Share-based compensation	-	-	-	-	354	-	354
Transfers to reserves	-	-	-	18,288	-	(18,288)	-
Dividends	-	-	-	-	-	(30,000)	(30,000)
30 September 2014	299,634	637	(291)	101,504	4,930	380,183	786,577
31 December 2014	299,634	637	(181)	101,504	3,150	384,663	789,407
Net change in available for sale investments, net of deferred taxes	-	-	153	-	-	-	153
Amortisation of financial assets revaluation reserve of reclassified financial assets	-	-	44	-	-	-	44
Net profit for the year	-	-	-	-	-	50,582	50,582
Total comprehensive income	-	-	197	-	-	50,582	50,779
Adjustment of share capital due to conversion to euro	(70)	-	-	-	-	-	(70)
Share-based compensation	-	-	-	-	360	-	360
Other movements	-	-	-	-	(446)	446	-
Transfers to reserves	-	-	-	19,233	-	(19,233)	-
Dividends	-	-	-	-	-	(65,341)	(65,341)
30 September 2015	299,564	637	16	120,737	3,064	351,117	775,135

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AB SEB bankas

CONDENSED INTERIM STATEMENT OF CASH FLOWS FOR THE 9 MONTHS PERIOD ENDED 30 SEPTEMBER 2015

(All amounts in EUR thousands unless otherwise stated)

The Group			The Bank
January 1 - September 30, 2015	January 1 - September 30, 2014		January 1 - September 30, 2015	January 1 - September 30, 2014
52,227	70,948	Net cash from operating activities before change in operating assets	51,564	69,332
491,911	788,970	Net decrease in operating assets	502,831	788,217
(148,694)	110,086	Net (decrease) increase in operating liabilities	(148,646)	110,031
395,444	970,004	Net cash from operating activities before income tax	405,749	967,580
-	-	Income tax paid	-	-
395,444	970,004	Net cash from operating activities after income tax	405,749	967,580
85,196	(32)	Cash generated from (to) investing activities	74,891	2,392
5,310	(170,807)	Cash from (used in) financing activities	5,310	(170,807)
485,950	799,165	Net increase in cash	485,950	799,165
666,553	421,366	Cash at the beginning of the period	666,553	421,366
1,152,503	1,220,531	Cash at the end of the period	1,152,503	1,220,531
		Specified as follows:
(9,455)	(6,678)	Balance available for withdrawal with the Central Banks	(9,455)	(6,678)
12,177	932,218	Overnight deposits	12,177	932,218
89,636	105,436	Cash on hand	89,636	105,436
1,060,145	189,555	Current accounts with other banks	1,060,145	189,555
1,152,503	1,220,531		1,152,503	1,220,531

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AB SEB bankas

NOTES TO THE CONDENSED INTERIM FINANCIAL STATEMENTS FOR THE 9 MONTHS PERIOD ENDED 30 SEPTEMBER 2015

(All amounts in EUR 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 43 customer service units.

At the end of the reporting period AB SEB bankas had 2 subsidiaries (the Bank and its subsidiaries thereafter are referred to as the Group). The subsidiaries are as follows: 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 finance leasing, 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

As of January 1st 2015 Lithuania joined euro zone. This interim financial information is presented in national currency of Lithuania, euro (EUR). 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 2014, as described in the annual financial statements for the year ended 31 December 2014.

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.

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AB SEB bankas

NOTES TO THE CONDENSED INTERIM FINANCIAL STATEMENTS FOR THE 9 MONTHS PERIOD ENDED 30 SEPTEMBER 2015

(All amounts in EUR thousands unless otherwise stated)

NOTE 3 SEGMENT REPORTING (CONTINUED)

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

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

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

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

10

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AB SEB bankas

NOTES TO THE CONDENSED INTERIM FINANCIAL STATEMENTS

FOR THE 9 MONTHS PERIOD ENDED 30 SEPTEMBER 2015

(All amounts in EUR thousands unless otherwise stated)

NOTE 3 SEGMENT REPORTING (CONTINUED)

Business segments of the Group for the period ended 30 September 2015 were as follows:

	Baltic Division	Merchant Banking	Asset Management	Treasury	Operations	Staff Functions	Information Technologies	Eliminations	Total Group
Interest income	85,662	34	-	30,613	-	-	-	(27,492)	88,817
- Internal	961	-	(2)	26,533	-	-	-	(27,492)	-
- External	84,701	34	2	4,080	-	-	-	-	88,817
Interest expense	(28,243)	(16)	-	(28,395)	-	-	-	27,492	(29,162)
- Internal	(26,517)	(16)	-	(959)	-	-	-	27,492	-
- External	(1,726)	-	-	(27,436)	-	-	-	-	(29,162)
Commission income	54,143	-	5,280	100	-	-	-	(2,634)	56,889
- Internal	2,534	-	-	100	-	-	-	(2,634)	-
- External	51,609	-	5,280	-	-	-	-	-	56,889
Ccommission expense	(17,353)	75	(3,280)	(64)	-	-	-	2,634	(17,988)
- Internal	(100)	-	(2,534)	-	-	-	-	2,634	-
- External	(17,253)	75	(746)	(64)	-	-	-	-	(17,988)
Net financial income (expenses)	14,253	1,987	(4)	(282)	-	-	-	-	15,954
Net other income (expenses)	(344)	-	(1)	68	-	(6)	-	-	(283)
Net operating income	108,118	2,080	1,995	2,040	-	(6)	-	-	114,227
Total staff costs and other administrative expenses	(54,590)	(72)	(751)	(231)	121	1,678	683	-	(53,162)
Depreciation and amortisation	(3,599)	(4)	(12)	-	(18)	(589)	(491)	-	(4,713)
Capital losses	178	-	-	-	-	4	-	-	182
Total impairment losses	(1,995)	-	-	-	-	-	-	-	(1,995)
Loss before income tax	48,112	2,004	1,232	1,809	103	1,087	192	-	54,539
Income tax	(7,575)	-	(205)	-	-	-	-	-	(7,780)
Net profit for the year	40,537	2,004	1,027	1,809	103	1,087	192	-	46,759
Total assets	5,199,882	7,010	5,773	1,466,756	103	1,087	907	(48,239)	6,633,279
Total liabilities	4,427,667	5,006	4,457	1,464,931	-	-	715	(48,239)	5,854,537
Acquisition of intangible assets and property, plant and equipment	4,107	-	-	-	-	-	-	-	4,107

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AB SEB bankas

NOTES TO THE CONDENSED INTERIM FINANCIAL STATEMENTS

FOR THE 9 MONTHS PERIOD ENDED 30 SEPTEMBER 2015

(All amounts in EUR thousands unless otherwise stated)

NOTE 3 SEGMENT REPORTING (CONTINUED)

For the period ended 30 September 2015 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	88,817	-	809	89,626
Interest expence	(29,162)	-	(598)	(29,760)
Commission income	56,889	-	(1,244)	55,645
Commission expense	(17,988)	-	823	(17,165)
Net financial income	15,954	-	1,340	17,294
Net other income	(283)	-	(4)	(287)
Net operating income	114,227	-	1,126	115,353
Total staff costs, other administrative expenses	(53,162)	-	(1,148)	(54,310)
Depreciation and amortisation	(4,713)	-	-	(4,713)
Capital losses	182	-	-	182
Total impairment losses	(1,995)	-	22	(1,973)
Profit before income tax	54,539	-	-	54,539
Income tax expenses	(7,780)	-	-	(7,780)
Net profit for the period	46,759	-	-	46,759

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AB SEB bankas

NOTES TO THE CONDENSED INTERIM FINANCIAL STATEMENTS

FOR THE 9 MONTHS PERIOD ENDED 30 SEPTEMBER 2015

(All amounts in EUR thousands unless otherwise stated)

NOTE 3 SEGMENT REPORTING (CONTINUED)

Business segments of the Group for the period ended 30 September 2014 were as follows:

	Baltic Division	Merchant Banking	Asset Management	Treasury	Operations	Staff Functions	Information Technologies	Eliminations	Total Group
Interest income	96,054	105	10	46,372	-	-	-	(40,091)	102,450
- Internal	2,901	-	4	37,186	-	-	-	(40,091)	-
- External	93,153	105	6	9,186	-	-	-	-	102,450
Interest expense	(39,276)	(121)	-	(34,660)	-	-	-	40,091	(33,966)
- Internal	(37,065)	(121)	-	(2,905)	-	-	-	40,091	-
- External	(2,211)	-	-	(31,755)	-	-	-	-	(33,966)
Commission income	55,325	52	4,431	390	-	-	-	(2,174)	58,024
- Internal	1,784	-	-	390	-	-	-	(2,174)	-
- External	53,541	52	4,431	-	-	-	-	-	58,024
Commission expense	(15,794)	-	(2,094)	(57)	-	-	-	2,174	(15,771)
- Internal	(390)	-	(1,784)	-	-	-	-	2,174	-
- External	(15,404)	-	(310)	(57)	-	-	-	-	(15,771)
Net financial income	15,297	1,445	(2)	1,397	-	-	-	-	18,137
Net other income (expenses)	(373)	-	-	85	-	(1)	-	-	(289)
Net operating income	111,233	1,481	2,345	13,527	-	(1)	-	-	128,585
Total staff costs, other administrative expenses
	(50,468)	(142)	(673)	(180)	62	863	699	-	(49,839)
Depreciation and amortisation	(3,684)	(6)	(4)	(1)	(40)	(240)	(407)	-	(4,382)
Capital losses	(3)	-	-	-	-	(3)	-	-	(6)
Total impairment losses	(1,742)	-	-	-	-	-	-	-	(1,742)
Profit before income tax	55,336	1,333	1,668	13,346	22	619	292	-	72,616
Income tax expense	(9,063)	-	7	-	-	-	-	-	(9,056)
Net profit for the period	46,273	1,333	1,675	13,346	22	619	292	-	63,560
Total assets	5,076,537	16,615	6,445	2,135,173	21	619	469	(392,342)	6,843,537
Total liabilities	4,306,005	15,281	4,482	2,122,117	-	-	176	(392,342)	6,055,719
Acquisition of intangible assets and property, plant and equipment	2,277	-	1	-	-	-	-	-	2,278

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AB SEB bankas

NOTES TO THE CONDENSED INTERIM FINANCIAL STATEMENTS

FOR THE 9 MONTHS PERIOD ENDED 30 SEPTEMBER 2015

(All amounts in EUR thousands unless otherwise stated)

NOTE 3 SEGMENT REPORTING (CONTINUED)

For the period ended, 30 September 2014 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	102,450	-	(1,182)	101,268
Interest expence	(33,966)	1,761	(56)	(32,261)
Commission income	58,024	-	78	58,102
Commission expense	(15,771)	-	1,112	(14,659)
Net financial income	18,137	(1,761)	1,244	17,620
Net other income	(289)	-	-	(289)
Net operating income	128,585	-	1,196	129,781
Total staff costs and other administrative expenses	(49,839)	-	(1,196)	(51,035)
Depreciation and amortisation	(4,382)	-	412	(3,970)
Capital losses	(6)	-	-	(6)
Total impairment losses	(1,742)	-	(412)	(2,154)
Profit before income tax	72,616	-	-	72,616
Income tax	(9,056)	-	-	(9,056)
Net profit for the period	63,560	-	-	63,560

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AB SEB BANKAS

NOTES TO THE CONDENSED INTERIM FINANCIAL STATEMENTS

FOR THE 9 MONTHS PERIOD ENDED 30 SEPTEMBER 2015

(All amounts in EUR thousands unless otherwise stated)

NOTE 4 FINANCIAL ASSETS AND LIABILITIES

The table below presents the carrying amounts and fair values of those financial assets and liabilities presented in the Group's statement of financial position at amortized cost:

	30 September 2015		31 December 2014
	Book value	Fair value	Book value	Fair value
Balances with the Central Bank	46,501	46,501	1,065,922	1,065,680
Loans to credit institutions	1,081,788	1,082,454	252,256	252,103
Loans to customers	4,471,306	4,246,813	4,293,166	4,212,453
Investment securities - loans and receivables	53,715	54,063	54,785	55,842
Finance lease receivable	389,266	389,222	393,013	392,602
Investment securities – held to maturity	-	-	4,357	4,362
Total financial assets valued at amortised cost	6,042,576	5,819,053	6,063,500	5,983,043
Due to the Central Bank	19	19	17	17
Due to credit institutions	1,345,483	1,362,306	1,271,662	1,296,505
Deposits from the public	4,324,480	4,326,950	4,468,133	4,468,680
Debt securities in issue	15,238	15,420	18,837	19,157
Total financial liabilities valued at amortised cost	5,685,220	5,704,695	5,758,649	5,784,359

The table below presents the carrying amounts and fair values of those financial assets and liabilities presented in the Bank's statement of financial position at amortized cost:

	30 September 2015		31 December 2014
	Book value	Fair value	Book value	Fair value
Balances with the Central Bank	46,501	46,501	1,065,922	1,065,680
Loans to credit institutions	1,081,788	1,082,454	252,256	252,103
Loans to customers	4,470,132	4,245,639	4,302,834	4,222,116
Investment securities - loans and receivables	53,715	54,063	54,785	55,842
Finance lease receivable	389,327	389,283	393,080	392,675
Investment securities – held to maturity	-	-	4,357	4,362
Total financial assets valued at amortised cost	6,041,463	5,817,940	6,073,234	5,992,778
Due to the Central Bank	19	19	17	17
Due to credit institutions	1,345,483	1,362,306	1,271,662	1,296,505
Deposits from the public	4,331,807	4,334,277	4,475,148	4,475,694
Debt securities in issue	15,238	15,420	18,837	19,157
Total financial liabilities valued at amortised cost	5,692,547	5,712,022	5,765,664	5,791,374

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AB SEB bankas

NOTES TO THE CONDENSED INTERIM FINANCIAL STATEMENTS

FOR THE 9 MONTHS PERIOD ENDED 30 SEPTEMBER 2015

(All amounts in EUR thousands unless otherwise stated)

NOTE 4 FINANCIAL ASSETS AND LIABILITIES (CONTINUED)

The table below summarizes the hierarchy of fair value measurement of asset and liabilities presented on the Group's statement of financial position at fair value:

30 September 2015	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	17,253	-	-
Financial assets at fair value through profit and loss	286,896	434	3,304
Derivative financial instruments (assets)	41	102,523	1
Investment securities – available for sale	-	-	58
Derivative financial instruments (liabilities)	(60)	(101,911)	(1)
Debt securities in issue	-	(2,130)	-
Total	304,130	(1,084)	3,362
31 December 2014	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	17,789	-	-
Financial assets at fair value through profit and loss	346,358	17,845	2,933
Derivative financial instruments (assets)	75	117,517	-
Investment securities – available for sale	-	-	58
Derivative financial instruments (liabilities)	(39)	(119,641)	-
Debt securities in issue	-	(2,128)	-
Total	364,183	13,593	2,991

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AB SEB bankas

NOTES TO THE CONDENSED INTERIM FINANCIAL STATEMENTS

FOR THE 9 MONTHS PERIOD ENDED 30 SEPTEMBER 2015

(All amounts in EUR thousands unless otherwise stated)

NOTE 4 FINANCIAL ASSETS AND LIABILITIES (CONTINUED)

The table below summarizes the hierarchy of fair value measurement of asset and liabilities presented on the Bank's statement of financial position at fair value:

30 September 2015	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	17,163	-	-
Financial assets at fair value through profit and loss	286,896	-	-
Derivative financial instruments (assets)	41	102,523	1
Investment securities – available for sale	-	-	58
Derivative financial instruments (liabilities)	(60)	(101,911)	(1)
Debt securities in issue	-	(2,130)	-
Total	304,040	(1,518)	58
31 December 2014	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	17,604	-	-
Financial assets at fair value through profit and loss	346,358	-	-
Derivative financial instruments (assets)	75	117,517	-
Investment securities – available for sale	-	-	58
Derivative financial instruments (liabilities)	(39)	(119,641)	-
Debt securities in issue	-	(2,128)	-
Total	363,998	(4,252)	58

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AB SEB bankas

NOTES TO THE CONDENSED INTERIM FINANCIAL STATEMENTS

FOR THE 9 MONTHS PERIOD ENDED 30 SEPTEMBER 2015

(All amounts in EUR thousands unless otherwise stated)

NOTE 4 FINANCIAL ASSETS AND LIABILITIES (CONTINUED)

The following financial assets and liabilities as at 30 September 2015 are subject to offsetting, enforceable master netting arrangements and similar agreements:

Assets	Enforceable master netting arrangement and similar arrangement
	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	1,098,782	994,442	104,340	1,566	-	102,774
Reversed repo receivable	-	-	-	-	-	0
Securities borrowing	-	-	-	-	-	0
Other	-	-	-	-	-	0
TOTAL	1,098,782	994,442	104,340	1,566	-	102,774
Liabilities	Enforceable master netting arrangement and similar arrangement
---	---	---	---	---	---	---
	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	1,099,891	994,442	105,449	1,566	-	103,883
TOTAL	1,099,891	994,442	105,449	1,566	-	103,883
NET	-1,109	-	-1,109	-	-	-1,109

The following financial assets and liabilities as at 30 September 2014 are subject to offsetting, enforceable master netting arrangements and similar agreements:

Assets	Enforceable master netting arrangement and similar arrangement
	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	1,659,023	1,572,846	86,177	1	-	86,176
Reversed repo receivable					-
TOTAL	1,659,023	1,572,846	86,177	1	-	86,176
Liabilities	Enforceable master netting arrangement and similar arrangement
---	---	---	---	---	---	---
	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	1,659,332	1,572,846	86,486	1	-	86,485
TOTAL	1,659,332	1,572,846	86,486	1	-	86,485
NET	-309	-	-309	-	-	-309

NOTE 5 ASSETS UNDER MANAGEMENT

The Group			The Bank
30 September 2015	31 December 2014		30 September 2015	31 December 2014
13,657	8,687	Customers funds	-	-
173,588	260,865	Financial instruments acquired at customer account	-	-
628,303	602,758	Accounts receivable from customer assets managed on trust basis	-	-
815,548	872,310	Total assets under management	-	-

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AB SEB bankas

NOTES TO THE CONDENSED INTERIM FINANCIAL STATEMENTS

FOR THE 9 MONTHS PERIOD ENDED 30 SEPTEMBER 2015

(All amounts in EUR thousands unless otherwise stated)

NOTE 6 OFF BALANCE SHEET ITEMS

The Group			The Bank
30 September 2015	31 December 2014		30 September 2015	31 December 2014
819,119	979,323	Agreements to grant loans	819,139	981,490
124,193	130,672	Guarantees issued	124,193	130,672
36,834	49,555	Letters of credit issued	36,834	49,555
		Commitments to purchase assets and other commitments
18,664	12,305		18,664	12,305
11	11	Customs guarantees collateralised by deposits	11	11

NOTE 7 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			The Bank
30 September 2015	31 December 2014		Interest rate %	30 September 2015	31 December 2014
1,060,074	217,787	Outstanding loan amount	0.10-3.50	1,060,074	217,787
75,812	84,906	Positive replacement values (HFT)	-	75,812	84,906
118	640	Other assets	-	118	640
1,186,215	1,169,928	Outstanding deposit amount	0.13-5.49	1,186,215	1,169,928
39,131	46,157	Other liabilities	-	39,115	46,111
-	1,469	Unused granted overdraft facilities	-	-	1,469
130,082	192,320	Guarantees received	-	130,082	192,320
		For 9 months period ended
		30 September 2015 and 2014
(577)	4,436	Interest income	-	(577)	4,436
(13,862)	(18,916)	Interest expense	-	(13,862)	(18,916)
		Other services received and cost
(1,047)	(1,092)	incurred from SEB group, net	-	(574)	(1,108)

Transactions with parent bank can be specified as follows:

The Group			The Bank
30 September 2015	31 December 2014		Interest rate %	30 September 2015	31 December 2014
1,033,407	201,033	Outstanding loan amount	0.00-3.50	1,033,407	201,033
75,793	84,906	Positive replacement values (HFT)	-	75,793	84,906
-	283	Other assets	-	-	283
			0.13-5.49
1,173,280	1,151,885	Outstanding deposit amount		1,173,280	1,151,885
35,001	42,317	Other liabilities	-	35,001	42,317
-	1,464	Unused granted overdraft facilities	-	-	1,464
130,014	191,613	Guarantees received	-	130,014	191,613
		For 9 months period ended
		30 September 2015 and 2014
(653)	4,372	Interest income	-	(653)	4,372
(13,858)	(18,901)	Interest expense	-	(13,858)	(18,901)
		Other services received and cost
(202)	(143)	incurred from SEB group, net	-	(202)	(195)

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AB SEB bankas

NOTES TO THE CONDENSED INTERIM FINANCIAL STATEMENTS

FOR THE 9 MONTHS PERIOD ENDED 30 SEPTEMBER 2015

(All amounts in EUR thousands unless otherwise stated)

NOTE 7 RELATED PARTIES (CONTINUED)

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

	Interest rate %	The Bank
		30 September 2015	31 December 2014
Off-balance sheet commitments:
Agreements to grant loans	-	-	2,166
Outstanding loan amounts:
UAB „SEB Venture Capital“	-	-	10,854
UAB „SEB investicju valdy mas“	3.5	62	68
Outstanding deposit amounts:
UAB „SEB Venture Capital“	-	2,962	1,375
UAB „SEB investicju valdy mas“	-	4,365	5,641
Other assets	-	807	561
For 9 months period ended 30 September 2015 and 2014
Interest income	-	17	121
Interest expense	-	-	(4)
Dividend income	-	6,855	2,165
Other services received and cost incurred from subsidiaries, net	-	2,711	1,952

NOTE 8 DEBT SECURITIES ISSUANCE AND REDEMPTION

During the nine months of 2015 the Bank has not issued non-equity securities issues.

During the nine months of 2015 the Bank successfully redeemed 15 issues of the non-equity securities, as presented in the table below:

Issue date	Redemption date	Duration	Currency	Amount in issue (in EUR)	Reference item
2011.12.21	2015.01.23	1 129 days	EUR	273,256	IT sector stock basket - Apple Inc, International Business Machines Corp, Microsoft Corp, AT&T Inc, Google Inc it Intel Corp.
2011.12.21	2015.01.23	1 129 days	EUR	51,552	IT sector stock basket - Apple Inc, International Business Machines Corp, Microsoft Corp, AT&T Inc, Google Inc it Intel Corp.
2011.12.21	2015.01.23	1 129 days	EUR	96,400	IT sector stock basket - Apple Inc, International Business Machines Corp, Microsoft Corp, AT&T Inc, Google Inc it Intel Corp.
2012.02.28	2015.03.05	1 101 days	EUR	148,633	S&P Southeast Asia 40 Risk Control 18% EUR Excess Index
2012.02.28	2015.03.05	1 101 days	EUR	20,940	S&P Southeast Asia 40 Risk Control 18% EUR Excess Index
2012.02.28	2015.03.05	1 101 days	EUR	109,900	S&P Southeast Asia 40 Risk Control 18% EUR Excess Index
2012.04.03	2015.04.08	1 100 days	EUR	362,778	„Brent“ oil, gold, sugar, corn
2012.04.05	2015.04.08	1 098 days	EUR	243,281	Copper, gold, sugar, corn
2012.04.05	2015.04.08	1 098 days	EUR	1,137,000	Copper, gold, sugar, corn
2012.04.03	2015.04.13	1 105 days	EUR	138,960	Consumer Staples Select Sector SPDR ETF
2012.04.03	2015.04.13	1 105 days	EUR	138,525	Consumer Staples Select Sector SPDR ETF
2012.04.03	2015.04.13	1 105 days	EUR	48,200	Consumer Staples Select Sector SPDR ETF
2012.06.12	2015.07.01	1 114 days	EUR	631,835	S&P BRIC 40 EUR Price Return
2012.06.12	2015.07.01	1 114 days	EUR	194,045	S&P BRIC 40 EUR Price Return
2012.06.12	2015.07.01	1 114 days	EUR	132,800	S&P BRIC 40 EUR Price Return

NOTE 9 SIGNIFICANT EVENTS AFTER THE BALANCE SHEET DATE

After 30 September 2015 the Bank has not issued non-equity securities issues.

After 30 September 2015 the Bank redeemed 1 non-equity securities issue with the nominal value of EUR 737 thousand.

20

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AB SEB bankas

NOTES TO THE CONDENSED INTERIM FINANCIAL STATEMENTS FOR THE 9 MONTHS PERIOD ENDED 30 SEPTEMBER 2015

(All amounts in EUR thousands unless otherwise stated)

NOTE 10 MAJOR EVENTS IN THE ISSUER'S ACTIVITIES

On 29 January 2015, the Bank announced that according to preliminary data, unaudited net profit earned over the year 2014 by AB SEB bankas is EUR 65.3 million (LTL 225.6 million) and by AB SEB bankas Group – EUR 72.4 million (LTL 249.9 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 2013, audited net profit earned by AB SEB bankas totalled EUR 61.5 million (LTL 212.3 million) and by AB SEB bankas Group – EUR 61.5 million (LTL 212.3 million).

On 17 March 2015, the Bank announced that on the 31st of March 2015 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 are 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 2014;
5. regarding appropriation of the year 2014 profit of the Bank.

The Management Board of the Bank endorsed the draft resolutions of the Annual General Meeting of Shareholders of the Bank

On 31 March 2015, the Bank announced that on the 31st March 2015, 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 2014 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 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 2014 Consolidated Financial Statements produced in accordance with the International Financial Reporting Standards (enclosed) were approved;
5. Appropriation of the year 2014 profit of the Bank was approved

On 23 April 2015, the Bank announced that according to preliminary data, unaudited net profit earned over the first quarter of the year 2015 by AB SEB bankas is EUR 18.4 million and by AB SEB bankas Group is EUR 18.2 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 2014, unaudited net profit earned by AB SEB bankas amounted to EUR 16.4 million and by AB SEB bankas Group – EUR 16.0 million.

On 14 July 2015, the Bank announced that according to preliminary data, unaudited net profit earned over the first half-year of the year 2015 by AB SEB bankas is EUR 36.9 million and by AB SEB bankas Group is EUR 32.7 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 first half-year of the year 2014, unaudited net profit earned by AB SEB bankas was EUR 43.0 million and by AB SEB bankas Group – EUR 43.0 million.

On 4 September 2015, the Bank announced that on the 3rd of September 2015 the Extraordinary General Meeting of Shareholders of AB SEB bankas took place and decisions on all issues on agenda were adopted:

1. 2.1. new wording of the Articles of Association of the AB SEB bankas were approved (attached) authorizing President of the bank Raimondas Kvedaras to sign it;
2. new members of the Supervisory Council of AB SEB bankas were elected:
   2.1. Erkka Kristian Näsäkkälä, Head of Risk Management, Skandinaviska Enskilda Banken AB Baltic Division;
   2.2. Sussane Elizabeth Tamm, Head of Mid Corporate and Public Sector, Skandinaviska Enskilda Banken AB Retail Banking Division;
3. it was stipulated that newly elected members of Supervisory Council shall commence their activities since the registration new wording of the Articles of Association of AB SEB bankas within the Company Register and shall hold this position no longer than the end of tenure of the current Supervisory Council - 29th October, 2017;
4. the President of AB SEB bankas was authorized to perform all the necessary actions related to the implementation of this decision, including but not limited to registration of decision and new wording of the Articles of Association within the Company Register, allowing him to reauthorize other persons to perform the abovementioned actions.

On 21 October 2015, the Bank announced that according to preliminary data, unaudited net profit earned over the three quarters of the year 2015 by AB SEB bankas is EUR 50.6 million and by AB SEB bankas Group is EUR 46.8 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 2014, unaudited net profit earned by AB SEB bankas was EUR 62.7 million and by AB SEB bankas Group – EUR 63.6 million.

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