SEB Bank Group Lithuania Result

According to preliminary data, unaudited net loss sustained over the first quarter of the year 2010 by SEB Bank is LTL 59,4 million (EUR 17,2 million) and that by SEB Bank Group is LTL 80,3 million (EUR 23,3 million). The result has been calculated in accordance with the requirements set by relevant acts of the Bank of Lithuania as well as legal acts of the Republic of Lithuania. Over the first quarter of the year 2009, unaudited net profit earned by the Bank totalled LTL 26.6 million (EUR 7.7 million) and that by the group – LTL 16.2 million (EUR 4.7 million). The result of the fist quarter of the year 2010 of the Bank includes sale profit resulting from transfer of shares of the Bank’s subsidiary companies SEB Gyvybės Draudimas and Litectus to the SEB Group.

The result of the fist quarter of the year 2010 of the SEB Bank Group includes the result of Litectus in January and February; the result of SEB Gyvybės Draudimas is not included.

Comment by Raimondas Kvedaras, President of SEB Bank:

In the first quarter of 2010, condition of Lithuania’s economy improved only negligibly. Financial situation of households and businesses kept deteriorating due to rising unemployment and declining income, what demanded making more of specific provisions by the bank group.

Although the banking market and operating conditions remain difficult, during the first quarter of 2010 SEB Group Lithuania stabilised it’s income, we have reduced operating costs significantly and the pace of increasing provisions for loans has slowed down more than twice.

Further in 2010, business environment will gradually become friendlier but banking industry will not face an evident recovery. However, it is expected, that domestic demand will become more buoyant only in 2011 due to stronger export performance, and consequently credit market will not get livelier in 2010.