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									                FOREX BANK AB
                ANNuAl REpORt
                    2009




FOREX BANK AB                   XXXXXXXXXXXXXX   1
CONtENts
Statutory administration report...........................................................                  3   Note       32       Untaxed reserves ..............................................................                51
The group’s Income Statement ...........................................................                    8   Note       33       Pledged assets ................................................................                51
The group’s balance sheet ..................................................................                9   Note       34       Contingent liabilities ......................................................                  51
Summary of changes in the group’s equity ..............................                                    10   Note       35       Commitments .......................................................................            51
Cash flow statement for the group .................................................                        11   Note       36       Related parties ...................................................................            52
The parent company’s Income statement ...................................                                  12   Note       37       Geographic distribution of income ....................                                         52
The parent company’s balance sheet ...........................................                             13   Note       38       Financial assets and liabilities ................................                              53
Summary of changes in equity                                                                                    Note       39       Cash flow statement ......................................................                     55
for the parent company ......................................................................              14   Note       40       Acquisitions ..........................................................................        56
The parent company’s cash flow statement ..............................                                    15   Note       41       Important estimates and assessments ...............                                            56
                                                                                                                Note       42       Capital adequacy ...........................................................                   56
Notes to the financial statements ....................................................                     16
                                                                                                                Note       43       Dividends ...............................................................................      56
Note 1 Information about the group and
           parent company ...............................................................                  16   Signatures of the board of directors ..............................................                                58
Note 2 Accounting principles ..................................................                            16   Audit report ...................................................................................................   59
Note 3 Financial risks ....................................................................                25   Governance ..................................................................................................      60
Note 4 Net interest income/expense .................................                                       28   List of branches ...........................................................................................       61
Note 5 Dividends received .........................................................                        29
Note 6 Commission income ......................................................                            29
Note 7 Commission expenses .................................................                               29
Note 8 Net profit (loss) from financial
           transactions ..........................................................................         30
Note 9 Other operating income .............................................                                30
Note 10 General administrative expenses..........................                                          31
Note 11 Other operating expenses .........................................                                 37
Note 12 Loan losses, net ..................................................................                37
Note 13 Impairment of financial assets ................................                                    37
Note 14 Appropriations ...................................................................                 38
Note 15 Taxes ..........................................................................................   38
Note 16 Loans to credit institutions ..........................................                            40
Note 17 Loans to the general public .....................................                                  40
Note 18 Bonds and other interest-bearing
           securities .................................................................................    41
Note 19 Shares and participations in
           group companies .............................................................                   41
Note 20 Other shares and participations ..........................                                         43
Note 21 Intangible assets .............................................................                    44
Note 22 Property, plant and equipment ..............................                                       46
Note 23 Receivables from group companies ...................                                               48
Note 24 Other assets ..........................................................................            48
Note 25 Prepaid expenses and accrued income ..........                                                     48
Note 26 Liabilities to credit institutions .................................                               49
Note 27 Deposits from the general public .........................                                         49
Note 28 Liabilities to group companies ................................                                    49
Note 29 Other creditors ...................................................................                50
Note 30 Accrued expenses and
           prepaid income .................................................................                50
Note 31 Provisions ..............................................................................          50
stAtutORy AdmiNistRAtiON REpORt
Statutory adminiStration report                                all contracts related to the purchase and transport of foreign
The Board of Directors and the Managing Director of            currency. A major project to streamline working practices in
FOREX Bank AB hereby present the annual accounts and           the organization has gotten underway and it is expected to
consolidated accounts for the financial year 2009.             bring about results during the second half of 2010.
ownerShip                                                      The business has developed favorably, with a significant
FOREX Bank AB, CIN 516406-0104, is one of the family           increase in the number of customers, increased volume of
Friberg's wholly owned joint-stock banks.                      loans, increased number of bill payments and payment
                                                               services to and from foreign countries. The volumes related
organization and buSineSS activitieS                           to currency exchange declined compared to the prior year
FOREX Bank AB, which was granted a license on 1 July           due to increased credit card use and less travel.
2003 to run banking activities consisting of deposits from
                                                               the group'S reSultS
and loans to the general public, remittance services, sup-
plying means of payment, foreign exchange transactions         For the financial year, the group reported an operating
and currency exchange.                                         profit/loss of SEK 148.5 (-47.5) million and profit/loss
                                                               after tax of SEK 107.1 (-50.8) million. Most of the profit
The bank, including its bank branches in Norway,               is comprised of the net profit from financial transactions,
Finland and Denmark, is the parent company of the              primarily currency exchange and commission income. During
group, which is comprised of the following wholly-owned        the year, there was a negative impact on profit from non-
subsidiaries: X-change in Sweden AB (with subsidiaries),       recurring depreciation and impairment losses on property
FOREX Internethandel AB (with subsidiaries), FOREX             values, credit portfolios and equipment, as well as from the
Fastighetsförvaltning AB, FOREX Kapitalförvaltning AB          costs associated with closing down several branches. Last
in Sweden, FOREX OY Valuutanvaihto in Finland, FOREX           year's profit/loss for the year was negatively impacted by a
Valutaveksling A/S in Denmark, FOREX Norge AS in Norway        penalty fee of SEK 50.0 million that was handed down by
and FOREX Sweden International Ltd in Great Britain.           the Swedish Financial Supervisory Authority.
Business is conducted in the Scandinavian countries, as well   Operating income was SEK 1 022.9 (746.6) million, which
as Great Britain (London) and at the end of the year there     is an increase of 37 percent compared to the prior year. Net
were 114 (121) bank branches. During 2009, two bank            interest income/expense increased by 130 percent to SEK
branches were established in Sweden and one in Norway,         52.7 (23.0) million due to growth in the volume of loans
which was already decided in 2008. In 2009, efforts got        granted in conjunction with an increased interest margin.
underway to review the group's existing network of branches    Net commissions increased by 11 percent to SEK 155.6
and as a result, five branches were closed down in Sweden,     (140.6) million and net income from financial transactions
two in Denmark and both of the branches in Iceland.            increased by 39 percent to SEK 809.4 (582.0) million.
The size of the penalty fee handed down by the Swedish         General administrative expenses declined by 2 percent to
Financial Supervisory Authority in 2008 has been appealed      SEK -632.5 (-648.4) million. Depreciation/amortization and
by the bank to the Administrative Court of Appeal, which       impairment increased by 69 percent to SEK -68.5 (-40.5)
has announced leave to appeal. A judgement is expected         million. This figure includes the impairment charge to proper-
sometime in 2010.                                              ty values of SEK -15.4 (-) million. Other operating expenses
The review and changes to the organization that got            increased by 3 percent to SEK -96.5 (-94.0) million.
underway at the beginning of the year have continued and       Loan losses were SEK -73.7 (-11.2) million, which included
they have resulted in the recruitment of many new employees    reservation for the increased volume of loans. Verified loan
to management and specialist positions.                        losses amounted to 1.6 (1.0) percent of loans granted.
During the year, a great deal of effort was put into a re-
view of the bank's IT platform and identifying a structure     the group'S poSition
to secure the bank's future activities. Work is underway to    Total assets were SEK 3 764.0 (3 767.1) million. Deposits from
develop a new strategy for the bank's involvement in the       the general public fell from SEK 3 014.9 million to SEK 2 983.1
public's cash transaction activities and issues associated     million, which corresponds to a decline of 1 percent. Loans
with this. Review and renegotiations have taken place for      granted to the public increased by 63 percent to SEK 1 105.0

FOREX BANK AB                                                                              STATUTORY ADMINISTRATION REPORT   3
(679.4) million. Cash equivalents and short-term loans to credit   Future development
institutions amounted to SEK 2 246.6 (2 139.8) million.            During 2010, a more in-depth analysis will be made of
                                                                   the existing branch structure in each of the countries where
The group's equity ratio at year-end was 13 (10) percent
                                                                   we operate. Given the developments in the banking sec-
and its capital adequacy ratio was 1.28 (1.04).
                                                                   tor and how the public conducts its cash transactions, it is
the parent company'S reSultS                                       important to set up a structure that is adapted to the vari-
                                                                   ous markets where we operate. In order to do so, there
The parent company's operating profit/loss increased to
                                                                   are likely to be more changes, such as closing down more
SEK 142.7 (-76.9) million. Most of the profit was from cur-
                                                                   branches, as well as setting up new ones.
rency exchange and remittance services. During the year,
there was a negative impact on profit from non-recurring           At the beginning of 2010, a decision was made to replace
depreciation and impairment losses on property values,             the existing POS (Point Of Sale) system. This, along with
credit portfolios and equipment, as well as from the costs         the project to streamline working practices in the branch
associated with closing down several branches. Last year's         offices, will impact activities during the year.
profit/loss for the year was affected by a penalty fee of          In Sweden, changes how the public conducts its cash trans-
SEK 50.0 million that was handed down by the Swedish               actions continue at a rapid rate and work is underway to
Financial Supervisory Authority.                                   adapt the group´s future strategy accordingly.

Operating income was SEK 928.1 (619.2) million, which is           The increased use of credit cards in society has a negative
an increase of 50 percent compared to the prior year. Net          impact on the group's main activity, currency exchange.
interest income/expense increased by 128 percent to SEK            Because of this, additional banking products will be
52.1 (22.8) million due to growth in the volume of loans           launched during the year in Sweden at FOREX Bank and
granted in conjunction with an increased interest margin.          the subsidiary, X-change. In Denmark, Finland and Nor-
Net commissions increased by 13 percent to SEK 127.3               way, no new bank products will be launched during the
(112.6) million and net income from financial transactions         next few years. Instead, focus will be on continued expan-
increased by 44 percent to SEK 683.3 (476.0) million.              sion in the areas of currency exchange and remittance
                                                                   services. A great deal of emphasis will also be on increas-
General administrative expenses declined by 2 percent to
                                                                   ing the skill level of the group's staff on bank products in
SEK -558.8 (-571.1) million. Depreciation/amortization and
                                                                   order to make possible an increased market penetration
impairment increased by 89 percent to SEK -61.0 (-32.3)
                                                                   for the products the bank offers.
million. This figure includes the impairment charge to property
values of SEK -15.4 (-) million. Other operating expenses          important eventS SubSequent to year-end
decreased by 3 percent to SEK -78.7 (-81.6) million.               A decision was made to close down the branches in
Loan losses were SEK -73.7 (-11.2) million, which included         London. Furthermore, it was decided that the follow-
reservation for the increased volume of loans. Verified loan       ing companies, which do not conduct any business ac-
losses amounted to 1.6 (1.0) percent of loans granted.             tivities, would be liquidated: FOREX Fastighetsförvaltning
                                                                   AB, FOREX Kapitalförvaltning AB, FOREX Internethandel
the parent company'S poSition                                      AB, Traveller Scandinavia AB, X-change Arlanda AB, X-
Total assets were SEK 3 680.2 (3 717.6) million. Deposits          change Malmö AB, X-change Göteborg AB, FOREX OY
from the general public fell from SEK 3 014.9 million to           Valuutanvaihto, FOREX Valutaveksling AS, FOREX Norge
SEK 2 983.1 million, which corresponds to a decline of             AS and X-change in Denmark AS.
1 percent. Loans granted to the public increased by 63
                                                                   buSineSS riSkS
percent to SEK 1 105.0 (679.4) million. Cash equivalents
                                                                   Each day, the bank is exposed to various types of risks
and short-term loans to credit institutions amounted to SEK
                                                                   associated with the business, such as credit risks, liquidity
2 141.2 (2 019.8) million.
                                                                   risks, market risks (interest rate risks and currency risks)
The parent company's equity ratio at year-end was 9 (7)            and operational risks. A more detailed description of these
percent and its capital adequacy ratio was 1.52 (1.23).            risks can be found in Note 3 of the annual report.



4   STATUTORY ADMINISTRATION REPORT                                                                          ANNUAL REPORT 2009
Five year Summary
the group


key ratioS        1)
                                                                                2009        2008        2007           2006             2005

volume
Loans to the general public                                                1 105 027     679 436     564 251      445 167          128 503
Change during the year, %                                                       63%         20%         27%         246%            1 153%
Deposits from the general public                                           2 983 081   3 014 890   1 852 096    1 509 510          358 388
Change during the year, %                                                        -1%        63%         23%         321%            1 159%
equity
Equity ratio                                                                  12.5%        9.6%       15.8%          17.4%           44.8%
      Taxed equity as a % of total assets

Capital adequacy ratio/Capital ratio2)                                          1.28        1.04        2.26           2.94                  –
      Capital base/Capital adequacy requirement

Capital ratio                                                                      –           –           –               –          109%
      Capital base/Risk-weighted amount for credit risks

net profit
Investment margin                                                             1.40%       0.72%       0.69%          0.78%           0.15%
      Net interest income/expense as a % of average total assets

Return on equity                                                              35.7%       -12.3%      17.9%           1.9%             3.2%
      Operating profit as a % of average equity

Cost/income ratio before loan losses                                             0.8         1.0         0.9            1.0              1.0
      Total costs excluding loan losses and changes in the value of
      property taken over in relation to net interest income/expense +
      operating income
Cost/income ratio after loan losses                                              0.9         1.1         0.9            1.0              1.0
      Total costs including loan losses and changes in the value of
      property taken over in relation to net interest income/expense +
      operating income

doubtful debts and loan losses
Reserve ratio for doubtful debts                                             100.0%      100.0%      100.0%        100.0%           100.0%
      Write-down for probable losses as a % of doubtful
      debts, gross
Percentage doubtful debts                                                      6.0%        2.2%        1.9%           1.3%             1.3%
      Net doubtful debts as a % of total loans granted
      to the general public and credit institutions (excluding banks)
Loan loss ratio                                                               10.6%        2.0%        2.0%           3.8%                   –
      Loan losses as a % of the opening balance for loans granted to the
      general public, credit institutions (excluding banks and leasing
      objects, property taken over and credit guarantees)

other information
Average number of employees                                                     863         810         698            583              541
Number of branches                                                              114         121         107             79               74

1)
     As of 16 April 2007, X-change is included as part of the group
2)
     The years 2005-2007 relate to the parent company's capital
     adequacy ratio/capital ratio




FOREX BANK AB                                                                                              STATUTORY ADMINISTRATION REPORT   5
income StatementS and balance SheetS
the group
SEK thousands                                                                 2009                 2008               2007         2006            2005

income statement
Net interest income/expense                                             52 700               22 954              16 104         11 322          1 031
Dividends received                                                            -                  39                  36             28            138
Commissions, net                                                       155 637              140 552              78 480         45 312         44 431
Net profit from financial transactions                                 809 350              581 978             541 633        381 085        360 807
Other income                                                             5 237                1 056               3 615          1 405            619
total income                                                       1 022 924                746 579            639 868        439 152        407 026

General administrative expenses                                       -632 541              -648 378           -447 310       -346 966       -343 252
Other operating expenses 1)                                           -165 022              -134 476           -114 899         -80 238        -52 195
Loan losses                                                             -76 870               -11 221             -8 792          -4 893             –
total expenses                                                       -874 433              -794 075            -571 001       -432 097       -395 447

operating profit (loss)                                               148 491                -47 496            68 867           7 055         11 579

Taxes                                                                   -41 376                 -3 265          -20 290         -3 998          -3 279

net profit (loss) for the year                                        107 115                -50 761            48 577           3 057           8 300


balance sheet
Cash                                                                    403 275              470 886            405 625        254 500        302 259
Loans to credit institutions                                        1 843 310            1 668     948          865   452      468 257        292 681
Loans to the general public                                         1 105 027              679     436          564   251      445 167        128 503
Interest-bearing securities                                                 –              498     284          347   207      698 032              –
Shares and participations                                               1 500                4     980            4   979          279            279
Intangible assets                                                     139 020              144     540          144   290       11 246         12 265
Property, plant and equipment                                         152 672              198     537          156   787      132 882         42 296
Other assets                                                          119 202              101     468           94   097       71 200         45 219
total assets                                                       3 764 006             3 767 079            2 582 688      2 081 563       823 502

Liabilities to credit institutions                                     71     145           89 182               84 310         75 735        25 034
Deposits from the general public                                    2 983     081        3 014 890            1 852 096      1 509 510       358 388
Other liabilities                                                     236     644          223 406              207 535        117 662         70 861
Provisions                                                              2     000                –                    –              –              –
total liabilities and provisions                                   3 292 870             3 406 010            2 174 173      1 719 997       454 283

equity                                                                471 136               361 069            408 515        361 566        369 219
total liabilities, provisions and equity                           3 764 006             3 767 079            2 582 688      2 081 563       823 502


) Including depreciation/amortization and impairment of property, plant and equipment and intangible assets
1




6   STATUTORY ADMINISTRATION REPORT                                                                                                   ANNUAL REPORT 2009
propoSal For appropriation oF parent                    The proposal to distribute dividends has been made
company'S proFit                                        having considered the rules on buffer capital, limitation of
The board of directors proposes that                    risks and transparency as per the Banking and Financing
– accumulated profit (loss)            149 143 765      Act, as well as Chapter 17, Section 3 of the Swedish
– profit for the year                  102 868 905      Companies Act (Prudence Rule).

                                       252 012 670 kr   The parent company's capital ratio, after the proposed
is appropriated as follows                              appropriation of profits is 1.52 (1.23). The capital adequacy
– distributed as dividends to                           ratio for the group and the financial company group, after
  shareholders                          16 020 000      the proposed appropriation of profits is 1.28 (1.04).
– carried forward                      235 992 670
                                                        Consideration of the financial position of the group and
                                       252 012 670 kr
                                                        parent company does not lead to any other assessment
                                                        than that all short-term and long-term obligations are
                                                        expected to be fulfilled.

                                                        The board of directors' assessment is that the amount of
                                                        equity, as reported in the annual report, is adequate in
                                                        relation to the scope of the business and its risks.

                                                        For further information on the profit and financial position
                                                        of the parent company and group, please refer to the
                                                        accompanying income statement, balance sheet and ac-
                                                        companying notes to the financial statements.




FOREX BANK AB                                                                      STATUTORY ADMINISTRATION REPORT   7
thE gROup's iNCOmE stAtEmENt
SEK thousands                                             Note            2009                  2008

Interest income                                                     91 540               136 100
Interest expense                                                   -38 840              -113 146
net interest income/expense                                 4      52 700                 22 954
Dividends received                                          5                -                   39
Commission income                                           6      178    144            150    848
Commission expenses                                         7       -22   507             -10   296
Net profit from financial transactions                      8      809    350            581    978
Other operating income                                      9         5   237               1   056
total operating income                                           1 022 924              746 579
General administrative expenses                            10     -632 541              -648 378
Depreciation/amortization and impairment of property,
plant and equipment and intangible
assets                                                  21,22      -68 529                -40 456
Other operating expenses                                   11      -96 493                -94 020
total expenses before loan losses                                 -797 563              -782 854
net profit (loss) before loan losses                              225 361                -36 275
Loan losses, net                                           12      -73 670                -11 221
Impairment of financial assets                             13        -3 200                      -
operating profit (loss)                                           148 491                -47 496
Tax                                                        15      -41 376                 -3 265
net proFit (loSS) For the year                                    107 115                 50 761



the group'S Statement oF comprehenSive income
SEK thousands                                             Note            2009                  2008

net profit (loss) for the year                                    107 115                -50 761
other comprehensive income
Exchange rate differences                                            2 952                11 915
other comprehensive income, net after tax                            2 952                11 915
total comprehenSive income                                        110 067                -38 846




8   ThE GROUP'S INCOME STATEMENT                                                 ANNUAL REPORT 2009
thE gROup's BAlANCE shEEt
SEK thousands                                           Note    2009-12-31          2008-12-31

tillgångar
Cash and bank balances                                           403 275            470    886
Loans to credit institutions                             16    1 843 310          1 668    948
Loans to the general public                              17    1 105 027            679    436
Bonds and other interest-bearing securities              18            –            498    284
Other shares and participations                          20        1 500              4    980
Intangible assets                                        21
   – Goodwill                                                    126 455             126 196
   – Other intangible assets                                      12 565              18 344
Property, plant and equipment                            22
   – Equipment                                                    26   248            49 217
   – Capitalized reconstruction costs                             57   267            62 930
   – Buildings                                                    69   157            86 390
Current tax assets                                      15         4   472            20 890
Deferred tax assets                                     15         4   895                  -
Other assets                                            24        72   777            46 511
Prepaid expenses and accrued income                     25        37   058            34 067
total aSSetS                                                   3 764 006          3 767 079


liabilitieS, proviSionS and equity
liabilities and provisions
Liabilities to credit institutions                       26       71   145           89    182
Deposits from the general public                         27    2 983   081        3 014    890
Deferred tax liabilities                                 15       33   506           28    532
Other creditors                                          29      113   895          188    852
Accrued expenses and prepaid income                      30       89   243           84    554
Provisions                                               31        2   000                    -
total liabilities and provisions                               3 292 870          3 406 010


equity
Share capital                                                     60 000              60 000
Reserves                                                          30 712              26 760
Earned profits including net profit/loss for the year            380 424             273 309
total equity                                                    471 136             361 069
total liabilitieS, proviSionS and equity                       3 764 006          3 767 079




FOREX BANK AB                                                      ThE GROUP'S BALANCE ShEET   9
summARy OF ChANgEs iN thE gROup's Equity
                                                                             accrued
SEK thousands                          Share capital1)      reserves2)      earnings            total
Opening balance 2008-01-01                   60 000           15 845       332 670         408 515
Net profit (loss) for 2008                                                  -50 761         -50 761
Other comprehensive income                                    11 915              –          11 915
comprehensive income                                         11 915        -50 761         -38 846


Dividends                                                                    -8 600          -8 600
closing balance, 2008-12-31                 60 000           27 760       273 309         361 069


Net profit (loss) for 2009                                                 107 115         107 115
Other comprehensive income                                     2 952             –           2 952
comprehensive income                                           2 952      107 115         110 067
closing balance, 2009-12-31                 60 000           30 712       380 424         471 136


1)
     Share capital
Number of shares                                                                         6 000 000
Quotient value                                                                              SEK 10
All shares have been fully paid
                                                           reserve for     Statutory
 details about reserves
2)
                                                translation differences      reserve            total
Opening balance, 2008-01-01                                    3 845        12 000          15 845
Other comprehensive income                                    11 915                        11 915
closing balance, 2008-12-31                                  15 760         12 000          27 760


Other comprehensive income                                     2 952                          2 952
closing balance, 2009-12-31                                  18 712         12 000          30 712




                                  10     SUMMARY OF ChANGES IN EQUITY FOR ThE GROUPANNUAL REPORT 2009
CAsh FlOw stAtEmENt FOR thE gROup
SEK thousands                                                    Note               2009               2008

operating activities
Operating profit/loss (+)                                                    148 491              -47 496
Adjustments for items not included in cash flow
  – Depreciation/amortization and impairment (+)                              71  729              40 456
  – Loan losses (+)                                                           73  670              11 221
  – Change in provisions (+/-)                                                 2  000                    –
  – Capital gains/losses (+/-)                                                 3  164                    –
  – Other items not included in cash flow (+/-)                                     –                 -443
Taxes paid (-)                                                                -22 483               -5 803
cash flow from operating activities
before changes in working capital                                           276 571                -2 065


cash flow from changes in working capital
Increase/decrease in loans to the general public (-/+)                      -499    261         -126   406
Increase/decrease in securities (-/+)                                        498    284         -151   077
Increase/decrease in deposits from the general public (+/-)                   -32   809        1 162   794
Increase/decrease in liabilities to credit institutions (+/-)                 -18   037            4   872
Change in other assets and liabilities (+/-)                                  -99   525           56   800
cash flow from operating activities                                         125 223              944 918


investing activities
Sale of financial assets (+)                                                      787                    –
Sale of intangible assets (+)                                                      25                  438
Acquisition of intangible assets (-)                                             -600               -6 492
Sale of property, plant and equipment (+)                                          55                    5
Acquisition of property, plant and equipment (-)                              -20 900             -74 055
cash flow from investing activities                                          -20 633             - 80 104


Financing activities
Dividends paid (-)                                                                    –             -8 600
cash flow from financing activities                                                    –           -8 600


cash flow for the year                                                      104 590              856 214
Cash equivalents at the beginning of the year                              2 139 834           1 271 077
Exchange rate differences on cash equivalents                                  2 161              12 543
liquid assets at 31 december                                              2 246 585           2 139 834


Cash and cash equivalents is comprised of the following items:
Cash at bank and in hand                                                   2 246 585           2 139 834
cash equivalents at year-end                                              2 246 585           2 139 834




FOREX BANK AB                                                           ThE GROUP'S CASh FLOW STATEMENT   11
thE pARENt COmpANy's iNCOmE stAtEmENt
SEK thousands                                              Note          2009                  2008

Interest income                                                     92 027              137 309
Interest expense                                                   -39 908             -114 469
net interest income/expense                                  4     52 119                22 840
Dividends received                                           5      54   409                    39
Commission income                                            6    151    048            122    900
Commission expenses                                          7     -23   751             -10   271
Net profit from financial transactions                       8    683    289            476    009
Other operating income                                       9      10   991               7   718
total operating income                                            928 105              619 235
General administrative expenses                             10    -558 801             -571 130
Depreciation/amortization and impairment of property,
plant and equipment and intangible
fixed assets                                             21,22     -60 969               -32 262
Other operating expenses                                    11     -78 735               -81 567
total expenses before loan losses                                 -698 505             -684 959
net profit (loss) before loan losses                              229 600               -65 724
Loan losses, net                                            12     -73 670               -11 221
Impairment of financial assets                              13     -13 200                      -
operating profit (loss)                                           142 730               -76 945
Appropriations                                              14     -17 560                 5 014
Taxation                                                    15     -22 301                 4 888
net proFit (loSS) For the year                                    102 869               -67 043



the parent company'S Statement oF comprehenSive income
SEK thousands                                                            2009                  2008

net profit (loss) for the year                                    102 869               -67 043
other comprehensive income
Exchange rate differences                                            2 507                     221
other comprehensive income, net after tax                           2 507                      221
total comprehenSive income                                        105 376               -66 822




12   PARENT COMPANY'S INCOME STATEMENT                                          ANNUAL REPORT 2009
thE pARENt COmpANy's BAlANCE shEEt
SEK thousands                                  Note      2009-12-31          2008-12-31

assets
Cash and bank balances                                    316 620             359   018
Loans to credit institutions                    16      1 824 604           1 660   804
Loans to the general public                     17      1 105 027             679   436
Bonds and other interest-bearing securities     18              –             498   284
Shares and participations in group companies    19        174 444             174   444
Other shares and participations                 20          1 500               4   977
Intangible assets                               21
   – Goodwill                                                  416               1 541
   – Other intangible assets                                 6 416               9 151
Property, plant and equipment                   22
   – Equipment                                              21 081              38 091
   – Capitalized reconstruction costs                       53 205
   – Buildings
Receivables from Group Companies               23           37 017              68 591
Deferred tax assets                            15            4 895                   –
Current tax assets                             15                –              15 773
Other assets                                   24           35 303              31 303
Prepaid expenses and accrued income            25           30 552              29 013
total aSSetS                                           3 680 237           3 717 574


liabilities, provisions and equity
Liabilities and provisions
Liabilities to credit institutions              26         71   145            72   675
Deposits from the general public                27      2 983   081         3 014   890
Liabilities to Group companies                  28         34   554            89   469
Other liabilities                               29         95   810           176   596
Accrued expenses and prepaid income             30         84   711            77   945
Provisions                                      31          2   000                    -
total liabilities and provisions                       3 271 301           3 431 575

untaxed reserves                                32         84 923              67 362

equity
Restricted equity
Share capital                                               60 000              60 000
Statutory reserve                                           12 000              12 000
Non-restricted equity
Profit/loss brought forward                               149 144             213 680
Net profit (loss) for the year                            102 869              -67 043
total equity                                              324 013             218 637
total liabilitieS, proviSionS and equity               3 680 237           3 717 574


memorandum items
Contingent liabilities                          34          1 000               1 000
Commitments                                     35        481 803             547 734


FOREX BANK AB                                         PARENT COMPANY'S BALANCE ShEET   13
summARy OF ChANgEs iN Equity FOR thE
pARENt COmpANy
                                                              Restricted equity             Non-restricted equity
                                                                         Statutory     accumulated            year's
SEK thousands                                       Share capital          reserve   net profit (loss)net profit (loss)           total
Opening balance, 2008-01-01                              60 000           12 000          166 095            30 620          268 715
Appropriation of profits                                                                   30 620           -30 620                 –
Net profit (loss) for 2008                                                                                  -67 043           -67 043
Other comprehensive income                                                                      221               –               221
comprehensive income                                                                            221        -67 043           -66 822


Group contribution                                                                          35 200                            35 200
Tax on group contributions                                                                   -9 856                            -9 856
Dividends                                                                                    -8 600                            -8 600
closing balance, 2008-12-31                              60 000           12 000          213 680          -67 043          218 637


Appropriation of profits                                                                   -67 043          67 043                 –
Net profit (loss) for 2009                                                                                 102 869           102 869
Other comprehensive income                                                                    2 507              –             2 507
comprehensive income                                                                        2 507         102 869           105 376
closing balance, 2009-12-31                              60 000           12 000          149 144         102 869           324 013


1)
     Share capital
     Number of shares                                                                                                     6 000 000
     Quotient value                                                                                                          SEK 10
     All shares have been fully paid


dividends policy
When determining dividends, consideration is given to the company's earnings trend, investment needs, financial position
and other factors that the board of directors considers to be of importance.




14     SUMMARY OF ChANGES IN EQUITY FOR ThE PARENT COMPANYANNUAL REPORT 2009                                        ANNUAL REPORT 2009
thE pARENt COmpANy's CAsh FlOw stAtEmENt
SEK thousands                                                    Note                   2009              2008
operating activities
Operating profit/loss (+)                                                      142 730              -76 945
Adjustments for items not included in cash flow
  – Depreciation/amortization and impairment (+)                                 74 169              32 262
  – Loan losses (+)                                                              73 670              11 221
  – Change in provisions (+/-)                                                    2 000                    –
  – Capital gains/losses (+/-)                                                    2 769                    –
  – Other items not included in cash flow (+/-)                                       –                 -443
Taxes paid (-)                                                                  -11 423               -4 968
cash flow from operating activities
before changes in working capital                                              283 915             -38 873


cash flow from changes in working capital
Increase/decrease in loans to the general public (-/+)                         -499     261       -126    406
Increase/decrease in securities (-/+)                                           498     284       -151    077
Increase/decrease in deposits from the general public (+/-)                      -31    809      1 162    794
Increase/decrease in liabilities to credit institutions (+/-)                      -1   530          -1   530
Change in other assets and liabilities (+/-)                                   -112     900         49    750
cash flow from operating activities                                            136 699             894 658


investing activities
Sale of financial assets (+)                                                        787                    –
Sale of intangible assets (+)                                                        25                  438
Acquisition of intangible assets (-)                                               -600               -6 250
Sale of property, plant and equipment (+)                                            55                    5
Acquisition of property, plant and equipment (-)                                -18 968             -64 018
cash flow from investing activities                                            -18 701             -69 825


Financing activities
Dividends paid (-)                                                                         –          -8 600
Group contribution received                                                                –         35 200
cash flow from financing activities                                                        –        26 600


cash flow for the year                                                         117 998             851 433
Cash equivalents at the beginning of the year                                2 019 822           1 169 958
Exchange rate differences on cash equivalents                                    3 404               -1 569
cash equivalents at year-end                                                   2 141 224        2 019 822


Cash and cash equivalents is comprised of the following items:
Cash at bank and in hand                                                     2 141 224          2 019 822
cash equivalents at year-end                                                2 141 224           2 019 822




FOREX BANK AB                                                    ThE PARENT COMPANY'S CASh FLOW STATEMENT   15
NOtEs tO thE FiNANCiAl
stAtEmENts
note 1                                                             Bank AB, have had, or are expected to have any significant
inFormation about the group and parent                             impact on the group's results or financial position.
company
                                                                      I
                                                                   •	 	AS	 1	 Presentation	 of	 Financial	 Statements	 (revised):	
The annual report as of 31 December 2009 is for the group
                                                                      The changes are primarily related to how information is
where FOREX Bank AB, a joint-stock bank, is the parent
company, with registered office in Stockholm. The main                presented, as well as the names of certain items in the fi-
office's address is Kornhamnstorg 4, 111 27 Stockholm.                nancial statements. A new report, statement of compre-
                                                                      hensive income, is provided after the income statement.
A list of all the wholly-owned subsidiaries is provided in
                                                                      Its specifies reserves that have been directly reported
note 19.
                                                                      against equity, such as translation differences.
On 23 March 2010, the board of directors approved this
                                                                      I
                                                                   •	 	AS	23	Borrowing	Costs	(revised):	The	primary	change	
annual report for FOREX Bank AB and the annual report will
                                                                      is that it is no longer possible to immediately recognize
be brought forth for adoption at the bank's annual general
meeting on 23 March 2010.                                             borrowing costs that are related to assets that require a
                                                                      substantial period of time to get ready for use or sale.
note 2
                                                                      I
                                                                   •	 	FRS	32	Financial	Instruments:	Disclosures	and	classifica-
accounting principleS
                                                                      tion – The change clarifies the prerequisites for determin-
(a) accordance with norms and legislation
                                                                      ing whether a puttable financial instrument should be
The consolidated financial statements have been prepared              classified as an equity instrument or a financial liability.
in accordance with International Financial Reporting
Standards (IFRS) as issued by the International Account-              I
                                                                   •	 	FRS	2	Share-based	payment	(revised).	The	change	amends	
ing Standards Board (IASB) along with interpretations                 the definition of vesting conditions and introduces a new
issued by the International Financial Reporting Interpre-             concept, non-vesting conditions. The standard states that
tations Committee (IFRIC) as adopted by the EU. Addi-                 non-vesting conditions must be taken into consideration
tions to these standards have also been provided by the               when measuring the fair value of equity instruments.
Annual Accounts Act for Credit Institutions and Securities           I
                                                                   •		FRS	 7	 Financial	 Instruments:	 Disclosures	 (addition):	 The	
Companies (ÅRKL), the Swedish Financial Supervisory                  addition requires more disclosures about financial risks
Authority's regulations and guidelines on annual reports             and financial risk management, as well as a reconciliation
issued by credit institutions and securities companies, FFFS         of movements between levels of fair value measurement
2008:25, and the Swedish Financial Reporting Board's                 hierarchy.
Supplementary Accounting Rules for Groups, RFR 1.2, as
                                                                     I
                                                                   •		FRS	8	Operating	Segments	This	standard	replaces	IAS	14,	
well as their interpretations, UFR.
                                                                     Segment Reporting. The standard requires segment report-
The parent company applies the same accounting principles            ing to be presented in accordance with internal reporting.
as the group, except for situations where ÅRKL limits the abil-
                                                                      I
                                                                   •	 	FRIC	13	Customer	Loyalty	Programmes	The	interpreta-
ity to apply IFRS to legal entities. Additionally, consideration
                                                                      tion clarifies that when goods or services are sold to-
has been given to the relationship between accounting and             gether with some form of incentive for customer loyalty,
taxation. More information is provided in section (x) of the          revenue must then be allocated to the various compo-
parent company's accounting principles, below.                        nents based on fair value.
Unless otherwise stated, the accounting principles (dis-           New and revised accounting standards and interpretations
cussed below) were consistently applied to each period             that are obligatory for accounting periods as of 1 January
that is presented in the financial statements.                     2010 or later

New and revised accounting standards and interpretations that         I
                                                                   •	 	AS	27	Consolidated	and	Separate	Financial	Statements	
are obligatory for accounting periods as of 1 January 2009.           (the revision applies to financial years that begin as of
                                                                      1 July 2009). Among other things, the change requires
None of the revisions to existing standards issued by IASB, nor       that profit related to minority interests must always be
new interpretations issued by IFRIC that apply to accounting          separately disclosed, even if the minority share is nega-
periods as of 1 January 2009 and which apply to Forex                 tive. A change in



16   PARENT COMPANY'S CASh FLOW STATEMENT                                                                       ANNUAL REPORT 2009
note 2 continued                                                  (d) assessments and estimates used to prepare
                                                                  the financial statements
  parent company's ownership such that the parent com-
  pany retains its controlling interest must be reported as       In order to prepare the financial statements in accordance
  part of equity. If the parent company no longer has a           with IFRS, it is necessary for the bank's management team
  controlling influence, any remaining minority share is          to make assessments and estimates, as well as assump-
  then revalued at fair value on the transaction date. The        tions that affect how the accounting principles are applied
                                                                  and the reported amounts for assets, liabilities, income
  change only affects the reporting of future transactions.
                                                                  and expenses. The estimates and assumptions are based
•	 	FRS	3	Business	Combinations	(the	revision	applies	to	fi-
   I                                                              on historical experiences and several other factors that are
   nancial years that begin as of 1 July 2009). This will re-     deemed to be reasonable under the current circumstances.
   sult in a change to how future acquisitions are reported,      The outcome of these estimates and assumptions is then
   e.g. transaction costs, any contingent consideration and       used when determining the carrying amounts of assets and
                                                                  liabilities when such amounts are not otherwise clearly
   future acquisitions. The change does not have any effect
                                                                  provided by other sources. The actual results may deviate
   on prior acquisitions.
                                                                  from these estimates and assessments.
   I
•	 	FRS	9	Financial	Instruments	–	Classification	and	valua-       These estimates and assumptions are regularly reviewed.
   tion. This represents the first stage of replacing IAS 39      Changes to estimates are reported in the period the change
   and it covers the classification and valuation of financial    was made if the change only affects that period. Otherwise,
   instruments.                                                   it is reported in the current period and future periods, if the
                                                                  change affects the current period as well as future periods.
   I
•	 	FRIC	16	Hedges	of	a	Net	Investment	in	a	Foreign	Op-
   eration (applies to financial years that begin as of 1         Assessments made by the company management team
   October 2009). This interpretation provides guidance           when applying IFRS, which have a significant impact on
   on how currency risk classified as a hedged item when          the financial statements, and estimates that were made that
   hedging foreign operations should be identified. The           could result in significant adjustment to the next year's finan-
   interpretation also provides guidance on how to deter-         cial statements are described in more detail in Note 41.
   mine the amounts to be reclassified from equity to profit      (e) changes in accounting principles
   or loss for both the hedging instrument and the hedged         During the year, no changes have been made to the group's
   item when the parent company disposes of the foreign           or parent company's accounting principles.
   operation.
                                                                  (f) consolidation principles
(b) Functional currency and reporting currency
                                                                  (i) Subsidiaries
The parent company's functional currency is the Swedish           Subsidiaries are companies in which the parent company
Krona (SEK), which is also the reporting currency for both the    is able to exert a controlling influence. A controlling influ-
parent company and the group. Accordingly, the financial          ence means that ownership directly or indirectly exceeds
statements are presented in SEK. Unless otherwise stated, all     50 percent or, that there are other conditions entitling the
amounts have been rounded to the nearest thousand.                parent company to formulate a company's financial or op-
                                                                  erating strategies in order to reap financial benefits. An
(c) valuation principles used when preparing the
                                                                  assessment of controlling influence involves determining
company's financial statements
                                                                  whether the shares with potential voting rights can be used
Assets and liabilities are reported at historical cost. Finan-    or converted without delay.
cial assets and liabilities are reported at amortized cost,
                                                                  Subsidiaries are reported in accordance with the pur-
with the exception of certain financial assets and liabilities
                                                                  chase accounting method. Using this method, the acqui-
that are valued at fair value. Financial assets and liabilities
                                                                  sition of a subsidiary is treated as a transaction through
reported at fair value consist of derivative instruments,         which the Group indirectly acquires the subsidiary's as-
financial instruments classified as financial assets valued       sets and assumes responsibility for its liabilities and con-
at fair value in the income statement, financial liabilities      tingent liabilities. Consolidated cost is determined through
valued at fair value in the income statement or available-        an acquisition analysis in conjunction with the business
for-sale financial assets.                                        acquisition. The analysis establishes the identifiable


FOREX BANK AB                                                                              NOTES TO ThE FINANCIAL STATEMENTS   17
note 2 continued                                                  functional currency using the prevailing exchange rate at
                                                                  the point in time when valuation to fair value is made.
assets, as well as the acquired liabilities and contingent
liabilities. The cost of acquisition of the subsidiary's shares   Financial reports concerning foreign operations
and its business is determined by the fair value as of the        The assets and liabilities of foreign operations, including
transfer date for the assets, assumed/newly arisen liabili-
                                                                  goodwill and other group surplus values, are translated into
ties and newly issued equity instruments that were given
                                                                  SEK using the exchange rate prevailing on the closing date.
as consideration in exchange for acquired net assets, in-
                                                                  The revenue and expenses of foreign operations is translated
cluding any transaction costs that are directly related to
the acquisition. In business acquisitions where the acquisi-      to SEK using the average exchange rate. Translation differ-
tion cost exceeds the net value of the acquired assets and        ences that arise from currency translations of foreign opera-
assumed liabilities/contingent liabilities, the difference is     tions are reported as part of other comprehensive income.
shown as goodwill. If the difference is negative, it is di-
                                                                  Net investments in foreign operations
rectly reported in the income statement.
                                                                  Translation differences that arise in conjunction with the
The financial reports of subsidiaries are included in the con-    translation of a net investment in foreign operations are re-
solidated financial statements as of the acquisition date and     ported directly to other comprehensive income. When an
until such time as the controlling influence no longer exists.
                                                                  investment in foreign operations is divested, the group rec-
(ii) Branches                                                     ognizes the accumulated translation differences after deduc-
The banks business activities in other Nordic countries is        tion for any currency hedging.
conducted through bank branches of Forex Bank AB in
                                                                  Accumulated translation differences are presented in a sep-
Sweden. The business activities of the branches are con-
                                                                  arate equity category that comprises translation differences
solidated as part of the parent company's business and
the parent company's financial statements in the same             as of 1 January 2006. Accumulated translation differences
way as foreign subsidiaries are consolidated as part of           from periods prior to 1 January 2006 are allocated to other
the group's financial statements.                                 equity categories and are not reported on specifically. For
                                                                  information on the reconciliation of the change in transla-
(iii) Transactions to be eliminated on consolidation
                                                                  tion differences that are reported as part of equity, please
Intra-group receivables, liabilities, revenues or expenses        see: Summary of changes in equity for the group.
and gains and losses attributable to intra-group transac-
tions between group companies are fully eliminated when           (h) interest income, interest expenses and dividends
the consolidated financial statements are prepared. The           Interest income on receivables and interest expense on lia-
same applies to the same types of transactions between            bilities are calculated and reported using the effective inter-
the parent company in Sweden and the foreign branches,            est method. The effective rate is the interest rate that renders
as well as such transactions between branches, when pre-          the present value of all future cash receipts and disburse-
paring the parent company's annual report.                        ments during the anticipated remaining fixed interest term
                                                                  equal to the carrying amount of the receivable or liability.
(g) Foreign currency
                                                                  Interest income and interest expense includes the accrued
Foreign currency transactions                                     amounts of any fees that have been received that have been
Transactions in foreign currency are translated to the func-      included in the effective interest rate, transaction expenses
tional currency using the exchange rate that is in effect on      and any discounts, premiums and any differences between
the transaction date. Functional currency is the currency         the original value of the receivable/liability and the amount
used in the primary economic environments where the               that is settled on the due date.
company or its branches run their operations. Monetary
assets and liabilities in foreign currency are translated to      Interest expenses include the direct transaction costs associ-
the functional currency using the exchange rate in effect         ated with entering into new loan agreements.
on the balance sheet date. Exchange differences that arise
                                                                  The interest income and interest expenses that are presented
upon translation are reported in the income statement.
                                                                  in the income statement consist of:
Non-monetary assets and liabilities that are reported at
historical cost are translated using the exchange rate in         – Interest on financial assets and liabilities valued at amor-
effect on the transaction date. Non-monetary assets and li-         tized cost using the effective interest method, including
abilities that are reported at fair value are translated to the     interest on doubtful debts


18   NOTES TO ThE FINANCIAL STATEMENTS                                                                        ANNUAL REPORT 2009
note 2 continued                                                    (k) net profit (loss) from financial transactions
                                                                    The item, Net profit (loss) from financial transactions, includes
– Interest on financial assets that are classified as available-
                                                                    the realized and unrealized changes in value that have aris-
  for-sale
                                                                    en when conducting financial transactions. Net profit (loss)
Dividends from shares and participations are recognized             from financial transactions consists of:
when the right to receive payment has been established.
                                                                    – Realized and unrealized changes in the fair value of the
(i) revenue from commissions and fees
                                                                      assets and liabilities that are held for trading purposes
Revenue from commissions and fees is recognized when (i)
the amount of revenue can be measured reliably, (ii) it is          – Capital gains/losses from the disposal of financial assets
probable that the future economic benefits that are attribut-         and liabilities that are held for trading purposes
able to the transaction will flow to the company, (iii) the per-
centage of completion as of the closing date can be meas-           – Capital gains/losses from available-for-sale financial assets
ured reliably and (iv) the fees that have arisen and the fees       – Changes in exchange rates
that remain in order to complete the service assignment can
be measured reliably. Revenue is valued at the fair value of        (l) Financial instruments
the amount that has been received or that is expected to be         Financial instruments are valued and reported in accord-
received. Revenue recognition is in accordance with the per-        ance with IAS 39 and ÅRKL.
centage of completion method, which means that revenue is
recognized based on the assignment's or service's percent-          Financial instruments that are reported in the balance
age of completion on the closing date.                              sheet and classified as financial assets include: cash and
                                                                    bank balances, treasury bills eligible as collateral, loans
The bank receives fees and commissions for services ren-            granted to credit institutions, loans granted to the general
dered. The following two methods are used when recogniz-            public, bonds and other interest-bearing securities, other
ing revenue:                                                        shares and participations and other assets. Financial li-
(i) Commissions and fees that are calculated using                  abilities include liabilities to credit institutions, deposits
the effective interest rate                                         from the general public and other liabilities.

Commissions and fees that are an integrated portion of the          (i) Items recorded or removed from the balance sheet
effective interest rate are not recognized as revenue from          A financial asset or liability is recorded in the balance
commissions. This type of revenue is recognized by adjust-          sheet as soon as the bank has committed to the terms of
ing the effective interest rate on the profit/loss item, interest   the contract.
income. These types of fees primarily consist of the fees
associated with setting up new loans.                               A financial asset is removed from the balance sheet when
                                                                    the rights stated in the contract have been realized, have
(ii) Commissions and fees that are earned through                   fallen due, or when the company has lost control over them.
rendering a particular service                                      The same applies to parts of a financial asset. A financial
These types of fees and commissions consist of administra-          liability is removed from the balance sheet once the obli-
tion fees, charge/credit card fees in instances when the            gation under the contract has been fulfilled or otherwise
service is performed over a period of time that does not            expired. The same applies to parts of a financial liability.
extend past the quarterly closing, payment for remittance
                                                                    Financial assets and liabilities are offset and reported at
services, money transfers and commissions for counting
                                                                    net amounts in the balance sheet only when there is a legal
daily receipts, etc. These commissions and fees are typi-
                                                                    right to offset the sum and there is an intention to regulate
cally related to a completed transaction and they are im-
                                                                    the items with a net sum or at the same time realize the
mediately recognized as revenue.
                                                                    asset and regulate the debt.
(j) commission expenses
                                                                    The acquisition and sale of financial assets are recorded on
These are expenses associated services that have been re-
ceived, to the extent that they are not considered as inter-        the trade date, i.e., when the company commits to acquiring
est. For example, these consist of the expenses associated          or disposing of the asset. Loan commitments are not report-
with clearing and bankgiro, charge/credit cards, payment            ed in the balance sheet. Loan receivables are reported in
to loan brokers and fees to UC (credit information agency).
Transaction costs that are taken into consideration when cal-
culating the effective interest rate are not reported here.

FOREX BANK AB                                                                                 NOTES TO ThE FINANCIAL STATEMENTS   19
note 2 continued
                                                                   payments and fixed maturity that the company intends
the balance sheet when the loan amount has been paid               and is able to hold to maturity. Assets in this category are
out to the borrower.                                               valued at amortized cost.

(ii) Classification and valuation                                  Items in the balance sheet classified at held-to-maturity
                                                                   investments are: treasury bills eligible as collateral, bonds
Financial instruments are initially reported at the instrument's
fair value plus transaction costs except for instruments that      and other interest-bearing securities.
belong to the category financial assets reported at fair value     Available-for-sale financial assets
through the income statement. Such instruments are reported
                                                                   Available-for-sale assets are financial assets that are not clas-
at fair value, excluding transaction costs. A financial instru-
                                                                   sified in any other category and financial assets that the com-
ment is classified the first time it is reported partly based
                                                                   pany has initially chosen to classify in this category. holdings
on the purpose for which the instrument was acquired, and
                                                                   of shares and participations that are not reported as subsidiar-
partly based on the options available in IAS 39.
                                                                   ies, associated companies or joint ventures are reported here.
Financial assets valued at fair value via the                      Assets in this category are adjusted to fair value on a con-
income statement                                                   tinual basis. Changes in value are reported directly against
This category consists of two sub-categories: financial as-        equity, except for changes in value that are the result of im-
sets held for trading purposes and other financial assets          pairment (see accounting principles) or exchange rate differ-
that the company has initially chosen to put in this cat-          ences for monetary items, which are reported in the income
egory. Financial instruments in this category are adjusted         statement. In accordance with the effective interest method,
to fair value on a continual basis, with changes in value          the interest on interest-bearing instruments is reported in the
reported in the income statement. For financial instruments        income statement. The same applies to dividends on shares.
held for trading purposes, both realized and unrealized            For these instruments, any transaction costs are included in the
changes in value are reported in the income statement              cost of acquisition for first-time reporting. Afterwards, they are
item, Net profit (loss) from financial transactions.               included in the fair value reserve when regular adjustments to
Items in the balance sheet that are classified as financial        fair value are made. This is done until the time with the instru-
assets valued at fair value via the income statement, and          ment falls due or is disposed of. Upon disposal of the asset,
which are held for trading purposes, are cash and bank             the accumulated profit/loss is reported in the income state-
balances, as well as derivatives with a positive value that        ment (which was previously reported as part of equity).
are part of other assets. At the end of the financial year,        Items in the balance sheet classified as available-for-sale
there were no other financial assets that the company ini-         financial assets are other shares and participations.
tially chose to value at fair value via the income statement.
                                                                   Financial liabilities valued at fair value via the
Loan receivables and accounts receivable                           income statement
Loan receivables and accounts receivable are financial             This category consists of two sub-categories: financial liabili-
assets that are not derivatives that have fixed or determi-        ties that are held for trading purposes and financial liabilities
nable payments and are not quoted in an active market.
                                                                   that are classified in this category when reported for the first
These assets are valued at cost. Accounts receivable and
                                                                   time (Fair Value Option). Financial instruments in this category
loan receivables are reported at net realizable value, i.e.
                                                                   are adjusted to fair value on a continual basis, with changes in
after the allowance for doubtful accounts.
                                                                   value reported in the income statement. The first sub-category
Items in the balance sheet that are classified as loan re-         includes derivatives with a negative fair value. For financial
ceivables and accounts receivable are: loans granted to            instruments held for trading purposes, both realized and unre-
credit institutions, loans granted to the general public and       alized changes in value are reported in the income statement
other assets, except derivatives with a positive value.            item, Net profit (loss) from financial transactions.
Held-to-maturity investments                                       Items in the balance sheet classified as financial liabilities val-
held-to-maturity investments are financial assets consisting       ued at fair value via the income statement are derivatives with
of interest-bearing securities with fixed or determinable          a negative value that are included as part of other liabilities.


20 NOTES TO ThE FINANCIAL STATEMENTS                                                                             ANNUAL REPORT 2009
note 2 continued                                                     level for each loan category is based on historical data and
                                                                     experiences, the market value of the loans if they were to be
Other financial liabilities
                                                                     sold, business cycle fluctuations, etc. The write-down level of
The category, other financial liabilities, includes financial
                                                                     each loan category is reviewed on a regular basis.
liabilities that have not been classified in any other cat-
egory, such as borrowings, deposits and other liabilities.           As objective evidence of whether a write-down requirement
Liabilities in this category are valued at amortized cost.           exists, the bank calculates migration between the different
                                                                     categories. Other items considered as objective evidence
Items in the balance sheet that are classified as other finan-       are information about significant financial difficulties that the
cial liabilities are: liabilities to credit institutions, deposits   bank has become aware of through its analysis of financial
from the general public and other liabilities, except deriva-        statements, tax filings or other means of continually assessing
tives with a negative value.                                         the customer's creditworthiness, which are included as an
(m) loan losses and impairment of                                    integrated part of the bank's systems and routines for manag-
                                                                     ing credit risk. Concessions given to the bank's borrower due
financial instruments
                                                                     to the borrower's financial difficulties may also be consid-
(i) Test of impairment for financial assets                          ered as objective evidence of a doubtful account.
At each reporting occasion, the bank assesses whether
there is any objective evidence to suggest that a financial          For its customers' utilized credit facilities, the bank makes cal-
asset or group of assets needs to be written down as the             culations at each closing to ensure that there is an impairment
result of one or more events (loss events) having occurred           allowance equal to two percent of utilized credit facilities. For
after the asset was reported for the first time and that such        utilized credit facilities that have been submitted to a collec-
loss events have an impact on the estimated future cash              tion agency, the same write-down level is used as for loans.
flows generated by the asset or group of assets. If there is         Impairment (credit loss) is calculated as the difference be-
objective evidence suggesting that the asset has become              tween the discounted present value of future cash flows,
impaired, the bank then considers these as doubtful ac-              which is discounted using the loan's original effective in-
counts. Objective evidence consists partly of observable             terest rate and its carrying amount. The impairment loss is
events that have occurred that have a negative impact on             reported as a credit loss in the income statement.
the possibility to recover the asset's cost and partly of a
significant or long-term decline in the fair value of an in-         For doubtful loan receivables, when the carrying amount
vestment classified as an available-for-sale financial asset.        after any impairment losses is estimated as the total dis-
                                                                     counted value of future cash flows, the change in the written-
The bank evaluates whether there is a need to record an              down amount is reported as interest to the extent that the
impairment loss and if the credit loss should be reported on         increase is not based on a new assessment of the expected
an individual basis for all significant loans. For loans where       future cash flows. however, when there is a change in the
impairment is assessed on an individual basis and where              assessment of the expected future cash flows from a doubt-
it has not been possible to identify any write-down require-         ful loan receivable between two assessment occassions, the
ment, these are included in future assessments along with            difference is reported as a credit loss or recovery.
other loans that have similar credit risk characteristics in
order to determine whether a write-down requirement exists           For loans where the original loan conditions have been re-
at the group level.                                                  negotiated as a result of the borrower's financial difficulties,
                                                                     a credit loss is reported if the discounted present value of
For loans where it has been assessed that the individual
                                                                     the future cash flows, in accordance with the renegotiated
amount is not significant, the bank groups such loans and
                                                                     loan conditions, discounted by the loan's original effective
tests for impairment at the group level, without making any
                                                                     rate of interest, is lower than the loan's carrying amount. If,
individual assessments. The method used by the bank for
                                                                     after restructuring, it is expected that the loan will be paid
such write downs is to categorize loans as follows at each
                                                                     back in accordance with the renegotiated terms, the loan is
closing: loans that have not yet fallen due, loans that are
                                                                     then no longer classified as a doubtful account.
1-30 days past due, loans that are 31-60 days past due,
loans that are 61-90 days past due and loans that have               The carrying amount after impairment losses on assets be-
been sent to a debt collection agency. For each category,            longing to the category held-to-maturity, as well as loan/
a write-down level is determined equal to a percentage of            accounts receivable that are reported at amortized cost,
the total value of all loans in that category. The write-down        the present value of future cash flows is discounted


FOREX BANK AB                                                                                  NOTES TO ThE FINANCIAL STATEMENTS    21
note 2 continued                                                 (n) property, plant and equipment
                                                                 (i) Owned assets
using the effective rate of interest that applied with the as-
set was reported for the first time. Short-term assets are not   Property, plant and equipment are reported as assets in
discounted. Impairment losses are recorded in the income         the balance sheet if it is probable that future economic
statement.                                                       benefits will flow to the bank and if the asset's acquisition
                                                                 cost can be measured reliably.
(ii) Reversal of impairment loss
An impairment loss is reversed if there is evidence that         Property, plant and equipment, as well as reconstructions
a write-down requirement no longer exists and there has          and extensive renovations to owned or leased facilities are
been a change in the assumptions that formed the basis           reported by that group at cost less accumulated deprecia-
for calculating the written-down amount. Impairment of a         tion and any impairment losses or revaluations. Cost in-
loan receivable is reversed if the borrower is expected          cludes the purchase price and any costs directly attributable
to make the contractual payments in accordance with the          to the asset in order to bring it to working condition for its
original or restructured loan conditions. Reversal of impair-    intended use. Examples of what are included as directly at-
ment losses on loan receivables (credit losses) are reported     tributable costs are delivery, handling and installation.
as a decrease in credit losses and these are specified in a
                                                                 The carrying amount of an item of property, plant and
note to the financial statements.
                                                                 equipment is removed from the balance sheet when it is
For held-to-maturity investments along with loan receivables     disposed of or when no additional future economic ben-
and accounts receivable reported at amortized cost, a re-        efits are expected from its use or the disposal/sale of the
versal of impairment loss is made if a subsequent increase in    asset. Any profit or loss from the sale or disposal of an
the recoverable amount can objectively be attributed to an       asset is calculated as the difference between the asset's
event that occurred after the write-down was performed.          sales price and its carrying amount less any direct sales
Impairment losses on equity instruments that are classified      costs. The profit or loss is reported as part of other operat-
as available-for-sale financial assets, which were previous-     ing income/operating expenses.
ly reported in the income statement, are not reversed via
                                                                 (ii) Leased assets
the income statement. The written-down amount is the val-
ue from which subsequent revaluations are made, which            IAS 17 has been applied for all leased assets. Leases are
are reported directly against equity. Impairment losses on       classified as either operating or finance leases in the con-
interest-bearing instruments, classified as available-for-sale   solidated financial statements. A lease is classified as a
financial assets, are reversed via the income statement if       finance lease if it transfers substantially all the risks and re-
the fair value increases and the increase can objectively        wards incident to ownership to the lessee. If such is not the
be attributed to an event that occurred after the asset was      case, the lease is classified as an operating lease. For oper-
written down.                                                    ating leases, the leasing fees are expensed over the term of
                                                                 the lease based on usage, which may differ from what has
(iii) Write-offs of loan receivables
                                                                 actually been paid as leasing fees during the year.
Loan receivables classified as doubtful accounts are writ-
ten off (removed from the balance sheet) if the credit loss      The group reports all of its leasing agreements in accordance
can be determined with certainty, i.e. when the receiver         with the rules on operating leases.
has submitted an estimate of the dividends in bankruptcy,
                                                                 (iv) Additional expenses
the composition proposal has been accepted, or the re-
ceivable has otherwise been relinquished and the debtor          Additional expenses are included in the carrying amount
lacks distrainable funds and the collection case has been        only if it is probable that the future economic benefits that
transferred to a deferred proof of claim.                        are attributable to the asset will flow to the company and
                                                                 the cost of the asset can be measured reliably. All other
Once a loan receivable has been written off, it is no longer     additional expenses are expensed in the period in which
reported in the balance sheet. Recovery of any previously
                                                                 they arise. Repairs are expensed as incurred.
reported write-offs is reported as a decrease in credit loss-
es in the income statement item: Loan losses, net.



22   NOTES TO ThE FINANCIAL STATEMENTS                                                                        ANNUAL REPORT 2009
note 2 continued                                                    (p) impairment of property, plant and equipment
                                                                    and intangible assets
(iv) Depreciation principles
                                                                    (i) Test of impairment
Depreciation is made on a straight-line basis over the asset's
useful life. No depreciation is made on property.                   The carrying amounts of the company's assets are tested
                                                                    at each closing of the books in order to determine whether
Expected useful life for different types of assets;                 there are any indications of a write-down requirement. If
– Buildings                                         50 years        there is any indication of a write-down requirement, the as-
– Capitalized reconstruction costs              5 - 10 years        set's recoverable amount is calculated in accordance with
– Equipment                                       5-10 years        IAS 36 (see below). For goodwill and other intangible as-
At each year-end closing, the depreciation methods that             sets that have an indeterminate useful life, the recoverable
were used, along with the residual value and expected               amount is calculated on a yearly basis.
useful life for each type of asset is reassessed.                   If, when testing for impairment, the future expected cash
(o) intangible assets                                               flow for a particular asset can not be determined with
(i) Goodwill                                                        reasonable certainty, then the test is made on the cash
                                                                    generating unit, i.e., the smallest group of assets to which
Goodwill represents the difference between the acquisition
                                                                    that asset belongs.
value of the acquired business and the fair value of the ac-
quired assets, assumed liabilities and contingent liabilities.      Impairment loss is recorded whenever the carrying amount
                                                                    for an asset or cash generating unit (group of units) ex-
In conjunction with the transition to IFRS, for goodwill that was
                                                                    ceeds the recoverable amount. Impairment losses are re-
acquired before 1 January 2006, the group has not applied
                                                                    corded in the income statement. Any impairment loss on
IFRS retroactively. Rather, the carrying amount as of that date
                                                                    assets that belong to a cash generating unit are allocated
will continue to represent the group's cost of acquisition.
                                                                    first to goodwill. Then, a proportional write-down is made
Goodwill is shown at cost less any accumulated impairment           on the other assets belonging to the cash generating unit
losses. Goodwill is allocated amongst cash-generating units         (group of units).
and it is not amortized. Instead, it is tested annually for
                                                                    The recoverable amount on other assets is either the fair
impairment. Companies or branches are considered as
                                                                    value less selling expenses or the value-in-use (whichever is
cash-generating units. In business acquisitions where the ac-
                                                                    higher). In calculating the fair value, future expected cash
quisition cost is less than the net value of the acquired assets
                                                                    flows are discounted by a factor that takes into considera-
and assumed liabilities/contingent liabilities, the difference
                                                                    tion the risk-free interest rate along with the risk associated
is taken up directly in the income statement.
                                                                    with that particular asset. The recoverable amount for the
(iii) Other intangible assets                                       cash generating unit is calculated for essentially independ-
Other intangible assets that are acquired by the group are          ent assets belonging to the unit that do not generate an
shown at cost less accumulated amortization (see below)             expected future cash flow of their own.
and any impairment loss.                                            (q)   Share capital
(iii) Amortization principles                                       Dividends
Amortization is calculated on a straight-line basis over the        Dividends are reported as a liability as soon as the
useful life of the intangible asset, provided the duration of       dividend has been approved at the bank's Annual General
such useful life can be assessed. Goodwill and other in-            Meeting.
tangible assets with an uncertain useful life are assessed
                                                                    (r) employee benefits
annually to see if there has been any impairment or as soon
as there is any indication that the value of the asset has di-      (i) Post-employment benefits
minished. Amortization of intangible assets begins as soon          The bank's pension plans for employees are covered by
as the asset is available for use. The estimated useful life for    regular premium payments.
each type of intangible asset is shown below:
                                                                    In accordance with IAS 19, under a defined contribution
– rental agreements              5 years or over the duration       plan, the company pays fixed contributions into a fund
                                 of the agreement                   (separate legal entity) but has no legal or constructive
– other intangible assets        5-10 years                         obligation


FOREX BANK AB                                                                                NOTES TO ThE FINANCIAL STATEMENTS   23
note 2 continued                                                    (u) taxes
                                                                    Income taxes are comprised of current tax and deferred
to make further payments if the fund (separate legal entity)
                                                                    tax. Income taxes are reported in the income statement,
does not have sufficient assets to pay all of the employees' en-
                                                                    except when the underlying transaction is reported directly
titlements to post-employment benefits related to the employ-
                                                                    to equity, in which case the associated tax effect is also
ees' service during the current period or previous periods.
                                                                    reported to equity.
The bank's obligations related to fees for defined contri-
                                                                    Current tax is tax that must be paid or that will be received
bution pension plans are recognized in the income state-
                                                                    for the current year, using the tax rates that have been de-
ment during the same period in which the employee has
                                                                    cided or announced at year-end. Current tax also includes
rendered services to the bank. Premiums are paid based
                                                                    adjustments to taxes paid in prior periods.
on actual salaries. The year's expenses for these types of
insurance premiums are specified in Note 10.                        Deferred tax is calculated using the balance sheet ap-
                                                                    proach. This involves determining the tax base of assets
The bank does not have any defined benefit pension plans.           and liabilities in order to calculate temporary differences.
(iv) Pay related to notice of termination                           The following temporary differences are not taken into
                                                                    account: for temporary differences arising from the initial
Costs related to payment in conjunction with termination
                                                                    recognition of goodwill, initial recognition of assets and
of employment are reported as a provision only if the com-
                                                                    liabilities that are not business acquisitions and which, at
pany is demonstrably committed and lacking any realistic
                                                                    the time of the transaction, affect neither the accounting
possibilities to withdraw such notice and when there is a for-
                                                                    nor the taxable profit. Neither are temporary differences
mal, detailed plan to terminate employment before it would
                                                                    recognized that are related to participations in subsidiar-
otherwise expire. When payment is made as an offer to
                                                                    ies/associated companies that are not expected to reverse
encourage voluntary termination, a cost is recognized if it is
                                                                    in the foreseeable future.
likely that the offer will be accepted and if the number of em-
ployees likely to accept the offer can be reliably estimated.       Valuation of deferred tax is based on how the carrying
(iii) Short-term payments                                           amounts of assets or liabilities are expected to be realized
When short-term payments are made to employees, they                or regulated. Deferred tax is calculated using the tax rates
are calculated without being discounted and recognized as           and tax regulations that have been decided or announced
an expense as soon as the associated services have been             at year-end.
delivered.                                                          Deferred tax assets are recognized for deductible tempo-
(s) general administrative expenses                                 rary differences, loss or credit carryforwards to the ex-
General administrative expenses are comprised of employ-            tent that it is probable they can be utilized. The carrying
ee benefit expenses, which includes salaries and fees, pen-         amount of deferred tax assets is reduced when it is no
sion expenses, employer's contributions and other social            longer probable that they can be utilized.
security contributions. This is also where the expenses for         Tax on profit for the year includes current tax, deferred tax
the following items are reported: facilities, education, IT, tel-
                                                                    and tax related to prior years.
ecommunications, travel and entertainment, audit services,
other external services and other external expenses.                (v) contingent liabilities
                                                                    A contingent liability is reported when there is a possi-
(t) provisions
                                                                    ble commitment deriving from events that have occurred
A provision is reported in the balance sheet when the group
                                                                    whose existence can only be confirmed if one or more
has an existing legal or informal obligation resulting from
                                                                    uncertain future events occur. A contingent liability is also
an event that has occurred, and when it is probable that
                                                                    reported when there is a commitment that has not been re-
there will be an outflow of financial resources in order to
                                                                    ported as a liability or entered as a provision because it is
settle the obligation, and when the amount can be reliably
                                                                    not certain that an outflow of resources will be required.
estimated. When the effect of the timing of the payment is
significant, provisions are then calculated by discounting the      (x) the parent company's accounting principles
expected future cash flow using a discount rate before tax          The parent company's annual report has been prepared in
that reflects the actual market assessments of the time value       accordance with the Annual Accounts Act for Credit Institu-
of money and, when appropriate, the risks associated with           tions and Securities Companies (ÅRKL) (1995:1559) and
the obligation as well.                                             the Swedish Financial Supervisory Authority's regulations


24   NOTES TO ThE FINANCIAL STATEMENTS                                                                        ANNUAL REPORT 2009
note 2 continued                                                note 3 Financial riSkS
                                                                There are various types of risks associated with the bank's
and guidelines on annual reports issued by credit institu-
                                                                business, such as credit risks, market risks, liquidity risks and
tions and securities companies (FFFS 2008:25) and the
                                                                operational risks. In order to limit and control risk-taking in
Swedish Financial Reporting Board's recommendation RFR
                                                                the organization, the bank's board of directors, which has
2.2, Accounting for Legal Entities.
                                                                the ultimate responsibility for the bank's internal controls, has
As a result of RFR 2, the parent company, as the legal          established policies about the types of risks the bank is will-
entity, must apply all of the EU approved IFRS and IFRIC        ing to take along with how such risks should be managed.
statements to the extent that this is possible within the
framework of ÅRKL and taking into account the correlation       The bank's board of directors has the overall responsibility
between accounting and taxation.                                for the bank's risk management practices. The board has
                                                                issued specific instructions when delegating responsibility
Differences between the accounting principles used by the
                                                                to other functions. Such functions are then required to regu-
group and those used by the parent company are speci-
                                                                larly provide reports to the board of directors.
fied below. The accounting principles described have been
consistently applied to all periods that are reported in the    The bank has a separate function for independent risk con-
parent company's financial statements.                          trol. The function is responsible for supporting and devel-
(i) Subsidiaries                                                oping the bank's organization such that it actively takes re-
                                                                sponsibility for risks. The independent risk control function
Participations in subsidiaries are reported by the parent
                                                                reports to the board of directors and Managing Director
company in accordance with the cost value method. Divi-
                                                                on the bank's overall risk situation, along with the outcome
dends received are reported as revenue only if they derive
                                                                of risks that have a predetermined risk tolerance.
from earnings accrued after the acquisition. Dividends
exceeding these accrued earnings are regarded as repay-         The bank's policy is to identify, measure, manage, control
ment of investments and reduce the carrying amounts.            and report on all of its risks. The risks are continually moni-
(ii) Taxes                                                      tored through regular controls to ensure that they remain
                                                                within the established limits. Risk management policies,
The parent company reports untaxed reserves including
                                                                processes and systems are regularly reviewed in order
deferred tax liability, when such exists. In the consolidated
                                                                to ensure that they are correct and appropriate, that they
financial statements, untaxed reserves are classified as ei-
                                                                reflect the existing market conditions and cover all of the
ther deferred tax liability or equity.
                                                                products and services that are offered by the bank. The
(iii) Group contributions                                       bank creates the prerequisites for good risk control through
Group contributions that have been made or received by          training and clear processes, where every employee under-
the parent company in order to minimize the group’s total       stands his/her role and responsibilities.
tax are reported directly against retained earnings, less
                                                                credit risk
the current tax effect.
                                                                Credit risk is the risk that losses will occur as the result of
(iii) Additional depreciation                                   counterparties not being able to fulfill their obligations. Credit
The parent company reports additional depreciation, as          risk arises in conjunction with granting loans to the general
allowed by Swedish legislation, as appropriations in the        public and when making cash investments. The board of
income statement. They are included in the balance sheet        directors has the overall responsibility for the bank's credit
as part of untaxed reserves.                                    risk exposure. The board has issued specific instructions to
(iv) Intangible assets                                          delegate this responsibility to the Central Credit Committee.
                                                                This committee provides regular reports to the board.
Goodwill
Goodwill arising from the purchase of the net assets of a       Before granting any loans to the general public, an assess-
business that is reported in the financial statements of the    ment is made of the credit quality using scoring models
parent company or its branches is amortized over a pe-          (advanced statistical models). The bank regularly evalu-
riod ranging between 5 and 10 years. Such amortization          ates and changes its scoring models in order to reflect the
is then taken up in the consolidated financial statements.      credit quality of borrowers as accurately as possible.


FOREX BANK AB                                                                             NOTES TO ThE FINANCIAL STATEMENTS    25
note 3 continued                                               In addition to the bank's loans to the general public, it is also
                                                               exposed to credit risk for its account balances at other banks
The bank's granting of credit consists entirely of loans to
                                                               and for its cash investments. This relates to the balance sheet
the general public in the form of unsecured loans and cred-
                                                               item, Loans granted to credit institutions. The board has es-
it card loans. The maximum amount is SEK 300 thousand
                                                               tablished limits for these types of investments and the term
per borrower. At year-end, the average credit amount per
                                                               may not exceed one year. The distribution of the bank's in-
loan was SEK 55.0 (53.2) thousand. Of the total amount
                                                               vestments and account balances at various types of banks is
of loans granted to the general public, SEK 33.3 (56.1)
                                                               provided in the table below (SEK thousands):
million had a 100 percent risk weight as per the capital
adequacy rules. The remaining portion had a risk weight        the group
of 75 percent. The higher risk weight relates to the carry-                              2009                        2008
                                                               SEK thousands           State Financial inst.   State Financial inst.
ing amount of items referred for common collection. The
                                                               rating1)
gross amount of such items is SEK 64.3 (41.6) million.
                                                               AAA                       –           –           –             –
Loans to the general public are only granted to persons        AA- through AA+           –      44 226           –     1 419 390
residing in Sweden. There is no significant concentration      A- through A+             –   1 796 225           –       731 148
risk related to geographic distribution or age of loans. The   Below A-                  –       2 859           –        16 694
total risk spread is very low, with a granularity of 0.05.     Total investments and
Granularity is a measure of the average amount loaned in       account balances          –   1 843 310           –     2 167 232
relation to the sum of all loans granted. A value less than    1)
                                                                    The rating level is provided in the S&P scale regardless of
0.2 is generally considered to be an indication of a well-          which institution affixed the rating. In cases where institutions
diversified loan portfolio.                                         have affixed different rating levels, the lowest one is used
The bank's routines for monitoring payments that have          liquidity risk
fallen due and receivables that have not yet been settled      Liquidity risk is the risk that the bank will not be able to meet
is aimed at minimizing loan losses by, at an early stage,      its payment obligations when payment falls due without
identifying any problems that the borrower is having with      the costs associated with obtaining the means of payment
making payment and then ensuring that claims are quickly       increasing significantly. It is also possible to define liquidity
administered. All loans that are more than 90 days overdue     risk as the risk of incurring a loss or worsened earnings
are submitted to a collection agency and all credit granted    potential as a result of the bank not being able to meet its
to the borrower is then cancelled. Collection activities are   payment obligations on time. The bank's liquidity situation
conducted in cooperation with other market participants.       is exposed to variations in the lending and depositing
All credit is assessed using the UC's (Sweden's largest and    patterns of the general public, along with the bank's other
leading business and credit information agency) most recent    risks, primarily credit and reputation risks. Liquidity risks
scorecard. This is supplemented with a "living allowance"      also arise due to differences in the maturities of assets.
calculation and policies. As of 31 December 2009, the to-
tal volume of household credit was SEK 1 105 027 (679          The bank's risk management practices focus on achieving
436) thousand. The volume of loan receivables fallen due,      a spread on the maturity dates and liquidity quality of its
but not yet written off, is provided in the following table:   holdings. That means that investments are only made in
                                                               liquid securities, i.e. securities that are traded on an active
the group and parent company                                   market or in short-term deposits at other credit institutions.
SEK thousands                                                  Liquidity is continually monitored.
Loan receivables
1-30 days                                        132   721     At year-end, the bank's total liquidity reserve, which is de-
31-60 days                                         9   787     fined as loans granted to credit institutions, bonds and other
61-90 days                                         3   661     interest-bearing securities, was SEK 1 843 310 (2 167 232)
90 + days                                         15   686     thousand, which corresponds to 56.0 (63.6) percent of total
total                                            161 855       liabilities. At year-end, the parent company's total liquidity
                                                               reserve was SEK 1 824 604 (2 159 088) thousand, which
                                                               corresponds to 55.8 (62.9) percent of total liabilities.

26   NOTES TO ThE FINANCIAL STATEMENTS                                                                          ANNUAL REPORT 2009
note 3 continued                                                       other assets/liabilities in foreign currency associated with
All of the bank's financial liabilities fall due within 30 days.       the banks branches in the Nordic countries.
The bank's loans to credit institutions, bonds and other               Currency risk is calculated as the change in value of the in-
interest-bearing securities also mature within 30 days.                ventory of foreign currency when the SEK currency increases
market risk                                                            10 percentage points against the other currencies for which
Market risk is the risk of negative effects on the bank's net          the group is exposed. At year-end, this was equal to SEK 31
interest income/expense, or on the financial value of equity           639 (38 359) thousand. The following is a list of the curren-
as a result of fluctuations in interest and exchange rates.            cies (in thousands) where there is significant exposure:
Interest rate risk                                                                                rate    value in kSek          10%
The bank defines interest rate risk as the risk that the fair value    EUR       11   103    10.3530          114   950     11   495
of future cash flows from a financial instrument will vary due         USD        7   170     7.2125           51   710      5   171
to changes in market rates of interest. The risk arises when the       NOK       21   132     1.2430           26   267      2   627
fixed-interest terms on the bank's assets do not correspond to
                                                                       DKK       46   432     1.3915           64   611      6   461
the fixed-interest terms on its liabilities. For the bank, this pri-
                                                                                                              257   538     25   754
marily applies to the fixed interest terms on its loans to, and
deposits from the general public, as well as investments. The          The group's income statement includes exchange rate dif-
level of interest rate risk, or price risk, increases along with       ferences of SEK 14 721 (9 594) thousand in the net profit
the length of the maturity of the obligation.                          (loss) from financial transactions. The corresponding amount
                                                                       reported by the parent company was SEK 16 226 (7 353)
In accordance with the bank's risk policy, the organization's
                                                                       thousand.
financial risks are controlled through the setting of limits and
policy documents. When it comes to interest rate risks, for ex-        operational risks
ample, this means that the fixed-interest terms on the bank's          Operational risk is the risk of incurring losses due to in-
interest-bearing investments must have maturities not exceed-          appropriate or deficient internal processes, human error,
ing one year and the total interest rate risk may not exceed           faulty systems, irregularities or external events. Such risk
SEK 10 million when there is a 1 percent change in the mar-            arises if the bank's internal processes and/or systems do
ket rate of interest for all of the various maturity schedules.        not support the organization, are faulty, or result in incor-
                                                                       rect decisions, downtime, etc. that have a negative impact
The bank's deposits from/loans to the general public all
                                                                       on the bank's income statement and balance sheet.
have variable interest rates, which reduces the interest rate
risk. The bank's interest rate risk is primarily related to its        According to the bank's policy, the following are required
time-bound investments, for which the volume at year-end               in order to manage operational risks:
was SEK 0 (498 284) thousand. At year-end, the total inter-
                                                                       – clear policies and instructions about the bank's various
est rate risk for all of the various maturity schedules, meas-
                                                                         types of risks that are updated annually
ured as the change in value in conjunction with a 1 percent
change in interest rates was 3 (2 627) thousand.                       – well-documented processes, reporting lines and control
                                                                         systems for the bank, in general
Currency risk
The bank defines currency risk as the risk of incurring a              – clearly defined responsibilities and authorities
loss due to fluctuations in exchange rates.                            – a well-documented and communicated continuity plan
The bank is exposed to different types currency risks. Pri-            – a well-documented and communicated emergency plan
marily, this type of risk comes from the purchase and sale               for crisis situations
of foreign currencies and the inventory of currencies held
                                                                       – systems that are adapted to the organization's needs
by the bank for these activities, as well as the balance of
currency accounts at other banks. At year-end, the group's             – a well-documented process for managing operational risk
inventory of various types of foreign currencies, for which
                                                                       – information security and physical security in order to
the exchange rate fluctuations, to a certain extent, level
                                                                         protect the assets of the bank and its customers
out the total change in value against the SEK currency,
was SEK 316 390 (368 816) thousand. At year-end, the                   Operational risk is a significant type of risk. For this rea-
parent company's inventory of foreign currencies was SEK               son, the bank places a great deal of emphasis on how
246 517 (284 767) thousand. The bank also has certain                  these types of risk are managed.

FOREX BANK AB                                                                                  NOTES TO ThE FINANCIAL STATEMENTS   27
note 4
net intereSt income/expenSe
the group
SEK thousands                                                                                               2009                2008

interest income
Loans to credit institutions                                                                          19 405                75 752
Loans to the general public                                                                           68 316                60 314
Other                                                                                                  3 819                    34
total interest income                                                                                91 540               136 100

interest expenses
Liabilities to credit institutions                                                                     -1 191                -3 952
Deposits from the general public                                                                     -37 433              -109 061
   of which: deposit insurance expense                                                                 -3 984                  -911
Other                                                                                                    -216                  -133
total interest expenses                                                                             -38 840               -113 146
total net interest income/expense                                                                    52 700                 22 954
%                                                                                                           2009                2008

interest margin                                                                                             1.27               0.23
investment margin                                                                                           1.40               0.72

parent company
SEK thousands                                                                                               2009                2008

interest income
Loans to credit institutions                                                                          19 174                75 200
Loans to the general public                                                                           68 316                60 314
Group Companies                                                                                        3 819                 1 769
Other                                                                                                    718                    26
total interest income                                                                                92 027               137 309

interest expenses
Liabilities to credit institutions                                                                     -1   084              -3 619
Deposits from the general public                                                                     -37    433           -109 061
   of which: deposit insurance expense                                                                 -3   984                -911
Group companies                                                                                        -1   274              -1 714
Other
total interest expenses                                                                             -39 908               -114 469
total net interest income/expense                                                                    52 119                 22 840
%                                                                                                           2009                2008

interest margin                                                                                             1.30               0.32
investment margin                                                                                           1.41               0.75

definitions
Interest margin
Total interest income as a percentage of average total assets less total interest expenses as a percentage of average total assets,
less average equity and untaxed reserves.
Investment margin
Net interest income/expense as a percentage of average total assets

28   NOTES TO ThE FINANCIAL STATEMENTS                                                                             ANNUAL REPORT 2009
note 5
dividendS received
the group
SEK thousands                                             2009                 2008

Shares and participations                                     –                    39
total dividends received                                      –                    39


parent company
SEK thousands                                             2009                 2008

Shares and participations                                   –                      39
Shares and participations in group companies           54 409                       –
total dividends received                              54 409                       39


note 6
commiSSion income
the group
SEK thousands                                             2009                 2008

Commissions from remittance services                  38 116               32 061
Commissions from deposit services                        209                  211
Fees from charge/credit cards                         11 862               18 361
Other commissions                                    127 957              100 215
total commission income                              178 144              150 848

parent company
SEK thousands                                             2009                 2008

Commissions from remittance services                  28 015                23 671
Commissions from deposit services                        209                   211
Fees from charge/credit cards                         11 862                18 361
Other commissions                                    110 962                80 657
total commission income                             151 048               122 900


note 7
commiSSion expenSeS
the group
SEK thousands                                             2009                 2008

Commissions from remittance services                    -3 702               -3 392
Securities commissions                                       -1                   –
Other commissions                                     -18 804                -6 904
total commission expenses                            -22 507              -10 296

parent company
SEK thousands                                             2009                 2008

Commissions from remittance services                    -3 673               -3 368
Securities commissions                                       -1                   –
Other commissions                                     -20 077                -6 903
total commission expenses                            -23 751              -10 271




FOREX BANK AB                                  NOTES TO ThE FINANCIAL STATEMENTS   29
note 8
net proFit (loSS) From Financial tranSactionS
the group
SEK thousands                                                        2009                2008

Shares and participations                                            404                  –
Other financial instruments                                      794 225            572 384
Changes in exchange rates                                         14 721              9 594
total net profit (loss) from financial transactions              809 350           581 978

net profit/net loss by type                                        Via IS              Via IS
Financial assets, held for trading purposes                      807 975            588 631
Loan receivables and accounts receivable                             516              -2 975
Available-for-sale financial assets                                  404                    –
Financial liabilities, held for trading purposes                    -852                  46
Other financial liabilities                                        1 307              -3 724
total net profit (loss) from financial transactions              809 350           581 978

parent company
SEK thousands                                                        2009                2008

Shares and participations                                            407                  –
Other financial instruments                                      666 656            468 656
Changes in exchange rates                                         16 226              7 353
total net profit (loss) from financial transactions              683 289           476 009

net profit/net loss by type                                        Via IS              Via IS
Financial assets, held for trading purposes                      680 827            485 241
Loan receivables and accounts receivable                           1 600              -5 554
Available-for-sale financial assets                                  407                    –
Financial liabilities, held for trading purposes                    -852                  46
Other financial liabilities                                        1 307              -3 724
total net profit (loss) from financial transactions              683 289           476 009

note 9
other operating income
the group
SEK thousands                                                        2009                2008

Net profit (loss) on disposal of intangible assets                     –                 438
Net profit (loss) on disposal of property, plant and equipment        54                   5
Insurance reimbursements                                             163                   –
Other operating income                                             5 020                 613
total other operating income                                       5 237               1 056

parent company
SEK thousands                                                        2009                2008

Net profit (loss) on disposal of intangible assets                     –                 438
Net profit (loss) on disposal of property, plant and equipment        54                   5
Management fee, subsidiaries                                       6 300               6 750
Insurance reimbursements                                             163                    -
Other operating income                                             4 474                 525
total other operating income                                      10 991               7 718

30 NOTES TO ThE FINANCIAL STATEMENTS                                        ANNUAL REPORT 2009
note 10
general adminiStrative expenSeS
the group
SEK thousands                                          2009                 2008

employee benefit expenses
  –   salaries and fees                       -285     360          -276    938
  –   social security contributions             -66    530            -72   771
  –   pension premium expenses                  -27    062            -16   970
  –   other employee benefit expenses           -16    524            -20   824
total employee benefit expenses               -395 476             -387 503

other general administrative expenses
  –   rent and other facility expenses        -100     757           -76    198
  –   postage and telephone                     -19    835           -18    641
  –   audit                                       -3   308             -3   519
  –   other external expenses                   -75    874           -68    379
  –   other external expenses                   -37    291           -94    138
total other administrative expenses           -237 065             -260 875
total adminiStrative expenSeS                 -632 541             -648 378

parent company
SEK thousands                                          2009                 2008

employee benefit expenses
  –   salaries and fees                       -248     679          -239    673
  –   social security contributions             -58    552            -62   771
  –   pension premium expenses                  -25    482            -16   586
  –   other employee benefit expenses           -13    979            -17   774
total employee benefit expenses               -346 692             -336 804

other general administrative expenses
  –   rent and other facility expenses          -83    547           -58    902
  –   postage and telephone                     -17    429           -17    555
  –   audit                                       -2   523             -2   860
  –   other external expenses                   -75    613           -66    991
  –   other external expenses                   -32    997           -88    018
total other administrative expenses           -212 109             -234 326
total adminiStrative expenSeS                 -558 801             -571 130




FOREX BANK AB                            NOTES TO ThE FINANCIAL STATEMENTS    31
note 10 continued

Salaries, other remuneration and social security expenses
the group
SEK thousands                                                   2009                                     2008
                                                        bank mgmt      other employees        bank mgmt      other employees
Salaries                                                   -10 656           -266 812            -14 230           -254 367
Bonuses                                                      -1 929              -5 963              -298              -8 043
Social security expenses                                     -3 954            -62 576             -4 710            -68 061
total                                                     -16 539          -335 351             -19 238            -330 471

Of the group's pension expenses, SEK 2 239 (2 358) thousand was for the bank management team consisting of 8 (13) individ-
uals. No other outstanding pension obligations exist. All pension expenses are covered through regular pensions payments.

parent company
SEK thousands                                                   2009                                     2008
                                                        bank mgmt      other employees        bank mgmt      other employees
Salaries                                                   -10 656           -231 171            -13 315           -219 097
Bonuses                                                      -1 929              -4 923              -298              -6 963
Social security expenses                                     -3 954            -54 598             -4 413            -58 358
total                                                     -16 539          -290 692             -18 026            -284 418

Of the parent company's pension expenses, SEK 2 239 (2 358) thousand was for the bank management team consisting
of 8 (13) individuals. No other outstanding pension obligations exist. All pension expenses are covered through regular
pensions payments.



remuneration to senior executives
Board of Directors
Remuneration to the members of the board is established           instances, this occurs in consultation with the Chairman
at the FOREX Bank Annual General Meeting. At year-                of the Board. Remuneration to the Managing Director
end, the Board of Directors had 7 members and it held 8           and other senior executives consists of a base salary and
meetings. There are no fixed fees for participating in the        pension. During the year, some of the senior executives
board. Rather, compensation is based on the number of             and the Managing Director received bonuses. These are
meetings attended by each board member. The Chairman              reported under the heading, Variable remuneration. All
of the Board, Rolf Friberg and Board Member, Beth                 senior executives have notice period of 6 months with
Friberg have not received any payment for their work on           full salary when termination is handed down by FOREX
the board of directors. hans hellquist has also obtained          Bank. For the Managing Director, the notice period with
payment for work that he performed in addition to board           full salary is 12 months.
work. For other participation in committees, projects, etc.,
                                                                  Pensions
board members are compensated at an hourly rate.
                                                                  Pension insurance premiums are paid for the Managing
Managing Director and other senior executives                     Director and other senior executives in accordance with the
Remuneration to the Managing Director is decided by the           pension policy in effect at the bank. No pension obligations
board of directors. Remuneration to other senior executives       exist.
is decided by the Managing Director, and in certain               Remuneration and other items are reported below.




32   NOTES TO ThE FINANCIAL STATEMENTS                                                                      ANNUAL REPORT 2009
note 10 continued

remuneration and other benefits
the group and parent company 2009

                                                             basic salary
                                                                   board    variable     other        pension       other
SEK thousands                                                         fee       pay    benefits      expense         pay          total

Chairman of the Board, Rolf Friberg 1)                              350           –          –             –            –         350
Board Member, Beth Friberg 1)                                       938          74          7           400            –       1 419
Board Member, Anders Broström                                       123           –          –             –            –         123
Board Member, Jörgen holgersson 2)                                  223           –          –             –            –         223
Board Member, Gunnel Engberg 2)                                     235           –          –             –           19         254
Board Member, Christer Lundkvist                                    111           –          –             –            –         111
Board Member, hans hellquist                                        153           –          –             –           47         200
Board Member, Katja Elväng                                           75           –          –             –            –          75
Board Member, Carl Johan Smith                                       75           –          –             –            –          75
Managing Director and Group CEO,
Magnus Cavalli-Björkman                                           3 000      1 000           7           710             –      4 717
Other senior executives
parent company (7 individuals)                                    5 373        855          99         1 429             7      7 763
total group and parent company                                  10 656       1 929        113         2 539            73     15 310

the group and parent company 2008

                                              basic salary
                                                    board       variable      other     pension         other   Severance
SEK thousands                                          fee          pay     benefits   expense           pay          pay         total
Chairman of the Board, Rolf Friberg                     –             –           –          –             –             –          –
Board Member, Beth Friberg 1)                           –             –           –          –             –             –          –
Board Member, Anders Broström                                       123           –          –             –             –        123
Board Member, Jörgen holgersson                       98              –           –          –             –             –         98
Board Member, Gunnel Engberg                         123              –           –          –             –             –        123
Board Member, Christer Lundkvist                      98              –           –          –             –             –         98
Board Member, hans hellquist                         227              –           –          –           267             –        494
Board Member, Magnus Cavalli-Björkman                162              –           –          –             –             –        162
Managing Director and Group CEO,
Magnus Cavalli-Björkman                              250               –          –          –              –            –        250
Managing Director and Group CEO,
Tomas Zetterquist                                  2 074               –          4       430               –      1 650        4 158
Other senior executives
parent company (12 individuals)                    9 181            298          42     1 537              41         874     11 973
total parent company                             13 315             298         56      2 358            308       2 524      18 859
Additional other senior
executives (2 individuals)                           915               –          –          –             42            –        957
total group                                      14 230             298         56      2 358            350       2 524      19 816

1)
     The Chairman of the Board, Rolf Friberg and Board Member, Beth Friberg, receive compensation in accordance with their
     employment agreement. No board fees are paid to them.
2)
     As of 2009, fees are paid out on a regular basis during the year. For the comparison year, fees were paid in arrears for the
     entire year. however, in 2009, the board members, Gunnel Engberg and Jörgen holgersson received compensation for
     both 2008 and 2009.

FOREX BANK AB                                                                                     NOTES TO ThE FINANCIAL STATEMENTS   33
note 10 continued

variable remuneration
For employees of FOREX Bank's branches, there is a          executives were SEK 522 thousand. These loans are in the
bonus program that is paid out as variable remuneration     form of unsecured credit and the loan conditions are the
based on the extent to which established goals have been    same as what are typically used when granting credit to
achieved.                                                   the general public and other employees.
loans to senior executives                                  Information about remuneration in accordance with FFFS
As of 31 December 2009, outstanding loans to senior         2009:6. Please see the company's website: www.forex.se



average number of employees
the parent company and group
                                                                       2009                                     2008
parent company                               women         men         total      women           men           total
Sweden                                          442        107         549          416            96           512
Finland branch                                   47         24          71           51            24            75
Denmark branch                                   38         21          59           45            23            68
Norway branch                                    34         21          55           27            22            49
Iceland branch                                    3          1           4            4             1             5
total parent company                           564         174         738          530           164           694
Forex Sweden International Ltd. UK                2          2            4            1             1             2
X-change in Sweden AB
  – Sweden                                       71         37         108            66           34           100
  – Denmark branch                                7          6          13             9            5            14
total average number of employees
in the group                                   644         219         863          606           204           810


gender distribution, management
                                                                       2009                                     2008
the group                                    women         men         total      women           men           total
Directors                                         3          4            7            2             5             7
Other senior executives, including
Managing Director and Group Chairman              2          6            8            2           12             14
total                                             5         10          15             4           17            21
                                                                       2009                                     2008
parent company                               women         men         total      women           men           total
Directors                                         3          4            7            2             5             7
Other senior executives, including
Managing Director and Group Chairman              2          6            8            2           11             13
total                                             5         10          15             4           16            20




34   NOTES TO ThE FINANCIAL STATEMENTS                                                             ANNUAL REPORT 2009
note 10 continued

Sick leave
the group                                                                         2009             2008

Total sick leave as a percentage of regular working hours                        3.9%             4.6%
Proportion of total sick leave that was for 60 consecutive
sick leave days or more                                                         22.3%            35.2%

Sick leave as a percentage of each group's regular working hours
Sick leave, gender distribution:
Men                                                                              2.6%             3.2%
Women                                                                            4.3%             5.0%

Sick leave for various age categories:
29 years old or younger                                                          3.4%             2.9%
30-49 years                                                                      4.7%             6.6%
50 years old and above                                                           1.8%             5.1%

Information about the group's employees in Sweden.

parent company                                                                    2009             2008

Total sick leave as a percentage of regular working hours                        4.0%             4.6%
Proportion of total sick leave that was for 60 consecutive
sick leave days or more                                                         24.0%            38.4%

Sick leave as a percentage of each group's regular working hours
Sick leave, gender distribution:
Men                                                                              2.6%             3.1%
Women                                                                            4.3%             4.9%

Sick leave for various age categories:
29 years old or younger                                                          3.3%             2.6%
30-49 years                                                                      4.8%             6.6%
50 years old and above                                                           1.8%             5.1%

Information about the parent company's employees in Sweden.




FOREX BANK AB                                                      NOTES TO ThE FINANCIAL STATEMENTS   35
note 10 continued

Fees and expense reimbursements to auditors
the group                                                                                             2009            2008
Pricewaterhouse Coopers AB
Audit engagements                                                                                   2 313               –
Other assignments                                                                                     676           6 284
Grant Thornton Sweden AB
Audit engagements                                                                                     927           3 388
Other assignments                                                                                      96             822
Deloitte AB
Audit engagements                                                                                        –            131
Set Revisionsbyrå AB
Other assignments                                                                                        –              11
KPMG Bohlins AB
Other assignments                                                                                   2 951           1 454
Oury Clark
Audit engagements                                                                                      45                –
Other assignments                                                                                     101                –
Myrdahl og Sveen AS
Audit engagements                                                                                       23               –
total fees and expense reimbursements to auditors                                                   7 132         12 090

parent company                                                                                        2009            2008
Pricewaterhouse Coopers AB
Audit engagements                                                                                   1 925               –
Other assignments                                                                                     676           6 284
Grant Thornton Sweden AB
Audit engagements                                                                                     598           2 729
Other assignments                                                                                      96             822
Deloitte AB
Audit engagements                                                                                        –            131
Set Revisionsbyrå AB
Other assignments                                                                                        –              11
KPMG Bohlins AB
Other assignments                                                                                   2 951           1 454
total fees and expense reimbursements to auditors                                                   6 246         11 431


The audit engagement includes the audit of the annual          For year-end 2009, the group reported an expense of SEK
report, accounting records and the administration of the       70 479 (62 067) thousand for the rental of facilities. The
Board of Directors and the CEO, as well as other duties that   corresponding figure for the parent company was SEK 56
the company's auditor is obliged to conduct and advice or      231 (46 737) thousand.
other assistance resulting from observations made during
                                                               The budgeted amount of expenses for the rental of facilities
the audit or performance of these other duties. Any other
                                                               in 2010 is SEK 70.2 million for the group and SEK 55.9
services provided are included in "other fees."
                                                               million for the parent company. The company forecasts that
operating lease agreements                                     for 2011 and 2012, the group and parent company will
The group and parent company have operating leases in          have operating lease expenses at a level corresponding to
the form of rental expenses for facilities. Other operating    the amounts for 2009 and 2010.
leases are negligible.

36   NOTES TO ThE FINANCIAL STATEMENTS                                                                  ANNUAL REPORT 2009
note 11
other operating expenSeS
the group

SEK thousands                                                                           2009          2008

Insurance expenses                                                                 -3   261         -3 362
Security expenses                                                                -31    770       -20 049
Marketing expenses                                                               -55    768       -63 267
Capital loss on disposal of PPE and intangible assets                              -3   648           -130
Other operating expenses                                                           -2   046         -7 212
total other operating expenses                                                  -96 493          -94 020

parent company
SEK thousands                                                                           2009          2008

Insurance expenses                                                                 -1   893         -2 185
Security expenses                                                                -23    231       -13 556
Marketing expenses                                                               -48    312       -58 484
Capital loss on disposal of PPE and intangible assets                              -3   253           -130
Other operating expenses                                                           -2   046         -7 212
total other operating expenses                                                  -78 735          -81 567


note 12
loan loSSeS, net
the group and parent company
SEK thousands                                                                           2009          2008

Individually assessed loan receivables
Write-off for the year on verified credit losses                                 -18 791            -7 067
net expense for the year for individually assessed loan receivables             -18 791            -7 067
Loan receivables assessed as a group
Year's provision for the allowance for credit losses                             -54 879            -4 154
net expense for the year for loan receivables assessed as a group               -54 879            -4 154
net expenSe For the year For credit loSSeS                                      -73 670          -11 221


note 13
impairment oF Financial aSSetS
the group
SEK thousands                                                                           2009          2008

Shares and participations
Condominium, Brf Gråbjörnen 11, Malmö                                              -3 200                 –
total impairment of financial assets                                              -3 200                   –
parent company
SEK thousands                                                                           2009          2008

Shares and participations
Condominium, Brf Gråbjörnen 11, Malmö                                              -3 200                 –
Receivables from Group Companies
Forex Sweden International Ltd.                                                  -10 000                  –
total impairment of financial assets                                            -13 200                    –



FOREX BANK AB                                                         NOTES TO ThE FINANCIAL STATEMENTS   37
note 14
appropriationS
parent company
SEK thousands                                                                   2009           2008

Provision to tax allocation reserve                                          -34 400         -3 415
Reversal of tax allocation reserve                                            10 765        12 617
Excess depreciation/amortization                                               6 075         -4 188
total appropriations                                                         -17 560         5 014


note 15
taxeS
reported in the income statement
the group
SEK thousands                                                                   2009           2008

Current tax expense
Tax expense for the period                                                   -38 901         -5 803
Deferred tax expense
Deferred tax                                                                  -2 475         2 538
total reported tax expense                                                   -41 376        -3 265

parent company
SEK thousands                                                                   2009           2008

Current tax expense
Tax expense for the period                                                   -27 196         -4 968
Tax effect of group contributions                                                  –          9 856
Deferred tax expense
Deferred tax                                                                   4 895               –
total reported tax expense                                                   -22 301         4 888


reconciliation of effective tax
the group
SEK thousands                                        2009 (%)        2009     2008(%)           2008

Profit before tax                                               148 491                     -47 496
Tax according to the applicable tax rate             26.30%      -39 053      28.00%         13 299
Effect of other tax rates for foreign subsidiaries     0.06%           -99      0.10%            46
Non-deductible expenses                                4.54%       -6 740    -33.46%        -15 891
Non-taxable income                                    -0.02%            30          –             –
Tax related to prior years                             0.00%             4          –             –
Temporary differences                                  3.30%        4 895           –             –
Standard Interest on Tax Allocation Reserve            0.28%         -413      -1.51%          -719
reported effective tax                               27.86%     -41 376      - 6.87%        - 3 265




38   NOTES TO ThE FINANCIAL STATEMENTS                                             ANNUAL REPORT 2009
note 15 continued

parent company
SEK thousands                                                             2009 (%)            2009         2008(%)             2008

Profit before tax                                                                        125 170                           -71 931
Tax according to the applicable tax rate                                  26.30%          -32 920          28.00%           20 141
Effect of other tax rates for foreign branches                                  –                –           0.01%               6
Non-deductible expenses                                                     6.63%           -8 305        -20.49%          -14 738
Non-taxable income                                                       -11.44%           14 321                –               –
Tax related to prior years                                                  0.00%                4               –               –
Temporary Differences                                                      -3.91%            4 895               –               –
Standard interest on tax allocation reserve                                 0.24%             -296          -0.72%            -521
reported effective tax                                                   17.82%          -22 301           6.80%             4 888


deferred tax assets
the group and parent company                                                                            2009-12-31       2008-12-31

carrying amount at the beginning of the period                                                                  –                  –
Net change during the period                                                                                4 895                  –
carrying amount at the end of the period                                                                    4 895                   –


reported deferred tax receivables
deferred tax receivables are related to the following:
SEK thousands                                                                                          2009-12-31       2008-12-31
Tax effect of temporary differences:
Impairment of building                                                                                      4 053                  –
Impairment of financial assets                                                                                842                  –
total deferred tax liabilities                                                                              4 895                   –


deferred tax liabilities
the group                                                                                               2009-12-31       2008-12-31

carrying amount at the beginning of the period                                                             28 532           30 232
Net change during the period                                                                                4 974            -1 700
carrying amount at the end of the period                                                                  33 506           28 532


reported deferred tax liabilities
deferred tax liabilities are related to the following:
SEK thousands                                                                                           2009-12-31       2008-12-31

Property, plant and equipment                                                                               2 242            4 087
Intangible assets                                                                                           2 796            3 684
Tax allocation reserve                                                                                     28 468           20 761
total deferred tax liabilities                                                                            33 506           28 532


The group's provision for deferred tax liabilities relates to the tax effect on untaxed reserves in certain legal entities belonging
to the group, as well as the tax effect on consolidated acquisition values. Deferred tax is reported at the rate of 28 percent
for 2008 and at 26.3 percent for 2009.




FOREX BANK AB                                                                                  NOTES TO ThE FINANCIAL STATEMENTS   39
note 16
loanS to credit inStitutionS
the group
SEK thousands                                                                                      2009-12-31     2008-12-31

Loans to credit institutions
  – Swedish currency                                                                              1 775 700      1 550 874
  – foreign currency                                                                                 67 610        118 074
total loans to credit institutions                                                               1 843 310       1 668 948

parent company
SEK thousands                                                                                      2009-12-31     2008-12-31

Loans to credit institutions
  – Swedish currency                                                                              1 768 629      1 545 639
  – foreign currency                                                                                 55 975        115 165
total loans to credit institutions                                                               1 824 604       1 660 804


note 17
loanS to the general public
the group and parent company
SEK thousands                                                                                      2009-12-31     2008-12-31

Outstanding receivables, gross
 – Swedish currency                                                                               1 175 060        694 590
total outstanding receivables, gross                                                             1 175 060        694 590
Of which: doubtful
  Impairment loss on loan receivables assessed as a group                                            -70 033        -15 154
carrying amount of loans to the general public, net                                              1 105 027        679 436


change in impairment losses                                                 2009                          2008

                                                                 groupwise                        groupwise
                                                                   assessed              total       assessed          total
SEK thousands                                               loan receivables       impairment loan receivables   impairment
Opening balance, 1 January                                         -15 154           -15 154         -11 000        -11 000
Impairment loss for the year, credit losses                        -54 879           -54 879           -4 154         -4 154
ending balance on 31 december                                     -70 033           -70 033         -15 154        -15 154




40   NOTES TO ThE FINANCIAL STATEMENTS                                                                     ANNUAL REPORT 2009
note 18
bondS and other intereSt-bearing SecuritieS
the group and parent company
SEK thousands                                     2009-12-31                     2008-12-31
                                                Fair      carrying             Fair        carrying
                                               value       amount             value         amount
Issued by other borrowers
   – other finance companies                      –              –       297 455          297 455
   – other foreign issuers                        –              –       200 829          200 829
total bonds and other
interest-bearing securities                       –              –       498 284          498 284
Of which: Listed securities on an exchange        –              –       498 284          498 284
    Unlisted securities                           –              –             –                –

note 19
ShareS and participationS in group companieS
parent company
SEK thousands                                                          2009-12-31       2008-12-31
accumulated cost
At beginning of the year                                                 174 444          174 444
ending balance on 31 december                                            174 444          174 444

of which: Unlisted securities                                            174 444          174 444




FOREX BANK AB                                                  NOTES TO ThE FINANCIAL STATEMENTS   41
note 19 continued


group companies 2009
                                                                    equity   equity   number        carrying
SEK thousands                                    net profit/loss              share    shares        amount
X-change in Sweden AB, 556413-1463, Stockholm        31 666        62 048    100%     10   574     171 864
  – X-change Arlanda AB, 556331-5844, Stockholm             –         207    100%      1   000           –
  – X-change Malmö AB, 556448-5257, Stockholm               –         176    100%      1   000           –
  – X-change Göteborg AB, 556421-3592, Stockholm            –         169    100%      1   000           –
  – X-change ValutaSpecialisten Europe AB,
    556448-0712, Stockholm                               838        1 084    100%      1 000               –
  – X-change in Denmark A/S,2125149.6, Copenhagen           –       1 956    100%        500               –
FOREX Fastighetsförvaltning AB, 556281-3708,
  Stockholm                                                 –         125    100%      1 000            100
FOREX Kapitalförvaltning AB, 556274-7724,
  Stockholm                                                 –          133   100%      1   000          100
FOREX Internethandel AB, 556281-3724, Stockholm            -4          123   100%      1   000           50
  – Traveller Scandinavia AB, 556294-7282, Stockholm       -3          366   100%      1   000            –
FOREX OY Valuutanvaihto, 553.708, helsinki                  –      31 579    100%      1   000        1 622
FOREX Valutaveksling AS, 217139, Copenhagen              805            16   100%           50          593
FOREX Norge AS, 883 357 442, Oslo                           –       -7 023   100%          500          114
FOREX Sweden International Ltd,
2527227, London                                       -4 113            –    100%          100             1
total shares in group companies                                                                   174 444


group companies 2008
                                                                    equity   equity   number        carrying
SEK thousands                                    net profit/loss              share    shares        amount
X-change in Sweden AB, 556413-1463, Stockholm          18 764      30 441    100%     10   574     171 864
  – X-change Arlanda AB, 556331-5844, Stockholm             –         207    100%      1   000           –
  – X-change Malmö AB, 556448-5257, Stockholm               –         176    100%      1   000           –
  – X-change Göteborg AB, 556421-3592, Stockholm            –         169    100%      1   000           –
  – X-change ValutaSpecialisten Europe AB,
    556448-0712, Stockholm                              2 834         246    100%      1 000               –
  – X-change in Denmark A/S,2125149.6,
  Copenhagen                                               416      1 917    100%          500             –
  – X-change in Norway AS, 980 800 547, Oslo                 –         55    100%          100             –
FOREX Fastighetsförvaltning AB, 556281-3708,
  Stockholm                                                   1       125    100%      1 000            100
FOREX Kapitalförvaltning AB, 556274-7724,
  Stockholm                                                  1         133   100%      1 000            100
FOREX Internethandel AB, 556281-3724, Stockholm              1         123   100%      1 000             50
  – Traveller Scandinavia AB, 556294-7282, Stockholm         2         369   100%      1 000              –
FOREX OY Valuutanvaihto, 553.708, helsinki                   –     57 884    100%         50          1 622
FOREX Valutaveksling AS, 217139, Copenhagen              1 242     32 487    100%        500            593
FOREX Norge AS, 883 357 442, Oslo                            2          14   100%        100            114
FOREX Sweden International Ltd, 2527227, London         -3 225      -2 999   100%        100              1
total shares in group companies                                                                   174 444




42   NOTES TO ThE FINANCIAL STATEMENTS                                                     ANNUAL REPORT 2009
note 20
other ShareS and participationS
the group
SEK thousands                                                 2009-12-31       2008-12-31

Available-for-sale financial assets, listed below
  – credit institutions                                               –              270
  – other                                                         1 500            4 710
total available-for-sale financial assets                         1 500            4 980
total other ShareS and participationS                             1 500            4 980
of which: Listed securities on an exchange                            –              273
     Unlisted securities                                          1 500            4 707

list of other shares and participations 2009-12-31
                                                                                 carrying
                                                                 number           amount
Condominiums
  – Brf Gråbjörnen 11, Malmö                                            1          1 500
total                                                                              1 500


parent company
SEK thousands                                                       2009             2008

Available-for-sale financial assets, listed below
  – credit institutions                                               –              270
  – other                                                         1 500            4 707
total available-for-sale financial assets                         1 500            4 977
total other ShareS and participationS                             1 500            4 977
of which: Listed securities on an exchange                            –              270
     Unlisted securities                                          1 500            4 707

list of other shares and participations 2009-12-31
                                                                                 carrying
                                                                 number           amount
Condominiums
  – Brf Gråbjörnen 11, Malmö                                            1          1 500
total                                                                              1 500




FOREX BANK AB                                        NOTES TO ThE FINANCIAL STATEMENTS   43
note 21
intangible aSSetS
the group
                                                        acquired intangible assets
SEK thousands                            goodwill        rights of tenancy         other          total
Accumulated cost
Opening balance 2008-01-01               126 140               37 607            1 706       165 453
Acquisitions for the year                      –                 6 492               –          6 492
Sales for the year                             –                  -470               –           -470
Disposals for the year                         –                -2 995          -1 969         -4 964
Exchange rate differences for the year        56                   725             263          1 044
closing balance 2008-12-31               126 196               41 359                  -    167 555

Opening balance 2009-01-01               126 196               41 359                 –      167 555
Acquisitions for the year                      –                   600                –           600
Sales for the year                             –                  -200                –          -200
Disposals for the year                         –                -2 160                –        -2 160
Exchange rate differences for the year       259                  -264                –             -5
closing balance 2009-12-31               126 455               39 335                 –     165 790

Accumulated amortization
Opening balance 2008-01-01                      –              -19 457          -1 706        -21 163
Sales for the year                              –                   470              –             470
Disposals for the year                          –                 2 875          1 969           4 844
Amortization for year                           –                -6 448              –          -6 448
Exchange Rate Differences for the Year          –                  -455           -263            -718
closing balance 2008-12-31                          –         -23 015                 –      -23 015

Opening balance 2009-01-01                          -          -23 015                 -      -23 015
Sales for the year                                  -               140                -           140
Disposals for the year                              -             1 720                -         1 720
Amortization for year                               -            -5 802                -        -5 802
Exchange rate differences for the year              -               187                -           187
closing balance 2009-12-31                          -         -26 770                  -     -26 770

carrying amounts
As of 2008-01-01                         126 140               18 150                  -     144 290
as of 2008-12-31                         126 196               18 344                  -    144 540

As of 2009-01-01                         126 196               18 344                  -     144 540
as of 2009-12-31                         126 455               12 565                  -    139 020




44   NOTES TO ThE FINANCIAL STATEMENTS                                               ANNUAL REPORT 2009
note 21 continued
parent company
                                                  acquired intangible assets
SEK thousands                            goodwill rights of tenancy          other            total
Accumulated cost
Opening balance 2008-01-01                  7 568         21 732            1 706          31 006
Acquisitions for the year                       –           6 250               –            6 250
Sales for the year                              –            -470               –             -470
Disposals for the year                          –          -2 700          -1 969           -4 669
Exchange rate differences for the year        267             725             263            1 255
closing balance 2008-12-31                 7 835          25 537                 –        33 372

Opening Balance 2009-01-01                  7 835         25 537                 –         33 372
Acquisitions for the year                       –             600                –             600
Sales for the year                              –            -200                –            -200
Disposals for the year                          –          -1 600                –          -1 600
Exchange Rate Differences for the Year        251            -269                –              -18
closing balance 2009-12-31                 8 086          24 068                 –        32 154

Accumulated amortization
Opening balance 2008-01-01                 -4 926        -15 747           -1 706         -22 379
Sales for the year                              –             470               –              470
Disposals for the year                          –           2 580           1 969            4 549
Amortization for year                      -1 156          -3 231               –           -4 387
Exchange rate differences for the year       -212            -458            -263             -933
closing balance 2009-12-31                 -6 294        -16 386                 -       -22 680

Opening balance 2009-01-01                 -6 294        -16 386                 –        -22 680
Sales for the year                              –             140                –             140
Disposals for the year                          –           1 160                –           1 160
Amortization for year                      -1 160          -2 751                –          -3 911
Exchange rate differences for the year       -216             185                –              -31
closing balance 2009-12-31                 -7 670        -17 652                 –       -25 322

carrying amounts
As of 2008-01-01                            2 642          5 985                 –          8 627
as of 2008-12-31                           1 541           9 151                 –        10 692

As of 2009-01-01                            1 541          9 151                 –         10 692
as of 2009-12-31                              416          6 416                 –          6 832




FOREX BANK AB                                                 NOTES TO ThE FINANCIAL STATEMENTS   45
note 22
property, plant and equipment
the group
SEK thousands                                           capitalized
                                                           reconst.
                                         equipment       expenses     buildings             total
Accumulated cost
Opening balance 2008-01-01               140 820          40 916      87 528        269 264
Acquisitions for the year                  21 097         49 458       3 500          74 055
Sales for the year                             -65              –          –              -65
Reclassifications                         -42 744          -2 323          –         -45 067
Exchange rate differences                   1 329           2 720          –           4 049
closing balance 2008-12-31               120 437          90 771      91 028       302 236

Opening balance 2009-01-01               120     437      90 771      91 028        302      236
Acquisitions for the year                    8   153      12 747           –          20     900
Sales for the year                          -1   359            –          –           -1    359
Disposals for the year                    -33    999       -4 452          –         -38     451
Reclassifications                         -11    262      11 262           –                   –
Exchange rate differences                        116         -938          –                -822
closing balance 2009-12-31                82 086        109 390       91 028       282 504

Accumulated depreciation
Opening balance 2008-01-01                -96 600         -13 060      -2 817      -112 477
Sales for the year                             65                –          –              65
Disposals for the year                     42 735            2 323          –         45 058
Depreciation for year                     -16 507         -15 680      -1 821        -34 008
Exchange rate differences                    -913           -1 424          –          -2 337
closing balance 2008-12-31               -71 220         -27 841       -4 638     -103 699

Opening balance 2009-01-01                -71     220     -27 841      -4 638      -103 699
Sales for the year                          1     127            –          –          1 127
Årets utrangeringar                        32     609        2 813          –         35 422
Reclassifications                           7     750       -7 750          –              –
Depreciation for year                     -25     788     -19 706      -1 822        -47 316
Exchange rate differences                        -316          361          –             45
closing balance 2009-12-31               -55 838         -52 123      - 6 460     -114 421

Accumulated impairment losses
Opening balance 2009-01-01                          –            –          –              –
Impairment losses for the year                      –            –    -15 411        -15 411
closing balance 2009-12-31                          –            –    -15 411       -15 411

carrying amounts
As of 2008-01-01                          44 220          27 856      84 711        156 787
as of 2008-12-31                          49 217          62 930      86 390       198 537

As of 2009-01-01                          49 217          62 930      86 390        198 537
as of 2009-12-31                          26 248          57 267      69 157       152 672



46   NOTES TO ThE FINANCIAL STATEMENTS                                      ANNUAL REPORT 2009
note 22 continued

tax assessment value                                                        2009-12-31       2008-12-31

Tax assessment value, buildings
  – Rörbäcksnäs 20:70, Sälen                                                   1 195              751
  – Cerberus 2, Kornhamnstorg 4, Stockholm                                 Not affixed     Not affixed

parent company
SEK thousands                                               capitalized
                                                               reconst.
                                             equipment       expenses         buildings               total
Accumulated cost
Opening balance 2008-01-01                   107 757          40 915           87 528         236 200
Acquisitions for the year                      13 774         46 744            3 500           64 018
Sales for the year                                 -65              –               –               -65
Reclassifications                             -32 019          -2 323               –          -34 342
Exchange rate differences                       1 132           2 720               –            3 852
closing balance 2008-12-31                    90 579          88 056          91 028         269 663

Opening balance 2009-01-01                     90    579      88 056           91 028         269      663
Acquisitions for the year                        6   972      11 995                –           18     967
Sales for the year                              -1   359            –               –            -1    359
Disposals for the year                        -32    461       -4 452               –          -36     913
Exchange rate differences                            185         -993               –                 -808
closing balance 2009-12-31                    63 916          94 606          91 028         249 550

Accumulated depreciation
Opening balance 2008-01-01                    -72 814         -13 059           -2 817         -88 690
Sales for the year                                 65                –               –               65
Disposals for the year                         32 011            2 323               –          34 334
Amortization for year                         -10 958         -15 096           -1 821         -27 875
Exchange rate differences                        -792           -1 466               –           -2 258
closing balance 2008-12-31                   -52 488         -27 298           -4 638         -84 424

Opening balance 2009-01-01                    -52     488     -27 298           -4 638         -84    424
Sales for the year                              1     127           –                –           1    127
Disposals for the year                         31     466       2 813                –          34    279
Depreciation for year                         -22     565     -17 260           -1 822         -41    647
Exchange rate differences                            -375         344                –                 -31
closing balance 2009-12-31                   -42 835         -41 401           -6 460         -90 696

Accumulated impairment losses
Opening balance 2009-01-01                              –            –              –                –
Impairment losses for the year                          –            –        -15 411          -15 411
closing balance 2009-12-31                              –            –       -15 411          -15 411

carrying amounts
As of 2008-01-01                              34 943          27 856           84 711         147 510
as of 2008-12-31                              38 091          60 758          86 390         185 239

As of 2009-01-01                              38 091          60 758           86 390         185 239
as of 2009-12-31                              21 081          53 205          69 157         143 443

FOREX BANK AB                                                      NOTES TO ThE FINANCIAL STATEMENTS    47
note 22 continued

tax assessment value                          2009-12-31    2008-12-31

Tax assessment value, buildings
  – Rörbäcksnäs 20:70, Sälen                     1 195            751
  – Cerberus 2, Kornhamnstorg 4, Stockholm   Not affixed   Not affixed

note 23
receivableS From group companieS
parent company
SEK thousands                                 2009-12-31    2008-12-31

X-change in Sweden AB                           36 675         61 554
Forex Sweden International Ltd.                    222          6 931
Forex Norge AS                                     120            106
total receivables from group companies          37 017         68 591


note 24
other aSSetS
the group
Tkr                                           2009-12-31    2008-12-31

Positive value on derivative instruments           437              –
Credit card receivables                         28 981         20 272
Other assets                                    43 359         26 239
total other assets                              72 777         46 511

parent company
SEK thousands                                 2009-12-31    2008-12-31

Positive value on derivative instruments           437              –
Credit card receivables                         24 288         17 326
Other assets                                    10 578         13 977
total other assets                              35 303         31 303


note 25
prepaid expenSeS and accrued income
the group
Tkr                                           2009-12-31    2008-12-31

Prepaid expenses                                24 311         18 900
Accrued interest income                          2 194          1 514
Other accrued interest                          10 553         13 653
total prepaid expenses and accrued income       37 058         34 067

parent company
SEK thousands                                 2009-12-31    2008-12-31

Prepaid expenses                                18 622         14 879
Accrued interest income                          2 194          1 514
Other accrued interest                           9 736         12 620
total prepaid expenses and accrued income       30 552         29 013



48    NOTES TO ThE FINANCIAL STATEMENTS               ANNUAL REPORT 2009
note 26
liabilitieS to credit inStitutionS
the group
SEK thousands                                                   2009-12-31       2008-12-31

Liabilities to credit institutions
   – Swedish currency                                              71 145          89 176
   – foreign currency                                                   –               6
total liabilities to credit institutions                          71 145           89 182

Approved limit                                                     71 145          99 175
Of which: overdraft                                                     –          26 500

parent company
SEK thousands                                                   2009-12-31       2008-12-31

Liabilities to credit institutions
   – Swedish currency                                              71 145          72 675
total liabilities to credit institutions                          71 145           72 675

Approved limit                                                     71 145          74 175
Of which: overdraft                                                     –           1 500

note 27
depoSitS From the general public
the group and parent company
SEK thousands                                                   2009-12-31       2008-12-31

General public
 – Swedish currency                                            2 983 081       3 014 890
total deposits from the general public                        2 983 081        3 014 890
All deposits are deposits from the household sector.

note 28
liabilitieS to group companieS
parent company
SEK thousands                                                   2009-12-31       2008-12-31
Forex OY Valuutanvihto                                              3 482           57 884
Forex Valutaveksling A/S                                           30 415           31 585
Forex Internethandel AB                                                69                –
Forex Kapitalförvaltning AB                                           113                –
Forex Fastighetsförvaltning AB                                        109                –
Traveller Scandinavia AB                                              366                –
total liabilities to group companies                              34 554           89 469




FOREX BANK AB                                          NOTES TO ThE FINANCIAL STATEMENTS   49
note 29
other creditorS
the group
SEK thousands                                2009-12-31     2008-12-31

Negative value on derivative instruments            901              –
Preliminary tax, interest                       9   761       31   983
Employee withholding tax                        8   044        7   052
Advance payments from customers                 1   629        1   793
Accounts payable - trade                       31   535       34   647
Income tax liability                           11   567        4   025
Other liabilities                              50   458      109   352
total other liabilities                      113 895        188 852

parent company
SEK thousands                                2009-12-31     2008-12-31

Negative value on derivative instruments            901              –
Preliminary tax, interest                       9   761       31   983
Employee withholding tax                        7   237        6   445
Advance payments from customers                 1   629        1   793
Accounts payable - trade                       28   765       30   132
Income tax liability                            4   788        4   023
Other liabilities                              42   729      102   220
total other liabilities                       95 810        176 596


note 30
accrued expenSeS and prepaid income
the group
Tkr                                          2009-12-31     2008-12-31

Accrued employee benefit expenses              19 043         18 981
Other accrued expenses                         70 200         65 573
total accrued expenses and deferred income    89 243          84 554

parent company
Tkr                                          2009-12-31     2008-12-31
Accrued employee benefit expenses              17 635         17 516
Other accrued expenses                         67 076         60 429
total accrued expenses and deferred income    84 711          77 945


note 31
proviSionS
the group and parent company
SEK thousands                                2009-12-31     2008-12-31

Other:
  – Restructuring expenses                      2 000                –
total provisions                                2 000                –




50 NOTES TO ThE FINANCIAL STATEMENTS                 ANNUAL REPORT 2009
note 32
untaxed reServeS
parent company
SEK thousands                                                               2009-12-31       2008-12-31

Accumulated excess depreciation:                                                8 524           14 598
equipment
Opening balance, 1 January                                                     14 598           10 411
Excess depreciation for the year:                                               -6 074           4 187
ending balance on 31 december                                                   8 524          14 598


tax allocation reserve
Tax   Assessment   2004                                                               –         10   765
Tax   Assessment   2005                                                        11   696         11   696
Tax   Assessment   2006                                                         4   649          4   649
Tax   Assessment   2007                                                         7   674          7   674
Tax   Assessment   2008                                                        14   565         14   565
Tax   Assessment   2009                                                         3   415          3   415
Tax   Assessment   2010                                                        34   400                -–
ending balance on 31 december                                                 76 399           52 764

total untaxed reServeS                                                        84 923           67 362



note 33
pledged aSSetS
the group
SEK thousands                                                               2009-12-31       2008-12-31

In the form of pledged assets for own liabilities and provisions
Chattel mortgages                                                                     –         37 750
total pledged assets                                                                  –        37 750


note 34
contingent liabilitieS
the group and parent company
SEK thousands (nominal amt)                                                 2009-12-31       2008-12-31

Warranties
 – Warranty obligations – other                                                 1 000            1 000
total contingent liabilities                                                    1 000            1 000


note 35
commitmentS
the group and parent company
SEK thousands (nominal amt)                                                 2009-12-31       2008-12-31

Other commitments
  – Unutilized portion of granted credit                                     474 303          540 234
  – Credit and loan commitments                                                7 500            7 500
total commitments                                                            481 803          547 734


FOREX BANK AB                                                      NOTES TO ThE FINANCIAL STATEMENTS   51
note 36
related partieS

related party relationships, group companies                  During the year, the parent company paid commissions in
In 2009, the parent company invoiced interest of SEK 607      the amount of SEK 1 274 (-) thousand to the subsidiary,
(1 634) thousand to the subsidiary, X-change in Sweden        X-change in Sweden AB for cash services rendered. For
AB and SEK 110 (134) thousand to the subsidiary, Forex        other information, please refer to Note 23 and Note 28.
Sweden International Ltd. For 2008, the parent company        transactions with key management personnel
was charged SEK 1 271 (1 714) in interest from the sub-
                                                              For information about salary, other remuneration and pen-
sidiary, Forex Valutaväxling AS.
                                                              sions for key management personnel, please see note 10.
Furthermore, in 2009, the parent company invoiced man-
                                                              There have otherwise not been any transactions with key
agement fees of SEK 6 000 (6 750) thousand to the sub-
                                                              management personnel.
sidiary, X-change in Sweden AB and SEK 300 (-) thousand
to the subsidiary, Forex Sweden International Ltd. In 2009,   transactions with the owner
the parent company was charged SEK 1 016 (-) thousand         During the year, the owners have not received any dividends.
in management fees by the subsidiary, Forex Sweden In-        In 2008, dividends of SEK 8 600 thousand were paid to
ternational Ltd.                                              the owner.


note 37
geographic diStribution oF income
the group
                                                                             Sweden                    other countries
SEK thousands                                                         2009            2008           2009            2008

Interest income                                                  89 160          132 790          2 380           3 310
Dividends received                                                    –               39              –               –
Commission income                                               136 853          115 760         41 291          35 088
Net profit from financial transactions                          631 178          436 327        178 172         145 651
Other operating income                                            3 783              772          1 454             284
geographic distribution of total income                        860 974          685 688        223 297         184 333

parent company
                                                                             Sweden                    other countries
SEK thousands                                                         2009            2008           2009            2008

Interest income                                                  91   025        131 416          1 002           5 893
Dividends received                                               54   409             39              –               –
Commission income                                               113   660         91 031         37 388          31 869
Net profit from financial transactions                          515   635        340 266        167 654         135 743
Other operating income                                           10   271          7 445            720             273
geographic distribution of total income                        785 000          570 197        206 764         173 778




52   NOTES TO ThE FINANCIAL STATEMENTS                                                                 ANNUAL REPORT 2009
note 38
Financial aSSetS and liabilitieS

                                                    Financial assets valued Loan receivables   Available-for-          Financial              Other         total   Fair value
                                                       at fair value via the   and accounts    sale financial           liabilities        financial    carrying
                                                         income statement         receivable       assets              valued at          liabilities    amount
                                                                                                                  fair value via
                                                                                                                    the income
                                                                                                                       statement
                                     Decided that financial       holdings
the group                             assets belong to this     for trading                                         holdings for
2009-12-31                                        category        purposes                                     trading purposes

Cash and bank balances                                            403 275                                                                                403 275      403 275
Loans to credit institutions                                                    1 843 310                                                               1 843 310   1 843 310
Loans to the general public                                                     1 105 027                                                               1 105 027   1 105 027
Other shares and participations                                                                      1 500                                                  1 500       1 500
Other assets                                                           437         76 812                                                                 77 249       77 249
Prepaid expenses and accrued income                                37 058                                                                                 37 058       37 058
total financial assets                                    –      403 712        3 062 207            1 500                       –                  –   3 467 419   3 467 419

Liabilities to credit institutions                                                                                                         71 145         71 145       71 145
Deposits from the general public                                                                                                        2 983 081       2 983 081   2 983 081
Other liabilities                                                                                                           901           112 994        113 895      113 895
Accrued expenses and prepaid income                                                                                                        89 243         89 243       89 243
total financial liabilities                               –               –               –                –                901         3 256 463       3 257 364   3 257 364


                                                    Financial assets valued Loan receivables   Available for-          Financial              Other         total   Fair value
                                                       at fair value via the   and accounts    sale financial           liabilities        financial    carrying
                                                         income statement         receivable       assets              valued at          liabilities    amount
                                                                                                                  fair value via
                                                                                                                    the income
                                                                                                                       statement
                                     Decided that financial       holdings
parent company                        assets belong to this     for trading                                      holdings for
2009-12-31                                        category        purposes                                  trading purposes

Cash and bank balances                                            316 620                                                                                316 620      316 620
Loans to credit institutions                                                    1 824 604                                                               1 824 604   1 824 604
Loans to the general public                                                     1 105 028                                                               1 105 028   1 105 028
Other shares and participations                                                                      1 500                                                  1 500       1 500
Other assets                                                           437         71 883                                                                 72 320       72 320
Prepaid expenses and accrued income                                                30 552                                                                 30 552       30 552
total financial assets                                    –      317 057        3 032 067            1 500                       –                  –   3 350 624   3 350 624

Liabilities to credit institutions                                                                                                         71 145         71 145       71 145
Deposits from the general public                                                                                                        2 983 081       2 983 081   2 983 081
Other creditors                                                                                                             901           129 463        130 364      130 364
Accrued expenses and prepaid income                                                                                                        84 711         84 711       84 711
total financial liabilities                               –               –               –                –                901         3 268 400       3 269 301   3 269 301




calculation of fair value
                                                                                           trader, broker, trade association, company that provides
The following is a summary of the methods and assumptions
                                                                                           current price information or supervisory authority and if
that were primarily used in order to establish the fair value
                                                                                           these prices represent actual and regularly occurring market
for the financial instruments reported in the table above.
                                                                                           transactions with commercial terms. Any future transaction
Financial instruments quoted on an active market                                           expenses associated with a sale have not been considered.
For financial instruments quoted in an active market, fair                                 For financial liabilities, fair value is based on the quoted
value is assessed based on the asset's quoted bid price on                                 asked price. Such instruments are included in the balance
the closing date, excluding any transaction expenses (such                                 sheet item, Shares and participations, as well as in the item,
as courtage) at the time of acquisition. A financial instrument                            Bonds and other interest-bearing securities. The majority of
is considered as being quoted on an active market if the                                   the company's financial instrument have been affixed a fair
listed price can easily be obtained from a stock market,                                   value using prices quoted on an active market.



FOREX BANK AB                                                                                                                        NOTES TO ThE FINANCIAL STATEMENTS     53
note 38 continued
                                                                 Currency inventories are valued using the closing day
                                                                 rates provided by the Swedish Central Bank (Sveriges
Financial instruments that are not quoted in an active market    Riksbank).

The fair value of loan receivables has been calculated by        The revised IFRS 7 is applied as of 1 January 2009 for
discounting the value of expected future cash flows. The         financial instruments measured at fair value in the balance
current lending rate is used as the discount rate.               sheet. This requires disclosures on fair value measurement
                                                                 at each of the following levels in the fair value hierarchy:
For accounts receivable and accounts payable with a
remaining useful life that is less than six months, it is           Q
                                                                 •	 	 uoted	prices	(unadjusted)	in	active	markets	for	identical	
assumed that the carrying amount also reflects the fair             assets or liabilities (level 1)
value. Customer and accounts payable with maturities in
                                                                    O
                                                                 •	 	 ther	observable	input	on	assets	or	liabilities	are	quoted	
excess of six months are discounted in conjunction with
                                                                    prices included in level 1, either directly (i.e. as quota-
establishing fair value.
                                                                    tions) or indirectly (i.e. derived from quotations) (level 2)
The fair value of borrowings is calculated using current
                                                                    I
                                                                 •	 	nput	on	assets	or	liabilities	that	is	not	based	on	observable	
market rates of interest, holding constant the original credit
                                                                    market data (i.e. non-observable data) (level 3)
spread, unless there is clear proof that a change in the
bank's credit rating has resulted in an observable change        The following table shows the bank's assets and liabilities
in the bank's credit spread.                                     valued at fair value as of 31 December 2009.




the group
                                             carrying amount     Fair value valuation at the end of the period based on:
SEK thousands                                     2009-12-31                   level 1               level 2               level 3

Financial assets valued
at fair value via the income statement
   – Cash and bank balances held for
     trading purposes                              403 275                  403 275
   – Derivatives held for trading purposes             437                                             437
Available-for-sale financial assets
   – Shares and participations                        1 500                                          1 500
total                                              405 212                 403 275                  1 937                       –

parent company
                                             carrying amount     Fair value valuation at the end of the period based on:
SEK thousands                                     2009-12-31                   level 1               level 2               level 3

Financial assets valued
at fair value via the income statement
   – Cash and bank balances held for
     trading purposes                              316 620                  316 620
   – Derivatives held for trading purposes             437                                             437
Available-for-sale financial assets
   – Shares and participations                        1 500                                          1 500
total                                              318 557                 316 620                  1 937                       –




54   NOTES TO ThE FINANCIAL STATEMENTS                                                                         ANNUAL REPORT 2009
note 39
caSh Flow Statement
the group
cash and cash equivalents
SEK thousands                                                                                     2009-12-31       2008-12-31

Cash and cash equivalents is comprised of the following items:
Cash at bank and in hand                                                                         2 246 585        2 139 834
total cash equivalents                                                                          2 246 585        2 139 834

Short-term investments have been classified as cash equivalents based on the following prerequisites:
• There is negligible risk of fluctuations in value
• They can easily be converted into cash
• They mature in three months or less from the time of acquisition

interest paid and dividends received that are included
in cash flow from operating activities
SEK thousands                                                                                           2009             2008

Dividends received                                                                                        –               39
Interest received                                                                                    95 154          136 730
Interest paid                                                                                       -38 840         -113 146

parent company
cash and cash equivalents
SEK thousands                                                                                     2009-12-31       2008-12-31

Cash and cash equivalents is comprised of the following items:
Cash at bank and in hand                                                                         2 141 224        2 019 822
total cash equivalents                                                                          2 141 224        2 019 822

Short-term investments have been classified as cash equivalents based on the following prerequisites:
• There is negligible risk of fluctuations in value
• They can easily be converted into cash
• They mature in three months or less from the time of acquisition

interest paid and dividends received that are included
in cash flow from operating activities
SEK thousands                                                                                           2009             2008
Dividends received                                                                                    54 409              39
Interest received                                                                                     95 641         137 939
Interest paid                                                                                       --39 908        -114 469




FOREX BANK AB                                                                            NOTES TO ThE FINANCIAL STATEMENTS   55
note 40                                                               During 2008, the Swedish Financial Supervisory Author-
acquiSitionS                                                          ity initiated an investigation into FOREX Bank's measures
                                                                      to prevent money laundering and the financing of terror-
No companies or businesses were acquired in 2009.
                                                                      ism. Swedish Financial Supervisory Authority's investiga-
note 41                                                               tion identified several deficiencies causing it to issue both
important eStimateS and aSSeSSmentS                                   a warning and penalty fee of SEK 50 million. As a result,
                                                                      the bank has implemented changes throughout its organiza-
Amortization of loan losses is typically based on an indi-
                                                                      tion. The size of the penalty fee has been appealed. The
vidual assessment of each claim in default. For receivables
                                                                      size of the penalty fee has negatively impacted the bank's
from the general public, a loss reserve has been calculated
                                                                      capital base.
based on the entire group of such receivables, since the
portfolio is comprised of a homogenous group. The value               note 42
assigned to each group is based on the expectation of sub-            capital adequacy
mitting to a collection agency within the next 12 months, less
                                                                      The bank's risk management and capital management prac-
any amount recovered by the collection agency. The loss
                                                                      tices are governed by the board's policies on these items,
reserve has been based on the historical trend for doubt-
                                                                      whichprovides the framework for capital planning and more
ful debts along with verified losses. Consideration has also
                                                                      based on:
been given to economic factors, development of the size of
the overall portfolio and the quality of credit. The model is         •   the bank's risk profile,
always being reviewed in order to follow up on the various            •   identified risks taking into consideration probabilities and
parameters and how they affect the final outcome.                         financial effects,
The property where the group's main office is located was             •   stress tests and scenario analyses,
acquired in 2006. During 2009, there was an in-depth                  •   anticipated expansion of loans and financing possibilities
analysis of its technical and financial status. Based on devel-           and
opments worldwide in finance and property markets, it was
                                                                      •   new legislation, the behavior of competitors and other
concluded that the carrying amount of the property needed
                                                                          changes in the surrounding world.
to be written down by SEK 15.4 million. That amount was
expensed during the year.                                             Capital planning is an integrated part of the bank's annual
                                                                      organizational planning activities. The plan is followed up
A review was also conducted of the group's other properties
                                                                      as necessary and an annual review is conducted in conjunc-
and condominiums. As a result, impairment losses were re-
                                                                      tion with the bank's Internal Capital Evaluation, in order to
corded of SEK 3.2 million in order to adjust to market values.
                                                                      ensure that the risks have been properly considered and
X-change in Sweden AB was acquired on 15 April 2007.                  that they reflect the bank's actual risk profile and capital
The acquisition was of strategic importance to FOREX Bank             requirements. Just like all important credit and investment
AB. This enabled the group to widen the scope of its network          decisions, any revisions made to the board's established
of branches at the same time as its fundamental business              policies and strategies must relate to the banks current and
activities were achieving higher volumes. The group benefits          future capital requirements.
from economies of scale for currency purchases and logis-             The bank's legislated minimum capital requirements as per
tics. It also has a wider recruiting base, more efficient mar-        pillar I of the capital adequacy rules are shown in the table
keting, joint training activities, higher efficiency in the overall   on the next page.
network of branches and a broader sales channel for FOREX
                                                                      For more information about pillar III, please see the bank's
Bank AB's products. The carrying amount for goodwill was
                                                                      website: www.forex.se.
tested on the balance sheet date by calculating its recover-
able amount. This calculation applied a discount rate of 14           note 43
percent and an assessed rate of growth of up to 3 percent.            dividendS
Based on this calculation, it was determined that the carrying        The board of directors' proposed dividends are SEK 16
amount for goodwill was well motivated.                               020 000, which corresponds to SEK 2.67 per share.


56   NOTES TO ThE FINANCIAL STATEMENTS                                                                             ANNUAL REPORT 2009
note 42 continued
the group (Financial company group)
capital adequacy for december
as per the Capital Adequacy and Large Exposures Act (2006:1371)

                                                               volume                           risk-weighted amount                      capital requirement
                                                       2009             2008   risk weight        2009         2008     percentage        2009           2008
credit risk as per standard method
Exposure with government risk                        559 848       506 682             0%            –            –                           _              _
Exposure towards credit institutions           1 845 3601         1 967 402           20%     369 072      393 480             8%       29 526        31 478
household exposure                                1 183 970        679 436            75%     887 978      509 577             8%       71 038        40 766
Non-regulated items                                   33 264        66 099          100%       33 264       56 099             8%         2 661        4 488
Other                                                671 751       719 773        0%100%      268 477      248 887             8%       21 478        19 911
total credit risk                                 3 739 240       3 623 539                  1 558 791   1 208 043                     124 703        96 643
Currency risk                                        347 640       467 461                                                     8%       27 811        37 397


                                                       Income indicator
operational risk: basic indicator approach           608 533       495 349                                                     15%      91 280        74 302
total capital requirement                                                                                                              243 794       208 343


capital base
Equity as per annual accounts                                                                                                          471 136       361 069
Less intangible assets                                                                                                                 -139 020     -144 540
Less deferred tax assets                                                                                                                 -4 895              –
Less the board's proposed appropriation of profits                                                                                      -16 020              –
total preliminary capital                                                                                                              311 201       216 529
Supplementary capital                                                                                                                         –              –

total capital base                                                                                                                     311 201       216 529
capital adequacy ratio                                                                                                                     1.28           1.04



parent company
capital adequacy for december
as per the Capital Adequacy and Large Exposures Act (2006:1371)

                                                               volume                           risk-weighted amount                      capital requirement
                                                       2009             2008   risk weight        2009         2008     percentage        2009           2008
credit risk as per standard method
Exposure with government risk                          4 895       299 829             0%            –            –                           _              _
Exposure towards credit institutions           1 845 3601         1 967 402           20%     369 072      393 480             8%       29 526        31 478
household exposure                                1 183 970        679 436            75%     887 978      509 577             8%       71 038        40 766
Non-regulated items                                   33 264        66 099          100%       33 264       56 099             8%         2 661        4 488
Other                                                738 879       812 259        0%100%      422 259      453 240             8%       33 781        36 259
total credit risk                                 3 787 661       3 707 882                  1 708 831   1 410 768                     136 706       112 861
Currency risk                                        251 665       383 412                                                     8%       20 133        30 673


                                                       Income indicator
operational risk: basic indicator approach           525 238       431 225                                                     15%      78 786        64 684
total capital requirement                                                                                                              235 625       208 218


capital base
Equity as per annual accounts                                                                                                          324 013       218 637
Untaxed reserves, 73.7 % of that (72 % of that)                                                                                         62 588        48 501
Less intangible assets                                                                                                                   -6 832       -10 692
Less deferred tax assets                                                                                                                 -4 895              –
Less the board's proposed appropriation of profits                                                                                      -16 020              –
total preliminary capital                                                                                                              358 854       256 446
Supplementary capital                                                                                                                         –              –

total capital base                                                                                                                     358 854       256 446

capital adequacy ratio                                                                                                                     1.52           1.23




FOREX BANK AB                                                                                                         NOTES TO ThE FINANCIAL STATEMENTS    57
sigNAtuREs OF thE BOARd OF diRECtORs
Stockholm 23 March 2010




Rolf Friberg                                       Katja Elväng                                     Gunnel Engberg
Chairman of the Board




hans hellquist                                     Carl Johan Smith                                 Jörgen holgersson




Beth Friberg                                       Magnus Cavalli-Björkman
                                                   Managing Director



We hereby declare that, to the best of our knowledge, the annual report was prepared in accordance with generally accepted
accounting standards. The information submitted corresponds to the actual business conditions and no significant items have
been omitted that could alter the true and fair picture of the group and parent company that is given in the annual report.

As stated above, the annual report was approved for issue by the board of directors on 23 March 2010. The group's and
bank's income statement and balance sheet will be brought forth for adoption at the annual general meeting.




Our audit report was submitted on 23 March 2010.

PricewaterhouseCoopers AB




Bertil Johanson                                                                                     Peter Nilsson
Chief Auditor




58   SIGNATURES OF ThE BOARD OF DIRECTORS                                                                ANNUAL REPORT 2009
Audit REpORt
to the agm oF Forex bank ab                                    examined whether any board member or the managing di-
cin: 516406-0104                                               rector has, in any other way, acted in contravention of the
We have audited the annual accounts, the consolidated          Swedish Companies Act, the Banking and Financing Act,
accounts, the accounting records and the administration        the Annual Accounts Act for Credit Institutions and Securi-
of the board of directors and the managing director of         ties Companies, or the Articles of Association. We believe
FOREX Bank AB for the year 2009. These accounts and            that our audit provides a reasonable basis for our opinion
the administration of the company are the responsibility of    set out below.
the board of directors and the managing director. They are
                                                               The annual accounts have been prepared in accordance
also responsible for application of the Annual Accounts
                                                               with the Annual Accounts Act for Credit Institutions and
Act for Credit Institutions and Securities Companies when
                                                               Securities Companies, and give a true and fair view of
drawing up the annual accounts and the IFRS international
                                                               the company's financial position and results of operations
accounting standards as adopted by the EU and the
                                                               in accordance with generally accepted accounting prin-
Annual Accounts Act for Credit Institutions and Securities
                                                               ciples in Sweden. The consolidated accounts have been
Companies when drawing up the consolidated accounts.
                                                               prepared in accordance with international financial re-
Our responsibility is to, based on our audit, express an
                                                               porting standards IFRSs as adopted by the EU and the
opinion on the annual report, the consolidated financial
                                                               Annual Accounts Act for Credit Institutions and Securities
statements and the administration of the company.
                                                               Companies, and give a true and fair view of the group's
We conducted our audit in accordance with generally ac-        financial position and results of operations. The statutory
cepted auditing standards in Sweden. Those standards           administration report is consistent with the other parts of
require that we plan and perform the audit to obtain rea-      the annual accounts and the consolidated accounts.
sonable, but not absolute, assurance that the annual report
                                                               We recommend to the annual general meeting that the
and consolidated financial statements are free of material
                                                               income statements and balance sheets of the parent
misstatement. An audit includes examining, on a test ba-
                                                               company and the group be adopted, that the profit for the
sis, evidence supporting the amounts and disclosures in the
                                                               parent company be dealt with as proposed in the statutory
accounts. An audit also includes assessing the accounting
                                                               administration report, and that the members of the board
principles used and their application by the board of direc-
                                                               of directors and the managing director be discharged
tors and the managing director and significant estimates
                                                               from liability for the financial year.
made by the board of directors and the managing direc-
tor when preparing the annual accounts and consolidated        Stockholm, 23 March 2010
accounts as well as evaluating the overall presentation of     PricewaterhouseCoopers AB
information in the annual accounts and the consolidated
accounts. As the basis of our statement regarding discharge
from liability, we examined significant decisions, actions
                                                               Bertil Johanson
taken and circumstances of the company in order to be
                                                               Chief Auditor
able to determine the possible liability to the company of
any board member or the managing director. We have also        Peter Nilsson




FOREX BANK AB                                                                                          AUDITOR'S REPORT 59
gOvERNANCE
FOREX Bank AB is not a listed company and as such it             The board is responsible for appointing/dismissing the
is not required to apply the Swedish Code of Corporate           managing director/group chairman, as well as the deputy
Governance. Given the bank's profile as a public company         managing director (in consultation with the managing di-
and the fact that, to a great extent, its activities are based   rector). The board of directors held 8 meetings in 2009.
on the instilled confidence of the general public and other
                                                                 Each year, the board establishes a formal work plan to regu-
stakeholders in the society, the bank has designed routines
                                                                 late the board's role and how it will work, as well as issu-
for governance and control of the organization using the
                                                                 ing any specific instructions to the board's committees. The
Swedish Code of Corporate Governance as its model,
                                                                 board of directors has overall responsibility for the business
where applicable.
                                                                 activities conducted by the bank and group. It decides on the
appointment oF the board, auditorS and                           direction of the business, as well as its strategies and goals.
managing director                                                Furthermore, the board is responsible for ensuring that the
                                                                 business is organized such that its risks are identified and
The AGM of FOREX Bank is responsible for appointing
                                                                 managed in a satisfactory manner and that the organiza-
the board of directors that will serve until the next annual
                                                                 tion's controls for reporting and financial monitoring are also
general meeting. The AGM also appoints the auditors
                                                                 adequate. The board has appointed a special committee for
and term that auditors will serve. Furthermore, the AGM
                                                                 Audit, Risk and Compliance. The chairman of the commit-
is responsible for granting discharge from liability to the
                                                                 tee is Katja Elväng and its members are Jörgen holgersson
board of directors and managing director for the financial
                                                                 and Beth Friberg. On behalf of the board, this committee is
year, as well as the appropriation of profits. The size of the
                                                                 responsible for preparing and conducting in-depth analyses
board of directors and its composition must be appropri-
                                                                 of items having to do with audit, risk and compliance.
ate to the bank and what is required for its future develop-
ment. Information about the composition of the board of          During the year, the board dealt with such issues as the
directors is provided in the annual report. For the 2009         bank's strategies, business plan, policies, instructions, the
financial year, there were 7 regular board members and           annual review and audit of rules and regulations, budget,
one deputy board member. Three of the board members              major investments and acquisitions, interim/annual reports
are women. During 2009, Carl Johan Smith and Katja               and the group's risk-taking.
Elväng were elected as board members for FOREX Bank.
                                                                 Disclosures on remuneration and other benefits and pay, as
At the same time, Anders Broström and Christer Lundkvist
                                                                 well as pensions for the board and managing director are
resigned as board members.
                                                                 provided in Note 10, General administrative expenses.
The chairman of the board organizes and heads the work
done by the board. The chairman is also responsible for          internal audit unit
making sure that the board has access to necessary infor-        The internal audit unit has been assigned by the board of di-
mation, for sending out notices of board meetings and for        rectors the task of auditing the bank's internal controls. This
preparing for the board meetings, in consultation with the       audit also includes ensuring that the scope of the business
managing director.                                               and its direction is in accordance with internal regulations.
                                                                 The audit also involves an evaluation of the bank's organi-
                                                                 zation and its work processes.




60   GOVERNANCE                                                                                              ANNUAL REPORT 2009
list OF BRANChEs
Forex bank ab
Sweden
Arlanda Sky City                   Box 170                     190   46   Arlanda              08-797 92    90
Arlanda Terminal 2                 Box 56                      190   45   Arlanda            08-59 36 22    71
Arlanda Terminal 5, Nord           Box 244                     190   47   Arlanda            08-59 36 22    20
Borås                              Torggatan 19                503   34   Borås                033-41 41    00
Eskilstuna                         Kriebsensgatan 8            632   20   Eskilstuna           016-51 90    90
Gävle                              Drottninggatan 27           803   11   Gävle                026-10 73    00
Gothenburg Kungsbacka              Kungsmässan                 434   38   Kungsbacka            0300-316    90
Gothenburg, Avenyn                 Avenyn 22                   411   36   Gothenburg           031-18 57    60
Gothenburg, Centralen              Central Station             411   03   Gothenburg           031-15 65    16
Gothenburg, Fredsgatan             Fredsgatan 7                411   07   Gothenburg         031-710 11     07
Gothenburg, Frölunda torg          Frölunda Torg               421   44   Västra Frölunda      031-47 26    70
Gothenburg, Kungsportsplatsen      Östra Larmgatan 17          411   07   Göteborg             031-13 60    74
Gothenburg, Nordstan               Postg 26-32                 411   06   Gothenburg           031-15 75    30
Gothenburg, Partille               Allum 111, Gamla Kronv. 7   433   33   Partille             031-44 26    88
halmstad                           Storgatan 2                 302   43   halmstad             035-17 50    40
helsingborg, Järnvägsgatan         Järnvägsgatan 13            252   24   helsingborg          042-18 71    90
helsingborg, Knutpunkten level 0   Kungstorget 8, Box 38       252   78   helsingborg          042-21 58    10
helsingborg, Knutpunkten level 1   Kungstorget 8, Box 45       252   78   helsingborg          042-24 47    00
helsingborg, Kullagatan 12         Kullagatan 12               252   20   helsingborg          042-13 30    90
helsingborg, Väla Centrum          Väla Centrum                260   35   Ödåkra               042-20 25    80
Jönköping                          Västra Storgatan 6          553   15   Jönköping            036-15 02    80
Kallax                             Flygstationsvägen 4         972   54   Luleå               0920-22 49    00
Kalmar                             Fiskaregatan 6              392   32   Kalmar             0480- 49 35    50
Karlstad                           Drottninggatan 27           652   25   Karlstad             054-18 02    06
Kristianstad                       Östra Storgatan 51          291   31   Kristianstad         044-20 94    90
Landvetter Transit hall            Box 2096                    438   13   Landvetter           031-94 18    68
Landvetter International hall      Box 2016                    438   11   Landvetter           031-94 65    41
Linköping                          Storgatan 32                582   23   Linköping            013-12 95    61
Luleå                              Storgatan 46                972   31   Luleå                 0920-130    23
Lund, Bangatan                     Bangatan 8                  222   21   Lund                 046-32 34    10
Lund, Botulfsplatsen               Västra Mårtensgatan 6       223   51   Lund                 046-14 07    80
Malmö, Centralen                   Central Station             211   20   Malmö                040-30 40    31
Malmö, Davidshallsgatan 27         Davidhallsgatan 27          211   39   Malmö               040-611 94    34
Malmö, Gustav Adolfs Torg 47       Gustav Adolfs Torg 47       211   39   Malmö                040-23 23    20
Malmö, hamngatan                   hamngatan 2                 211   22   Malmö                040-12 25    55
Malmö, Öresund Terminal            Terminalgatan 10            232   91   Arlöv                040-43 09    70
Norrköping                         Drottninggatan 46           602   24   Norrköping           011-16 80    32
Skavsta                            Flplterminalen, Box 44      611   22   Nyköping            0155-28 39    99
Stockholm, Arlanda Express         Östra Järnvägsgatan 11      111   20   Stockholm              08-21 90   20
Stockholm, Centralen               Central Station             101   21   Stockholm            08-411 67    34
Stockholm, Cityterminalen          Cityterminalen              101   21   Stockholm              08-21 42   80
Stockholm, Farsta Centrum          Farstagången 14             123   47   Farsta               08-724 08    00
Stockholm, Gallerian               hamngatan 37                111   53   Stockholm            08-679 60    00
Stockholm, Gamla Stan              Kornhamnstorg 4             111   27   Stockholm              08-20 00   09

FOREX BANK AB                                                                               LIST OF BRANChES 61
Stockholm, Götgatan               Götgatan 94                118   62   Stockholm               08-642 81       60
Stockholm, Klarabergsgatan        Klarabergsgatan 60         111   21   Stockholm                 08-20 25      25
Stockholm, Kungsgatan             Kungsgatan 2               111   43   Stockholm               08-611 51       10
Stockholm, Forum Nacka, Level 4   Forumvägen 12              131   53   Nacka                   08-716 56       56
Stockholm, NK                     NK 202                     111   77   Stockholm               08-762 83       40
Stockholm, Ringvägen              Ringvägen 100              118   60   Stockholm               08-644 22       50
Stockholm, Sicka Köpkvarter       Siroccogatan 4             131   34   Nacka                   08-640 42       50
Stockholm, Sveavägen              Sveavägen 24               111   57   Stockholm               08-411 76       60
Stockholm, Sveavägen              Sveavägen 24               111   57   Stockholm               08-411 76       60
Stockholm, Sollentuna Centrum     Sollentunavägen 163-165    191   47   Sollentuna                08-35 15      05
Stockholm, Täby Centrum           Västantorget 261 B         183   11   Täby                    08-758 02       50
Stockholm, Vasagatan              Vasagatan 16               101   21   Stockholm                 08-10 49      90
Stockholm, Vällingby Centrum      Solursgången 6             162   65   Vällingby                 08-37 12      83
Sundsvall                         Köpmangatan 1              852   31   Sundsvall               060-15 12       20
Trelleborg                        C B Friisgatan 1           231   42   Trelleborg               0410-453       20
Umeå                              Renmarkstorget 7           903   26   Umeå                    090-71 44       00
Uppsala                           Fyristorg 8                753   10   Uppsala                 018-10 30       00
Västerås, Smedjegatan             Smedjegatan 2              722   13   Västerås                021-18 16       00
Västerås, Stora gatan             Stora gatan 18             722   12   Västerås                021-18 00       80
Växjö                             Västergatan 8              352   30   Växjö                    0470-455       00
Ystad, Catamaran Terminal         hamntorget 2               271   39   Ystad                    0411-141       73
Ystad, Ferry Terminal             Bornholmsgatan 1           271   39   Ystad                    0411-133       35
Örebro, Drottninggatan            Drottninggatan 38          702   22   Örebro                  019-10 60       62
Örebro, Säljarevägen              Säljarevägen 1             702   36   Örebro                  019-22 53       90
Östersund                         Prästgatan 51              831   34   Östersund               063-10 13       50
Finland
Esbo                              hagalund, Sampotorget     FI-02100    Esbo            +358   020   75   12   570
helsinki, Alexandersgatan         Alexandersgatan 52B       FI-02100    helsinki        +358   020   75   12   550
helsinki, Railway Station         Railway Station, Pl 118   FI-02100    helsinki        +358   020   75   12   510
helsinki, N. Esplanaden           Pohjoisesplanadi 27       FI-02100    helsinki        +358   020   75   12   520
helsinki, Östra Centrum           Kauppakeskus Itäkeskus    FI-00930    helsinki        +358   020   75   12   540
Jyväskylä                         Kauppakatu 27             FI-40100    Jyväskyla       +358   020   75   12   670
Tammerfors                        hämeenkatu 14B            FI-33100    Tammerfors      +358   020   75   12   640
Tammerfors, Stockmanns            Stockmanns, level 2       FI-33100    Tammerfors      +358   020   75   12   620
Uleåborg                          Kauppurienkatu 13         FI-90100    Uleåborg        +358   020   75   12   680
Vanda                             Valutagatan 2             FI-01510    Vanda           +358   020   75   12   530
Åbo                               Eriksgatan 13             FI-20100    Åbo             +358   020   75   12   650
Denmark
Aalborg                           Ved Stranden 22           DK-9000     Aalborg            +45   98   18   97   00
Frederiksberg                     Falconer Allé 12b         DK-2000     Frederiksberg      +45   33   22   73   00
helsingør                         Jernbanevej 4             DK-3000     helsingør          +45   49   14   49   00
Copenhagen, hovedbanegården       hovedbanegården           DK-1570     Copenhagen V       +45   33   11   22   20
Copenhagen, Kongens Nytorv        Gothersgade 8             DK-1123     Copenhagen K       +45   33   11   27   00
Copenhagen, Norreport             N. Voldgade 90            DK-1358     Copenhagen K       +45   33   32   81   00
Odense                            Banegårdscentret          DK-5000     Odense C           +45   66   11   66   18
Århus                             Ryesgade 28               DK-8000     Århus C            +45   86   80   03   40

62   LIST OF BRANChES                                                                      ANNUAL REPORT 2009
norway
Lillestrom                                 Jonas Lies gt 4, Lillest. St.     N-2000      Lillestrom      +47   63   84   88   00
Oslo Brugata                               Brugata 8                         N-0186      Oslo            +47   22   17   64   00
Oslo Egertorget                            Ovre Slottsgate 12                N-0186      Oslo            +47   22   42   10   02
Oslo, Fridtjof Nansens Square              Fridtjof Nansens Square 6         N-0186      Oslo            +47   22   41   30   60
Oslo Central Station – Airport Express T   Jernbanetorget 1                  N-0186      Oslo            +47   22   17   22   66
Oslo Central Station – Central hall        Jernbanetorget 1                  N-0186      Oslo            +47   22   17   60   80
Trondheim                                  Central Station, Fosenkaia 1      N-7010      Trondheim       +47   73   52   22   20

Forex Sweden international ltd
United Kingdom
London                                     107 Baker Street                   London W1U 6RP           +44 207 22 44 440


x-change in Sweden ab
Sweden
Arlanda Arrival                            Terminal 2 (arrivals)              190   45   Arlanda            08-797 95 53
Arlanda Departure                          Terminal 5 (departures)            190   45   Arlanda            08-797 85 57
Arlanda Departure (new office)             Terminal 5 (departure info)        190   45   Arlanda            08-797 95 56
Gothenburg, Angered                        Angered Centrum                    424   21   Angered           031-332 45 00
Gothenburg, Central Station                Drottningtorget 1                  411   03   Gothenburg         031- 15 15 13
Gothenburg, Kungsportsplatsen              Kungsportsplatsen 1                411   10   Gothenburg          031-10 11 11
helsingborg                                Järnvägsgatan 17                   252   24   helsingborg         042-21 40 90
Landvetter                                 Landvetter International hall      438   80   Landvetter       031- 303 04 30
Malmö, hamngatan                           hamngatan 1                        211   22   Malmö                 040-788 88
Malmö, Mobilia                             Per Albin hanssons V 40            214   32   Malmö                 040-890 60
Malmö, Triangeln                           Södra Förstadstagatan 41           211   43   Malmö             040-661 14 30
Stockholm, Central Station                 Central Station, Centralplan 15    111   20   Stockholm        08-54 52 30 30
Stockholm, Farsta                          Storforsplan 11                    123   47   Farsta           08-51 80 08 90
Stockholm, Kungsgatan                      Kungsgatan 30                      111   35   Stockholm         08-506 107 00
Stockholm, PUB                             PUB, Drottninggatan 72-76          111   21   Stockholm            08-10 30 00
Stockholm, Skärholmen                      Storholmsgatan 4                   127   48   Skärholmen        08-501 05 520
Södertälje                                 Södertälje Central Station         151   32   Södertälje        08-550 600 30
Uppsala                                    Forumgallerian                     753   20   Uppsala            018-10 80 23
Denmark
Copenhagen, hovedbanegård                  hovedbanegården, 1 hall           DK-1570 Copenhagen V        +45 33 112 113




FOREX BANK AB                                                                                            LIST OF BRANChES 63

								
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