FOREX Bank AB. FOREX Annual Report 2011

FOREX Bank AB Annual Report 2011 FOREX Annual Report 2011 1

2 FOREX Bank Annual Report 2011

Contents Contents 3 Statutory administration report 4 Consolidated income statement 10 Consolidated statement of comprehensive income 10 Consolidated balance sheet 11 Consolidated statement of changes in equity 12 Consolidated cash flow statement 13 Parent company income statement 14 Parent company statement of comprehensive income14 Parent company balance sheet 15 Parent company statement of changes in equity 17 Parent company cash flow statement 18 Notees to the financial statements 19 Note 1 Information about Group and parent company 19 Note 2 Accounting principles 19 Note 3 Financial risks 30 Note 4 Net interest income/expense 33 Note 5 Dividends received 34 Note 6 Commission income 35 Note 7 Commission expenses 35 Note 8 Net profit (loss) from financial transactions36 Note 9 Other operating income 37 Note 10 General administrative expenses 38 Note 11 Other operating expenses 46 Note 12 Loan losses, net 45 Note 13 Impairment of financial assets 46 Note 14 Reversal of impairment of financial assets 46 Note 15 Appropriations 46 Note 16 Taxes 47 Note 17 Loans to credit institutions 50 Note 18 Loans to the general public 50 Note 19 Bonds and other interest -bearing securities 51 Note 20 Shares and participations in group companies 51 Note 21 Participations in associated companies 52 Note 22 Other shares and participations 54 Note 23 Intangible assets 55 Note 24 Property, plant and equipment 57 Note 25 Receivables from group companies 61 Note 26 Other assets 61 Note 27 Prepaid expenses and accrued income 62 Note 28 Deposits from the general public 62 Note 29 Liabilities to group companies 63 Note 30 Other creditors 63 Note 31 Accrued expenses and prepaid income 64 Note 32 Provisions 64 Note 33 Untaxed reserves 65 Note 34 Contingent liabilities 65 Note 35 Commitments 66 Note 36 Related parties 66 Note 37 Geographic distribution of income 67 Note 38 Financial assets and liabilities 68 Note 39 Cash flow statement 75 Note 40 Acquisitions 76 Note 41 Important estimates and assessments 76 Note 42 Dividends 76 Note 43 Capital adequacy 76 Signatures of the board of directors 79 Audit report 80 Governance 82 List of branches 83 FOREX Annual Report 2011 3

Statutory administration report The Board of Directors and Managing Director of FOREX Bank AB hereby submit the annual report and consolidated financial statements for the 2011 financial year. Ownership FOREX Bank AB, CIN 516406-0104, is one of the family Friberg s wholly owned joint-stock banks. Organization and business activities FOREX Bank AB conducts banking operations consisting of deposits from and loans to the general public, remittance services and the provision of payment services in SEK and foreign currencies. The bank is the parent company of Group that is comprised of its bank branches in Finland, Denmark and Norway, the wholly-owned subsidiary X-change in Sweden AB (with subsidiaries) and Svensk Valutahantering AB. The subsidiary FOREX Sweden International Ltd in Great Britain is in the process of being liquidated. During the year, 27.7% of Panaxia AB (publ), listed on NGM Equity, was acquired for SEK 43 million. The business is conducted in the Nordic countries and at the end of the year there were 109 (113) bank branches. During 2009, four branches were established in Group, of which three were in FOREX Bank s Swedish organization and one was in the Danish organization. During the year, one branch in Sweden, one branch in Finland and six branches belonging to the X-change business were closed. During 2012, a large number of X-change branches will be transferred to FOREX Bank. The branches that will subsequently remain within X-change will be concentrated in airports and railway hubs. During the year, the volume of currency exchange continued to decline, which, among other things, is due to the increased use of credit cards. The volume of both loans to and deposits from the general public increased substantially, however, which is an indication of the market s continued confidence in the bank. The trend for the number of bill payments continued in a positive direction. The volume and number of brokered foreign transfers, though, decreased in all of the bank s markets. An agreement was entered into during the year entailing the representation of Western Union throughout the entire FOREX group as of 6 December 2011 for remittance services to private individuals. The agreement also entails that all of Western Union s 16 branches in Sweden, Finland and Norway will be taken over in 2012. Extensive skills development efforts continued throughout the year in order to obtain a higher overall level of competency within Group. Efforts to outsource the banking platform started in 2010 and continued during the year. The transfer is expected to be completed in 2012. An internal function for the management and supply of foreign currency, Cash Center, was established and has been operational since April 2011. The function has continued to progress and it is estimated that it will take over the entire supply of Group s need for foreign currency during 2012. The appeal regarding the size of the penalty fee (SEK 50 million) handed down by the Swedish Financial Supervisory Authority in 2008 was dismissed by the Supreme Administrative Court during the year and, as a result, Forex settled the payment. In December, the Swedish Financial Supervisory Authority approved an agency agreement between Forex Bank and X-change in Sweden, which entails that, in the future, X-change will be an agent for all of Forex Bank s bank products. Group results For the financial year, Group reported an operating profit of SEK 231 (340) million and profit after tax of SEK 165 (255) million. Most of the operating profit is comprised of the net profit from financial transactions, primarily currency exchange and commission income, but net interest income s share of revenue continued to increase during the year. Operating income was SEK 1,223 (1, 202) million, which is an increase of 2 percent year-on-year. Net interest income increased by 58 percent to SEK 111 (70) million due to growth in the volume of loans granted in conjunction with an increased interest margin. Net income from financial transactions decreased by 1 percent to SEK 916 (925) million due to lower volumes as a result of the increased use of credit cards. Net commissions increased by 8 percent to SEK 183 (198) million. General administrative expenses increased by 8 percent to SEK 796 (740) million due to continued large investments in skill development and IT development. Depreciation/amortization and impairment decreased by 3 percent to SEK 37 (38) million. Other operating expenses 4 FOREX Bank Annual Report 2011

increased by 24 percent to SEK 98 (79) million, which is primarily attributable to increased marketing activities. Loan losses were SEK 60 (5) million. Verified loan losses amounted to 1 (0) percent of loans granted. Group position Total assets were SEK 6,574 (4, 879) million. Cash equivalents, which include cash, loans to credit institutions and bonds and other interest-bearing securities with up to a 3-month maturity, were SEK 2, 657 (2, 396) million. Loans to the general public increased by 48 percent to SEK 2,564 (1, 734) million. Deposits from the general public increased from SEK 3,854 million to SEK 5,513 million, which is an increase of 43 percent. Group s equity at year-end was SEK 813 (696) million. The equity ratio was 12 (14) percent and the capital adequacy ratio was 1.67 (1.72). Parent company results For the financial year, the parent company reported an operating profit of SEK 203 (355) million and profit after tax of SEK 145 (285) million. Most of the operating profit is comprised of the net profit from financial transactions, primarily currency exchange and commission income, but net interest income s share of revenue continued to increase during the year. Operating income was SEK 1, 098 (1, 118) million, which is a decrease of 2 percent year-on-year. Net interest income increased by 58 percent to SEK 110 (70) million due to growth in the volume of loans granted in conjunction with an increased interest margin. Net income from financial transactions decreased by 2 percent to SEK 804 (823) million due to lower volumes as a result of the increased use of credit cards. Net commissions increased by 3 percent to SEK 163 (168) million. General administrative expenses increased by 9 percent to SEK 718 (660) million due to significantly larger investments in skill development and system development. Depreciation/amortization and impairment was SEK 32 million and is in line with the prior year. Other operating expenses increased by 27 percent to SEK 86 (68) million, which is primarily attributable to increased marketing activities. Loan losses were SEK 60 (5) million. Verified loan losses amounted to 1 (0) percent of loans granted. Parent company s position Total assets were SEK 6, 477 (4, 787) million. Cash equivalents, which include cash, loans to credit institutions and bonds and other interest-bearing securities with up to a 3-month maturity, were SEK 2,515 (2,255) million. Loans to the general public increased by 48 percent to SEK 2,564 (1, 734) million. Deposits from the general public increased from SEK 3,854 million to SEK 5,513 million, which is an increase of 43 percent. The parent company s equity at year-end was SEK 679 (582) million. The equity ratio was 10 (12) percent and the capital adequacy ratio was 1.93 (1.88). Future development Looking forward, the volume of currency exchange in Sweden is expected to decline even further while the volumes for other bank services continue to increase. In Sweden, there is a downward trend in the overall amount of cash in circulation. Various initiatives to achieve a cashfree society enable Group, because of its accessibility, to develop the business as a complement to other banks in the area of cash management For the Finnish, Danish and Norwegian markets, the goal is to significantly increase market share for currency exchange and remittance services over the next few years. Other banking services will be introduced at a later date, once FOREX Bank s brand achieves a higher level of penetration and recognition in these markets. It was decided to set up new branches in all of the markets where Group currently has operations. Due to developments in the banking sector and the decline in cash transactions in society, it is critical to come up with a new branch structure and design that is adapted to both the various markets where Group currently has operations and the nature of the operations being conducted. This may lead to a relocation or shutdown of certain branches. Due to the takeover of Western Union s 13 branches in Norway, efforts there will to a large extent be focused on adapting these branches to the FOREX standard. The Group will continue to invest in training to raise the level of employee expertise. This is necessary to increase market penetration for the products offered by the bank, as well as to ensure that staff have the requisite knowledge of the routines and regulations pertaining to operations. With regard to money laundering, it should be Noteed in particular that extensive efforts are being made on an ongoing basis to increase both the expertise of all employees and their ability to handle different situations. as well FOREX Annual Report 2011 5

as to ensure that staff have the requisite knowledge of the routines and regulations pertaining to operations. With regard to money laundering, it should be Noteed in particular that extensive efforts are being made on an ongoing basis to increase both the expertise of all employees and their ability to handle different situations. Business risks Each day, the bank is exposed to various types of risks associated with the business, such as credit risks, liquidity risks, market risks (interest rate risks and currency risks) and operational risks. A more detailed description of these risks is provided in Notee 3. 6 FOREX Bank Annual Report 2011

Five-year Summary Group Key figures 1) 2011 2010 2009 2008 2007 Volume Loans to the general public 2 563 679 1 733 854 1 105 027 679 436 564 251 Change during the year, % 48% 57% 63% 20% 27% Deposits from the general public 5 512 865 3 853 991 2 983 081 3 014 890 1 852 096 Change during the year, % 43% 29% -1% 63% 23% Equity Equity ratio 12,4% 14,3% 12,5% 9,6% 15,8% Taxed equity as a % of total assets Capital adequacy ratio 2) 1,72 1,67 1,28 1,04 2,26 Capital base/capital adequacy requirement Net profit Investment margin 1,93% 1,62% 1,40% 0,72% 0,69% Net interest income/expense as a % of average total assets Return on equity 30,1% 58,2% 35,7% -12,3% 17,9% Operating profit as a % of average equity Cost/income ratio before loan losses 0,8 0,7 0,8 1,0 0,9 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 0,8 0,7 0,9 1,1 0,9 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 4,5% 4,3% 6,0% 2,2% 1,9% Net doubtful debts as a % of total loans granted to the general public and credit inst. (excluding banks) Loan loss ratio 3,3% 0,4% 10,6% 2,0% 2,0% Loan losses as a % of the opening balance for loans granted to the general public and credit institutions. (excluding banks and leasing objects, property taken over and credit guarantees) Other information Average number of employees 915 893 863 810 698 Number of branches 109 113 114 121 107 1) The capital adequacy ratio for 2007 refers to the parent company FOREX Annual Report 2011 7

Income statements and balance sheets Group SEK thousands 2011 2010 2009 2008 2007 Income statement Net interest income/expense 110 684 70 092 52 700 22 954 16 104 Dividends received 1 563-39 36 Commissions, net 183 292 198 339 155 637 140 552 78 480 Net profit from financial transactions 915 614 924 825 809 350 581 978 541 633 Other income 13 058 8 266 5 237 1 056 3 615 Total income 1 222 649 1 202 085 1 022 924 746 579 639 868 General administrative expenses -796 287-739 994-632 541-648 378-447 310 Other operating expenses 1) -135 743-117 538-165 022-134 476-114 899 Credit losses and impairment of financial assets -59 830-4 890-76 870-11 221-8 792 Total expenses -991 860-862 422-874 433-794 075-571 001 Operating profit (loss) 230 789 339 663 148 491-47 496 68 867 Share in profits from associated -3 432 - - - - companies Tax -62 641-84 733-41 376-3 265-20 290 Net profit/loss for the year 164 716 254 930 107 115-50 761 48 577 Balance sheet Cash 402 441 351 919 403 275 470 886 405 625 Loans to credit institutions 526 027 654 199 1 843 310 1 668 948 865 452 Loans to the general public 2 563 679 1 733 854 1 105 027 679 436 564 251 Interest-bearing securities 2 574 288 1 690 869-498 284 347 207 Shares and participations 40 985 1 471 1 500 4 980 4 979 Intangible assets 127 874 132 835 139 020 144 540 144 290 Property, plant and equipment 157 845 155 004 152 672 198 537 156 787 Other assets 180 691 159 192 119 202 101 468 94 097 Total assets 6 573 830 4 879 343 3 764 006 3 767 079 2 582 688 Liabilities to credit institutions - - 71 145 89 182 84 310 Deposits from the general public 5 512 865 3 853 991 2 983 081 3 014 890 1 852 096 Other liabilities 246 364 326 996 236 644 301 938 237 767 Provisions 1 712 2 168 2 000 - - Total liabilities and provisions 5 760 941 4 183 155 3 292 870 3 406 010 2 174 173 Equity 812 889 696 188 471 136 361 069 408 515 Total liabilities, provisions and equity 6 573 830 4 879 343 3 764 006 3 767 079 2 582 688 1) Including depreciation/amortization and impairment of property, plant and equipment and intangible assets 8 FOREX Bank Annual Report 2011

Proposal for appropriation of the parent company s profit The board of directors proposes that accumulated profit 462 018 602 profit for the year 144 861 537 606 880 139 SEK is appropriated as follows distributed as dividends to shareholders 16 500 000 carried forward 590 380 139 606 880 139 SEK The proposal to distribute dividends has been made having considered the rules on buffer capital, limitation of risks and transparency in accordance with the Banking and Financing Act and Chapter 17, Section 3 of the Companies Act (Prudence Rule). The parent company s capital adequacy ratio after the proposed appropriation of profits is 1.88 (1.93). The capital adequacy ratio for Group and the financial group after the proposed appropriation of profits is 1.72 (1.67). Consideration of the financial position of Group and parent company does Note 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 Notees to the financial statements. FOREX Annual Report 2011 9

Consolidated income statement SEK thousands Note 2011 2010 Interest income 261 380 121 008 Interest expense -150 696-50 916 Net interest income/expense 4 110 684 70 092 Dividends received 5 1 563 Commission income 6 202 179 212 378 Commission expenses 7-18 887-14 039 Net profit from financial transactions 8 915 614 924 825 Other operating income 9 13 058 8 266 Total operating income 1 222 649 1 202 085 General administrative expenses 10-796 287-739 994 Depreciation/amortization and impairment of property, plant and equipment and intangible assets 23,24-37 480-38 497 Other operating expenses 11-98 263-79 041 Total expenses before loan losses -932 030-857 532 Net profit before loan losses 290 619 344 553 Loan losses, net 12-59 580-4 640 Impairment of financial assets 13-250 -250 Operating profit 230 789 339 663 Share in profits from associated companies 21-3 432 - Tax 16-62 641-84 733 Net profit (loss) for the year 164 716 254 930 Consolidated statement of comprehensive income SEK thousands Note 2011 2010 Net profit (loss) for the year 164 716 254 930 Other comprehensive income Available-for-sale financial assets 103-68 Exchange rate differences -118-13 790 Other comprehensive income, net after tax - 15-13 858 Total comprehensive income 164 701 241 072 10 FOREX Bank Annual Report 2011

Consolidated balance sheet SEK thousands Note 31 Dec 2011 31 Dec 2010 Assets Cash 402 441 351 919 Loans to credit institutions 17 526 027 654 199 Loans to the general public 18 2 563 679 1 733 854 Bonds and other interest-bearing securities 19 2 574 288 1 690 869 Participations in associated companies 21 39 661 - Other shares and participations 22 1 324 1 471 Intangible assets 23 - Goodwill 125 941 125 956 - Other intangible assets 1 933 6 879 PP&E 24 - Equipment 16 224 20 193 - Capitalized reconstruction costs 76 947 68 333 - Buildings 64 674 66 478 Current tax assets 12 217 - Deferred tax assets 16 5 476 5 345 Other assets 26 67 066 87 178 Prepaid expenses and accrued income 27 95 932 66 669 TOTAL ASSETS 6 573 830 4 879 343 Liabilities, provisions and equity Liabilities and provisions Deposits from the general public 28 5 512 865 3 853 991 Deferred tax liabilities 16 28 001 29 147 Other liabilities 30 178 173 196 993 Accrued expenses and prepaid income 31 40 190 100 856 Provisions 32 1 712 2 168 Total liabilities and provisions 5 760 941 4 183 155 Equity Share capital 60 000 60 000 Reserves 5 350 5 362 Earned profits including net profit/loss for the year 747 539 630 826 Total equity 812 889 696 188 TOTAL LIABILITIES, PROVISIONS AND EQUITY 6 573 830 4 879 343 FOREX Annual Report 2011 11

Consolidated statement of changes in equity SEK thousands Share capital 1) Reserves 2) Accrued earnings Total equity Opening balance, 1 Jan 2010 60 000 30 712 380 424 471 136 Net profit (loss) for the year 254 930 254 930 Other comprehensive income Available-for-sale financial assets -68-68 Exchange rate differences -13 790-13 790 Total other comprehensive income -13 858 - -13 858 Transfer within equity -11 492 11 492 - Dividends -16 020-16 020 Closing balance, 31 Dec 2010 60 000 5 362 630 826 696 188 Net profit (loss) for the year 164 716 164 716 Other comprehensive income Available-for-sale financial assets 103 103 Exchange rate differences -118-118 Total other comprehensive income -15 - -15 Transfer within equity 3-3 - Dividends -48 000-48 000 Closing balance, 31 Dec 2011 60 000 5 350 747 539 812 889 1) Specification of share capital Number of shares Class A shares 600 000 Class B shares 5 400 000 Total number of shares 6 000 000 Quotient value 10 kr All shares have been fully paid 2) Specification of reserves Fair value reserve Translation reserve Statutory reserve Total reserves Opening balance, 1 jan 2010-18 712 12 000 30 712 Other comprehensive income Available-for-sale financial assets -68-68 Exchange rate differences -13 790-13 790 Total other comprehensive income -68-13 790-13 858 Transfer within equity -11 492-11 492 Closing balance, 31 Dec 2010-68 -6 570 12 000 5 362 Other comprehensive income Available-for-sale financial assets 103 103 Exchange rate differences -118-118 Total other comprehensive income 103-118 - -15 Transfer within equity 3 3 Closing balance, 31 Dec 2011 35-6 685 12 000 5 350 12 FOREX Bank Annual Report 2011

Consolidated cash flow statement SEK thousands Note 2011 2010 Operating profit/loss (+) 230 789 339 663 Adjustments for items Note included in cash flow - Depreciation/amortization and impairment (+) 37 480 38 497 - Loan losses (+) 43 310 7 311 - Change in provisions (+/-) -456 168 - Capital gains/losses on intangible assets and PP&E (+/-) 763 984 - Interest Note paid (+/-) 117 513 40 760 - Other items Note included in cash flow (+/-) 250-7 701 Taxes paid (-) -133 397-29 530 Cash flow from operating activities before changes in working capital 296 252 392 823 Cash flow from changes in working capital Increase/decrease in loans to the general public (-/+) -873 135-635 888 Increase/decrease in bonds and other interest-bearing securities (-/+) -538 735-300 730 Increase/decrease in deposits from the general public (+/-) 1 533 326 827 479 Increase/decrease in liabilities to credit institutions (+/-) - -71 145 Increase/decrease in other assets and liabilities (+/-) -27 135-1 833 Cash flow from operating activities 390 573 511 436 Investing activities Acquisition of participations in associated companies (-) -43 093 - Sale of intangible assets (+) 1 455 - Acquisition of intangible assets (-) -301 - Sale of PP&E (+) 1 822 7 632 Acquisition of PP&E (-) -38 401-46 824 Cash flow from investing activities -78 518-39 192 Financing activities Dividends paid (-) -48 000-16 020 Cash flow from financing activities -48 000-16 020 Cash flow for the year 264 055 456 224 Cash equivalents at the beginning of the year 2 396 257 2 246 585 Exchange rate differences on cash equivalents -3 110-5 822 Cash equivalents at year-end 2 657 202 2 396 257 Cash and cash equivalents is comprised of the following items: Cash 402 441 351 919 Loans to credit institutions repayable on demand 526 027 654 199 Bonds and other interest-bearing securities - payable on demand 1 728 734 1 390 139 Cash equivalents at year-end 2 657 202 2 396 257 39 FOREX Annual Report 2011 13

Parent company income statement SEK thousands Note 2011 2010 Interest income 260 253 120 931 Interest expense -150 557-51 286 Net interest income/expense 4 109 696 69 645 Dividends received 5 1 40 563 Commission income 6 183 305 184 188 Commission expenses 7-20 393-16 273 Net profit from financial transactions 8 804 164 822 547 Other operating income 9 21 511 17 666 Total operating income 1 098 284 1 118 336 General administrative expenses 10-718 025-660 457 Depreciation/amortization and impairment of property, plant and equipment and intangible assets 22,23-31 801-31 730 Other operating expenses 11-86 144-67 916 Total expenses before loan losses -835 970-760 103 Net profit before loan losses 262 314 358 233 Loan losses, net 12-59 580-4 640 Impairment of financial assets 13-250 -250 Reversal of impairment of financial assets 14 250 1 668 Operating profit 202 734 355 011 Appropriations 15-2 883 12 749 Tax 16-54 989-83 026 Net profit for the year 144 862 284 734 The parent company s statement of comprehensive income SEK thousands 2011 2010 Net profit (loss) for the year 144 862 284 734 Other comprehensive income Available-for-sale financial assets 103-68 Exchange rate differences -475-10 269 Other comprehensive income, net after tax -372-10 337 Total comprehensive income 144 490 274 397 14 FOREX Bank Annual Report 2011

Parent company balance sheet SEK thousands Note 31 Dec 2011 31 Dec 2010 Assets Cash 359 289 275 803 Loans to credit institutions 17 426 978 588 776 Loans to the general public 18 2 563 679 1 733 854 Bonds and other interest-bearing securities 19 2 574 288 1 690 869 Shares and participations in group companies 20 171 915 171 865 Participations in associated companies 21 43 093 - Other shares and participations 22 1 324 1 471 Intangible assets 23 - Other intangible assets 1 933 3 879 Property, plant and equipment 24 - Equipment 13 294 14 571 - Capitalized reconstruction costs 73 038 61 825 - Buildings 64 674 66 478 Receivables from group companies 25 29 841 57 362 Current tax assets 10 304 - Deferred tax assets 16 5 476 5 267 Other assets 26 46 537 54 132 Prepaid expenses and accrued income 27 91 672 60 904 TOTAL ASSETS 6 477 335 4 787 056 Liabilities, provisions and equity Liabilities and provisions Deposits from the general public 28 5 512 865 3 853 991 Liabilities to group companies 29 58 - Other liabilities 30 171 054 181 159 Accrued expenses and prepaid income 31 37 709 95 174 Provisions 32 1 712 2 168 Total liabilities and provisions 5 723 398 4 132 492 Untaxed reserves 33 75 057 72 174 Equity Restricted equity Share capital 60 000 60 000 Statutory reserve 12 000 12 000 Non-restricted equity Profit/loss brought forward 462 018 225 656 Net profit (loss) for the year 144 862 284 734 Total equity 678 880 582 390 TOTAL LIABILITIES, PROVISIONS AND EQUITY 6 477 335 4 787 056 FOREX Annual Report 2011 15

Cont. Parent company balance sheet SEK thousands Note 31 Dec 2011 31 Dec 2010 Memorandum items Pledged assets - - Contingent liabilities 34 3 737 1 000 Commitments 35 121 360 31 003 16 FOREX Bank Annual Report 2011

Parent company statement of changes in equity SEK thousands Restricted equity Share capital 1) Statutory reserve Accumulated net profit/ loss Non-restricted equity Year s net profit/ loss Total equity Opening balance, 1 Jan 2009 60 000 12 000 149 144 102 869 324 013 Appropriation of profits 102 869-102 869 - Net profit for the year 284 734 284 734 Other comprehensive income Available-for-sale financial assets -68-68 Exchange rate differences -10 269-10 269 Total other comprehensive income -10 337 - -10 337 Dividends -16 020-16 020 Closing balance, 31 Dec 2010 60 000 12 000 225 656 284 734 582 390 Appropriation of profits 284 734-284 734 - Net profit (loss) for the year 144 862 144 862 Other comprehensive income Available-for-sale financial assets 103 103 Exchange rate differences -475-475 Total other comprehensive income -372 - -372 Dividends -48 000-48 000 Closing balance, 31 Dec 2011 60 000 12 000 462 018 144 862 678 880 1) Specification of share capital Number of shares Class A shares 600 000 Class B shares 5 400 000 Total number of shares 6 000 000 Quotient value SEK 10 All shares have been fully paid FOREX Annual Report 2011 17

Parent company cash flow statement SEK thousands Note 2011 2010 39 Operating activities Operating profit/loss (+) 202 734 355 011 Adjustments for items Note included in cash flow - Depreciation/amortization and impairment (+) 31 801 31 730 - Loan losses (+) 43 310 7 311 - Change in provisions (+/-) -456 168 - Capital gains/losses shares and participations - -29 603 - Capital gains/losses on intangible assets and property, plant and equipment (+/-) -1 914 703 - Interest Note paid (+/-) 117 513 40 760 - Dividends Note paid (+/-) - Other items Note included in cash flow (+/-) 41-2 261 Taxes paid (-) -117 205-32 143 Cash flow from operating activities before changes in working capital 275 824 331 676 Cash flow from changes in working capital Increase/decrease in loans to the general public (-/+) -873 135-635 888 Increase/decrease in bonds and other interest-bearing securities (-/+) -538 736-300 730 Increase/decrease in deposits from the general public (+/-) 1 533 326 827 479 Increase/decrease in liabilities to credit institutions (+/-) - -71 145 Increase/decrease in other assets and liabilities (+/-) -9 301 15 702 Cash flow from operating activities 387 978 167 094 Investing activities Acquisition of shares in group companies (-) - Acquisition of shares in associated companies (-) -43 093 - Sale of intangible assets (+) 1 455 - Acquisition of intangible assets (-) -301-116 Sale of Sale of property, plant and equipment(+) 1 822 7 202 Acquisition of Sale of property, plant and equipment (-) -38 918-38 964 Cash flow from investing activities -79 085-31 878 Financing activities Dividends paid (-) -48 000-16 020 Cash flow from financing activities -48 000-16 020 Cash flow for the year 260 893 119 196 Cash equivalents at the beginning of the year 2 254 718 2 141 224 Exchange rate differences on cash equivalents -610-5 702 Cash equivalents at year-end 2 515 001 2 254 718 Cash and cash equivalents is comprised of the following items: Cash 359 289 275 803 ULoans to credit institutions repayable on demand 426 978 588 776 Bonds and other interest-bearing securities - payable on demand 1 728 734 1 390 139 Cash equivalents at year-end 2 515 001 2 254 718 18 FOREX Bank Annual Report 2011

Notees to the financial statements Note 1 Information about Group and parent company The annual report as of 31 December 2011 is for Group where FOREX Bank AB, a joint-stock bank, is the parent company, with registered office in Stockholm. The main office s address is Kornhamnstorg 4, 111 27 Stockholm. All of the wholly-owned subsidiaries are listed in note 20. On 21 February 2012, the board of directors approved this annual report for FOREX Bank AB and the annual report will be brought forth for adoption at the bank s annual general meeting on 22 March 2012. Note 2 Accounting principles (a) Accordance with norms and legislation The consolidated financial statements have been prepared in accordance with International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board (IASB) along with interpretations issued by the International Financial Reporting Interpretations Committee (IFRIC) as adopted by the EU. Additions to these standards have also been provided by the Annual Accounts Act for Credit Institutions and Securities Companies (ÅRKL), the Swedish Financial Supervisory Authority s regulations and guidelines on annual reports issued by credit institutions and securities companies, FFFS 2008:25, and the Swedish Financial Reporting Board s Supplementary Accounting Rules for Groups, RFR 1, as well as their interpretations, UFR. The parent company applies the same accounting principles as Group, except for situations where ÅRKL limits the ability to apply IFRS to legal entities. Additionally, consideration has been given to the relationship between accounting and taxation. More information is provided in section (y) of the parent company s accounting principles, below. Unless otherwise stated, the accounting principles (discussed below) were consistently applied to each period presented in the financial statements. New and revised accounting standards and interpretations that are obligatory for accounting periods as of 1 January 2011 None of the revisions to existing standards issued by IASB, nor new interpretations issued by IFRIC that apply to accounting periods as of 1 January 2011 and which apply to Forex Bank AB, have had, or are expected to have any significant impact on Group s results or financial position. IAS 24 Related party disclosures (amended). The revised standard clarifies and simplifies the definition of a related party. In accordance with the new definition, related parties also includes associated companies of fellow subsidiaries, companies under the joint deciding influence of the same company/person, companies under the joint deciding influence of the same company that a third company is under the joint deciding influence of and companies controlled by a person who is a member of the key management personnel of another company. Furthermore, the disclosure requirements for transactions with related parties to the Government are limited. IAS 34 Interim Financial Reporting (amended). Provides guidelines regarding how disclosures of significant events or transactions shall be handled in the event these disclosures are required in accordance with other IFRS. Furthermore there are expanded disclosure requirements on conditions that will probably have an effect on the fair value and classification of financial instruments, transfers of financial instruments between different levels in the fair value hierarchy, changes in the classification of financial assets and changes of contingent liabilities and contingent assets. IFRS 7 Financial Instruments Disclosures (amended). Contains mitigations and clarifications of disclosure requirements regarding the maximum credit risk exposure not being required if the carrying amount is the best representation of the maximum credit risk exposure, the carrying amount for renegotiated financial assets not being required, the financial effects of collateral not valued at fair value and that disclosures of collateral taken over only applies to collateral the company still holds at the balance sheet date. IAS 32 Financial Instruments: Classification of Rights Issues (amended), IFRIC 13 Customer Loyalty Programmes, IFRIC 14 The Limit on a Defined Benefit Asset, Minimum Funding Requirements and their Interaction (amended) and IFRIC 19 Extinguishing Financial Liabilities with Equity Instruments are not expected to have any effect. New and revised accounting standards and interpretations that are obligatory for accounting periods as of 1 January 2012 or later IFRS 9 Financial Instruments: classification, measurement and reporting of financial assets and liabilities. Replaces the parts of IAS 39 related to classification and measurement of financial instruments. IFRS 9 states that financial assets shall be classified as one of two categories, fair value or amortized cost. Classification FOREX Annual Report 2011 19

is made at the time the financial asset is initially recognized based on the company s business model and the characteristics of the contractual cash flows. No major changes have been made compared to IAS 39 for financial liabilities. The most significant change relates to liabilities identified at fair value. The portion of the change in fair value that is attributable to the credit risk of the liability shall be reported in other comprehensive income instead of profit or loss as long as this does not create a recognition inconsistency (accounting mismatch). Group intends to apply the new standard no later than the financial year starting 1 January 2015 and has not assessed the effects. The standard has not yet been adopted by the EU. IFRS 10 Consolidated Financial Statement. This standard replaces IAS 27 and SIC 12 and builds on existing principles by identifying controls as the determining factor in whether a company should be included in the consolidated financial statements. The standard provides additional guidance to assist in the determination of control where this is difficult to assess. Group intends to apply IFRS 10 as of the financial year starting 1 January 2013. The standard has not yet been adopted by the EU. IFRS 12 Disclosure of interest in other entities. Covers disclosure requirements for subsidiaries, joint ventures, associated companies and unconsolidated structured entities. Group has not yet measured the full impact of IFRS 12 on the financial statements. Group intends to apply IFRS 12 for the financial year starting 1 January 2013. The standard has not yet been adopted by the EU. IFRS 13 Fair Value Measurement. The purpose of the standard is to make the fair value measurement more consistent and less complex by providing detailed definitions and a single source within IFRS for fair value measurements and related disclosures. The standard will be applied more or less to all assets and liabilities measured at fair value. The requirements do not expand the area of application for when fair value should be applied, but rather provide guidance with regard to how it should be applied when other IFRS already require or allow fair value measurements. Group has not yet measured the full effect of IFRS 13 on the financial statements. Group intends to apply the new standard as of the financial year starting 1 January 2013. The standard has not yet been adopted by the EU. None of the other new or amended IFRS or IFRIC interpretations that have not yet entered into force are expected to have a significant impact on Group. (b) Functional currency and reporting currency The parent company s functional currency is SEK, which is also the reporting currency for both the parent company and Group. Accordingly, the financial statements are presented in SEK. Unless otherwise stated, all amounts have been rounded to the nearest thousand. (c) Valuation principles used when preparing the company s financial statements Assets and liabilities are reported at historical cost. Financial assets and liabilities are reported at amortized cost, with the exception of certain financial assets and liabilities that are valued at fair value. Financial assets and liabilities reported at fair value consist of derivative instruments, financial instruments classified as financial assets valued at fair value in the income statement, financial liabilities valued at fair value in the income statement or available-for-sale financial assets. (d) Assessments and estimates used to prepare the financial statements In order to prepare the financial statements in accordance with IFRS, it is necessary for the bank s management team to make assessments and estimates, as well as assumptions that affect how the accounting principles are applied and the reported amounts for assets, liabilities, income and expenses. The estimates and assumptions are based on historical experiences and several other factors that are deemed to be reasonable under the current circumstances. The outcome of these estimates and assumptions is then used when determining the carrying amounts of assets and liabilities when such amounts are not otherwise clearly provided by other sources. The actual results may deviate from these estimates and assessments. These estimates and assumptions are regularly reviewed. Changes to estimates are reported in the period the change was made if the change only affects that period. Otherwise, it is reported in the current period and future periods, if the change affects the current period as well as future periods. Assessments made by the company management team when applying IFRS, which have a significant impact on the financial statements, and estimates that were made that could result in significant adjustment to the next year s financial statements are described in more detail in Note 41. 20 FOREX Bank Annual Report 2011

(e) Changes in accounting principles During the year, no changes have been made to accounting principles that affect Group s or parent company s financial statements. (f) Consolidation principles (i) Subsidiaries Subsidiaries are companies in which the parent company is able to exert a controlling influence. A controlling influence means that ownership directly or indirectly exceeds 50 percent or, that there are other conditions entitling the parent company to formulate a company s financial or operating strategies in order to reap financial benefits. An assessment of controlling influence involves determining whether the shares with potential voting rights can be used or converted without delay. Subsidiaries are reported in accordance with the purchase accounting method. Using this method, the acquisition of a subsidiary is treated as a transaction through which Group indirectly acquires the subsidiary s assets and assumes responsibility for its liabilities and contingent liabilities. Consolidated cost is determined through an acquisition analysis in conjunction with the business acquisition. The analysis is used to determine the identifiable assets that have been acquired, as well as the liabilities and contingent liabilities that have been assumed. The cost of acquisition of the subsidiary s shares and its business is determined by the fair value as of the transfer date for the assets, assumed/newly arisen liabilities and newly issued equity instruments that were given as consideration in exchange for the acquired net assets. Any transaction costs that are directly related to the acquisition are directly reported in the income statement. In business acquisitions where the acquisition cost exceeds the net value of the acquired assets and assumed liabilities/contingent liabilities, the difference is shown as goodwill. If the difference is negative, it is directly reported in the income statement. The financial reports of subsidiaries are included in the consolidated financial statements as of the acquisition date and until such time as the controlling influence no longer exists. (ii) Branches The bank s business activities in other Nordic countries are conducted through bank branches of Forex Bank AB in Sweden. The business activities of the branches are consolidated as part of the parent company s business and the parent company s financial statements in the same way as foreign subsidiaries are consolidated as part of Group s financial statements. (iii) Associated companies Associated companies are all companies in which Group holds a significant but not deciding influence, which by rule applies to share holdings consisting of between 20 and 50 percent of the votes. Holdings in associated companies are reported in accordance with the equity method and are initially valued at cost. Group s carrying amount on holdings in associated companies includes goodwill identified at the acquisition, net after any impairment. The Group s share of profits from the associated company after the acquisition is reported in the income statement and its share of the changes in other comprehensive income. Accumulated changes after the acquisition are reported as a change in the holding s carrying amount. When Group s share in an associated company s losses equals or exceeds its holding in the associated company, including any unsecured claims, Group does not report additional losses as long as Group has not undertaken commitments or made payments on behalf of the associated company. Unrealized profits on transactions between Group and its associated companies are eliminated in relation to Group s holding in the associated company. Unrealized losses are also eliminated if the transaction does not constitute evidence of an impairment loss for the transferred asset. Applied accounting principles in the associated company, where relevant, were changed to guarantee consistent application of Group s principles. Dilution profits/losses in participations in associated companies are reported in the income statement. (iv) Transactions to be eliminated on consolidation Intra-group receivables, liabilities, revenues or expenses attributable to intra-group transactions between group companies are fully eliminated when the consolidated financial statements are prepared. This also applies to the same types of transactions between the parent company in Sweden and the foreign branches, as well as such transactions between branches, when preparing the parent company s annual report. (g) Foreign currency Transactions in foreign currency Transactions in foreign currency are translated to the functional currency using the exchange rate on the transaction date. Functional currency is the currency used in the primary economic environments where the company or its branches conduct their operations. Monetary assets and liabilities in foreign currency are translated to the fun- FOREX Annual Report 2011 21

ctional currency using the exchange rate on the balance sheet date. Exchange differences that arise upon translation are reported in the income statement. Non-monetary assets and liabilities that are reported at historical cost are translated using the exchange rate on the transaction date. Non-monetary assets and liabilities that are reported at fair value are translated to the functional currency using the prevailing exchange rate at the point in time when valuation to fair value is made. Financial reports concerning foreign operations The assets and liabilities of foreign operations, including goodwill and other group surplus values, are translated into SEK using the exchange rate on the closing date. The revenue and expenses of foreign operations is translated to SEK using the average exchange rate. Translation differences that arise from currency translations of foreign operations are reported as part of other comprehensive income. Net investments in foreign operations Translation differences that arise in conjunction with the translation of a net investment in foreign operations are reported directly under other comprehensive income. When an investment in foreign operations is divested, Group recognizes the accumulated translation differences after the deduction of any currency hedging. Accumulated translation differences are presented in a separate equity category that comprises translation differences as of 1 January 2006. Accumulated translation differences from periods prior to 1 January 2006 are allocated to other equity categories and are not reported separately. For information on the reconciliation of the change in translation differences that is reported as part of equity, please see: Consolidated statement of changes in equity. (h) Interest income, interest expenses and dividends Interest income on receivables and interest expense on liabilities are calculated and reported using the effective interest method. The effective rate is the interest rate that renders the present value of all future cash receipts and disbursements during the anticipated remaining fixed interest term equal to the carrying amount of the receivable or liability. Interest income and interest expense includes the accrued amounts of any fees that have been received that have been included in the effective interest rate, transaction expenses and any discounts, premiums and any differences between the original value of the receivable/ liability and the amount that is settled on the due date. Interest expenses include the direct transaction costs associated with entering into new loan agreements. The interest income and interest expenses that are presented in the income statement consist of: - Interest on financial assets and liabilities valued at amortized cost using the effective interest method, including interest on doubtful debts - Interest on financial assets that are classified as available-for-sale Dividends from shares and participations are recognized when the right to receive payment has been established. (i) Revenue from commissions and fees Revenue from commissions and fees is recognized when (i) the amount of revenue can be measured reliably, (ii) it is probable that the future economic benefits that are attributable to the transaction will flow to the company, (iii) the percentage of completion as of the closing date can be measured reliably and (iv) the fees that have arisen and the fees that remain in order to complete the service assignment can be measured reliably. Revenue is valued at the fair value of the amount that has been received or that is expected to be received. Revenue recognition is in accordance with the percentage of completion method, which means that revenue is recognized based on the assignment s or service s percentage of completion on the closing date. The bank receives fees and commissions for services rendered. The following two methods are used when recognizing revenue: (i) Commissions and fees that are calculated using the effective interest rate Commissions and fees that are an integrated portion of the effective interest rate are not recognized as revenue from commissions. This type of revenue is recognized by adjusting the effective interest rate on the profit/loss item, interest income. These types of fees primarily consist of the fees associated with setting up new loans. (ii) Commissions and fees that are earned through rendering a particular service These types of fees and commissions consist of administration fees, charge/credit card fees in instances when the service is performed over a period of time that does not extend past the quarterly closing, payment for remittance services, money transfers and commissions for counting daily receipts, etc. These commissions and fees are typically related to a completed transaction and they are immediately recognized as revenue. 22 FOREX Bank Annual Report 2011

(j) Commission expenses These are expenses associated with services that have been received, to the extent that they are not considered as interest. For example, these consist of the expenses associated with clearing and bankgiro, charge/credit cards, payment to loan brokers and fees to UC (credit information agency). Transaction costs that are taken into consideration when calculating the effective interest rate are not reported here. (k) Net profit (loss) from financial transactions The item, Net profit (loss) from financial transactions, includes the realized and unrealized changes in value that have arisen when conducting financial transactions. Net profit (loss) from financial transactions consists of: - Realized and unrealized changes in the fair value of the assets and liabilities that are held for trading purposes - Capital gains/losses from the disposal of financial assets and liabilities that are held for trading purposesl - Capital gains/losses from available-for-sale financial assets - Changes in exchange rates (l) Financial instruments Financial instruments that are reported in the balance sheet and classified as financial assets include: cash and bank balances, treasury bills eligible as collateral, loans granted to credit institutions, loans granted to the general public, bonds and other interest-bearing securities, other shares and participations and other assets. Financial liabilities include liabilities to credit institutions, deposits from the general public and other liabilities. (i) Items reported in or removed from the balance sheet A financial asset or liability is reported in the balance sheet as soon as the bank has committed to the terms of the contract. A financial asset is removed from the balance sheet when the rights stated in the contract have been realized, have fallen due, or when the company has lost control over them. The same applies to parts of a financial asset. A financial liability is removed from the balance sheet once the obligation under the contract has been fulfilled or otherwise expired. The same applies to parts of a financial liability. Financial assets and liabilities are offset and reported at net amounts in the balance sheet only when there is a legal right to offset the sum and there is an intention to regulate the items with a net sum or at the same time realize the asset and regulate the debt. The acquisition and sale of financial assets are recorded on the trade date, i.e., when the company commits to acquiring or disposing of the asset. Loan commitments are not reported in the balance sheet. Loan receivables are reported in the balance sheet when the loan amount has been paid out to the borrower. (ii)classification and valuation Financial instruments are initially reported at the instrument s fair value plus transaction costs except for instruments that belong to the category financial assets reported at fair value through the income statement. Such instruments are reported at fair value, excluding transaction costs. A financial instrument is classified the first time it is reported partly based on the purpose for which the instrument was acquired, and partly based on the options available in IAS 39. Financial assets valued at fair value via the income statement This category consists of two sub-categories: financial assets held for trading purposes and other financial assets that the company has initially chosen to put in this category. Financial instruments in this category are adjusted to fair value on a continual basis, with changes in value reported in the income statement. For financial instruments held for trading purposes, both realized and unrealized changes in value are reported in the income statement item, Net profit (loss) from financial transactions. Items in the balance sheet that are classified as financial assets valued at fair value via the income statement, and which are held for trading purposes, are cash and bank balances, as well as derivatives with a positive value that are part of other assets. At the end of the financial year, there were no other financial assets that the company initially chose to value at fair value via the income statement. Loan receivables and accounts receivabler Loan receivables and accounts receivable are financial assets that are not derivatives, and which have fixed or determinable payments and are not quoted in an active market. These assets are valued at cost. Accounts receivable and loan receivables are reported at net realizable value, i.e. after the allowance for doubtful accounts. Items in the balance sheet that are classified as loan re- FOREX Annual Report 2011 23

ceivables and accounts receivable are: loans granted to credit institutions, loans granted to the general public and other assets, except derivatives with a positive value. Held-to-maturity investments Held-to-maturity investments are financial assets consisting of interest-bearing securities with fixed or determinable payments and fixed maturity that the company intends and is able to hold to maturity. Assets in this category are valued at amortized cost. Items in the balance sheet classified at held-to-maturity investments are: treasury bills eligible as collateral, bonds and other interest-bearing securities. Available-for-sale financial assets Available-for-sale assets are financial assets that are not classified in any other category and financial assets that the company has initially chosen to classify in this category. Holdings of shares and participations that are not reported as subsidiaries, associated companies or joint ventures are reported here. Assets in this category are adjusted to fair value on a continual basis. Changes in value are reported directly against equity, except for changes in value that are the result of impairment (see accounting principles) or exchange rate differences for monetary items, which are reported in the income statement. In accordance with the effective interest method, the interest on interest-bearing instruments is reported in the income statement. The same applies to dividends on shares. For these instruments, any transaction costs are included in the cost of acquisition for first-time reporting. Afterwards, they are included in the fair value reserve when regular adjustments to fair value are made. This is done until the time when the instrument falls due or is disposed of. Upon disposal of the asset, the accumulated profit/loss is reported in the income statement (which was previously reported as part of equity). Items in the balance sheet classified as available-for-sale financial assets are other shares and participations. Financial liabilities valued at fair value via the income statement This category consists of two sub-categories: financial liabilities that are held for trading purposes and financial liabilities that are classified in this category when reported for the first time (Fair Value Option). Financial instruments in this category are adjusted to fair value on a continual basis, with changes in value reported in the income statement. The first sub-category includes derivatives with a negative fair value. For financial instruments held for trading purposes, both realized and unrealized changes in value are reported in the income statement item, Net profit (loss) from financial transactions. Items in the balance sheet classified as financial liabilities valued at fair value via the income statement are derivatives with a negative value that are included as part of other liabilities. Other financial liabilities The category, other financial liabilities, includes financial liabilities that have not been classified in any other category, such as borrowings, deposits and other liabilities. Liabilities in this category are valued at amortized cost. Items in the balance sheet that are classified as other financial liabilities are: liabilities to credit institutions, deposits from the general public and other liabilities, except derivatives with a negative value. (m)loan losses and impairment of financial instruments (i) Test of impairment for financial assets At each reporting occasion, the bank assesses whether there is any objective evidence to suggest that a financial asset or group of assets needs to be written down as the result of one or more events (loss events) having occurred after the asset was reported for the first time and that such loss events have an impact on the estimated future cash flows generated by the asset or group of assets. If there is objective evidence suggesting that the asset has become impaired, the bank then considers these as doubtful accounts. Objective evidence consists partly of observable events that have occurred that have a negative impact on the possibility to recover the asset s cost and partly of a significant or long-term decline in the fair value of an investment classified as an available-for-sale financial asset. The bank evaluates whether there is a need to record an impairment loss and if the credit loss should be reported on an individual basis for all significant loans. For loans where impairment is assessed on an individual basis and where it has not been possible to identify any write-down requirement, these are included in future assessments along with other loans that have similar credit risk characteristics in order to determine whether a write-down requirement exists at Group level. For loans where it has been assessed that the individual amount is not significant, the bank groups such loans and tests for impairment at Group level, without making any individual assessments. The method used by the bank for such write downs is to categorize loans by type of demand at each closing. The write-down is then based on the change for each type of demand. Loans that have been submitted to a collection agency are valued by an external party. 24 FOREX Bank Annual Report 2011

As objective evidence of whether a write-down requirement exists, the bank calculates migration between the different categories. Other items considered as objective evidence are information about significant financial difficulties that the bank has become aware of through its analysis of financial statements, tax filings or other means of continually assessing the customer s creditworthiness, which are included as an integrated part of the bank s systems and routines for managing credit risk. Concessions given to the bank s borrower due to the borrower s financial difficulties may also be considered as objective evidence of a doubtful account. For its customers utilized credit facilities, the bank makes calculations at each closing to ensure that there is an impairment allowance equal to two percent of utilized credit facilities. For utilized credit facilities that have been submitted to a collection agency, valuation is performed by an external party. Valuation is performed by sorting into subclasses based on when credit facilities fall due (by year). Credit facilities for each year of maturity are then assigned a write-down level that is a percentage of the total value of the credit facilities for each class. Impairment (credit loss) is calculated as the difference between the discounted present value of future cash flows, which is discounted using the loan s original effective interest rate and its carrying amount. The impairment loss is reported as a credit loss in the income statement. For doubtful loan receivables, when the carrying amount after any impairment losses is estimated as the total discounted value of future cash flows, the change in the written-down amount is reported as interest to the extent that the increase is not based on a new assessment of the expected future cash flows. However, when there is a change in the assessment of the expected future cash flows from a doubtful loan receivable between two assessment occasions, the difference is reported as a credit loss or recovery. For loans where the original loan conditions have been renegotiated as a result of the borrower s financial difficulties, a credit loss is reported if the discounted present value of the future cash flows, in accordance with the renegotiated loan conditions, discounted by the loan s original effective rate of interest, is lower than the loan s carrying amount. If, after restructuring, it is expected that the loan will be paid back in accordance with the renegotiated terms, the loan is then no longer classified as a doubtful account. The carrying amount after impairment losses on assets belonging to the category held-to-maturity, as well as loan/ accounts receivable that are reported at amortized cost, the present value of future cash flows is discounted using the effective rate of interest that applied when the asset was reported for the first time. Short-term assets are not discounted. Impairment losses are recorded in the income statement. (ii) Reversal of impairment losses An impairment loss is reversed if there is evidence that a write-down requirement no longer exists and there has been a change in the assumptions that formed the basis for calculating the written-down amount. Impairment of a loan receivable is reversed if the borrower is expected to make the contractual payments in accordance with the original or restructured loan conditions. Reversal of impairment losses on loan receivables (credit losses) are reported as a decrease in credit losses and these are specified in a note to the financial statements. For held-to-maturity investments along with loan receivables and accounts receivable reported at amortized cost, a reversal of impairment loss is made if a subsequent increase in the recoverable amount can objectively be attributed to an event that occurred after the write-down was performed. Impairment losses on equity instruments that are classified as available-for-sale financial assets, which were previously reported in the income statement, are not reversed via the income statement. The written-down amount is the value from which subsequent revaluations are made, which are reported directly against equity. Impairment losses on interest-bearing instruments, classified as available-for-sale financial assets, are reversed via the income statement if the fair value increases and the increase can objectively be attributed to an event that occurred after the asset was written down. (iii) Write-offs on loan receivables Loan receivables classified as doubtful accounts are written off (removed from the balance sheet) if the credit loss can be determined with certainty, i.e. when the receiver has submitted an estimate of the dividends in bankruptcy, the composition proposal has been accepted, or the receivable has otherwise been relinquished. Once a loan receivable has been written off, it is no longer reported in the balance sheet. Recovery of any previously reported write-offs is reported as a decrease in credit losses in the income statement item: Loan losses, net. (n) Property, plant and equipment (i) Owned assets Property, plant and equipment are reported as assets in FOREX Annual Report 2011 25

the balance sheet if it is probable that future economic benefits will flow to the bank and if the asset s acquisition cost can be measured reliably. Property, plant and equipment, as well as reconstructions and extensive renovations to owned or leased facilities are reported by Group at cost less accumulated depreciation and any impairment losses or revaluations. Cost includes the purchase price and any costs directly attributable to the asset in order to bring it to working condition for its intended use. Examples of what are included as directly attributable costs are delivery, handling and installation. The carrying amount of an item of property, plant and equipment is removed from the balance sheet when it is disposed of or when no additional future economic benefits are expected from its use or the disposal/sale of the asset. Any profit or loss from the sale or disposal of an asset is calculated as the difference between the asset s sales price and its carrying amount less any direct sales costs. The profit or loss is reported as part of other operating income/operating expenses. (ii) Leased assets IAS 17 has been applied for all leased assets. Leases are classified as either operating or finance leases in the consolidated financial statements. A lease is classified as a finance lease if it transfers substantially all the risks and rewards incidental to ownership to the lessee. If such is not the case, the lease is classified as an operating lease. For operating leases, the leasing fees are expensed over the term of the lease based on usage, which may differ from what has actually been paid as leasing fees during the year. Group reports all of its leasing agreements in accordance with the rules on operating leases. (iii) Additional expenses Additional expenses are included in the carrying amount only if it is probable that the future economic benefits that are attributable to the asset will flow to the company and the cost of the asset can be measured reliably. All other additional expenses are expensed in the period in which they arise. Repairs are expensed as incurred. (iv) Amortization principles Depreciation is made on a straight-line basis over the asset s useful life. No depreciation is made on property. Expected useful life for different types of assets; - Buildings 50 years - Capitalized reconstruction costs agreement 5-10 years or over the duration of the lease - Equipment 5-10 years At each year-end closing, the depreciation methods that were used, along with the residual value and expected useful life for each type of asset is reassessed. (o) Intangible assets (i) Goodwill Goodwill represents the difference between the acquisition value of the acquired business and the fair value of the acquired assets, assumed liabilities and contingent liabilities. In conjunction with the transition to IFRS, for goodwill that was acquired before 1 January 2006, Group has not applied IFRS retroactively. Rather, the carrying amount as of that date will continue to represent Group s acquisition cost. Goodwill is shown at cost less any accumulated impairment losses. Goodwill is allocated amongst cash-generating units and it is not amortized. Instead, it is tested annually for impairment. Companies or branches are considered as cash-generating units. In business acquisitions where the acquisition cost is less than the net value of the acquired assets and assumed liabilities/contingent liabilities, the difference is taken up directly in the income statement (ii) Other intangible assets Other intangible assets that are acquired by Group are shown at cost less accumulated amortization (see below) and any impairment loss. (iii) Amortization principles Amortization is calculated on a straight-line basis over the useful life of the intangible asset, provided the duration of such useful life can be assessed. Goodwill and other intangible assets with an uncertain useful life are assessed annually to see if there has been any impairment or as soon as there is any indication that the value of the asset has diminished. Amortization of intangible assets begins as soon as the asset is available for use. The estimated useful life for each type of intangible asset is shown below: - rental agreements 5 years or over the duration of the lease agreement (p)impairment of property, plant and equipment and intangible assets (i) Test of impairment The carrying amounts of the company s assets are tested at each closing of the books in order to determine whether 26 FOREX Bank Annual Report 2011

there are any indications of a write-down requirement. If there is any indication of a write-down requirement, the asset s recoverable amount is calculated in accordance with IAS 36 (see below). For goodwill and other intangible assets that have an indeterminate useful life, the recoverable amount is calculated on a yearly basis. If, when testing for impairment, the future expected cash flow for a particular asset can not be determined with reasonable certainty, then the test is made on the cash generating unit, i.e., the smallest group of assets to which that asset belongs. Impairment loss is recorded whenever the carrying amount for an asset or cash generating unit (group of units) exceeds the recoverable amount. Impairment losses are recorded in the income statement. Any impairment loss on assets that belong to a cash generating unit (or group of units) are allocated first to goodwill. Then, a proportional write-down is made on the other assets belonging to the cash generating unit (group of units). The recoverable amount on other assets is either the fair value less selling expenses or the value-in-use (whichever is higher). In calculating the fair value, future expected cash flows are discounted by a factor that takes into consideration the risk-free interest rate along with the risk associated with that particular asset. The recoverable amount for the cash generating unit is calculated for essentially independent assets belonging to the unit that do not generate an expected future cash flow of their own. (q) Share capital Dividends Dividends are reported as a liability as soon as the dividend has been approved at the bank s annual general meeting. The bank s obligations related to fees for defined contribution pension plans are recognized in the income statement during the same period in which the employee has rendered services to the bank. Premiums are paid based on actual salaries. The year s expenses for these types of insurance premiums are specified in Note 10. The bank does not have any defined benefit pension plans. (ii) Pay related to notice of termination Costs related to payment in conjunction with termination of employment are reported as a provision only if the company is demonstrably committed and lacking any realistic possibilities to withdraw such notice and when there is a formal, detailed plan to terminate employment before it would otherwise expire. When payment is made as an offer to encourage voluntary termination, a cost is recognized if it is likely that the offer will be accepted and if the number of employees likely to accept the offer can be reliably estimated. (iii) Short-term payments When short-term payments are made to employees, they are calculated without being discounted and recognized as an expense as soon as the associated services have been delivered. (s) General administrative expenses General administrative expenses are comprised of employee benefit expenses, which includes salaries and fees, pension expenses, employer s contributions and other social security contributions. This is also where the expenses for the following items are reported: facilities, education, IT, telecommunications, travel and entertainment, audit services, other external services and other external expenses. (r) Employee benefits (i) Post-employment benefits The bank s pension plans for employees are covered by regular premium payments. In accordance with IAS 19, under a defined contribution plan, the company pays fixed contributions into a fund (separate legal entity) but has no legal or informal obligation to make further payments if the fund (separate legal entity) does not have sufficient assets to pay all of the employees entitlements to post-employment benefits related to the employees service during the current period or previous periods. (t) Provisions A provision is reported in the balance sheet when Group has an existing legal or informal obligation resulting from an event that has occurred, and when it is probable that there will be an outflow of financial resources in order to settle the obligation, and when the amount can be reliably estimated. When the effect of the timing of the payment is significant, provisions are then calculated by discounting the expected future cash flow using a discount rate before tax that reflects the actual market assessments of the time value of money and, when appropriate, the risks associated with the obligation as well. FOREX Annual Report 2011 27

(u) Taxes Income taxes are comprised of current tax and deferred tax. Income taxes are reported in the income statement, except when the underlying transaction is reported directly to equity, in which case the associated tax effect is also reported to equity. Current tax is tax that must be paid or that will be received for the current year, using the tax rates that have been decided or announced at year-end. Current tax also includes adjustments to taxes paid in prior periods. Deferred tax is calculated using the balance sheet approach. This involves determining the tax base of assets and liabilities in order to calculate temporary differences. The following temporary differences are not taken into account: for temporary differences arising from the initial recognition of goodwill, initial recognition of assets and liabilities that are not business acquisitions and which, at the time of the transaction, affect neither the accounting nor the taxable profit. Neither are temporary differences recognized that are related to participations in subsidiaries/associated companies that are not expected to reverse in the foreseeable future. Valuation of deferred tax is based on how the carrying amounts of assets or liabilities are expected to be realized or regulated. Deferred tax is calculated using the tax rates and tax regulations that have been decided or announced at year-end. Deferred tax assets are recognized for deductible temporary differences, loss or credit carryforwards to the extent that it is probable they can be utilized. The carrying amount of deferred tax assets is reduced when it is no longer probable that they can be utilized. Tax on profit for the year includes current tax, deferred tax and tax related to prior years. (v) Contingent liabilities A contingent liability is reported when there is a possible commitment deriving from events that have occurred whose existence can only be confirmed if one or more uncertain future events occur. A contingent liability is also reported when there is a commitment that has not been reported as a liability or entered as a provision because it is not certain that an outflow of resources will be required. (x) Cash flows Group s cash flows are reported in accordance with the indirect method. The indirect method means that the profit (loss) from operating activities is adjusted for: transactions that are not associated with payments made or received, accrued or prepaid items that are related to prior or future periods and any income or expenses that are associated with the cash flows for investing or financing activities. Cash equivalents is comprised of the following: cash, bank balances and short-term investments that mature in three months or less from the acquisition date and that can easily be converted to cash and where there is little risk of value fluctuations. The balance sheet items that may be classified at belonging to cash equivalents are: cash, loans to credit institutions, treasury bills eligible as collateral, bonds and other interest-bearing securities. (y) The parent company s accounting principles The parent company s annual report was prepared in accordance with the Annual Accounts Act for Credit Institutions and Securities Companies (1995:1559) (ÅRKL) and the Swedish Financial Supervisory Authority s regulations and general guidelines (FFFS 2008:25 and amended via FFFS 2011:54) regarding annual reports issued by credit institutions and securities companies and the Swedish Financial Reporting Board s recommendation RFR 2, Accounting for Legal Entities. As a result of RFR 2, the parent company, as the legal entity, must apply all of the EUapproved IFRS and IFRIC statements to the extent that this is possible within the framework of ÅRKL and taking into account the correlation between accounting and taxation. Differences between the accounting principles used by Group and those used by the parent company are specified below. The accounting principles described have been consistently applied to all periods that are reported in the parent company s financial statements. (i) Changes in accounting principles Group contribution The Swedish Financial Reporting Board has withdrawn UFR 2 Group contributions and shareholders contributions that previously regulated the rules regarding group contributions. The new rules regarding group contributions pursuant to RFR 2 apply for financial years starting 2011-01-01 or later. The new rules entail that group contributions paid from the parent company to the subsidiary are reported in the parent company as an increase in participations in subsidiaries. The tax effect of group contributions paid 28 FOREX Bank Annual Report 2011

are reported in accordance with IAS 12 in the income statement. The tax effect of Group contribution is reported in the notes on its own line, Group contributions paid to subsidiaries when reporting for the difference between reported tax expense and estimated tax expense based on the applicable tax rate. Where the parent company receives group contributions from subsidiaries, the parent company reports group contributions received in accordance with the principles for customary dividends from subsidiaries, i.e. as financial income. Tax on group contributions received are reported in accordance with the rules set out in IAS 12, i.e. in the income statement. The new amended rules regarding group contributions are applied retroactively for the comparison year, 2010. (ii)subsidiaries Participations in subsidiaries are reported by the parent company at cost less any impairment losses. Dividends received are reported as revenue only if they derive from earnings accrued after the acquisition. Dividends exceeding these accrued earnings are regarded as repayment of investments and reduce the carrying amounts. The cost of acquisition of the subsidiary s shares and its business is determined by the fair value as of the transfer date for the assets, assumed/newly arisen liabilities and newly issued equity instruments that were given as consideration in exchange for the acquired net assets plus any transaction costs that are directly related to the acquisition. (ii) Associated companies Participations in associated companies are reported by the parent company at cost less any impairment losses. Dividends received are reported as revenue only if they derive from earnings accrued after the acquisition. In the event there is an indication that the value of participations in associated companies has diminished, the recoverable amount is calculated. If the recoverable amount is lower than the carrying amount, an impairment loss is made. The impairment is reported in the item Shares and participations under the line Net profit from financial transactions. (iv) Taxes The parent company reports untaxed reserves including deferred tax liability, when such exists. In the consolidated financial statements, untaxed reserves are classified as either deferred tax liability or equity. (v) Additional depreciation The parent company reports additional depreciation, as allowed by Swedish legislation, as appropriations in the income statement. Additional depreciation is included in the balance sheet as part of untaxed reserves. (vi) Intangible assets Goodwilll Goodwill arising from the purchase of the net assets of a business that is reported in the financial statements of the parent company or its branches is amortized over a period ranging between 5 and 10 years. Such amortization is then taken up in the consolidated financial statements. FOREX Annual Report 2011 29

Note 3 Financial risks There are various types of risks associated with the bank s business, such as credit risks, liquidity risks, market risks and operational risks. In order to limit and control risktaking in the organization, the bank s board of directors, which has the ultimate responsibility for the bank s internal controls, has established policies about the types of risks the bank is willing to take along with how such risks should be managed. The bank s board of directors has the overall responsibility for the bank s risk management practices. The board has issued specific instructions when delegating responsibility to other functions. Such functions are then required to regularly provide reports to the board of directors. The bank has a separate function for independent risk control. The function is responsible for supporting and developing the bank s organization such that it actively takes responsibility for risks. The independent risk control function reports to the board of directors and Managing Director on the bank s overall risk situation, along with the outcome of risks that have a predetermined risk tolerance. The bank s policy is to identify, measure, manage, control and report on all of its risks. The risks are continually monitored through regular controls to ensure that they remain within the established limits. Risk management policies, processes and systems are regularly reviewed in order to ensure that they are correct and appropriate, that they reflect the existing market conditions and cover all of the products and services that are offered by the bank. The bank creates the prerequisites for good risk control through training and clear processes, where every employee understands his/her role and responsibilities. Credit risk Credit risk is the risk that losses will occur as the result of counterparties not being able to fulfill their obligations. Credit risk arises in conjunction with granting loans to the general public and when making cash investments. The board of directors has the overall responsibility for the bank s credit risk exposure. The board has issued specific instructions to delegate this responsibility to the Credit Committee. This committee provides regular reports to the board. Before granting any loans to the general public, an assessment is made of the credit quality using scoring models (advanced statistical models). The bank regularly evaluates and changes its scoring models in order to reflect the credit quality of borrowers as accurately as possible. The bank s granting of credit consists entirely of loans to the general public in the form of unsecured loans and credit facilities. The maximum amount is SEK 400 thousand per borrower. At year-end, the average credit amount per loan was SEK 58 (59) thousand. Of the total amount of loans granted to the general public, SEK 66 (52) million had a 100 percent risk weight as per the capital adequacy rules. The remaining portion had a risk weight of 75 percent. The higher risk weight relates to the carrying amount of loans that are more than 90 days past due. The gross amount of such items is SEK 155 (116) million. Loans to the general public are only granted to persons residing in Sweden. There is no significant concentration risk related to geographic distribution or age of loans. The bank s routines for monitoring payments that have fallen due and receivables that have not yet been settled is aimed at minimizing loan losses by, at an early stage, identifying any problems that the borrower is having with making payment and then ensuring that claims are quickly administered. All loans that are more than 90 days overdue are submitted to a collection agency and all credit granted to the borrower is then cancelled. Collection activities are conducted in cooperation with other market participants. All credit is assessed using the UC s (Sweden s largest and leading business and credit information agency) most recent scorecard. This is supplemented with a living allowance calculation and policies. As of 31 December 2011, the total volume of household credit was SEK 2, 563, 679 (1, 733, 854) thousand. The volume of loan receivables fallen due, but not yet written off, is provided in the following table: Group and parent company SEK thousands 2011 2010 Loan receivables 1-30 days 117 019 91 449 31-60 days 18 357 10 704 61-90 days 13 513 6 205 90 + days 53 088 41 054 Total 201 977 149 412 30 FOREX Bank Annual Report 2011

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 and for its cash investments. This pertains to the following balance sheet items: Loans to credit institutions and Bonds and other interest-bearing securities. The board has established limits for these types of investments and the term may not exceed one year. The distribution of the bank s investments and account balances at various types of banks is provided in the table below (SEK thousands): Group SEK thousands 2011 2010 Rating 1 Government Government AAA - 287-288 AA- through AA+ - 479 436-177 507 A- through A+ - 2 620 592-2 164 394 Below A- - - - 2 879 Total investments and account balances - 3 100 315-2 345 068 1) The rating level is provided in the S&P scale regardless of which institution affixed the rating. In cases where institutions have affixed different rating levels, the lowest one is used. Parent company SEK thousands 2011 2010 Rating 1 Government Government Credit institutions Credit institutions Credit institutions Credit institutions AAA - 287-288 AA- through AA+ - 479 339-172 775 A- through A+ - 2 521 640-2 103 981 Below A- - - - 2 600 Total investments and account balances - 3 001 266-2 279 645 1) The rating level is provided in the S&P scale regardless of which institution affixed the rating. In cases where institutions have affixed different rating levels, the lowest one is used. Liquidity risk Liquidity risk is the risk that the bank will not be able to meet its payment obligations when payment falls due without the costs associated with obtaining the means of payment increasing significantly. It is also possible to define liquidity risk as the risk of incurring a loss or worsened earnings potential as a result of the bank not being able to meet its payment obligations on time. The bank s liquidity situation is exposed to variations in the lending and depositing patterns of the general public, along with the bank s other risks, primarily credit and reputation risks. Liquidity risks also arise due to differences in the maturities of assets. The bank s risk management practices focus on achieving a spread on the maturity dates and liquidity quality of its holdings. That means that investments are only made in liquid securities, i.e. securities that are traded on an active market or in short-term deposits at other credit institutions. Liquidity is continually monitored. At year-end, Group s total liquidity reserve, which is defined as loans granted to credit institutions, bonds and other interest-bearing securities, was SEK 3, 100,315 (2, 345, 068) thousand, which corresponds to 54 (56) percent of total liabilities. At year-end, the parent company s total liquidity reserve was SEK 3, 001,266 (2, 279, 645) thousand, which corresponds to 52 (55) percent of total liabilities. All of the bank s financial liabilities fall due within 30 days. The bank s loans to credit institutions, bonds and other interest-bearing securities mature within six months. Market risk Market risk is the risk of negative effects on the bank s net interest income/expense, or on the financial value of equity as a result of fluctuations in interest and exchange rates. Interest risk The bank defines interest rate risk as the risk that the fair value of future cash flows from a financial instrument will vary due to changes in market rates of interest. The risk arises when the fixed-interest terms on the bank s assets do not correspond to the fixed-interest terms on its liabilities. For the bank, this primarily applies to the fixed interest terms on its loans to, and deposits from the general public, as well as investments. When the difference between the fixed-interest terms for assets in relation to the fixed-interest terms for liabilities increases, the interest rate risk also increases. FOREX Annual Report 2011 31

In accordance with the bank s risk policy, the organization s financial risks are controlled through the setting of limits and policy documents. For interest rate risks, the total risk may not exceed SEK 31.6 million when there is a 1 percent change in the market rate of interest for all of the various maturity schedules. The bank s deposits from/loans to the general public all have variable interest rates, which reduces the interest rate risk. The bank s interest rate risk is primarily related to its time-bound investments (longer than one day), for which the volume at year-end was SEK 2, 538,288 (SEK 300, 000) thousand. At year-end, the total interest rate risk for all of the various maturity schedules given a 1 percent change in interest rates was SEK 3,116 (2) thousand. Currency risk The bank defines currency risk as the risk of incurring a loss due to fluctuations in exchange rates. The bank is exposed to different types currency risks. Primarily, this type of risk comes from the purchase and sale of foreign currencies and the inventory of currencies held by the bank for these activities, as well as the balance of currency accounts at other banks. At year-end, Group s inventory of various types of foreign currencies, for which the exchange rate fluctuations, to a certain extent, level out the total change in value against the SEK currency, was SEK308,474 (248, 324) thousand. At year-end, the parent company s inventory of foreign currencies was SEK 275,835 (192, 239) thousand. The bank also has certain other assets/liabilities in foreign currency associated with the banks branches in the Nordic countries. Group s currency risk is calculated as the change in value of the inventory of foreign currency when the SEK currency increases 10 percentage points against the other currencies to which Group is exposed. At year-end, this was equal to SEK 30,874 (24, 832) thousand. The following is a list of the currencies (in thousands) where there is significant exposure: 2011 Nominal value Rate Value in ksek 10% EUR 2 384 095 8,9215 21 270 2 127 USD 2 015 953 6,8828 13 875 1 387 NOK 59 261 260 1,1498 68 139 6 814 DKK 7 211 327 1,2004 8 656 866 GBP 743 316 10,6828 7 941 794 THB 133 655 850 0,2172 29 030 2 903 148 911 14 891 2010 Nominal value Group s income statement includes exchange rate differences of SEK 10,475 (18, 335) thousand in the net profit (loss) from financial transactions. The corresponding amount reported by the parent company was SEK 9,774 (18, 973) thousand. Operational risks Rate Value in ksek Operational risk is the risk of incurring losses due to inappropriate or deficient internal processes, human error, faulty systems, irregularities or external events. Such risk arises if the bank s internal processes and/or systems do not support the organization, are faulty, or result in incorrect decisions, downtime, etc. that have a negative impact on the bank s income statement and balance sheet. According to the bank s policy, the following are required in order to manage operational risks: clear policies and instructions about the bank s various types of risks that are updated annually well-documented processes, reporting lines and control systems for the bank, in generalt clearly defined responsibilities and authorities 10% EUR 5 867 621 9,002 52 820 5 282 USD 2 059 062 6,8025 14 007 1 401 NOK 46 282 990 1,1520 53 318 5 332 DKK 36 006 834 1,2075 43 478 4 348 GBP 696 536 10,5475 7 347 735 THB 71 171 840 0,2255 16 049 1 605 187 019 18 702 a well-documented and communicated continuity plan a well-documented and communicated emergency plan for crisis situations systems that are adapted to the organization s needs a well-documented process for managing operational risk information security and physical security in order to protect the assets of the bank and its customers Operational risk is a significant type of risk, due to the rather large scope of the bank s cash management activities, among others. For this reason, the bank places a great deal of emphasis on how these types of risk are managed. 32 FOREX Bank Annual Report 2011

Note 4 Net interest income/expense Group SEK thousands 2011 2010 Interest income Loans to credit institutions 62 028 18 070 Loans to the general public 198 856 101 242 Other 496 1 696 Total interest income 261 380 121 008 Interest expense Liabilities to credit institutions -47-194 Deposits from the general public -131 154-48 347 Other -19 495-2 375 Total interest expenses -150 696-50 916 Total net interest income/expense 110 684 70 092 Deposits from the general public includes the deposit insurance expense and stability fee of SEK -5, 607 (-4, 916) thousand. % 2011 2010 Interest margin 1,53 1,44 Investment margin 1,93 1,62 FOREX Annual Report 2011 33

The parent company SEK thousands 2011 2010 Interest income Loans to credit institutions 60 889 17 877 Loans to the general public 198 856 101 242 Loans to credit institutions 494 122 Other 14 1 690 Total interest income 260 253 120 931 Interest expense Liabilities to credit institutions -47-183 Deposits from the general public -131 154-48 347 Liabilities to group companies - -435 Other -19 356-2 321 Total interest expenses -150 557-51 286 Total net interest income/expense 109 696 69 645 Deposits from the general public includes the deposit insurance expense and stability fee of SEK -5, 607 (-4, 916) thousand. % 2011 2010 Interest margin 1,57 1,48 Investment margin 1,95 1,66 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 Note 5 Dividends received Group SEK thousands 2011 2010 Shares and participations 1 563 Total dividends received 1 563 The parent company SEK thousands 2011 2010 Shares and participations 1 563 Shares and participations in group companies - 40 000 Total dividends received 1 40 563 34 FOREX Bank Annual Report 2011

Note 6 Commission income Group SEK thousands 2011 2010 Commissions from remittance services 34 893 40 825 Lending commissions 30 207 17 999 Commissions from deposit services 452 347 Fees from charge/credit cards 6 482 10 846 Other commissions 130 145 142 361 Total commission income 202 179 212 378 The parent company SEK thousands 2011 2010 Commissions from remittance services 28 789 32 146 Lending commissions 30 207 17 999 Commissions from deposit services 452 347 Fees from charge/credit cards 6 482 10 846 Other commissions 117 375 122 850 Total commission income 183 305 184 188 Note 7 Commission expenses Group SEK thousands 2011 2010 Commissions from remittance services -3 259-3 298 Other commissions -15 628-10 741 Total commission expenses -18 887-14 039 The parent company SEK thousands 2011 2010 Commissions from remittance services -3 197-3 286 Other commissions -17 196-12 987 Total commission expenses -20 393-16 273 FOREX Annual Report 2011 35

Note 8 Net profit (loss) from financial transactions Group SEK thousands 2011 2010 Shares and participations - -52 Other financial instruments 905 139 906 542 Changes in exchange rates 10 475 18 335 Total net profit (loss) from financial transactions 915 614 924 825 Net profit/net loss by type 2011 2010 Via RR Via RR Financial assets, held for trading purposes 911 856 923 973 Loan receivables and accounts receivable 4 858-880 Available-for-sale financial assets - -52 Financial liabilities, held for trading purposes -1 395 479 Other financial liabilities 295 1 305 Total net profit (loss) from financial transactions 915 614 924 825 The parent company SEK thousands 2011 2010 Shares and participations - 29 603 Other financial instruments 794 190 773 971 Changes in exchange rates 9 974 18 973 Total net profit (loss) from financial transactions 804 164 822 547 Net profit/net loss by type 2011 2010 Via RR Via RR Financial assets, held for trading purposes 800 406 791 036 Loan receivables and accounts receivable 4 858 124 Available-for-sale financial assets - 29 603 Financial liabilities, held for trading purposes -1 395 479 Other financial liabilities 295 1 305 Total net profit (loss) from financial transactions 804 164 822 547 36 FOREX Bank Annual Report 2011

Note 9 Other operating income Group SEK thousands 2011 2010 Net profit (loss) on disposal of property, plant and equipment/intangible assets 2 614 1 990 Insurance reimbursements 4 640 2 784 Other operating income 5 804 3 492 Total other operating income 13 058 8 266 The parent company SEK thousands 2011 2010 Net profit (loss) on disposal of property, plant and equipment 2 614 1 952 Management fee, subsidiaries 10 000 10 000 Insurance reimbursements 4 640 2 784 Other operating income 4 257 2 930 Total other operating income 21 511 17 666 FOREX Annual Report 2011 37

Note 10 General administrative expenses Group SEK thousands 2011 2010 Employee benefit expenses - salaries and fees -326 567-302 478 - social security contributions -86 266-76 197 - pension premium expenses -28 145-31 068 - other employee benefit expenses -26 293-20 290 Total employee benefit expenses -467 271-430 033 Other general administrative expenses - rent and other facility expenses -92 231-103 859 - postage and telephone -23 121-21 170 - audit -2 986-3 041 - other external services -167 091-134 665 - other external expenses -43 587-47 226 Total other administrative expenses -329 016-309 961 Total general administrative expenses -796 287-739 994 The parent company SEK thousands 2011 2010 Employee benefit expenses - salaries and fees -287 665-261 638 - social security contributions -75 745-66 188 - pension premium expenses -26 367-29 395 - other employee benefit expenses -23 932-18 194 Total employee benefit expenses -413 709-375 415 Other general administrative expenses - rent and other facility expenses -76 546-85 968 - postage and telephone -21 456-20 039 - audit -2 686-2 627 - other external services -163 701-134 350 - other external expenses -39 927-42 058 Total other administrative expenses -304 316-285 042 Total general administrative expenses -718 025-660 457 38 FOREX Bank Annual Report 2011

Salaries, other remuneration and social security expenses Group SEK thousands 2011 2010 Bank mgmt Other employees Bank mgmt Other employees Salaries -16 668-309 899-13 868-288 610 Social security expenses -5 204-81 062-4 059-72 138 Total -21 872-390 961-17 927-360 748 Of Group s pension expenses, SEK 3,427 (2, 572) thousand was for the bank management team consisting of 7 (7) individuals. No other outstanding pension obligations exist. All pension expenses are covered through regular pensions payments.. The parent company SEK thousands 2011 2010 Bank mgmt Other employees Bank mgmt Other employees Salaries -16 668-270 997-13 868-247 770 Social security expenses -5 204-70 541-4 059-62 129 Total -21 872-341 538-17 927-309 899 Of the parent company s pension expenses, SEK 3,427 (2, 572) thousand was for the bank management team consisting of 7 (7) individuals. No other outstanding pension obligations exist. All pension expenses are covered through regular pensions payments. Remuneration to senior executives Directors Remuneration to the members of the board is established at the FOREX Bank Annual General Meeting. At year-end, the Board of Directors had 7 members and it held 16 meetings. There are no fixed fees for participating in the board. Rather, compensation is based on the number of meetings attended by each board member. For other participation in committees, projects, etc., board members are compensated at an hourly rate. Managing Director and other senior executives Remuneration to the Managing Director and the Deputy Managing Director is decided by the board of directors. Remuneration to the Managing Director and other senior executives consists of a base salary and pension. All senior executives have a notice period of 6 months with full salary when termination is handed down by FOREX Bank. For the Managing Director and the Deputy Managing Director, the notice period with full salary is 12 months. Pension insurance premiums are paid for the Managing Director and other senior executives in accordance with the pension plan in effect at the bank. No pension obligations exist. Remuneration and other items are reported below. FOREX Annual Report 2011 39

Remuneration and other benefits Group and parent company 2011 SEK thousands Chairman of the Board Basic salary/ Board fee Variable pay Other benefits Pension expense Other pay Hans Hellquist 397 - - - - 397 Total Board members Katja Elväng 186 - - - - 186 Beth Friberg 343 - - - - 343 Jörgen Holgersson 177 - - 147 324 Ingrid Jonasson Blank 125 - - - 7 132 Olof Söderberg 135 - - - 135 Stefan Zadik 360-10 25-395 Previous board members Gunnel Engberg 82 - - - - 82 Marie-Louise Lind 493 - - - - 493 Carl Johan Smith 37 37 Managing Director and Group Chairman Magnus Cavalli-Björkman 4 621-81 874-5 576 Other senior executives The parent company, 6 individuals 9 712-246 2 553-12 511 - of which Tom Friberg 1 309-2 189-1 500 Total group and parent company 16 668-337 3 452 154 20 611 40 FOREX Bank Annual Report 2011

Remuneration and other benefits Group and parent company 2010 SEK thousands Basic salary/ Board fee Variable pay Other benefits Pension expense Other pay Chairman of the Board Hans Hellquist 326 - - - - 326 Previous Chairman of the Board Rolf Friberg 600 - - - - 600 Board members Katja Elväng 170-170 Gunnel Engberg 159 - - - 30 189 Beth Friberg 1) 979 - - 403-1 382 Jörgen Holgersson 160 - - - 225 385 Marie-Louise Lind 152 - - 8-160 Carl Johan Smith 160 - - - 39 199 Total Previous board members Anders Broström 37 - - - - 37 Christer Lundkvist 49 - - - - 49 Managing Director and Group Chairman Magnus Cavalli-Björkman 3 714-39 877-4 630 Other senior executives The parent company, 7 ndividuals 7 332-127 1 695-9 154 - of which Tom Friberg 676-39 155-870 Total group and parent company 13 838-166 2 983 294 17 281 1) Board member, Beth Friberg, receives compensation in accordance with her employment agreement. No board fees are paid. Variable Remuneration No variable remuneration was paid out in 2011 and 2010. Loans to senior executives As of 31 December 2011, outstanding loans to senior executives were SEK 380 (445) thousand. These loans are in the form of unsecured credit and the loan conditions are the same as what are typically used when granting credit to the general public and other employees. Information about remuneration in accordance with FFFS 2011:1 Please see the company s website www.forex.se. FOREX Annual Report 2011 41

Average number of employees The parent company 2011 2010 Women Men Total Women Men Total Sweden 449 144 593 464 119 583 Finland branch 50 33 83 41 25 66 Denmark branch 35 26 61 40 20 60 Norway branch 34 19 53 35 23 58 Total parent company 568 222 790 580 187 767 X-change in Sweden AB - Sweden 92 33 125 76 37 113 - Denmark branch - - - 7 6 13 Total average number of employees in Group 660 255 915 663 230 893 Gender distribution, management Group och The parent company 2011 2010 Women Men Total Women Men Total Directors 3 4 7 4 3 7 Other senior executives including the Managing Director and Group Chairman 2 5 7 2 6 8 Total 5 9 14 6 9 15 42 FOREX Bank Annual Report 2011

Fees and expense reimbursements to auditors Group 2011 2010 Pricewaterhouse Coopers AB Audit engagements 2 427 2 742 Audit activities in addition to the audit assignment 559 250 Tax consultation 435 835 Other services 1 218 906 Total fees and expense reimbursements to auditors 4 639 4 733 The parent company 2011 2010 PricewaterhouseCoopers AB Audit engagements 2 227 2 364 Audit activities in addition to the audit assignment 459 214 Tax consultation 435 835 Other services 1 218 882 Total fees and expense reimbursements to auditors 4 339 4 295 The audit engagement includes the audit of the annual report, accounting records and the administration of the Board of Directors and the Managing Director, as well as other duties that the company s auditor is obliged to conduct and advice or other assistance resulting from observations made during the audit or performance of these other duties. Any other services provided are included in other fees. Operating lease agreements Group leases a number of branch facilities, offices, inventory facilities and cars in accordance with operating lease agreements. The leasing periods vary from 2 to 10 years and most of the leasing agreements may be extended at the end of the lease term for a fee that is consistent with prevailing market rates. Other operating leases are negligible. During the year, Group s leasing expenses for leased facilities was SEK 72,700 (67, 331) thousand for cars SEK 633 (-) thousand. The corresponding amount for the parent company was SEK 59,592 (52, 871) thousand and SEK 633 (-) thousand, respectively. The total future minimum lease payments for operating lease agreements that may not be cancelled are as follows: FOREX Annual Report 2011 43

Group 2011 2010 Within 1 year 69 031 63 211 Between 1 and 5 years 98 940 88 950 More than 5 years 5 990 6 625 Total 173 961 158 786 The parent company 2011 2010 Within 1 year 58 465 50 200 Between 1 and 5 years 84 942 70 707 More than 5 years 5 990 5 340 Total 149 397 126 247 44 FOREX Bank Annual Report 2011

Note 11 Other operating expenses Group SEK thousands 2011 2010 Insurance expenses -2 039-2 174 Security expenses -23 939-21 223 Marketing expenses -64 609-47 979 Capital loss on disposal of PPE and intangible assets -3 377-2 972 Other operating expenses -4 299-4 693 Total other operating expenses -98 263-79 041 The parent company SEK thousands 2011 2010 Insurance expenses -1 804-1 664 Security expenses -20 137-16 904 Marketing expenses -59 368-42 000 Capital loss on disposal of PPE and intangible assets -700-2 655 Other operating expenses -4 135-4 693 Total other operating expenses -86 144-67 916 Note 12 Loan losses, net Group och The parent company SEK thousands 2011 2010 Individually assessed loan receivables Write-off for the year on verified credit losses -27 256-2 708 Net expense for the year for individually assessed loan receivables -27 256-2 708 Loan receivables assessed as a group Paid for prior years' verified credit losses 10 986 5 129 Year's provision for the allowance for credit losses -43 310-7 061 Net expense for the year for loan receivables assessed as a group -32 324-1 932 Net expense for the year for credit losses -59 580-4 640 All credit losses are related to loan receivables and accounts receivable. FOREX Annual Report 2011 45

Note 13 Impairment of financial assets Group och The parent company SEK thousands 2011 2010 Shares and participations Condominium, Brf Gråbjörnen 11, Malmö -250-250 Total impairment of financial assets -250-250 Note 14 Reversal of impairment of financial assets The parent company SEK thousands 2011 2010 Receivables from group companies Forex Sweden International Ltd. 250 1 668 Total impairment of financial assets 250 1 668 Note 15 Appropriations The parent company SEK thousands 2011 2010 Reversal of tax allocation reserve 4 649 14 096 Excess depreciation/amortization -7 532-1 347 Total appropriations -2 883 12 749 46 FOREX Bank Annual Report 2011

Note 16 Taxes Reported in the income statement Group SEK thousands 2011 2010 Current tax expense Tax expense for the period -62 608-89 542 Other taxes -196 - Deferred tax expense Deferred tax 163 4 809 Total reported tax expense -62 641-84 733 The parent company SEK thousands 2011 2010 Current tax expense Tax expense for the period -55 008-83 398 Other taxes -196 - Deferred tax expense Deferred tax 215 372 Total reported tax expense -54 989-83 026 Reconciliation of effective tax Group SEK thousands 2011 (%) 2011 2010 (%) 2010 Profit before tax 227 357 339 663 Tax according to the applicable tax rate 26,3% -59 795 26,30% -89 331 Effect of foreign tax credit -0,22% 504-0,70% 2 385 Non-deductible expenses 0,69% -1 564 0,70% -2 365 Non-taxable income -0,22% 490-0,88% 3 004 Tax related to prior years 0,77% -1 754-0,52% 1 765 Temporary differences -0,07% 163-0,13% 450 Other taxes 0,09% -196 0,00% - Standard interest on tax allocation reserve 0,21% -489 0,19% -641 Reported effective tax 27,55% -62 641 24,95-84 733 FOREX Annual Report 2011 47

The parent company SEK thousands 2011 (%) 2011 2010 (%) 2010 Profit before tax 199 851 367 760 Tax according to the applicable tax rate 26,3% -52 561 26,30% -96 721 Effect of foreign tax credit -0,25% 504-0,72% 2 357 Non-deductible expenses 0,63% -1 363 0,61% -1 999 Non-taxable income -0,20% 397-3,46% 11 336 Tax related to prior years 0,83% -1 650-0,63% 2 077 Temporary differences -0,11% 215-0,11% 372 Other taxes 0,10% -196 0,00% - Standard interest on tax allocation reserve 0,17% -335 0,14% -448 Reported effective tax 27,52% -54 989 22,13% -83 026 Deferred tax assets Group SEK thousands 31 Dec 2011 31 Dec 2010 Carrying amount at the beginning of the period 5 345 4 895 Net change during the period 131 450 Carrying amount at the end of the period 5 476 5 345 Reported deferred tax receivables Deferred tax receivables are related to the following: SEK thousands 31 Dec 2011 31 Dec 2010 Tax effect of temporary differences: Depreciation on property, plant and equipment - 78 Impairment of building 4 053 4 053 Impairment of financial assets 973 907 Pension liability 450 307 Total deferred tax assets 5 476 5 345 48 FOREX Bank Annual Report 2011

The parent company SEK thousands 31 Dec 2011 31 Dec 2010 Carrying amount at the beginning of the period 5 276 4 895 Net change during the period 200 372 Carrying amount at the end of the period 5 476 5 267 Reported deferred tax receivables Deferred tax receivables are related to the following: SEK thousands 31 Dec 2011 31 Dec 2010 Tax effect of temporary differences: Impairment of building 4 053 4 053 Impairment of financial assets 973 907 Pension liability 450 307 Total deferred tax assets 5 476 5 267 Deferred tax liabilities Group SEK thousands 31 Dec 2011 31 Dec 2010 Carrying amount at the beginning of the period 29 147 33 506 Net change during the period -1 146-4 359 Carrying amount at the end of the period 28 001 29 147 Reported deferred tax liabilities Deferred tax liabilities are related to the following: SEK thousands 31 Dec 2011 31 Dec 2010 Cash 263 211 Property, plant and equipment 4 794 2 867 Intangible assets 1 498 2 166 Tax allocation reserve 21 446 23 903 Total deferred tax liabilities 28 001 29 147 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 and the tax effect on different inventory values in Group and legal entities. Deferred tax is reported at the rate of 26.3%. FOREX Annual Report 2011 49

Note 17 Loans to credit institutions Group SEK thousands 31 Dec 2011 31 Dec 2010 Loans to credit institutions - swedish currency 420 548 549 513 - foreign currency 105 479 104 686 Total loans to credit institutions 526 027 654 199 The parent company SEK thousands 31 Dec 2011 31 Dec 2010 Loans to credit institutions - swedish currency 321 540 486 188 - foreign currency 105 438 102 588 Total loans to credit institutions 426 978 588 776 Note 18 Loans to the general public Group och The parent company SEK thousands 31 Dec 2011 31 Dec 2010 Outstanding receivables, gross - Swedish currency 2 684 083 1 810 948 Total outstanding receivables, gross 2 684 083 1 810 948 Of which: doubtful Impairment loss on loan receivables assessed as a group -120 404-77 094 Carrying amount of loans to the general public, net 2 563 679 1 733 854 Change in impairment losses SEK thousands Loan receivables assessed as a group 2011 2010 Total impairment losses Loan receivables assessed as a group Total impairment losses Opening balance 1 Jan -77 094-77 094-70 033-70 033 Impairment loss for the year, credit losses -43 310-43 310-7 061-7 061 Ending balance on 31 Dec -120 404-120 404-77 094-77 094 50 FOREX Bank Annual Report 2011

Note 19 Bonds and other interest-bearing securities Group och The parent company SEK thousands Fair value 31 Dec 2011 Carrying amount Fair value 31 Dec 2010 Carrying amount Issued by other borrowers - other finance companies 2 574 288 2 574 288 1 690 869 1 690 869 Total bonds and other interestbearing securities 2 574 288 2 574 288 1 690 869 1 690 869 Of which: Listed securities on an exchange - - - - Unlisted securities 2 574 288 2 574 288 1 690 869 1 690 869 Note 20 Shares and participations in group companies The parent company SEK thousands 31 Dec 2011 31 Dec 2010 Accumulated cost Opening balance, 1 Januari 171 865 174 444 Acquisitions for the year 50 - Sales for the year - -2 579 Ending balance on 31 December 171 915 171 865 of which: Unlisted securities 171 915 171 865 Group companies 2011 SEK thousands Net profit Equity Share of capital Number of shares Carrying amount X-change in Sweden AB, 556413-1463, Stockholm 26 426 109 013 100% 10 574 171 864 - X-change ValutaSpecialisten Europe AB, -408 1 483 100% 1 000-556448-0712, Stockholm FOREX Sweden International Ltd, 2527227, London 8 081 45 100% 100 1 Svensk Valutahantering AB, - 50 100% 1 000 50 Total shares in group companies 171 915 FOREX Annual Report 2011 51

Group companies 2010 SEK thousands Net profit Equity Share of capital Number of shares Carrying amount X-change in Sweden AB, 556413-1463, Stockholm 46 002 81 994 100% 10 574 171 864 - X-change ValutaSpecialisten Europe AB, 400 1 483 100% 1 000-556448-0712, Stockholm FOREX Sweden International Ltd, 2527227, -1 938-8 143 100% 100 1 London Total shares in group companies 171 865 Note 21 Participations in associated companies Group SEK thousands 31 Dec 2011 31 Dec 2010 Accumulated cost Opening balance 1 Januari - - Acquisitions for the year 43 093 - Share in profits -3 432 - Ending balance on 31 December 39 661 - of which: Listed securities 39 661 - Group s share of profits in associated companies and Group s share of income, assets (including goodwill) and liabilities are as follows: Associated companies 2011 Net profit Income Assets Liabilities Share of capital Number of shares Carrying amount SEK thousands 1) 1) 1) 1) 1) 1) 1) Panaxia AB, (publ), Stockholm -3 432 30 707 206 433 171 292 27,74% 2 861 873 39 661 Total shares in group companies 39 661 1) Based on the values in Panaxia AB s published quarterly report for January-September 2011. 52 FOREX Bank Annual Report 2011

The parent company SEK thousands 31 Dec 2011 31 Dec 2010 Accumulated cost Opening balance, 1 January - - Acquisitions for the year 43 093 - Ending balance on 31 December 43 093 of which: Listed securities 43 093 - The parent company s share of profits in associated companies and the parent company s share of income, assets (including goodwill) and liabilities are as follows: Associated companies 2011 Net profit Income Assets Liabilities Share of capital SEK thousands 2) 2) Number of shares Carrying amount Panaxia AB, (publ), Stockholm - 30 707 206 433 171 292 27,74% 2 861 873 43 093 Total shares in group companies 43 093 2) 2) Based on the values in Panaxia AB s published quarterly report for January-September 2011. FOREX Annual Report 2011 53

Note 22 Other shares and participations Group and parent company SEK thousands 31 Dec 2011 31 Dec 2010 Available-for-sale financial assets, listed below - Listed securities, shares - USA 324 221 - Unlisted securities 1 000 1 250 Total available-for-sale financial assets 1 324 1 471 List of other shares and participations SEK thousands 31 Dec 2011 Antal Redovisat värde 31 Dec 2010 Antal Redovisat värde Shares in Visa Inc 461 324 461 221 Condominium, Brf Gråbjörnen11, Malmö 1 1000 1 1 250 Total 1 324 1 471 54 FOREX Bank Annual Report 2011

Note 23 Intangible assets Group SEK thousands Goodwill Acquired intangible assets Rights of tenancy Other Accumulated cost Opening balance 1 Jan 2010 126 455 39 335-165 790 Disposals for the year - -247 - -247 Exchange rate differences for the year -499-649 - -1 148 Closing balance 31 Dec 2010 125 956 38 439-164 395 Total Opening balance 1 Jan 2011 125 956 38 439-164 395 Acquisitions for the year - 301-301 Sales for the year - -1 324 - -1 324 Disposals for the year - -7 251-7 251 Exchange rate differences for the year -15-14 -29 Closing balance 31 Dec 2011 125 941 30 151-156 092 Accumulated depreciation Opening balance 1 Jan 2010 - -26 770 - -26 770 Disposals for the year - 148-148 Depreciation for year - -5 457 - -5 457 Exchange rate differences for the year - 519-519 Closing balance 31 Dec 2010 - -31 560 - -31 560 Opening balance 1 Jan 2011 - -31 560-31 560 Sales for the year - 1 324 1 324 Disposals for the year - 6 326-6 326 Depreciation for year - -4 324 - -4 324 Exchange rate differences for the year - 16-16 Closing balance 31 Dec 2011 - -28 218 - -28 218 Carrying amounts As of 1 Jan 2010 126 455 12 565-139 020 As of 31 Dec 2010 125 956 6 879-132 835 As of 1 Jan 2011 125 956 6 879-132 835 As of 31 Dec 2011 125 941 1 933-127 874 FOREX Annual Report 2011 55

The parent company SEK thousands Goodwill Acquired intangible assets Rights of tenancy Other Ackumulerade anskaffningsvärden Opening balance 1 Jan 2010 8 086 24 068-32 154 Acquisitions from group companies for the year - 247-247 Disposals for the year - -247 - -247 Exchange rate differences for the year -815-649 - -1 464 Closing balance 31 Dec 2010 7 271 23 419-30 690 Total Opening balance 1 Jan 2010 7 271 23 419-30 690 Acquisitions for the year - 301-301 Sales for the year - -1 324 - -1 324 Disposals for the year - -481-481 Exchange rate differences for the year -27-14 - -41 Closing balance 31 Dec 2011 7 244 21 901-29 145 Accumulated depreciation Opening balance 1 Jan 2010-7 670-17 652 - -25 322 Acquisitions from group companies for the year - -131 - -131 Disposals for the year - 148-148 Depreciation for year -383-2 425 - -2 808 Exchange rate differences for the year 782 520-1 302 Closing balance 31 Dec 2010-7 271-19 540 - -26 811 Opening balance 1 Jan 2011-7 271-19 540 - -26 811 Sales for the year - 1 324-1 324 Disposals for the year - 481-481 Depreciation for year - -2 249 - -2 249 Exchange rate differences for the year 27 16-43 Closing balance 31 Dec 2011-7 244-19 968 - -27 212 Carrying amounts As of 1 Jan 2010 416 6 416-6 832 As of 31 Dec 2010-3 879-3 879 As of 1 Jan 2011-3 879-3 879 As of 31 Dec 2011-1 933-1 933 56 FOREX Bank Annual Report 2011

Note 24 Property, plant and equipment Group SEK thousands Equipment Capitalized reconstruction costs Buildings Accumulated cost Opening balance 01.01.10 82 086 109 390 91 028 282 504 Acquisitions for the year 12 977 33 847-46 824 Sales for the year -15 121 - -800-15 921 Disposals for the year -1 261-5 362-669 -7 292 Reclassifications -2 011 2 011 - - Exchange rate differences -2 455-5 102 - -7 557 Closing balance 31 Dec 2010 74 215 134 784 89 559 298 558 Total Opening balance 1 Jan 2011 74 215 134 784 89 559 298 558 Acquisitions for the year 4 867 33 534-38 401 Sales for the year -354 - -450-804 Disposals for the year -4 230-6 449 - -10 679 Exchange rate differences -57-202 - -259 Closing balance 31 Dec 2011 74 441 161 667 89 109 325 217 Accumulated depreciation Opening balance 1 Jan 2010-55 838-52 123-6 460-114 421 Sales for the year 10 089-204 10 293 Disposals for the year 914 3 411 38 4 363 Reclassifications 79-79 - - Depreciation for year -11 305-20 283-1 452-33 040 Exchange rate differences 2 039 2 623-4 662 Closing balance 31 Dec 2010-54 022-66 451-7 670-128 143 Opening balance 1 Jan 2011-54 022-66 451-7 670-128 143 Sales for the year 218-102 320 Disposals for the year 3 304 5 508-8 812 Depreciation for year -7 772-23 928-1 456-33 156 Exchange rate differences 55 151-206 Closing balance 31 Dec 2011-58 217-84 720-9 024-151 961 FOREX Annual Report 2011 57

cont. Property, plant and equipment Group Acquired intangible assets SEK thousands Equipment Capitalized reconstruction costs Buildings Accumulated impairment losses Opening balance 1 Jan 2010 - - -15 411-15 411 Closing balance 31 Dec 2010 - - -15 411-15 411 Total Accumulated impairment losses Opening balance 1 Jan 2011 - - -15 411-15 411 Closing balance 31 Dec 2011 - - -15 411-15 411 Carrying amounts As of 1 Jan 2010 26 248 57 267 69 157 152 672 As of 31 Dec 2010 20 193 68 333 66 478 155 004 As of 1 Jan 2011 20 193 68 333 66 478 155 004 As of 31 Dec 2011 16 224 76 947 64 674 157 845 58 FOREX Bank Annual Report 2011

The parent company SEK thousands Equipment Capitalized reconstruction costs Buildings Total Accumulated cost Opening balance 1 Jan 2010 63 916 94 606 91 028 249 550 Acquisitions for the year 7 563 30 014-37 577 Acquisitions from group companies for the year 93 2 875-2 968 Sales for the year -13 087 - -800-13 887 Disposals for the year -898-4 877-669 -6 444 Exchange rate differences -2 296-5 022 - -7 318 Closing balance 31 Dec 2010 55 291 117 596 89 559 262 446 Opening balance 1 Jan 2011 55 291 117 596 89 559 262 446 Acquisitions for the year 4 800 34 118-38 918 Sales for the year -354 - -450-804 Disposals for the year -786-3 029 - -3 815 Exchange rate differences -56-202 - -258 Closing balance 31 Dec 2011 58 895 148 483 89 109 296 487 Accumulated depreciation Opening balance 1 Jan 2010-42 835-41 401-6 460-90 696 Acquisitions from group companies for the year -47-1 534 - -1 581 Sales for the year 8 446-204 8 650 Disposals for the year 721 3 129 38 3 888 Depreciation for year -8 944-18 526-1 452-28 922 Exchange rate differences 1 939 2 561-4 500 Closing balance 31 Dec 2010-40 720-55 771-7 670-104 161 Opening balance 1 Jan 2011-40 720-55 771-7 670-104 161 Sales for the year 218-102 320 Disposals for the year 652 2 466-3 118 Depreciation for year -5 805-22 290-1 456-29 551 Exchange rate differences 54 150-204 Closing balance 31 Dec 2011-45 601-75 445-9 024-130 070 FOREX Annual Report 2011 59

cont. The parent company SEK thousands Equipment Capitalized reconstruction costs Buildings Total Accumulated impairment losses Opening balance 1 Jan 2010 - - -15 411-15 411 Closing balance 31 Dec 2010 - - -15 411-15 411 Opening balance 1 Jan 2011 - - -15 411-15 411 Closing balance 31 Dec 2011 - - -15 411-15 411 Carrying amounts As of 1 jan 2010 21 081 53 205 69 157 143 443 As of 31 Dec 2010 14 571 61 825 66 478 142 874 As of 1 jan 2011 14 571 61 825 66 478 142 874 As of 31 Dec 2011 13 294 73 038 64 674 151 006 60 FOREX Bank Annual Report 2011

Note 25 Receivables from group companies The parent company SEK thousands 31 Dec 2011 31 Dec 2010 X-change in Sweden AB 29 841 57 362 Total receivables from group companies 29 841 57 362 Note 26 Other assets Group SEK thousands 31 Dec 2011 31 Dec 2010 Positive value on derivative instruments 4 206 3 020 Credit card receivables 24 680 28 551 Other assets 38 180 55 607 Total other assets 67 066 87 178 The parent company SEK thousands 31 Dec 2011 31 Dec 2010 Positive value on derivative instruments 4 206 3 020 Credit card receivables 20 497 21 154 Other assets 21 834 29 958 Total other assets 46 537 54 132 FOREX Annual Report 2011 61

Note 27 Prepaid expenses and accrued income Group SEK thousands 31 Dec 2011 31 Dec 2010 Prepaid expenses 79 325 49 805 Accrued interest income 5 944 3 996 Other accrued interest 10 663 12 868 Total prepaid expenses and accrued income 95 932 66 669 The parent company SEK thousands 31 Dec 2011 31 Dec 2010 Prepaid expenses 75 153 44 838 Accrued interest income 5 944 3 996 Other accrued interest 10 575 12 070 Total prepaid expenses and accrued income 91 672 60 904 Note 28 Deposits from the general public Group och The parent company SEK thousands 31 Dec 2011 31 Dec 2010 General public - Swedish currency 5 512 865 3 853 991 Total deposits from the general public 5 512 865 3 853 991 All deposits are deposits from the household sector. Note 29 Liabilities to group companies The parent company SEK thousands 31 Dec 2011 31 Dec 2010 X-change Valutaspecialisten Europe AB 58 - Total liabilities to group companies 58-62 FOREX Bank Annual Report 2011

Note 30 Other creditors Group SEK thousands 31 Dec 2011 31 Dec 2010 Negative value on derivative instruments 1 816 421 Preliminary tax, interest 37 151 12 725 Employee withholding tax 6 959 6 554 Advance payments from customers 438 1 039 Accounts payable - trade 45 494 44 427 Income tax liability 3 759 62 298 Other creditors 82 556 69 529 Total other liabilities 178 173 196 993 The parent company SEK thousands 31 Dec 2011 31 Dec 2010 Negative value on derivative instruments 1 815 421 Preliminary tax, interest 37 151 12 725 Employee withholding tax 6 343 5 675 Advance payments from customers 438 1 039 Accounts payable - trade 41 665 41 218 Income tax liability 3 759 55 672 Other creditors 79 883 64 409 Total other liabilities 171 054 181 159 FOREX Annual Report 2011 63

Note 31 Accrued expenses and prepaid income Group SEK thousands 31 Dec 2011 31 Dec 2010 Accrued employee benefit expenses 24 468 25 416 Other accrued expenses 15 678 75 440 Prepaid income 44 - Total accrued expenses and deferred income 40 190 100 856 The parent company SEK thousands 31 Dec 2011 31 Dec 2010 Accrued employee benefit expenses 22 818 23 674 Other accrued expenses 14 847 71 500 Prepaid income 44 - Total accrued expenses and deferred income 37 709 95 174 Note 32 Provisions Group och The parent company SEK thousands Pension provision Restructuring expenses Accumulated excess depreciation expenses Total provisions Total provisions Opening balance, 1 January 2010-2 000 2 000 Reported in the income statement 1 168 134 1 302 - additional provision - -1 134-1 134 Ending balance on 31 December 2010 1 168 1 000 2 168 Reported in the income statement - additional provision 544-242 302 Utilized during the year - -758-758 Ending balance on 31 December 2011 1 712-1 712 Pension provision All of the bank s pension plans are defined contribution plans. For certain management personnel, pensions have been secured via endowment insurance. The pension provision is comprised of the value of the endowment insurance plus estimated payroll tax. Restructuring The provision for restructuring pertains to the costs associated with closing down operations in Great Britain. The item consists of rent that the bank is contractually obligated to pay until it may leave the premises along with other costs that are directly related to the closing down of operations. The bank left the premises in 2011 and no additional costs are expected to arise in the future since the company was formally wound down at the start of 2012. 64 FOREX Bank Annual Report 2011

Note 33 Untaxed reserves The parent company SEK thousands 31 Dec 2011 31 Dec 2010 Accumulated excess depreciation Opening balance, 1 Januari 9 871 8 524 Excess depreciation for the year 7 532 1 347 Ending balance on 31 December 17 403 9 871 Tax allocation reserves Tax Assessment 2006-4 649 Tax Assessment 2007 7 674 7 674 Tax Assessment 2008 14 565 14 565 Tax Assessment 2009 3 415 3 415 Tax Assessment 2010 32 000 32 000 Ending balance on 31 December 57 654 62 303 Total untaxed reserves 75 057 72 174 Note 34 Contingent liabilities Group SEK thousands (nom belopp) 31 Dec 2011 31 Dec 2010 Warranties - Warranty obligations other 3 737 2 656 Total contingent liabilities 3 737 2 656 The parent company SEK thousands (nom belopp) 31 Dec 2011 31 Dec 2010 Warranties - Warranty obligations other 3 737 1 000 Total contingent liabilities 3 737 1 000 FOREX Annual Report 2011 65

Note 35 Commitments Group och The parent company SEK thousands (nom belopp) 31 Dec 2011 31 Dec 2010 Other commitments - Credit and loan commitments 121 360 31 003 Total commitments 121 360 31 003 Note 36 Related parties Related party relationships, group companies In 2011, the parent company invoiced interest of SEK 13 (53) thousand to the subsidiary, Forex Sweden International Ltd, and SEK - (70) thousand to the subsidiary, X- change in Sweden AB. During 2010, the parent company incurred a cost of SEK 535 thousand for interest for the subsidiary, Forex Valutaväxling AS. During 2011, the parent company also invoiced a management fee of SEK 10,000 (10, 000) thousand and SEK 147, 442 (-) thousand for delivered currency to the subsidiary, X-change in Sweden AB. During the year the parent company invoiced SEK 72 (72) thousand for compensation for the provision of a POS (Point of Sale) system and incurred a cost of SEK 2, 071 (2, 244) thousand for commissions for cash services with respect to the subsidiary, X-change in Sweden AB. For other information, please refer to Note 25 and Note 29. Transactions with key management personnel For information about salary, other remuneration and pensions for key management personnel, please see note 10. There have otherwise not been any transactions with key management personnel. Transactions with the owners During the year, dividends were paid to the owners in the amount of SEK 48,000 (16, 020) thousand. 66 FOREX Bank Annual Report 2011

Note 37 Geographic distribution of income Group SEK thousands Sweden Other countries 2011 2010 2011 2010 Interest income 260 404 119 998 976 1 010 Dividends received 1 563 - - Commission income 165 717 167 351 36 462 45 027 Net profit from financial transactions 737 094 737 777 175 088 187 048 Other operating income 11 231 5 516 1 827 2 750 Geographic distribution of total income 1 174 447 1 031 205 214 353 235 835 The parent company SEK thousands Sverige Övriga länder 2011 2010 2011 2010 Interest income 259 277 120 356 976 575 Dividends received 1 40 563 - - Commission income 146 794 142 329 36 511 41 859 Net profit from financial transactions 629 429 642 778 174 735 179 769 Other operating income 19 684 14 930 1 827 2 736 Geographic distribution of total income 1 055 185 960 956 214 049 224 939 FOREX Annual Report 2011 67

Note 38 Financial assets and liabilities Group 31 Dec 2011 Financial assets valued at fair value via the income statement Loan receivables and accounts receivable Financial assets assessed as belonging to this category Held for trading purposes Held-tomaturity investments Availablefor-sale financial assets Financial liabilities valued at fair value via the income statement Held for trading purposes Other financial liabilities Total carrying amount Cash and bank balances 402 441 402 441 402 441 Loans to credit institutions 526 027 526 027 526 027 Loans to the general public 2 563 679 2 563 679 2 563 679 Fair value Bonds and other interestbearing securities 2 574 288 2 574 288 2 574 288 Other shares and participations 1 324 1 324 1 324 Other assets 4 206 62 860 67 066 67 066 Prepaid expenses and accrued income 95 932 95 932 95 932 Total financial assets - 406 647 3 248 498 2 574 288 1 324 - - 6 230 757 6 230 757 Deposits from the general public 1 816 5 512 865 5 512 865 5 512 865 Other creditors 176 357 178 173 178 173 Accrued expenses and prepaid income 40 190 40 190 40 190 Total financial liabilities - - - - - 1 816 5 729 412 5 731 228 5 731 228 68 FOREX Bank Annual Report 2011

31 Dec 2010 Financial assets valued at fair value via the income statement Loan receivables and accounts receivable Financial assets assessed as belonging to this category Held for trading purposes Held-tomaturity investments Availablefor-sale financial assets Financial liabilities valued at fair value via the income statement Held for trading purposes Other financial liabilities Total carrying amount Cash and bank balances 351 919 351 919 351 919 Loans to credit institutions 654 199 654 199 654 199 Loans to the general public 1 733 854 1 733 854 1 733 854 Fair value Bonds and other interest-bearing securities 1 690 869 1 690 869 1 690 869 Other shares and participations 1 471 1 471 1 471 Other assets 3 020 84 158 87 178 87 178 Prepaid expenses and accrued income 66 669 66 669 66 669 Total financial assets - 354 939 2 538 880 1 690 869 1 471 - - 4 586 159 4 586 159 Deposits from the general public 3 853 991 3 853 991 3 853 991 Other creditors 421 196 572 196 993 196 993 Accrued expenses and prepaid income 100 856 100 856 100 856 Total financial liabilities - - - - - 421 4 151 419 4 151 840 4 151 840 FOREX Annual Report 2011 69

The parent company 31 Dec 2011 Financial assets valued at fair value via the income statement Loan receivables and accounts receivable Financial assets assessed as belonging to this category Held for trading purposes Held-tomaturity investments Availablefor-sale financial assets Financial liabilities valued at fair value via the income statement Other creditors Other financial liabilities Total carrying amount Cash and bank balances 359 289 359 289 359 289 Loans to credit institutions 426 978 426 978 426 978 Loans to the general public 2 563 679 2 563 679 2 563 679 Bonds and other interest-bearing securities 2 574 288 Other shares and participations 1 324 1 324 1 324 Other assets 4 206 72 172 76 378 76 378 2 574 288 Fair value Prepaid expenses and accrued income 91 672 91 672 91 672 Total financial assets - 363 495 3 154 501 2 574 288 1 324 - - 6 093 608 6 093 608 Deposits from the general public 5 512 865 5 512 865 5 512 865 Other creditors 1 816 169 296 171 112 171 112 2 574 288 Accrued expenses and prepaid income 37 709 37 709 37 709 Summa finansiella skulder - - - - - 1 816 5 719 870 5 721 686 5 721 686 70 FOREX Bank Annual Report 2011

31 Dec 2010 Financial assets valued at fair value via the income statement Loan receivables and accounts receivable Financial assets assessed as belonging to this category Held for trading purposes Held-tomaturity investments Availablefor-sale financial assets Financial liabilities valued at fair value via the income statement Holdings for trading purposes Other financial liabilities Total carrying amount Cash and bank balances 275 803 275 803 275 803 Loans to credit institutions 588 776 588 776 588 776 Loans to the general public 1 733 854 1 733 854 1 733 854 Bonds and other interest-bearing securities 1 690 869 1 690 869 Other shares and participations 1 471 1 471 1 471 Other assets 3 020 108 474 111 494 111 494 Prepaid expenses and accrued income Fair value 1 690 869 60 904 60 904 60 904 Total financial assets - 278 823 2 492 008 1 690 869 1 471 - - 4 463 171 4 463 171 Deposits from the general 3 853 991 3 853 991 3 853 991 public Other creditors 421 180 738 181 159 181 159 Accrued expenses and prepaid income 95 174 95 174 95 174 Total financial liabilities - - - - - 421 4 129 903 4 130 324 4 130 324 FOREX Annual Report 2011 71

Calculation of fair value The following is a summary of the methods and assumptions that were primarily used in order to establish the fair value for the financial instruments reported in the table above. Financial instruments quoted on an active market For financial instruments quoted in an active market, fair value is assessed based on the asset s quoted bid price on the closing date, excluding any transaction expenses (such as courtage) at the time of acquisition. A financial instrument is considered as being quoted on an active market if the listed price can easily be obtained from a stock market, trader, broker, trade association, company that provides current price information or supervisory authority and if these prices represent actual and regularly occurring market transactions with commercial terms. Any future transaction expenses associated with a sale have not been considered. For financial liabilities, fair value is based on the quoted ask price. Such instruments are included in the balance sheet item, Shares and participations, as well as in the item, Bonds and other interest-bearing securities. The majority of the company s financial instrument have been affixed a fair value using prices quoted on an active market. Financial instruments that are not quoted in an active market The fair value of loan receivables has been calculated by discounting the value of expected future cash flows. The current lending rate is used as the discount rate. For accounts receivable and accounts payable with a remaining useful life that is less than six months, it is assumed that the carrying amount also reflects the fair value. Customer and accounts payable with maturities in excess of six months are discounted in conjunction with establishing fair value. The fair value of borrowings is calculated using current market rates of interest, holding constant the original credit spread, unless there is clear proof that a change in the bank s credit rating has resulted in an observable change in the bank s credit spread. Cash is valued using the closing day rates provided by the Swedish Central Bank (Sveriges Riksbank). The revised IFRS 7 is applied as of 1 January 2009 for financial instruments measured at fair value in the balance sheet. This requires disclosures on fair value measurement at each of the following levels in the fair value hierarchy: Quoted prices (unadjusted) in active markets for identical assets or liabilities (level 1) Other observable input on assets or liabilities are quoted prices included in level 1, either directly (i.e. as quotations) or indirectly (i.e. derived from quotations) (level 2) Input on assets or liabilities that is not based on observable market data (i.e. non-observable data) (level 3) 72 FOREX Bank Annual Report 2011

The following table shows the bank s assets and liabilities valued at fair value as of 31 December 2011. Group SEK thousands Carrying amount Fair value valuation at the end of the period based on: Description 31 Dec 2011 Level 1 Level 2 Level 3 Financial assets valued at fair value via the income statement - Cash and bank balances held for trading purposes 402 441 402 441 - Derivatives held for trading purposes 4 206 4 206 Available-for-sale financial assets - Shares and participations 1 324 324 1 000 Total 407 971 402 765 5 206 - The following table shows the bank s assets and liabilities valued at fair value as of 31 December 2010. Group SEK thousands Carrying amount Fair value valuation at the end of the period based on: Description 31 Dec 2010 Level 1 Level 2 Level 3 Financial assets valued at fair value via the income statement - Cash and bank balances held for trading purposes 351 919 351 919 - Derivatives held for trading purposes 3 020 3 020 Available-for-sale financial assets - Shares and participations 1 471 221 1 250 Total 356 410 352 140 4 270 - FOREX Annual Report 2011 73

The following table shows the bank s assets and liabilities valued at fair value as of 31 December 2011. The parent company SEK thousands Carrying amount Fair value valuation at the end of the period based on: Description 31 Dec 2011 Level 1 Level 2 Level 3 Financial assets valued at fair value via the income statement - Cash and bank balances held for trading purposes - Derivatives held for trading purposes 359 289 359 289 Available-for-sale financial assets 4 206 4 206 - Shares and participations 1 324 324 1 000 Total 364 819 359 613 5 206 - The following table shows the bank s assets and liabilities valued at fair value as of 31 December 2010. The parent company SEK thousands Carrying amount Fair value valuation at the end of the period based on: Description 31 Dec 2010 Level 1 Level 2 Level 3 Financial assets valued at fair value via the income statement - Cash and bank balances held for trading purposes - Derivatives held for trading purposes 275 803 275 803 Available-for-sale financial assets 3 020 3 020 - Shares and participations 1 471 221 1 250 Total 280 294 276 024 4 270-74 FOREX Bank Annual Report 2011

Note 39 Cash flow statement Group Cash and cash equivalents SEK thousands 31 Dec 2011 31 Dec 2010 Cash and cash equivalents is comprised of the following items: Cash 402 441 351 919 Loans to credit institutions 526 027 654 199 Bonds and other interest-bearing securities 1 728 734 1 390 139 Cash equivalents at year-end 2 657 202 2 396 257 Interest paid and dividends received that are included in cash flow from operating activities SEK thousands 2011 2010 Dividends received 1 342 Interest received 259 432 118 337 Interest paid -25 148-7 485 The parent company Cash and cash equivalents SEK thousands 31 Dec 2011 31 Dec 2010 Cash and cash equivalents is comprised of the following items: Cash 359 289 275 803 Loans to credit institutions 426 978 588 776 Bonds and other interest-bearing securities 1 728 734 1 390 139 Cash equivalents at year-end 2 515 001 2 254 718 Interest paid and dividends received that are included in cash flow from operating activities SEK thousands 2011 2010 Dividends received 1 342 Interest received 252 218 118 260 Interest paid -25 009-7 855 FOREX Annual Report 2011 75

Note 4o Acquisitions During the year FOREX Bank acquired shares in Panaxia AB corresponding to an ownership of 27.7%. All of the share in Svensk Valutahantering AB were also acquired. Note 41 Important estimates and assessments Amortization of loan losses is typically based on an individual assessment of each claim in default. For receivables from the general public, a loss reserve has been calculated based on the entire group of such receivables, since the portfolio is comprised of a homogenous group. The method used by the bank for such write downs is to categorize loans by type of demand at each closing. The write-down is then based on the change for each type of demand. Loans that have been submitted to a collection agency are valued by an external party. X-change in Sweden AB was acquired on 15 April 2007. The acquisition was of strategic importance to FOREX Bank AB. This enabled Group to widen the scope of its network of branches at the same time as its fundamental business activities were achieving higher volumes. Group benefits from economies of scale for currency purchases and logistics. It also has a wider recruiting base, more efficient marketing, joint training activities, higher efficiency in the overall network of branches and a broader sales channel for FOREX Bank AB s products. The carrying amount for goodwill was tested on the balance sheet date by calculating its recoverable amount. The calculation was based on the budgeted cash flow for 2012. For subsequent years, the calculation was based on the assumption that there will be 7 branches left in X-change from 2013 onwards. This calculation applied a discount rate of 14 percent and an assessed rate of growth of up to 1 percent. Based on this calculation, it was determined that the carrying amount for goodwill was motivated. Note 43 Capital adequacy The bank s risk management and capital management practices are governed by the board s policies on these items, which provides the framework for capital planning and other items based on: the bank s risk profile, identified risks taking into consideration probabilities and financial effects, stress tests and scenario analyses, anticipated expansion of loans and financing possibilities and new legislation, the behavior of competitors and other changes in the surrounding world. Capital planning is an integrated part of efforts associated with the bank s annual business plan. The plan is monitored on an ongoing basis. An Internal Capital Evaluation is made each year when the business plan is updated in order to ensure that the risks have been correctly considered and that they reflect the bank s actual risk profile and capital requirements. Just like all important credit and investment decisions, any revisions made to the board s established policies and strategies must relate to the banks current and future capital requirements. The bank s legislated minimum capital requirements as per pillar I of the capital adequacy rules are shown in the table below. For more information about pillar III, please see the bank s website: www.forex.se Note 42 Dividends The board of directors proposed dividends are SEK 16, 500,000, which corresponds to SEK 2.75 per share. 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. 76 FOREX Bank Annual Report 2011

Group Capital adequacy on 31 December As per the Capital Adequacy and Large Exposures Act (2006:1371) Volume Risk-weighted amount Capital requirement SEK thousands 2011 2010 Risk 2011 2010 Procentsats 2011 2010 weight Credit risk as per the standard method Exposure with government risk 1 000 640 5 345 0% - - - - Exposure towards credit institutions 2 111 783 2 350 960 20% 422 357 470 192 8% 33 789 37 615 Household exposure 2 497 747 1 681 773 75% 1 873 310 1 261 330 8% 149 865 100 906 Non-regulated items 65 932 52 081 100% 65 932 52 081 8% 5 275 4 166 Other 776 486 662 241 0%/100% 374 045 310 322 8% 29 924 24 826 Total Credit risk 6 452 588 4 752 400 2 735 644 2 093 925 218 852 167 514 Currency risk 217 571 226 539 8% 17 406 18 123 Operational risk: basic indicator Income indicator approach 990 529 803 124 15% 148 579 120 469 Total capital requirement 384 837 306 106 Own funds Equity as per the annual accounts 812 889 696 188 Less intangible assets -127 874-132 835 Less deferred tax assets -5 476-5 345 Less the board's proposed appropriation of profits -16 500-48 000 Total Tier 1 capital 663 039 510 008 - - Total own funds 663 039 510 008 Capital adequacy ratio 1,72 1,67 FOREX Annual Report 2011 77

The parent company Capital adequacy on 31 December As per the Capital Adequacy and Large Exposures Act (2006:1371) Volym Risk-weighted amount Capital requirement SEK thousands 2011 2010 Risk 2011 2010 Procentsats 2011 2010 weight Credit risk as per the standard method Exposure with government risk 1 000 640 5 268 0% - - - - Exposure towards credit institutions 2 012 735 2 285 537 20% 402 547 457 107 8% 32 204 36 569 Household exposure 2 497 747 1 681 773 75% 1 873 310 1 261 330 8% 149 865 100 906 Non-regulated items 65 932 52 081 100% 65 932 52 081 8% 5 275 4 166 Other 904 980 764 410 0%/100% 545 691 488 607 8% 43 655 39 089 Total Credit risk 6 482 034 4 789 069 2 887 480 2 259 125 230 998 180 730 Currency risk 184 881 175 874 8% 14 790 14 070 Operational risk: basic Income indicator indicator approach 875 225 698 288 15% 131 284 104 743 Total capital requirement 377 073 299 543 Own funds Equity as per the annual accounts 678 880 582 391 Untaxed reserves, 73.7% of that 55 317 51 965 Less intangible assets -1 933-3 879 Less deferred tax assets -5 476-5 268 Less the board's proposed appropriation of profits -16 500-48 000 Total Tier 1 capital 710 288 577 209 Tier 2 capital - - Total own funds 710 288 577 209 Capital adequacy ratio 1,88 1,93 78 FOREX Bank Annual Report 2011

Signatures of the board of directors Stockholm, 21 February 2012 Hans Hellquist Katja Elväng Beth Friberg Chairman of the Board Jörgen Holgersson Olof Söderberg Ingrid Jonasson Blank Stefan Zadik Employee representative 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 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 21 February 2012. 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 21 February 2012. PricewaterhouseCoopers AB Bertil Johanson Certified Public Accountant Chief Auditor FOREX Annual Report 2011 79

Audit report To the AGM of FOREX Bank AB CIN: 516406-0104 Report on the annual report and consolidated financial statements We have audited the annual report and consolidated financial statements for FOREX Bank AB for 2011.. Responsibility of the board of directors and the managing director for the annual report and consolidated financial statements The board of directors and the managing director are responsible for preparing an annual report that presents a true and fair view in accordance with the Annual Accounts Act for Credit Institutions and Securities Companies and consolidated financial statements that present a true and fair view in accordance with the IFRS international accounting standards, as adopted by the EU, and the Annual Accounts Act for Credit Institutions and Securities Companies, and for the internal control that the board of directors and managing director deem to be necessary to prepare an annual report and consolidated financial statements that are free of material misstatement, whether such are the result of falsifications or errors. Responsibility of the auditors Our responsibility is to, based on our audit, express an opinion on the annual report and the consolidated financial statements. We conducted our audit in accordance with International Standards on Auditing and generally accepted auditing standards in Sweden. These standards require that we apply professional moral requirements and plan and carry out the audit in such a manner as to assure reasonable certainty that the annual report and consolidated financial statements are free of material misstatement. An audit entails obtaining through different measures audit evidence regarding amounts and other information in the annual report and consolidated financial statements. The auditor decides the measures that will be conducted, in part by assessing the risks for material misstatement in the annual report and consolidated financial statements, regardless whether these misstatements are due to falsifications or error. When conducting this risk assessment, the auditor takes into account the areas of internal control that are relevant for how the company prepares its annual report and consolidated financial statements in order to present a true and fair view, with the intention of designing auditing measures that are appropriate given the circumstances, but not with the intention of making a statement regarding the efficiency of the company s internal control. An audit also entails evaluating the appropriateness of the accounting principles applied and the plausibility of the estimations made by the board of directors and the managing director in the report, as well as evaluating the overall presentation of the annual report and consolidated financial statements. We believe the audit evidence we obtained to provide a sufficient and appropriate base for our statement. Statement It is our opinion that the annual report was prepared in accordance with the Annual Accounts Act for Credit Institutions and Securities Companies and presents in all material aspects a fair and true view of the parent company s financial position as of 31 December 2011 and its financial results and cash flow for the year in accordance with the Annual Accounts Act for Credit Institutions and Securities Companies, and that the consolidated financial statements were prepared in accordance with the Annual Accounts Act for Credit Institutions and Securities Companies and present in all material aspects a true and fair view of Group s financial position as of 31 December 2011 and its results and cash flows in accordance with international accounting standards, as adopted by the EU and the Annual Accounts Act for Credit Institutions and Securities Companies. The statutory administration report is consistent with the other parts of the annual report and the consolidated financial statements. We therefore recommend to the annual general meeting that the income statement and the balance sheet for both the parent company and group be adopted. Report on other requirements pursuant to laws and other regulations In addition to our audit of the annual report and consolidated financial statements, we also audited the proposed appropriations regarding the company s profit and the administration of the board of directors and the managing director with regard to FOREX Bank AB for 2011 80 FOREX Bank Annual Report 2011

Responsibility of the board of directors and the managing director The board of directors is responsible for the proposed appropriations regarding the company s profit, and the board of directors and the managing director are responsible for the administration in accordance with the Companies Act. Statement We recommend that the annual general meeting distribute the profit in accordance with the proposal in the administration report and we discharge the members of the board of directors and the managing director from liability for the financial year. Responsibility of the auditors Our responsibility is to make a statement with reasonable certainty on the proposed appropriations regarding the company s profit and the administration based on our audit. We conducted the audit in accordance with generally accepted auditing standards in Sweden. As a basis for our statement on the board of director s proposed appropriations regarding the company s profit, we audited the board of director s reasoned opinion and a sample of the data underlying this opinion in order to asses if the proposal is in compliance with the Companies Act. As the basis of our statement regarding discharge from liability, we examined significant decisions, actions taken and circumstances of the company in order to be able to determine the possible liability to the company of any board member or the managing director in addition to the audit of the annual report and consolidated financial statements. We also examined whether any board member or the managing director has, in any other way, acted in contravention of the Companies Act, the Banking and Financing Act, the Annual Accounts Act for Credit Institutions and Securities Companies, or the Articles of Association. We believe the audit evidence we obtained provides a sufficient and appropriate base for our statement. Stockholm, 21 February 2012 PricewaterhouseCoopers AB Bertil Johanson Certified Public Accountant FOREX Annual Report 2011 81

Governance FOREX Bank AB is a private company and as such, it is not required to apply the Swedish Code of Corporate Governance. Given the bank s profile as a public company and the fact that, to a great extent, its activities are based on the instilled confidence of the general public and other stakeholders in the society, the bank has designed routines for governance and control of the organization using the Swedish Code of Corporate Governance as its model, where applicable. Appointment of the board, auditors and executive management The AGM of FOREX Bank is responsible for appointing the board of directors that will serve until the next annual general meeting. The AGM also appoints the auditors and term that auditors will serve. Furthermore, the AGM is responsible for granting discharge from liability to the board of directors and managing director for the financial year, as well as deciding on the appropriation of profits. The size of the board of directors and its composition must be appropriate to the bank and what is required for its future development. Information about the composition of the board of directors is provided in the annual report. For the 2011 financial year, there were 7 regular board members and 2 deputy board members. Three of the board members are women. The chairman of the board organizes and heads the work done by the board. The chairman is also responsible for making sure that the board has access to necessary information, for sending out notices of board meetings and for preparing for the board meetings, in consultation with the managing director. The board is responsible for appointing/dismissing the managing director/group chairman, as well as the deputy managing director (in consultation with the managing director). The board of directors held 16 meetings in 2011. Each year, the board establishes a formal work plan to regulate the board s role and how it will work, as well as issuing any specific instructions to the board s committees. The board has overall responsibility for Group s business activities and it decides on the direction of the business, strategies and goals. Furthermore, the board is responsible for ensuring that the business is organized such that its risks are identified and managed in a satisfactory manner and that the organization s controls for reporting and financial monitoring are also adequate. The board has appointed a special committee for Audit, Risk and Compliance. The chairman of the committee is Katja Elväng and its members are Jörgen Holgersson and Beth Friberg. On behalf of the board, this committee is responsible for preparing and conducting in-depth analyses of items having to do with audit, risk and compliance. During the year, the board dealt with such issues as the bank s strategies, business plan, policies, instructions, the annual review and audit of rules and regulations, budget, major investments and acquisitions, interim/annual reports and Group s risks and risk-taking. Disclosures on remuneration and other benefits, as well as pensions for the board and managing director are provided in Note 10. Internal audit unit The internal audit unit has been assigned by the board of directors the task of auditing the bank s internal controls. The internal audit review includes ensuring that the scope of the business and its direction is in accordance with internal regulations. The audit also involves an evaluation of the bank s organization and its work processes. 82 FOREX Bank Annual Report 2011

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 Österlånggatan 48 A 503 35 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 Göteborg 031-18 57 60 Gothenburg, Central Station Central Station 411 03 Göteborg 031-15 65 16 Gothenburg, Frölunda torg Frölunda Torg, Västra Frölunda 421 44 Göteborg 031-47 26 70 Gothenburg, Kungsportsplatsen Östra Larmgatan 17 411 07 Göteborg 031-13 60 74 Gothenburg, Nordstan Postg 26-32 411 06 Göteborg 031-15 75 30 Gothenburg, Partille 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 1 Kungstorget 8, Box 45 252 78 Helsingborg 042-24 47 00 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 Transithall Box 2096 438 13 Göteborg 031-94 18 68 Landvetter Internationalhall 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/Arlöv Toftanäs Terminalgatan 10 232 91 Malmö/Arlöv 040-43 09 70 Malmö, Central Station Centralstationen, Lokgatan 1 211 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 2 Hamngatan 2 211 22 Malmö 040-12 25 55 Malmö, Mobila Shopping Center Stadiongatan 3B 214 32 Malmö 040-890 60 Malmö, Point Hylle Hyllie Stationstorg 5 215 32 Malmö 040-66 14 31 0 FOREX Annual Report 2011 83

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 Centralstation 111 20 Stockholm 08-411 67 34 Stockholm, Cityterminalen Klarabergsviadukten 72 111 64 Stockholm 08-21 42 80 Stockholm, Farsta Centrum Farstagången 14 123 47 Farsta 08-724 08 00 Stockholm, Forum Nacka Forumvägen 12 131 53 Nacka 08-716 56 56 Stockholm, Gallerian Hamngatan 37 111 53 Stockholm 08-679 60 00 Stockholm, Gamla Stan Kornhamnstorg 4 111 27 Stockholm 08-20 00 09 Stockholm, Götgatan Götgatan 94 118 62 Stockholm 08-642 81 60 Stockholm, Jakobsberg Tornérplatsen 30 177 30 Järfälla 08-580 367 00 Stockholm, Klarabergsgatan Klarabergsgatan 60 111 21 Stockholm 08-20 25 25 Stockholm, Kungsgatan Kungsgatan 2 111 43 Stockholm 08-611 51 10 Stockholm, NK NK 202 111 77 Stockholm 08-762 83 40 Stockholm, Ringvägen Ringvägen 100 118 60 Stockholm 08-644 22 50 Stockholm, Sickla Köpkvarter Siroccogatan 4 131 34 Nacka 08-640 42 50 Stockholm, Sveavägen Sveavägen 24 111 57 Stockholm 08-411 76 60 Stockholm, Sollentuna 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 16 111 20 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 Örebro, Drottninggatan Drottninggatan 38 702 22 Örebro 019-10 60 62 Örebro, Marieberg Säljarevägen 1 702 36 Örebro 019-22 53 90 Östersund Prästgatan 51 831 34 Östersund 063-10 13 50 84 FOREX Bank Annual Report 2011

Finland Esbo Sampotorget, Hagalund FI-02100 Esbo +358 020 75 12 570 Helsingfors, Alexandersgatan Alexandersgatan 52B FI-00100 Helsinki +358 020 75 12 550 Helsingfors, Järnvägstationen Railway Station, Pl 118 FI-00101 Helsinki +358 020 75 12 510 Helsingfors, Östra Centrum Kauppakeskus Itäkeskus FI-00930 Helsinki +358 020 75 12 540 Jyväskylä Kauppakatu 27 FI-401 00 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-015 10 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 København, Hovedbanegården Hovedbanegården butik 18 DK-1570 København V +45 33 11 22 20 København, Nørreport Nørre. Voldgade 90 DK-1358 København K +45 33 32 81 00 København, Østerbrogade Østerbrogade 19, DK-2100 København +45 33 91 20 00 Odense Banegårdscentret DK-5000 Odense C +45 66 11 66 18 Århus Banegårdsplatsen 20 DK-8000 Århus C +45 86 80 03 40 København, Hovedbanegården Hovedbanegården butik 51 DK-1570 København V +45 33 11 22 25 Norway Lillestrom Lillest. St., Jonas Lies gt 4 N-2000 Lillestrom +47 63 84 88 00 Oslo Brugata Brugata 8 N-0186 Oslo +47 22 17 64 00 Oslo, Egertorget Øvre Slottsgate 12 N-0157 Oslo +47 22 42 10 02 Oslo, Fridtjof Nansens plass Fridtjof Nansens Square 6 N-0160 Oslo +47 22 41 30 60 Oslo, Central Station - Airport Express T Jernbanetorget 1 N-0114 Oslo +47 22 17 22 66 Oslo, Central Station - Central Hall Jernbanetorget 1 N-0114 Oslo +47 22 17 60 80 Stavanger Klubbgaten 1 N-4013 Stavanger +47 51 86 33 23 Trondheim Central Station, Fosenkaia 1 N-7010 Trondheim +47 73 52 22 20 FOREX Annual Report 2011 85

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 Göteborg 031-15 15 13 Gothenburg, Kungsportsplatsen Kungsportsplatsen 1 411 10 Göteborg 031-10 11 11 Helsingborg Järnvägsgatan 17 252 24 Helsingborg 042-21 40 90 Landvetter Landvetter Utrikeshallen 438 80 Landvetter 031-303 04 30 Malmö, Triangeln Södra Förstadstagatan 41 211 43 Malmö 040-661 14 30 Stockholm, Central Station Centalstationen,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, Skärholmen Storholmsgatan 4 127 48 Skärholmen 08-501 05 520 Södertälje Södertälje Central Station 151 32 Södertälje 08-550 600 30 Uppsala, Gränby Centrum Gränby Centrum 750 22 Uppsala 018-24 70 70 86 FOREX Bank Annual Report 2011

FOREX Annual Report 2011 87

88 FOREX Bank Annual Report 2011