Skandinaviska Enskilda Banken AB (SEBA) recently reported its second quarter earnings and discussed the following topics in its earnings conference call.
Net Interest Income
Omar Keenan – Nomura: Just two questions if I may. Just firstly on net interest income, the funding and other NII contributed SEK157 million in the quarter, which you discussed as due to a cheaper funding cost, but could you potentially give us more color on whether there’s any other moving parts and secondly if there’s any flow through effect into the third quarter that we should be thinking about as Q2 looks to be a strong quarter for funding in other? Then just a second question, if I assume the dividend that’s currently in consensus and I see fully loaded Basel III common equity Tier 1 getting to 14.7% at the end of the year. Is there any sense of timing it as to when we could potentially hear more around sort of managing ourselves to a 13% target and what combination of payouts come-in?
Jan Erik Back – EVP and CFO: Omar, Jan Erik here. On the NII question on funding in other, you’re right in that, we’re seeing better funding cost flowing through. Now, there’s some positive effect in the landing category under NII deposit as you’ve seen has fallen back a little bit. That’s a result of the interest rates, but in funding in other most of that positive effect is actually in the Merchant Bank rather than in Treasury and that’s a reflection of the fact that the achieved funding cost is flowing through to business as well. I think everything else being equal, you should see the continuation of that positive trend. In a way, the same question as asking where interest rates are going to go, but as long as they are low as they are now, the specs are where they are, we should see that continue.
Annika Falkengren – President and CEO: I can also comment on your question regarding building up capital. I mean we’ve been very clear that we have a target of 13%. We can still see that and there are a lots of regulations circling around. We had in Sweden put a stop on the risk weighted mortgages where the Finances section have put in a floor of 15% in pillar two that they want to move to pillar one, that will have a small effect on us but still so. So, I think we will need to work with this during this year and we will see if we can have any clarification going forward, but the ambition is to have 13%, that’s what we have told the market but I guess it will take some time to kind of work with it.
Senior Bond Issuance
Geoff Dawes – Societe Generale: Two questions from myself. First of all on the funding cost that you just spoke about. Can you give us an idea of how you are going to balance covered versus senior bond issuance going forward. I notice that the bulk of the refinance indeed is on covered bonds and I just want to see if you want to tweak that mix given all the regulations surrounding bail-in debt et cetera? Second of all on interest rates and the long rate outlook, you mentioned in the life business that there is a negative gearing to higher rates on your revenue line this quarter. Can you just talk a bit more broadly about the business exposure to the long rates increasing both in the life insurance business and more widely across the business and whether are there any hedges in there against the revenue lost in the life business? Those are the questions. Thank you very much.
Jan Erik Back – EVP and CFO: On the funding cost I think the mix on covered and senior we’ve taken the view all along that since 2008, ’09 really that we’ve been fairly opportunistic and we wanted to have a good mix. We never put our backs on only covered or only senior we wanted to maintain a good diversification between the two and also in terms of geographies and maturities, and I think we will continue to behave like that. And then where the bail-in discussion is going to go it is far from clear. I think the Swedish authorities have a view which is shared by other European I suppose in that bail-in tool is fine as long it is institution-specific if it tends to be a system-wide problem going on somewhere then you will have contagion effects through the bail-in instrument. So, I think, we’ll see where Swedish legislation goes on that before we start to factor that in too much.
Ulf Grunnesjo – Head of IR: Then, Geoff on your question. This is Ulf. On your question regarding the uncertainty into long-term higher interest rate, of course, it can be either static answer to that or more dynamic and the more static one is of course that we are not really running with any large delta one risks in the group that would be materially (indiscernible) by this which is all right now possible exception of what we had right now in the Danish business. But that’s also due to certain technical factors in terms of the discount rate not moving in tandem with the asset values in the way that it has been structured since the long-term rates have been so low that we have had for example to some lowest discount rates and so on that we are using. Otherwise, you shouldn’t expect to see a material impact on the earning side if we get long-term rates higher. And more dynamic answer is, of course, that it depends on why it’s increasing since if it’s because the business is doing better because the economy is going at the higher gear, then that’s good for us and we should sort of see higher activity levels and get more earnings and other income lines as such. Then equally we actually have little bit of hedge in terms of the pension situation because when the long-term rate get higher the discount rates will be higher and that will help our pension situation and you may remember that we had to take around $8 billion or so at year-end in terms of booking towards equity. All of that is, of course, unrealized and if we get higher long-term rate that will actually help the bank. So, you could say that the biggest positive factor will be on the OCI, which would impact equity and just while I remember, on the Life side, it’s unrealized, so we didn’t take any losses as such really. If the values come back, long-term rates or equity market values, we will get all of that money come back again.
Geoff Dawes – Societe Generale: So, no major gearing to any steepening of the OAT curve on the trading or revenue lines?
Jan Erik Back – EVP and CFO: No.