Notes to the financial statements Note 7 ctd. Net other income Fair value hedges The Group hedges a proportion of its existing interest rate risk, in financial assets floating interest rates are expected to be amortised in profit or loss during the payments and financial liabilities with fixed interest rates, against changes in fair period 2008 to 2037. value due to changes in the interest rates. For this purpose the Group uses interest rate swaps, cross-currency interest rate swaps and in some situations also Net investment hedges options. The Group hedges the currency translation risk of net investments in foreign op erations through currency borrowings and currency forwards. Borrowing in for- Cash flow hedges eign currency to an amount of SEK 53,260m (53,350) and currency forwards to The Group uses interest rate swaps to hedge future cash flows from deposits and an amount of SEK 349m (369) was designated as hedges of net investments in lending with floating interest rates. Interest flows from deposits and lending with foreign operations. No ineffectiveness has been recognised from these hedges. 8 Administrative expenses Group Parent company 2007 2006 2007 2006 Staff costs –14,921 –14,363 –8,611 –8,409 Other expenses –6,919 –6,887 –3,978 –4,664 Total –21,840 –21,250 –12,589 –13,073 9 Staff costs Group Parent company 2007 2006 2007 2006 Salaries and remuneration –10,808 –10,246 –5,576 –5,170 Payroll overhead –2,615 –2,631 –1,646 –1,724 Employee stock option programme –71 –397 –71 –397 Payroll related costs –13,494 –13,274 –7,293 –7,291 Imputed pension costs –362 –345 Pension premiums paid –447 –396 Benefit retirement plans 369 388 Contribution retirement plans –733 –703 Pension related costs1) –364 –315 –809 –741 Other staff costs2) –1,063 –774 –509 –377 Total –14,921 –14,363 –8,611 –8,409 1) Pension costs in the Group are accounted for according to IAS 19, Employee benefits. Pension costs in Skandinaviska Enskilda Banken have been calculated in accordance with the directives of the Financial Supervisory Authority, implying an actuarial calculation of imputed pension costs. Non-recurring costs of SEK 393m (327) for early retirement have been charged to the pension funds of the Bank. 2) Includes costs for redundancies with SEK 281m (71) for the Group and SEK 115m (16) for the Parent company. 9a Salaries and other remunerations per category Group Parent company* 2007 Executives1) Other Total Executives1) Other Total Sweden –34 –5,038 –5,072 –19 –4,300 –4,319 Norway –33 –827 –860 –190 –190 Denmark –14 –756 –770 –321 –321 Finland –24 –257 –281 –158 –158 Estonia –7 –273 –280 Latvia –13 –244 –257 –19 –19 Lithuania –30 –311 –341 Germany –267 –1,842 –2,109 –98 –98 Poland –6 –27 –33 –15 –15 Ukraine –3 –26 –29 China –5 –5 –5 –5 Great Britain –337 –337 –337 –337 France –11 –11 –11 –11 Ireland –2 –10 –12 Luxembourg –12 –182 –194 Russia –3 –21 –24 Singapore –58 –58 –50 –50 United States –11 –113 –124 –53 –53 Other2) –11 –11 Total –459 –10,349 –10,808 –19 –5,557 –5,576 74 SEB ANNUAL REPORT 2007
