Safra. Safra National Bank of New York. Banque Safra - Luxembourg S.A. Banque Safra - France S.A. Banco Safra S.A. Banco Safra de Investimento S.A.

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2 AF-RelLuxembourg :45 Page 1 Safra Safra National Bank of New York Banque Safra - Luxembourg S.A. Banque Safra - France S.A. Banco Safra S.A. Banco Safra de Investimento S.A. Banco Safra (Cayman Islands) Limited Safra International Bank and Trust Ltd. I.F.E. Safra (Uruguay) S.A.

3 AF-RelLuxembourg :45 Page 2 Banque Safra - Luxembourg S.A. BOARD OF DIRECTORS Joseph Safra Chairman Moise Safra Vice-Chairman Carlos Alberto Vieira Director Jorge Alberto Kininsberg Managing Director BANQUE SAFRA LUXEMBOURG S.A. 10A, Boulevard Joseph II L-1840 Luxembourg Tel. (352) Fax (352) Subsidiaries BANQUE SAFRA FRANCE S.A. 16, Place Vendôme F Paris Tel. (33) Fax (33)

4 AF-RelLuxembourg :45 Page 3 If you choose to sail upon the seas of banking, build your bank as you would your boat, with the strength to sail safely through any storm. JACOB SAFRA

5 AF-RelLuxembourg :45 Page 4 Table of Contents Consolidated Management Report Page 5 Auditor's Report Page 9 Consolidated Balance Sheet and Off Balance Sheet items Page 10 Consolidated Profit and Loss Account Page 11 Notes to the Consolidated Accounts Page 12 Parent Company Summarized Financial Statements Page 28

6 AF-RelLuxembourg :45 Page 5 Consolidated Management Report 5 The Group Safra Luxembourg is pleased to present the Consolidated Annual Accounts of Banque Safra Luxembourg Société Anonyme for the year ended December 31, These consolidated annual accounts consist of the annual accounts of Banque Safra Luxembourg S.A. and its French subsidiary, Banque Safra-France Société Anonyme. The annual accounts of Banque Safra-France S.A. include the accounts of Safra Assurance S.a.r.l.. In October 2003, the subsidiary acquired the totality of the shares of an insurance company, the activity of which is exclusively related to brokerage in life insurance products. Total client assets, which include client off-balance sheet items, was 9,182 million at the end of 2004, compared to 8,898 million in the previous year. The total consolidated balance sheet was 2,176 million at the end of This compares to 2,743 million at the end of the previous year. The variation of the total balance sheet is due to the combination of the decrease of the bank s investment portfolio and the variation of the exchange rate used for translation of other currencies into. The Group Safra Luxembourg continues to adhere to its main philosophy of protecting and preserving wealth, while procuring prudent growth. Approximately 64 % of its assets are comprised of very liquid short-term placements with highly rated credit institutions located in OECD countries. The majority of loans and advances to customers are of shortterm maturity, generally not exceeding three months. These loans are subject to the prudent credit policies applicable to the Group. A further portion of the balance sheet assets is comprised of highly liquid securities issued by public bodies. Most of the securities issued by other borrowers comprise very liquid, high investment grade instruments issued by European and U.S. financial institutions. The main activity of the Group Safra Luxembourg is the private banking business to selective high net-worth individuals. Deposits from clients represent the major portion of the liabilities and are essentially considered to be stable. This amount may vary from time to time according to client s demand for securities, depending on market conditions and interest rate trends. The securities thus acquired are recorded as offbalance sheet items. Off-balance sheet items as presented in this report are comprised in part of contingent liabilities, representing various types of agreements with clients in the form of guarantees and other substitutes for credit, including stand by letters of credit and documentary credits. These facilities normally have specific expiration dates, credit risk equivalent to that of loans to customers, and are subject to prudent credit policies. In addition, off-balance sheet items also include commitments, representing the sum of forward purchase and forward sale of assets, and settlement of spot transactions and amounts not yet paid up on traded securities. The consolidated profit for the year, after allocation for depreciation, taxes and value adjustments, was 21.4 million.

7 AF-RelLuxembourg :45 Page 6 Consolidated Management Report 2004 The total consolidated capital funds at the end of the year 2004 were 320 million. The Group s capital adequacy ratio at the end of 2004 was 42.7 %. Risk Management Continued commitment towards strong controls and a systematic approach to risk management provides assurance that all risks are identified and analyzed according to the recommendations of the banking supervisory authorities and market practices. All risks are monitored at management levels. Specific risk management issues are as follows: Credit Risk Loans to customers are approved within the powers set up in the chart of authorities. Loans to customers above the specified limits are submitted to the Credit Committee of the respective entity, which operates at senior management level. The majority of lending operations are with private customers and due to their nature they are reserved for individuals and corporate entities of good financial standing. The risks are mitigated by a selective account opening process and, whenever deemed necessary, additional guarantees are obtained. Credit to banks, which represent the major part of the balance sheet items, are made within the limits established and revised regularly by the Credit Committee. The policy is to establish limits for banks located in Zone A countries taking into consideration the credit ratings and capital strength of these institutions, in addition to other relevant credit information. The purchase of securities for either the investment, structural or trading portfolio is processed within the established limits. In the event that no limit has been established or if the maturity of the instrument falls beyond one year, prior approval of the Credit Committee is required. Daily reports permit management to adequately monitor compliance with the approved limits and to immediately detect any irregular transactions. The regulatory maximum exposure limit towards any individual borrower, or those belonging to a same economic group, is measured as a percentage of the capital and must not be exceeded, and compliance to this limit has been consistent. 6

8 AF-RelLuxembourg :45 Page 7 Consolidated Management Report 2004 Liquidity Risk The liquidity ratio to be maintained is defined by the banking supervisory authorities. A calculation of this ratio is included in the internal monthly management reporting. In addition, a daily cash flow statement is prepared which lists total assets and liabilities falling due for repayment each day, beginning on the reporting day. Along with an analysis of the balance sheet, a list of cash balances available at each correspondent bank, taking into account expected payments and receipts falling due on that date, is prepared and submitted to the attention of management on a daily basis. Currency Risk The majority of the commitments in currencies is made on behalf of customers. Only a small intra-day limit is granted for the purposes of own dealing in major currencies. Daily currency positions are generally covered using foreign exchange contracts and similar hedging instruments, in order to arrive at a low net position. A detailed listing of all foreign exchange deals, by maturity date, is produced on a daily basis, with a summary of all open positions as at the closing of the previous day. Market Risk The Asset and Liability Management (ALM) Committee monitors exposure to interest rate risk on a regular basis. A complete report, which is produced by the Risk Department and addressed to the ALM Committee, analyses the entire risk exposure by calculating the maximum expected net financial result following parallel shifts in the yield curves using a variety of basis point scenarios for each individual currency. The interest rates applied to mainstream assets and liabilities are a function of recognized floating rate basis. In addition, a mark-to-market value analysis is applied to each individual item of the balance sheet, using the forward rate curves of each corresponding currency. Operational Risk All specific risks are analyzed on an isolated basis. Operational risk is assumed as that associated with human or technological failure. In addition to a comprehensive contingency plan, which is tested on a regular basis, several control levels and an efficient management information system have been developed to ensure that operational risk is minimized. Reconciliation of transactions at nostro, vostro and depositary levels are made on a daily basis, complementing the matching of all transaction confirmations. All option transactions are checked for accuracy and reported on a daily basis by expiration dates, including strike and market prices. 7

9 AF-RelLuxembourg :45 Page 8 Consolidated Management Report 2004 Strict segregation of duties and application of the four-eyes principle are observed at all levels. Front, middle and back office functions are kept autonomous of each other. Access to systems to any individual or group of users is granted only upon approval of senior management and subject to restrictions corresponding to the respective function of the user. Settlement Risk The Group Safra Luxembourg only deals with counterparts of good financial standing, subject to the approval of the Credit Committee. Settlement risk is implicitly taken into consideration when setting limits. In addition, netting agreements are put in place when appropriate. Formal written confirmations of all transactions with counterparts are required, including authenticated S.W.I.F.T. confirmation when applicable. Legal Risk In addition to in-house legal counselor, the services of a number of legal counselors are used to obtain advice in their respective areas of expertise. All documentation is submitted to the legal counselors for revision, in order to ensure the contracts legal validity, counterpart capacity, performances, enforceability and all other relevant legal aspects. It is the policy of the Group Safra Luxembourg to enter into business only with approved counterparts of good reputation and financial standing, and whenever possible the own jurisdiction of the Parent or of the Subsidiary is taken into consideration for the enforceability of legal documents. Since the end of 2004, no significant events have occurred, which would affect the reported results. No major changes in activities are anticipated in the forthcoming year and therefore the Group Safra Luxembourg remains committed to strengthening the relationship with its clients, seeking to understand and address their needs, and continue to offer a complete array of products and services at the highest level of professional standards. The management wishes to express their gratitude for the loyalty of the customers, and their appreciation to the entire staff for their contribution to the continued development of the Group. 8

10 AF-RelLuxembourg :45 Page 9 Auditor's Report To the Board of Directors of Banque Safra - Luxembourg, Société Anonyme Luxembourg Following our appointment by the Board of Directors, we have audited the attached consolidated accounts of Banque Safra - Luxembourg, Société Anonyme for the year ended December 31, 2004 and have read the related management report. These consolidated accounts and the management report are the responsibility of the Board of Directors. Our responsibility is to express an opinion on these consolidated accounts based on our audit and to verify the consistency of the consolidated management report with the consolidated accounts. We conducted our audit in accordance with International Standards on Auditing. Those Standards require that we plan and perform the audit to obtain reasonable assurance about whether the consolidated accounts are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the consolidated accounts. An audit also includes assessing the accounting principles used and significant estimates made by the Board of Directors in preparing the consolidated accounts, as well as evaluating the overall consolidated annual accounts presentation. We believe that our audit provides a reasonable basis for our opinion. In our opinion, the attached consolidated accounts give, in conformity with Luxembourg legal and regulatory requirements, a true and fair view of the assets, liabilities and financial position of Banque Safra - Luxembourg, Société Anonyme at December 31, 2004 and the results of its operations for the year then ended. The consolidated management report is consistent with the consolidated accounts. Deloitte S.A. Réviseur d'entreprises E. van de Kerkhove Partner 9 April 27, 2005

11 AF-RelLuxembourg :45 Page 10 Consolidated Balance Sheet and off Balance Sheet Items December 31, 2004 (In ) Note ASSETS Cash, balances with central banks and post office banks 33 35,628,100 40,556,965 Loans and advances to credit institutions 33 1,454,218,467 1,386,348,843 a) repayable on demand 322,971, ,989,382 b) other loans and advances 7 1,131,246, ,359,461 Loans and advances to customers 8, 31, ,256, ,657,201 Debt securities and other fixed-income securities 9, 10, 12, ,285, ,568,671 a) issued by public bodies 246,320, ,370,255 b) issued by other borrowers 71,964, ,198,416 Shares and other variable-yield securities 9, ,708 46,879 Intangible assets 12,13 1,022,384 1,242,636 Tangible assets 12, 14 3,114,662 3,485,406 Other assets 11 11,322,228 27,974,724 Prepayments and accrued income 8,016,397 19,081,119 TOTAL ASSETS 15 2,176,420,332 2,742,962,444 LIABILITIES Amounts owed to credit institutions ,171, ,862,335 a) repayable on demand 82,571,389 19,157,758 b) with agreed maturity dates or periods of notice 16 22,600, ,704,577 Amounts owed to customers 33 1,712,428,501 1,900,814,030 Other debts a) repayable on demand 426,026, ,052,191 b) with agreed maturity dates or periods of notice 17 1,286,402,429 1,570,761,839 Debts evidenced by certificates 18, , ,244 Other liabilities 19 8,388,896 7,121,036 Accruals and deferred income 15,230,332 12,761,005 Provisions for liabilities and charges 5,800,800 9,252,352 a) provisions for taxation 4,331,746 6,057,991 b) other provisions 32 1,469,054 3,194,361 Subordinated liabilities 20, 33 67,964,400 74,009,400 Fund for general banking risks 9,000,000 0 Subscribed capital 21 24,200,000 24,200,000 Reserves ,076, ,968,942 Minority Interest 9,257 9,347 Loss brought forward 22 (4,834,783) (4,162,045) Profit for the financial year 21,419,877 23,387,798 a) group share 21,420,163 23,387,965 b) minority interest share (286) (167) TOTAL LIABILITIES 23 2,176,420,332 2,742,962,444 OFF BALANCE SHEET ITEMS Contingent liabilities 24, ,897, ,806,848 of which: - guarantees and assets pledged as collateral security 201,897, ,806,848 Commitments 25, ,284, ,783,512 Fiduciary operations 27 1,087,899,950 1,419,176, See notes to the consolidated accounts.

12 AF-RelLuxembourg :45 Page 11 Consolidated Profit and Loss Account year ended December 31, 2004 (In ) Note Interest and similar income 66,859, ,705,378 of which: that arising from fixed-income securities 32,876,962 65,769,935 Interest and similar charges (51,073,454) (77,845,551) Income from securities 1,074 2,731 of which: Income from shares and other variable-yield securities 1,074 2,731 Commission income 25,171,610 28,114,821 Commission expense (6,127,266) (5,869,322) Net profit on financial operations 3,802,586 6,866,018 Other operating income , ,785 General administrative expenses (23,372,490) (21,803,483) a) staff costs 30, 31 (15,321,744) (13,994,873) of which - wages and salaries (12,478,378) (11,724,544) - social security costs (2,512,908) (2,069,167) of which: social security costs relating to pensions (953,881) (948,714) b) other administrative expenses (8,050,746) (7,808,610) Value adjustments in respect of tangible and intangible assets (1,366,924) (1,365,511) Other operating charges 29 (216,966) (333,464) Value adjustments in respect of loans and advances and provisions for contingent liabilities and for commitments (146,997) (15,582,644) Value re-adjustments in respect of loans and advances and provisions for contingent liabilities and for commitments 18,439,960 6,864,350 Value adjustments in respect of transferable securities held as financial fixed assets and participating interests (721,837) 0 Value re-adjustments in respect of transferable securities held as financial fixed assets and participating interests 1,372,810 1,284,014 Transfers to the fund for general banking risks (9,000,000) 0 Tax on profit on ordinary activities (511,933) (902,160) Profit on ordinary activities after tax 23,671,443 24,914,962 Extraordinary Charges (709,734) 0 Other taxes not shown under the preceding items (1,541,833) (1,527,164) Profit for the financial year 21,419,877 23,387,798 a) group share 21,420,163 23,387,965 b) minority interest share (286) (167) 11 See notes to the consolidated accounts.

13 AF-RelLuxembourg :45 Page 12 Notes to the Consolidated Accounts December 31, 2004 NOTE 1 - GENERAL 1.1. Corporate matters Banque Safra - Luxembourg, Société Anonyme (hereafter referred ton as "the Bank") was incorporated in Luxembourg on August 19, 1985 as a Société Anonyme. The Bank is an independent banking institution. The subsidiary, Banque Safra - France, Société Anonyme was incorporated on December 29, Nature of the Bank's business The object of the Bank is to undertake all banking and financial operations of whatsoever kind Annual consolidated accounts The Bank prepares its consolidated accounts in Swiss francs (), the currency in which the capital is expressed. The Bank's accounting year coincides with the calendar year. NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The Bank prepares its consolidated accounts under the historical cost principle, in accordance with the laws and regulations in force in the Grand-Duchy of Luxembourg and on the basis of accounting principles generally accepted in the banking sector in the Grand- Duchy of Luxembourg. In observing these, the following significant accounting policies are applied: 2.1. The date of recording of transactions in the balance sheet Assets and liabilities are stated in the balance sheet when the amounts concerned become cleared funds Foreign currencies The Bank maintains a multi-currency accounting system that records all transactions in the currency or currencies of the transaction on the day on which the contract is concluded. Revenues and expenses in foreign currencies are translated into monthly at the prevailing exchange rates. All assets and liabilities are converted into at the average of the buy and sell spot rates applicable at the balance sheet date. Both realised and unrealised profits and losses arising on revaluation are accounted for in the profit and loss account for the year. At the year-end, all uncompleted forward transactions are translated into at the forward rate applicable for the remaining term ruling at the balance sheet date. Results on uncompleted forward transactions linked to spot transactions and on swap transactions are accrued at the balance sheet date. The revaluation of these transactions does not affect the result for the financial year. Uncovered forward transactions are valued individually on the basis of forward foreign exchange rates applicable at the balance sheet date. Unrealised revaluation profits are ignored, whereas a provision is set up in respect of any unrealised revaluation losses. This provision is included on the liability side of the balance sheet under "Provisions for liabilities and charges: other provisions". Currency futures and options are translated into at the spot rate at the balance sheet date Financial instruments derivatives The Bank's commitments resulting from financial instrument derivatives such as interest rate swaps, financial futures and options are recorded on the transaction date as off balance sheet items. At the year-end, where necessary, a provision is set up in respect of individual unrealised losses resulting from the revaluation of the Bank's commitments at market value. This provision is included on the liability side of the balance sheet under "Provisions for liabilities and charges: other provisions". No provision is set up in cases where a financial instrument clearly covers an asset or a liability and economic unity is established or where a financial instrument is hedged by a reverse transaction so that no open position exists.

14 AF-RelLuxembourg :45 Page 13 Notes to the Consolidated Accounts December 31, Specific value adjustments with respect to doubtful and irrecoverable debts It is the Bank's policy to establish specific value adjustments in respect of doubtful and irrecoverable debts, as deemed appropriate by the Board of Directors. Value adjustments, if any, are booked in the same currency as the underlying assets and are deducted from the assets items to which they relate. It is the Bank s policy to reclassify existing specific value adjustments on securities arising from sovereign risk to or from specific value adjustments on loans as required without affecting the consolidated profit and loss accounts Lump-sum provision for risk exposures In accordance with the Luxembourg tax legislation, the Bank established a lump-sum provision for risk exposures, as defined in the legislation governing prudential supervision of banks. The purpose of the provision was to take account of risks that are likely to crystallise but which have not yet been identified as at the date of preparation of the annual accounts. Pursuant to the instructions issued by the Directeur des Contributions on December 16, 1997, this provision was made before taxation and may not exceed 1.25% of the Bank s risk exposures. The lump-sum provision for risk exposures was broken down in proportion to the weighting of the items that formed the basis of its calculation, between: the portion which is deemed to represent a value adjustment, and which was deducted from the assets items which constitute risk exposures; and the portion which is deemed to represent a provision for liabilities and charges attributable to credit risk associated with off-balance sheet items, foreign exchange risk and market risks, and which was shown as a liability under "Provisions for liabilities and charges: other provisions". As at December 31, 2004, the Bank has written back the existing lump sum provision Additional value adjustments created pursuant to Article 62 of the law on the accounts of banks It is the Bank s policy to establish additional value adjustments pursuant to Article 62 of the law on the accounts of banks to take account of the particular risks associated with banking. Additional value adjustments, if any, are deducted from the categories of assets items to which they relate. Such value adjustments are not deductible for tax purposes Fund for general banking risks The Bank has created a fund for general banking risks intended to cover particular risks associated with banking operations. Increases or decreases to this fund are determined based on the profit after tax, but before determining the profit for the financial year, and are not subject to limitations. Transfers to this account are shown separately in the profit and loss account under "Transfers to the fund for general banking risks" Transferable securities Transferable securities are recorded initially at their purchase price, plus additional charges. The average cost method is used for valuation purposes Debt securities and other fixed-income securities The Bank has divided its portfolio of fixed-income securities into three categories, the principal characteristics of which are the following: an investment portfolio of financial fixed assets, which are intended to be used on a continuing basis in the Bank's activities; a trading portfolio of securities purchased with the intention of resale in the short term; and a structural portfolio of securities which do not fall within either of the two other categories. 13 Fixed-income securities are valued as follows: Investment portfolio Fixed-income securities included in the Bank's investment portfolio are stated at the lower of cost (purchase price) or market value. Where the purchase price of fixed-income securities included in the Bank's investment portfolio exceeds the amount repayable at maturity, the difference is charged to the profit and loss account immediately, subject to limitations imposed by the Luxembourg regulatory authorities.

15 AF-RelLuxembourg :45 Page 14 Notes to the Consolidated Accounts December 31, 2004 Trading portfolio Fixed-income securities included in the Bank's trading portfolio are stated at the lower of cost or market value. Structural portfolio Fixed income securities included in the Bank's structural portfolio are stated at the lower of cost or market value. Securities issued on a discounted basis Securities issued on a discounted basis, in cases where the discount represents the sole source of income from these securities, are stated at cost as adjusted for the difference between the issue (or purchase) value and the par (or disposal) value. This difference is spread in a non-linear manner over the life of the security Shares and other variable-yield securities At the balance sheet date, shares and other variable-yield securities are stated at the lower of cost or market value The "Beibehaltungsprinzip" It is the Bank's policy to retain value adjustments in respect of certain categories of assets made previously but which no longer correspond to a reduction in the value of the assets in question, in accordance with Articles 56 (2) (f) and 58 (2) (e) of the law on the accounts of banks Intangible assets Intangible assets are stated at purchase price. The value of intangible assets with limited useful economic lives is reduced by value adjustments calculated to write-off the value of such assets systematically over their useful economic lives. Intangible assets include goodwill paid by the Group upon the acquisition of an insurance company in France Tangible fixed assets Tangible fixed assets are valued at purchase price. The value of tangible fixed assets with limited useful economic lives is reduced by value adjustments calculated to write-off the value of such assets systematically over their useful economic lives Taxes Income taxes are accounted for on an accruals basis Taxation - exchange difference: deferred taxation Under Luxembourg fiscal regulations, the Bank's fiscal balance sheet and results of operations are required to be expressed in Euro. The earnings of the Bank as determined for fiscal purposes can differ substantially from earnings reported for accounting purposes as a result of unrealised profits or losses on the translation of the Bank's equity into Euro equivalents for fiscal purposes. In accordance with the law of July 16, 1987 (as modified), which allows the fiscal neutralisation of translation gains on exchange on the investment of equity in banks, unrealised gains which may be caused by a rise in the Swiss franc against the Euro can, under normal circumstances, be neutralised to the extent of the amount that exceeds the unrealised translation losses previously carried forward. Unrealised translation losses on equity are considered to result from a timing difference and the Bank provides for revenue taxes on the accounting income as deferred taxation. 14 NOTE 3 - METHOD OF CONSOLIDATION The complete integration method is used for consolidation of the banking subsidiary in which the Bank holds at least 50% of the capital either directly or indirectly.

16 AF-RelLuxembourg :45 Page 15 Notes to the Consolidated Accounts December 31, 2004 NOTE 4 - SCOPE OF CONSOLIDATION The consolidated accounts comprises the annual accounts of the parent company and the annual accounts of its subsidiary as at December 31, Percentage Date taken into Company Country held at consolidation Parent company Banque Safra - Luxembourg, Société Anonyme Luxembourg December 31 Subsidiary consolidated by global integration Banque Safra France, Société Anonyme and its subsidiary France 99.98% 99.98% December 31 The main movement affecting the scope during the year under review is as follows: Banque Safra-France, Société Anonyme acquired a subsidiary in October 2003, Safra Assurance S.a.r.l.. The company is fully owned by Banque Safra-France, Société Anonyme. NOTE 5 - ADJUSTMENTS AND ELIMINATIONS The accounts of the consolidated undertakings have been subject to the necessary adjustments and eliminations in order to: present their accounts in a uniform manner, eliminate reciprocal balances, eliminate income and costs resulting from intra-group transactions. NOTE 6 - CONVERSION PRINCIPLES USED FOR THE CONSOLIDATION The Bank has adapted the following method for converting the annual accounts of the consolidated companies drawn up in foreign currencies into : the assets and liabilities are converted at the exchange rates applicable on the date of the balance sheet, the profit and loss accounts are converted at the average end-of-month exchange rates. The subsidiary uses the same exchange rates as the parent company. There was no conversion adjustment for the year. NOTE 7 - LOANS AND ADVANCES TO CREDIT INSTITUTIONS Loans and advances to credit institutions other than those repayable on demand may be analysed according to their remaining maturity as follows: Not more than three months 1,116,270, ,684,224 More than three months but not more than one year 0 96,088, More than one year 14,976,589 1,587,186 1,131,246, ,359,461

17 AF-RelLuxembourg :45 Page 16 Notes to the Consolidated Accounts December 31, 2004 NOTE 8 - LOANS AND ADVANCES TO CUSTOMERS Loans and advances to customers may be analysed according to their remaining maturity as follows: Not more than three months 310,300, ,892,670 More than three months but not more than one year 33,201,331 45,558,550 More than one year 754,540 26,205, ,256, ,657,201 NOTE 9 - TRANSFERABLE SECURITIES Transferable securities shown under the various items "Debt securities and other fixed-income securities" and "Shares and other variable-yield securities" may be broken down as follows into listed and unlisted securities: Listed Unlisted Total Debt securities including other fixed-income securities 315,816,886 2,468, ,285,019 Shares and other variable-yield securities 81, , , ,898,809 2,942, ,841,727 Listed Unlisted Total Debt securities including other fixed-income securities 756,869, ,699, ,568,671 Shares and other variable-yield securities 30,020 16,859 46, ,899, ,716, ,615,550 NOTE 10 - DEBT SECURITIES AND OTHER FIXED-INCOME SECURITIES As at December 31, 2004, transferable securities shown under "Debt securities and other fixed-income securities" due within one year of the balance sheet date amount to 54,006,943 (2003: 143,831,451). Transferable securities shown under "Debt securities and other fixed-income securities" may be analysed as follows: Financial fixed assets 25,886, ,299,510 Current assets 292,398, ,269, ,285, ,568,671 Transferable securities are included under financial fixed assets where the Bank intends to use them on a continuing basis in its activities. 16

18 AF-RelLuxembourg :45 Page 17 Notes to the Consolidated Accounts December 31, 2004 NOTE 11 - OTHER ASSETS Short-term receivables 86, ,699 Premiums on options purchased 4,331,780 20,416,802 Others 6,903,488 7,192,223 11,322,228 27,974,724 As at December 31, 2004, options are exclusively contracted on behalf of customers and the Bank always enters into reverse hedging transactions. For 2003, the premiums on options purchased include amounts for options acquired as a hedge for securities in the Bank s portfolio that were acquired in the course of NOTE 12 - MOVEMENTS IN FIXED ASSETS The following movements have occurred in the Bank's fixed assets in the course of the financial year: FIXED ASSETS ITEM 1. Debt securities and other fixed-income securities Gross value at the beginning of the financial year Additions Disposals 469,670,310 12,643,458 (460,775,722) Foreign exchange translation or transfers 6,557,678 Gross value at the end of the financial year 28,095,724 Value adjustments at the end of the financial year 2,209,162 Net value at the end of the financial year 25,886, Intangible assets (see note 13) 2,466, ,557 0 (18,741) 2,834,973 1,812,589 1,022, Tangible assets 8,512, ,947 (139,666) (19,076) 8,793,008 5,678,346 3,114,662 of which: a) Land and buildings 3,623, ,623,815 2,306,870 1,316,945 b) Plant and machinery 2,859, ,196 (64,112) (8,505) 2,977,348 2,152, ,599 c) Other fixtures and fittings, tools and equipment 2,029, ,751 (75,554) (10,571) 2,191,845 1,218, ,118 NOTE 13 - INTANGIBLE ASSETS Intangible assets are made up by a net amount of 1,022,384 (2003: 1,242,636) which represents the software used by the Bank for its own activities, the formation expenses and the goodwill paid by the Group upon the acquisition of an insurance company in France. NOTE 14 - TANGIBLE ASSETS Tangible assets include for a net amount of 1,316,945 (2003: 1,313,842) the land and buildings used by the Bank for its own activities. 17 NOTE 15 - FOREIGN CURRENCY ASSETS As at December 31, 2004 the aggregate amount of the Bank's assets denominated in currencies other than Swiss francs amounts to 1,825,413,457 (2003: 2,427,992,207).

19 AF-RelLuxembourg :45 Page 18 Notes to the Consolidated Accounts December 31, 2004 NOTE 16 - AMOUNTS OWED TO CREDIT INSTITUTIONS WITH AGREED MATURITY DATES OR PERIODS OF NOTICE Amounts owed to credit institutions with agreed maturity dates or periods of notice may be analysed according to their remaining maturity as follows: Not more than three months 21,351,424 94,205,636 More than three months but not more than one year 1,248, ,498,941 22,600, ,704,577 NOTE 17 - AMOUNTS OWED TO CUSTOMERS: OTHER DEBTS WITH AGREED MATURITY DATES OR PERIODS OF NOTICE "Other debts with agreed maturity dates or periods of notice" included under "Amounts owed to customers" may be analysed according to their remaining maturity as follows: Not more than three months 1,203,620,018 1,491,418,656 More than three months but not more than one year 79,667,376 73,754,460 More than one year 3,115,035 5,588,723 1,286,402,429 1,570,761,839 NOTE 18 - DEBTS EVIDENCED BY CERTIFICATES Debts evidenced by certificates other than debt securities in issue may be analysed according to their remaining maturity as follows: More than one year but not more than five years 564, , , ,244 NOTE 19 - OTHER LIABILITIES Short term payables 4,742 6,304 Preferential creditors 1,189,587 1,259,357 Sundry creditors 40, ,107 Premiums on options written (see note 11) 4,331,780 4,925,928 Others 2,822, ,340 8,388,896 7,121,036 For 2003, the premiums on options written include amounts for options acquired as a hedge for securities in the Bank s portfolio that were acquired in the course of

20 AF-RelLuxembourg :45 Page 19 Notes to the Consolidated Accounts December 31, 2004 NOTE 20 - SUBORDINATED LIABILITIES The Bank has incurred charges of 5,911,584 (2003: 6,268,783) during the financial year with respect to its subordinated liabilities. The following represents the total amount of subordinated liabilities: Amount Currency Rate of Maturity Amount in of borrowing Interest Date 60,000,000 USD 8.375% 05/04/ ,694,400 For the purpose of calculating the Bank's capital adequacy ratio, an amount of the subordinated liabilities may be assimilated to own funds to a certain extent. NOTE 21 - SUBSCRIBED CAPITAL The Bank's authorised, subscribed and paid-up capital amounts to 24,200,000, represented by 24,200 shares with a nominal value of 1,000. NOTE 22 - MOVEMENTS IN RESERVES AND PROFIT BROUGHT FORWARD The following movements have occurred in the Bank s reserves and profit brought forward in the course of the financial year: Legal Reserve Other reserves Profit Balance at January 1, ,420, ,548,942 (4,162,045) Profit for the year ended December 31, ,387,798 Appropriation of profit - Transfer to reserves according to Annual General Meeting held May 24, 2004* 24,107,508 (24,107,508) Foreign exchange 46,972 Balance at December 31, ,420, ,656,450 (4,834,783) *of which reserve for tax credit of 7,5 million and free reserves of 16,6 million. 19 Under Luxembourg law, the Bank must appropriate to a legal reserve an amount equivalent to at least 5% of the annual net profit until such reserve is equal to 10% of the share capital. This appropriation is made in the following year. Distribution of the legal reserve is restricted. As at December 31, 2004 and 2003, the legal reserve is equal to 10% of the share capital. The Annual General Meeting of Shareholders of May 24, 2004 resolved to allocate to other reserves the profit for the year 2003 of 24,107,508 in order to take advantage of the provisions of paragraph 8 of the Law of October 16, 1934 as modified by Article 5 of the Law of December 22, Based on this paragraph, the Bank may elect to get a tax credit for all or part of the net worth tax due for that year. This tax credit is, however, limited to the amount of the corporate income tax due for the same year before the imputation of any tax credits. In order to benefit from this provision, the Bank must commit itself to post before the end of the subsequent year an amount equal to five times the net worth tax to be credited to a special reserve, which has to be maintained for a period of five years.

21 AF-RelLuxembourg :45 Page 20 Notes to the Consolidated Accounts December 31, 2004 NOTE 23 - FOREIGN CURRENCY LIABILITIES As at December 31, 2004, the aggregate amounts of liabilities denominated in currencies other than Swiss francs amounts to 1,837,859,128 (2003: 2,438,022,126). NOTE 24 - CONTINGENT LIABILITIES The Bank's contingent liabilities may be analysed as follows: Guarantees and other direct substitutes for credit 200,549, ,642,497 Opened documentary credit 1,348, , ,897, ,806,848 A significant proportion of the guarantees issued by the Bank and the opened documentary credit are secured by assets pledged in due form. NOTE 25 - COMMITMENTS The Bank's commitments may be analysed as follows: Forward purchases of assets 139,574, ,942,384 Forward sales of assets 136,502, ,598,642 Confirmed credits, not used 3,145,296 5,802,789 Amounts not paid up on securities 803,714 12,153,818 Settlement of spot transactions 259, , ,284, ,783,512 The Bank has entered into certain other commitments which are not disclosed either in the balance sheet or in the off balance sheet items but which are not significant for the purposes of assessing the financial situation of the Bank. Such other commitments are: - commitments in respect of fixed rental payments contracted on office building; - financial liabilities arising out of membership of the deposit guarantee scheme (see note 32). 20 NOTE 26 - OPERATIONS LINKED TO CURRENCY EXCHANGE RATES, INTEREST RATES AND OTHER MARKET RATES The following types of forward transactions are outstanding as at December 31, 2004: Operations linked to currency exchange rates - Forward exchange transactions (swaps, outrights) - Options - Precious metal futures Operations linked to currency exchange rates are made to a large extent for hedging purposes. Operations linked to interest rates - Interest rate swaps - Futures Operations linked to interest rates are made to a large extent for the purposes of covering the effects of fluctuations in interest rates. Operations linked to other market rates - Futures - Options Operations linked to other market rates are made to a large extent for hedging purposes. Forward purchases and sales of transferable securities Forward purchases and sales of transferable securities are made to a large extent for hedging purposes.

22 AF-RelLuxembourg :45 Page 21 Notes to the Consolidated Accounts December 31, 2004 NOTE 27 - INVESTMENT MANAGEMENT SERVICES AND UNDERWRITING FUNCTIONS The Bank provides management and agency services to third parties. Management and agency services consist of: - Portfolio management and advice - Custody and administration of transferable securities - Fiduciary representations - Agency functions. NOTE 28 - OTHER OPERATING INCOME Other operating income is made up as follows: Account closing fees 20,939 20,687 VAT reimbursement 248,855 0 Sundry 292, , , ,785 NOTE 29 - OTHER OPERATING CHARGES Other operating charges are made up as follows: AGDL provision 120, ,000 Provision for other expenses 0 18,502 Sundry 96, , , ,464 NOTE 30 - STAFF NUMBERS The average number of persons employed during the financial year by the Bank is as follows: Number Number Senior management 7 8 Middle management 27,5 25 Employees ,5 93 NOTE 31 - MANAGEMENT REMUNERATION The Bank has granted emoluments in respect of the financial year to the members of the Senior Management of the Bank by reason of their responsibilities, and has entered into commitments in respect of retirement pensions for present members of these bodies, as follows: Retirement Retirement Emoluments Emoluments pensions pensions Senior Management 2,747,619 3,032, , , The Bank has granted advances and credits to the members of its Senior Management as follows: Advances Advances and credits and credits Senior management 228, ,274

23 AF-RelLuxembourg :45 Page 22 Notes to the Consolidated Accounts December 31, 2004 NOTE 32 - DEPOSIT GUARANTEE SCHEME On September 25, 1989, all credit institutions in the Luxembourg banking sector became members of the non-profit making association Association pour la Garantie des Dépôts, Luxembourg ( AGDL ). In accordance with the law of April 5, 1993, as amended by the law of June 11, 1997, the sole object of AGDL is the establishment of a mutual guarantee scheme covering deposits made by customers of member credit institutions ( the Guarantee ). The customers covered by the Guarantee include all depositors who are physical persons, whatever their nationality or country of residence. Also covered by the Guarantee are small companies constituted under the law of a Member State of the European Union, whose size is such that they would be permitted to draw up abbreviated accounts pursuant to Article 215 of the law of August 10, 1915 on commercial companies, as amended. With respect to each member, the Guarantee is limited to a maximum amount per depositor of EUR 20,000 or its foreign currency equivalent. No depositor can receive more than this sum, regardless of the number of accounts or deposits held in the sole or joint name of the depositor with the same credit institution. The amount of the Guarantee represents an absolute figure and cannot be increased by any interest, charges or any other amount. The law of July 27, 2000 stipulates that banks must also belong to an investment Guarantee scheme. This additional Guarantee covers the reimbursement of claims resulting from investment transactions up to the amount of EUR 20,000. The total amount of the Guarantees which will in no case exceed EUR 40,000 per customer (EUR deposit guarantee and EUR 20,000 investor compensation) represents an absolute figure and cannot be increased by any interest, charges or any other amount. As at December 31, 2004 and 2003, the Bank has set up a provision in recognition of its potential liabilities under the Guarantees within the limits set out in the Grand Ducal Regulation of December 21, 1991 enacting Article (5) of the income tax law of December 4,

24 AF-RelLuxembourg :45 Page 23 Notes to the Consolidated Accounts December 31, 2004 NOTE 33 - FINANCIAL INSTRUMENT DISCLOSURES PRIMARY NON-TRADING FINANCIAL INSTRUMENTS As at December 31, 2004, the analysis of primary non-trading financial instruments by class and residual maturity is the following: 3 months > 3 months > 1 year > 5 years Undetermined Total 1 year 5 years maturity At carrying amount in FINANCIAL ASSETS Cash on hand 573, ,365 Balances with the BCL 35,054, ,054,735 Loans and advances to credit institutions 1,439,241, ,976, ,454,218,467 Loans and advances to customers 310,300,496 33,201, , ,256,367 Listed government fixed-income securities , ,529, ,320,778 Listed non government fixed-income securities 0 54,006,943 2,905,331 12,583, ,496,108 Not Listed non government fixed-income securities 0 0 2,468, ,468,133 Shares and other variable-yield securities , ,708 Total 1,785,170,474 87,208,274 21,896, ,113, ,708 2,152,944,661 FINANCIAL LIABILITIES Amounts owed to credit institutions 103,922,813 1,248, ,171,647 Amounts owed to customers 1,629,646,090 79,667,376 3,115, ,712,428,501 Debts evidenced by certificates , ,954 Subordinated debt ,964, ,964,400 Total 1,733,568,903 80,916,210 71,644, ,886,129,502 OFF-BALANCE SHEET ITEMS DISCLOSED AS CONTINGENCIES AND COMMITMENTS Guarantees and assets pledged 22,272,273 49,995,797 69,585,658 58,695, ,549,005 Opened documentary credit 1,348, ,348,785 Forward purchases of securities 139,574, ,574,327 Forward sales of securities 136,502, ,502,038 Amounts not paid up on securities 803, ,714 Credits not used 1,630,472 1,142, , ,145,296 Settlement of spot securities transactions 259, ,291 Total 302,390,900 51,138,393 69,957,886 58,695, ,182,456 23

25 AF-RelLuxembourg :45 Page 24 Notes to the Consolidated Accounts December 31, 2004 As at December 31, 2003, the analysis of primary non-trading financial instruments by class and residual maturity was the following: 3 months > 3 months > 1 year > 5 years Undetermined Total 1 year 5 years maturity At carrying amount in FINANCIAL ASSETS Cash on hand 555, ,489 Balances with the BCL 40,001,476 40,001,476 Loans and advances to credit institutions 1,288,673,606 96,088,051 1,587, ,386,348,843 Loans and advances to customers 303,892,670 45,558,550 26,205, ,657,201 Listed government fixed-income securities 0 0 1,174, ,196, ,370,255 Listed non government fixed-income securities 104,009,487 39,821, ,603,426 14,064, ,499,039 Not Listed non government fixed-income securities ,699, ,699,377 Shares and other variable-yield securities ,879 46,879 Total 1,737,132, ,468, ,270, ,260,273 46,879 2,691,178,559 FINANCIAL LIABILITIES Amounts owed to credit institutions 113,363, ,498, ,862,335 Amounts owed to customers 1,821,470,847 73,754,460 5,588, ,900,814,030 Debts evidenced by certificates , ,244 Subordinated debt ,009, ,009,400 Total 1,934,834, ,253,401 80,336, ,483,424,009 OFF-BALANCE SHEET ITEMS DISCLOSED AS CONTINGENCIES AND COMMITMENTS Guarantees and assets pledged 28,881, ,937, ,278,679 35,545, ,642,497 Opened documentary credit 164, ,351 Forward purchases of securities 197,942, ,942,384 Forward sales of securities 135,598, ,598,642 Amounts not paid up on securities 5,802, ,802,789 Credits not used 8,278,951 3,682, , ,153,818 Settlement of spot securities transactions 285, ,879 Total 376,954, ,620, ,470,944 35,545, ,590,360 24

26 AF-RelLuxembourg :45 Page 25 Notes to the Consolidated Accounts December 31, DERIVATIVE NON-TRADING FINANCIAL INSTRUMENTS As at December 31, 2004, the analysis of derivative non-trading financial instruments by class and residual maturity is the following: 3 months > 3 months > 1 year Total 1 year 5 years At notional amount in FINANCIAL ASSETS Instrument class Foreign exchange transactions Forwards 225,367,503 81,730,420 2,542, ,640,865 Swaps 281,600,652 49,019, ,620,534 Options 76,275,365 1,098, ,733 77,883,856 Interest rate transactions Futures 0 31,701, ,701,049 Total 583,243, ,550,109 3,052, ,846,304 FINANCIAL LIABILITIES Instrument class Foreign exchange transactions Forwards 233,165,361 94,836,342 2,431, ,432,992 Swaps 226,756,117 40,979, ,735,433 Futures 1,548,229 1,016, ,564,297 Options 68,251,471 1,472, ,724,033 Interest rate transactions Interest rate swaps 0 118,937, ,937,700 Futures 0 24,144, ,144,733 Total 529,721, ,386,721 2,431, ,539,188 As at December 31, 2003, the analysis of derivative non-trading financial instruments by class and residual maturity was the following: 3 months > 3 months > 1 year Total 1 year 5 years At notional amount in FINANCIAL ASSETS Instrument class Foreign exchange transactions Forwards 153,280,960 81,138,536 1,709, ,129,336 Swaps 362,574,300 28,095, ,616,585 Futures 0 513,255 2,077,197 2,590,452 Options 76,037,449 16,473, ,511,395 Interest rate transactions Interest rate swaps 18,502,350 61,674,500 61,674, ,851,350 Total 610,395, ,895,834 65,461, ,752,430 FINANCIAL LIABILITIES Instrument class Foreign exchange transactions Forwards 164,985,640 92,265, ,250,661 Swaps 25,630, ,630,868 Options 93,903,055 3,271, ,174,341 Interest rate transactions Interest rate swaps 18,502,350 61,674,500 6,167,450 86,344,300 Options 0 7,754, ,754,797 Total 303,021, ,965,604 6,167, ,154, These amounts include derivative non-trading financial instruments with a trade date before December 31, 2003 and a value date after December 31, 2003.

27 AF-RelLuxembourg :45 Page 26 Notes to the Consolidated Accounts December 31, INFORMATION ON CREDIT RISK ON PRIMARY NON-TRADING FINANCIAL INSTRUMENTS The Bank is exposed to the following credit risk on primary non-trading financial instruments: Carrying amount Carrying amount in in FINANCIAL ASSETS By instrument class and geographic location 26 Cash, balances with the BCL EU member countries 35,628,100 40,556,965 35,628,100 40,556,965 Loans and advances to credit institutions EU member countries 1,351,873,235 1,192,136,435 Western Europe, non-eu member countries 2,272,663 1,622,897 Eastern Europe, non-eu member countries 353, ,761 Asia 642, ,228 Middle east 2,175,489 2,196,625 Oceania 301,630 0 North America 96,598, ,403,003 Central and South America ,967,885 Africa 0 5,009 1,454,218,467 1,386,348,843 Loans and advances to customers EU member countries 88,112,013 75,015,193 Western Europe, non-eu member countries 754,644 25,424,290 Eastern Europe, non-eu member countries 87, Asia 1,833, ,289 Middle East 5,521,087 4,906,884 North America 24,172,908 7,253,925 Oceania 145, ,732 North Africa 655,727 9,184,217 Central and South America 222,973, ,550,393 Oceania 0 167, ,256, ,657,201 Listed OECD government fixed-income securities EU member countries 684, ,698 North America 219,749, ,554,582 Central and South America 25,886, ,102, ,320, ,370,255 Listed OECD non-government fixed-income securities EU member countries 56,912, ,918,394 North America 12,583,834 32,081,629 Central and South America 0 65,499,016 69,496, ,499,039 Unlisted OECD non-government fixed-income securities North America 2,154,891 2,528,786 Central and South America 313, ,170,591 2,468, ,699,377 Unlisted shares Central and South America 450,915 0 EU member countries 23,869 46, ,785 46,879 Total 2,152,862,828 2,691,178,559

28 AF-RelLuxembourg :45 Page 27 Notes to the Consolidated Accounts December 31, INFORMATION ON CREDIT RISK ON DERIVATIVE NON-TRADING FINANCIAL INSTRUMENTS As at December 31, 2004, the Bank is exposed to the following credit risk on derivatives non-trading financial instruments: Notional Risk-equivalent Amount Amount Use of initial risk method COUNTERPARTY SOLVENCY AND GEOGRAPHIC LOCATION Foreign exchange transactions Zone A credit institutions and financial institutions EU member countries 240,901,588 5,473,472 Western Europe, non-eu member countries 262,399,828 5,864,637 North America 32,219, ,716 Zone B credit institutions and financial institutions Central and South America 40,885, ,719 Private customers Western Europe, non-eu member countries 232,758,781 5,763,347 Middle East 987,993 19,760 EU member countries 23,431, ,632 Central and South America 554,807,055 12,017,805 North America 209,636 4,193 Interest rate transactions Zone A credit institutions and financial institutions EU member countries 118,937, ,689 North America Central and south America Private customers EU member countries 6,287,661 31,438 Central and South America 49,558, ,791 Total 1,563,385,492 31,976,199 As at December 31, 2003, the Bank was exposed to the following credit risk on derivatives non-trading financial instruments: Notional Risk-equivalent Amount Amount Use of initial risk method 27 COUNTERPARTY SOLVENCY AND GEOGRAPHIC LOCATION Foreign exchange transactions Zone A credit institutions and financial institutions EU member countries 163,162,670 3,818,324 Western Europe, non-eu member countries 236,874,068 5,875,904 North America 2,120,545 42,411 Zone B credit institutions and financial institutions Central and South America 14,553, ,067 Middle East 755,513 15,110 Private customers Western Europe, non-eu member countries 357,955,868 8,464,299 Middle East 3,290,146 65,803 EU member countries 35,697, ,516 Central and South America 284,956,572 6,596,819 Interest rate transactions Zone A credit institutions and financial institutions EU member countries 228,195,650 3,330,423 North America 2,492,613 12,463 Central and south America 5,262,184 26,311 Private customers EU member countries 513,255 10,265 Central and South America 2,077, ,860 Total 1,337,907,396 29,266,575

29 AF-RelLuxembourg :45 Page 28 Parent Company Summarized Financial Statements Auditor's Report To the Board of Directors of Banque Safra - Luxembourg, Société Anonyme Luxembourg Following our appointment by the Board of Directors, we have audited the attached annual accounts of Banque Safra - Luxembourg, Société Anonyme for the year ended December 31, 2004 and have read the related management report. These annual accounts and the management report are the responsibility of the Board of Directors. Our responsibility is to express an opinion on these annual accounts based on our audit and to verify the consistency of the management report with the annual accounts. We conducted our audit in accordance with International Standards on Auditing. Those Standards require that we plan and perform the audit to obtain reasonable assurance about whether the annual accounts are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the annual accounts. An audit also includes assessing the accounting principles used and significant estimates made by the Board of Directors in preparing the annual accounts, as well as evaluating the overall annual accounts presentation. We believe that our audit provides a reasonable basis for our opinion. In our opinion, the attached annual accounts give, in conformity with Luxembourg legal and regulatory requirements, a true and fair view of the assets, liabilities and financial position of Banque Safra - Luxembourg, Société Anonyme at December 31, 2004 and the results of its operations for the year then ended. The management report is consistent with the annual accounts. Deloitte S.A. Réviseur d'entreprises E. van de Kerkhove Partner 28 April 27, 2005

30 AF-RelLuxembourg :45 Page 29 Balance Sheet and off Balance Sheet Items December 31, 2004 (In ) Note ASSETS Cash, balances with central banks and post office banks 32 31,321,769 36,336,900 Loans and advances to credit institutions 12, 32 1,324,158,829 1,244,101,354 a) repayable on demand 290,097, ,541,396 b) other loans and advances 3 1,034,061, ,559,958 Loans and advances to customers 4, 30, ,610, ,368,847 Debt securities and other fixed-income securities 5, 6, 9, ,285, ,568,671 a) issued by public bodies 246,320, ,370,255 b) issued by other borrowers 71,964, ,198,416 Shares and other variable-yield securities 5, ,465 16,859 Shares in affiliated undertakings 5, 7, 9 36,658,945 43,099,806 Intangible assets 9,10 209, ,248 Tangible assets 9, 11 2,137,053 2,327,375 Other assets 8 5,289,828 21,410,391 Prepayments and accrued income 6,847,269 17,263,443 TOTAL ASSETS 13 1,986,038,455 2,546,682,894 LIABILITIES Amounts owed to credit institutions 19, ,257, ,716,643 a) repayable on demand 80,657,328 20,012,066 b) with agreed maturity dates or periods of notice 14 22,600, ,704,577 Amounts owed to customers 32 1,527,044,658 1,701,719,476 Other debts a) repayable on demand 354,718, ,428,448 b) with agreed maturity dates or periods of notice 15 1,172,325,851 1,432,291,028 Debts evidenced by certificates 16, , ,244 Other liabilities 17 7,776,050 6,500,632 Accruals and deferred income 12,768,462 10,563,170 Provisions for liabilities and charges 5,800,800 9,158,879 a) provisions for taxation 4,331,746 6,057,991 b) other provisions 31 1,469,054 3,100,888 Subordinated liabilities 18, 32 67,964,400 74,009,400 Fund for general banking risks 9,000,000 0 Subscribed capital 20 24,200,000 24,200,000 Reserves ,076, ,968,942 Profit for the financial year 16,585,095 24,107,508 TOTAL LIABILITIES 22 1,986,038,455 2,546,682, OFF BALANCE SHEET ITEMS Contingent liabilities 23, ,231, ,930,710 of which: - guarantees and assets pledged as collateral security 178,231, ,930,710 Commitments 24, ,780, ,127,437 Fiduciary operations 26 1,087,899,950 1,419,176,162

31 AF-RelLuxembourg :45 Page 30 Profit and Loss Account year ended December 31, 2004 (In ) Note Interest and similar income 61,101,811 97,928,685 of which: that arising from fixed-income securities 32,569,859 65,769,935 Interest and similar charges (49,076,293) (74,813,219) Income from securities 1,074 2,731 of which: Income from shares and other variable-yield securities 1,074 2,731 Commission income 22,301,736 25,630,088 Commission expense (5,856,593) (5,608,148) Net profit on financial operations 3,105,339 6,464,741 Other operating income , ,877 General administrative expenses (16,393,199) (15,453,321) a) staff costs 29, 30 (11,048,835) (10,558,698) of which - wages and salaries (9,821,527) (9,440,835) - social security costs (1,024,141) (916,701) of which: social security costs relating to pensions (819,056) (725,573) b) other administrative expenses (5,344,364) (4,894,623) Value adjustments in respect of tangible and intangible assets (698,274) (698,433) Other operating charges 28 (200,251) (225,599) Value adjustments in respect of loans and advances and provisions for contingent liabilities and for commitments 0 (15,582,644) Value re-adjustments in respect of loans and advances and provisions for contingent liabilities and for commitments 18,439,960 6,864,350 Value adjustments in respect of transferable securities held as financial fixed assets and participating interests (6,747,992) 0 Value re-adjustments in respect of transferable securities held as financial fixed assets and participating interests 1,372,810 1,284,014 Transfers to the fund for general banking risks (9,000,000) 0 Tax on profit on ordinary activities (511,933) (901,450) Profit on ordinary activities after tax 18,126,928 25,634,672 Other taxes not shown under the preceding items (1,541,833) (1,527,164) Profit for the financial year 16,585,095 24,107,508 30

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