Pending implementation of the Swedish government’s guarantee scheme for banks, the Swedish Central Bank has granted Carnegie Investment Bank AB access to short-term liquidity in the form of a loan. By the nature of its business and unlike many other banks, Carnegie does not have access to financing from the Central Bank through repurchase agreements. Carnegie depends on the interbank market for short-term financing but in recent weeks access to liquidity in the market has been increasingly constrained.
“Like many other banks we have been granted short term financing from the Central Bank. Our core operation has shown strength and resilience and I am confident that our strategic decision to return to our core business of investment banking advisory and commission driven services will give us lower risk profile and better funding”, says Mikael Ericson, CEO of Carnegie.
The capital quotient of Carnegie per 30 September was 1.38, well above the legal minimum requirement of 1.0. The Carnegie Group has excess liquidity, but due to national legislation it is not possible to transfer liquidity between units.
Carnegie has already during the last quarter substantially reduced risks by lowering lending and downsizing proprietary trading. As a consequence, the balance sheet has been reduced by SEK 13 billion during the third quarter and is at present even lower.
Carnegie has the intention to join the Swedish government’s guarantee scheme, which is expected to be launched shortly, to secure medium-term financing. Carnegie A/S in Denmark has already joined the Danish Guarantee Fund.
For further information, contact:
Andreas Koch, Head of Communications and IR, +46 8 676 86 39
D. Carnegie & Co AB must disclose the information provided herein pursuant to the Securities Markets Act. The information was submitted for publication at 08:00 CET on 27 October 2008.
Carnegie is a leading independent investment bank with Nordic focus. Carnegie provides value-added services in securities brokering, investment banking, asset management, and private banking, as well as pension advisory services to institutions, corporations and private clients. Carnegie has approximately 1,100 employees in eight countries and is listed on the Nordic Exchange.