• Carnegie’s net profit for the first half year 2005 was SEK 239 million (SEK 205 million). Net profit for the second quarter increased by 65% Y/Y to SEK 139 million (SEK 84 million). Earnings per share for the first six months were SEK 3.58 (SEK 3.08) and SEK 3.54 (SEK 3.06) after full dilution.
• Total income in the first half year 2005 was up 5% Y/Y to SEK 1,454 million (SEK 1,387 million). Total income in the second quarter was up 22% Y/Y to SEK 797 million. For the six-months-period, Securities’ income increased by 9 % to SEK 713 million, reflecting the turnover development in the Nordic stock markets and strong trading income. Investment Banking income increased by 2% to SEK 259 million, compared to the first half of 2004. Asset Management income was up 14% to SEK 264 million, and included performance fees of SEK 31 million (SEK 1 million). Private Banking income declined by 13% Y/Y to SEK 219 million, due to structural changes in connection with the divestment of the pension advisory operations and the separation of the business areas. On a like-for like-basis, Private Banking income increased by 4 % from the first half year 2004.
• AUM (assets under management) in business area Asset Management increased by SEK 14 billion during the first half year to SEK 76 billion, of which net inflow accounted for SEK 1 billion and increasing asset values accounted for SEK 13 billion. During the period, a change of mix in the AUM towards higher-fee products could also be noted. The client volume in Private Banking increased by SEK 13 billion to SEK 45 billion, mainly reflecting an increase in asset values but also a net inflow.
• Total expenses before profit-share for the first six months were SEK 773 million (SEK 795 million), down by 3% Y/Y. Total expenses in the second quarter were SEK 399 million (SEK 407 million), down by 2% Y/Y.
Quotations from Karin Forseke, CEO:
“We have delivered our best half year result since the record year 2001, on the back of good performance across the board.”
“Market conditions have been favourable, realising leverage in our business model.
“During the period we have completed a number of important recruitments, adding to our already very strong teams. Our organisation is now in place in all business areas as well as across geographies. This enables us to continue to develop and grow our business.”
This interim report has not been reviewed by the company’s auditors.
Carnegie’s CEO Karin Forseke and Mats-Olof Ljungkvist (CFO) will present the half-year results at a teleconference held 14 July at 4.00 PM (CET). It will be open to the public. In order to participate, please call +44(0)20 7365 1855. The conference call will also be accessible as an audio live web cast (including slide presentation) at www.carnegie.se/ir. For those unable to listen to the live web cast, a replay will be available at www.carnegie.se/ir approximately one hour after the event.
For further information, please contact Karin Forseke (CEO) +46 8 5886 90 10, Mats-Olof Ljungkvist (CFO) +46 8 5886 90 13 or Birgitta Henriksson (IR) +46 8 5886 86 39.
Carnegie is an independent Nordic investment bank operating in Securities, Investment Banking, Asset Management and Private Banking. Carnegie provides a wide array of financial products and services to Nordic and international clients from offices in eight countries: Sweden, Denmark, Norway, Finland, Luxembourg, Switzerland, the UK and the US.