Carnegie’s profit before taxes for 2004 increased by 70% to SEK 535 million (SEK 315 million). The net profit increased by 87% to SEK 396 million (SEK 211 million), corresponding to earnings per share of SEK 5.93 (SEK 3.17). The net profit for the fourth quarter was SEK 157 million (SEK 77 million). The tax rate for 2004 was 26% (33%).
The Board of Directors has proposed a dividend of SEK 5.93 (SEK 3.16) per share, which corresponds to a pay-out ratio of 100 % (100%). The Tier 1 ratio excluding the proposed dividend at 31 December 2004 was 16.8% (18.0% ).
Total income for 2004 increased by 28% to SEK 2,672 million (SEK 2,081 million). Total income generated in the fourth quarter was SEK 805 million (SEK 581 million) and included an unrealised gain of SEK 48 million related to Carnegie’s holding of 3.8% in Copenhagen Stock Exchange (CSE). Excluding the gain from the CSE, the fourth-quarter income increased by 30% Y/Y.
Securities income for 2004 increased by 31% to SEK 1,202 million. Securities income in the fourth quarter of SEK 340 million was up 18% Y/Y excluding the unrealised gain from Carnegie’s holding in CSE. After a strong fourth quarter in Investment Banking which generated income of SEK 188 million, income was up 39% for the full year 2004 to SEK 511 million. Asset Management & Private Banking income was up 20% to SEK 959 million in 2004, of which SEK 276 million in the fourth quarter. Asset Management income included performance fees of SEK 48 million (SEK 10 million), of which SEK 35 million in the last quarter (SEK 10 million).
Total expenses before profit-share for 2004 were SEK 1,591 million, (SEK 1,472 million), up 8% Y/Y, and was within the estimated cost range for the year. Total expenses before profit-share included non-recurring expenses of SEK 60 million. Based on current market conditions, management’s estimated cost range for 2005 is SEK 1,500 - 1,600 million.
Assets under management (AUM) amounted to SEK 62 billion at 31 December 2004, an increase of SEK 7 billion from the beginning of the year, composed by a net inflow of SEK 3 billion and increasing asset values of SEK 4 billion.
Quotations from Karin Forseke, CEO:
“I am delighted about the results for 2004 – a substantial improvement due to hard work, competence and vigour resulting in a significantly consolidated market position.
Profitability is only created through client satisfaction – our ability to deliver the very best services and products – which depends on the competence and commitment of our people working towards the same goals as our shareholders.
I am particularly encouraged that this result enables us to deliver to our shareholders and makes it possible to recruit and retain the best people. By being competitive in building the best competence in the industry we can continue to be our clients’ first choice.”
This year-end and fourth-quarter report has been reviewed by the company’s auditors.
Carnegie’s CEO Karin Forseke will present the full year results at a teleconference held
3 February at 4.00 PM (CET). It will be open to the public. In order to participate, please call
+44 (0) 20 7162 0181. 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.