• Gradually increasing revenues during 2009 but lower full-year revenues in relation to 2008. Total revenues amounted to SEK 2,169m (2,742).
• Adjusted for items affecting comparability and credit reserves, expenses totalled SEK 1,895m (2,341), a 19-percent decline compared with 2008.
• Profit before tax amounted to SEK 136m (loss: 1,918).
• Profit for the year amounted to SEK 135m (loss: 2,218).
• Gradually improved market conditions resulted in gradually higher commission income and increased activity in corporate transactions.
• Carnegie was the second largest player in ECM transactions in the Nordic region in 2009.
• The Asset Management business area was separated from Carnegie on 31 December 2009.
The signs during the beginning of the second half of the year indicating an improved economic climate and gradually increasing market activity became more evident during the fourth quarter. Continued high appreciation among clients, a greater number of transactions and positive capital inflows strengthened our prospects in pace with the positive market trend. At the same time, low turnover throughout the year on the Nordic exchanges, low average activity among clients and a weak market for corporate transactions had clear effects on Carnegie’s earnings for the full-year 2009.
The Investment Banking business area was successful despite an otherwise weak market. Carnegie acted as advisor in a number of the largest transactions in the Nordic region, such as Cisco’s acquisition of Tandberg (valued at NOK 19 billion). In the wake of the financial crisis, many companies elected to raise new capital via the equity market during spring 2009, which favoured Carnegie’s operations in equity capital market (ECM). In total, Carnegie was the second largest player in ECM transactions in the Nordic region during 2009. These transactions included rights issues for Eniro AB (SEK 2.5 billion) and Biovitrum (SEK 1.5 billion).
Turnover on the Nordic exchanges declined more than 30 percent in relation to 2008, which negatively affected revenues in the Securities business area. Commission income was very low at the beginning of 2009 but increased during the latter part of the year in pace with improved market conditions and Carnegie’s strengthening of the research and equity sales operations. During the year, work was conducted on a more integrated basis across national borders in the Private Banking business area, which resulted in a stronger offering and improved service. Private Banking showed a positive flow of clients and capital during the year, although activity was lower than in previous years.
On December 31, Carnegie separated its Asset Management operations in a new holding company with Altor and Bure as principal owners. This separation strengthens our independence and focus in the core businesses Securities, Investment Banking and Private Banking, while at the same time retaining the advantages of close cooperation with Asset Management.
Following a difficult start to the year, Carnegie took many steps during 2009 to regain position: A stable ownership situation, with a high proportion of employee ownership, a strengthened management team, a lower cost base and stronger teams. In parallel with a stabilization of the financial markets and a gradual improvement in the general economic climate, economic activity also increased, enabling Carnegie to end the year in a climate of increased optimism.
Frans Lindelöw, President and CEO