Carnegie’s net profit for 2006 was SEK 1,013 million (SEK 667 million), an increase of 52% from last year. The net profit generated in the fourth quarter was SEK 292 million (SEK 267 million). Earnings per share for 2006 were SEK 14.66 (SEK 9.98), fully diluted SEK 14.54 (SEK 9.94).
Total income for 2006 increased by 27% to SEK 4,475 million (SEK 3,514 million). Income in the fourth quarter was SEK 1,219 million (SEK 1,213 million). In the fourth quarter, Securities income was SEK 536 million, an increase of 25% Y/Y. Investment Banking generated SEK 206 million, a decrease of 28% Y/Y. Asset Management income was down 8% Y/Y to SEK 319 million and Private Banking generated income of SEK 159 million, up 5% Y/Y.
On 12 January Carnegie announced the acquisition of Max Matthiessen, to be financed through a share issue of a maximum of 6,071,427 shares in Carnegie, corresponding to a transaction value of SEK 856 million based on the share price as of 10 January 2007. The EGM will take place on 13 February 2007.
Dividend proposal – Carnegie’s Board of Directors proposes a dividend of SEK 10.50 per share eligible for dividend at the AGM, corresponding to a total dividend amount of SEK 813 million, based on the total number of shares outstanding of 77,432,827, including the new shares issued to Max Matthiessen’s shareholders and the new shares issued in January 2007 from Carnegie’s warrant programme.
Capital structure – Carnegie’s current business volume, including the acquisition of Max Matthiessen, is estimated to require a risk capital corresponding to a regulatory capital base of approx. SEK 1.9 billion. Assuming the acquisition of Max Matthiessen, and including exercised warrants in January 2007, and the dividend proposal, the regulatory capital amounts to SEK 1.9 billion. Based on risk-weighted assets pro forma according to Basel II of SEK 14.1 billion, this corresponds to a capital adequacy ratio of 13.7%, above the minimum level of 12 % decided by the Board.
Total expenses before profit-share for 2006 were SEK 1,659 million (SEK 1,674 million), a decrease of 1% from last year, and lower than the previously communicated cost range. Management estimates a cost range for 2007 including Max Matthiessen of SEK 2.1 to 2.2 billion.
Changes from the preliminary results 12 January: In connection with the announcement of the acquisition of Max Matthiessen, Carnegie presented its preliminary results for 2006. In this year-end report, actual taxes have been charged, resulting in a slightly higher net profit. Further, the preliminary estimate of net income from financial positions in business area Securities has been restated from SEK 229 million to SEK 156 million for the quarter, due to an error in classification of net interest income. Consequently, net interest income in Securities has increased by the same amount. Total income from business area Securities is unchanged. Corresponding changes have also been made in the Q1-Q3 figures.
Quotations from Stig Vilhelmson, CEO:
”In favourable market conditions, we have been able to further strengthen our market positions in all business areas. Carnegie generated record income in 2006 and the net profit increased by over 50 per cent, proving the strength in Carnegie’s business model. It is with great pleasure I can announce the Board’s dividend proposal of SEK 10.50 per share for 2006, and I look forward to continue to develop our business in 2007.”
Teleconference in English
Carnegie’s CEO Stig Vilhelmson and Mats-Olof Ljungkvist (CFO) will present the year-end results at a teleconference held 1 February at 4.00 PM (CET). It will be open to the public. In order to participate, please call + 44 (0) 208 817 9301. 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 Stig Vilhelmson (CEO) +46 8 676 86 01, 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 with activities in Securities, Investment Banking, Asset Management and Private Banking. Carnegie offers financial products and services to Nordic and international clients from offices in eight countries: Sweden, Denmark, Norway, Finland, Luxembourg, Switzerland, the United Kingdom and the US.