· Carnegie has strengthened its market position during the year.
· Increased number of transactions in Investment Banking.
· Improved ranking and market shares in Securities.
· Increased number of discretionary mandates in Private Banking.
· Successful start to integration of former HQ Bank and former HQ Fonder.
· Following the acquisition of HQ Bank, Carnegie is the largest independent private banking provider in Sweden.
· Carnegie has assets under management of approximately SEK 110 billion.
· Strong financial position with equity amounting to SEK 2.5 billion and capital adequacy for Carnegie Holding of 17.6 percent at year-end.
Financial data for Carnegie Holding (Jan-Dec)
· Income amounted to SEK 1,796m.
· Expenses before credit reserves amounted to SEK 1,391m. Items affecting comparability reduced expenses by a net of SEK 395m.
· Pre-tax profit amounted to SEK 540m. Adjusted for items affecting comparability, pre-tax profit amounted to SEK 145m.
· Profit for the year amounted to SEK 501m.
Financial data for Carnegie Bank (Jan-Dec)
· Income amounted to SEK 1,764m (1,641), an increase in all business areas in relation to 2009.
· Expenses before credit reserves amounted to SEK 1,292m (1,642). Items affecting comparability reduced costs by a net of SEK 425m (-134).
· Pre-tax profit amounted to SEK 607m (-5). Adjusted for items affecting comparability (and capital gains 2009) pre-tax profit amounted to SEK 182m (129).
· Profit for the year amounted to SEK 571m (37).
Comments from the CEO
A year of great progress
The past year has been eventful, both for Carnegie and for the market as a whole. While the economy has continued to recover from the financial crisis – not least in the Nordic countries – concern for the US economy and the debt problems in Europe have periodically cast shadows over the markets.
For Carnegie, 2010 has been a year characterised by great progress. In Sweden, we strengthened our position through the autumn's acquisitions of HQ Bank and HQ Fonder – acquisitions that make us the country's largest independent provider of private banking services and savings products. In the past year, Carnegie has also reinforced its positions in the Nordic region within equity capital market transactions, something that has made an impression both in customer surveys and in increased market share.
In terms of income, 2010 represented an improvement in all areas. This trend was most obvious in Investment Banking, where revenues increased by 54 percent in relation to 2009, driven by Carnegie been very active as advisor in corporate acquisitions, equity market transactions and initial public offerings. The Securities business unit is demonstrating somewhat higher commission income as a consequence of Carnegie having successively improved its relative market position. Profitability in Securities, however, was not satisfactory. Carnegie Private Banking developed well during the year, with an increased proportion of discretionary mandates. Carnegie Fonder is exhibiting stable income growth and, following a turbulent autumn, the funds experienced an inflow towards the end of the year and in early 2011.
The new Carnegie is a financially robust company, with equity of SEK 2.5 billion and assets under management of approximately SEK 110 billion, providing a stable income base. During 2011 we will place great emphasis on revealing synergy from the acquisitions, creating the best private banking offering on the market, continuing to develop Carnegie Fonder, and taking advantage of the improved business climate in securities trade and corporate transactions.
Carnegie's ambition is to be the leading financial advisor on the Nordic market, which means we will be the first choice when companies, institutions and private individuals seek advice and management. We have a great knowledge base with our 900 employees, and we will do our utmost to earn the confidence of our clients and to refine the strengths that we have built up over a long period.
President and CEO