· Carnegie has continued to strengthen its market position:
· Position remains strong in securities trading.
· Strong order book in transaction services.
· Increased number of discretionary mandates in Private Banking.
· Inflow to Carnegie’s funds.
· Carnegie was top ranked for Private Banking in a survey conducted by Euromoney.
· Financial data for the group:
· Revenue amounted to SEK 500 (557*) million. The decrease relates to terminated operations and low revenue in Investment Banking.
· Expenses before credit reserves amounted to SEK 465 million (504*). Items affecting comparability increased expenses by SEK 11 million (0).
· Profit before credit reserves amounted to SEK 34 million (54*). Adjusted for items affecting comparability, profit before credit reserves amounted to SEK 45 million (54*).
· Profit for the period amounted to SEK 24 million (109*).
· Carnegie has assets under management of approximately SEK 110 billion.
· Strong financial position with equity amounting to SEK 2.5 billion, capital adequacy of 20 percent, and Tier I capital adequacy of 15 percent at the end of the quarter.
*) Pro forma 2010: Includes profits from HQ Bank and HQ Fonder.
Carnegie stands stable in a hesitant market
The early part of 2011 has been marked by dramatic events around the world, with conflicts in the Middle East and North Africa, natural disasters in Japan, and continued economic problems for a number of EU countries. These all impact on investor activity and investors’ willingness to take risk, which also affects Carnegie.
Carnegie’s earnings are partly marked by the hesitant market situation, with relatively low revenue in corporate transactions, while Private Banking and Fonder are reporting stable revenue. Carnegie's revenues in Securities and Investment Banking have a strong correlation with the market for equity capital markets transactions.
However, we can be pleased that Carnegie is standing stable in the market, with increasing shares of brokerage-driven trade and a good pipeline in equity capital markets transactions and M&As. Our fund operations continue to develop well, and we have expanded our activity in terms of market communication in order to profile our actively managed funds. Our private bank has experienced a stable quarter, with an increased inflow of discretionary mandates. Carnegie was also top ranked in a number of categories in private banking, according to a survey by Euromoney magazine at the start of the year. The integration of the autumn’s acquisitions will continue throughout the year, and at this point synergies have only partially been realised.
Carnegie has a unique platform as the leading independent investment bank in the Nordic region. We have strengthened our position, and even though there is still plenty to be done, there are many factors that mean we can look to the future with optimism.
President and CEO