STOCKHOLM, Sweden, July 16, 2003 (PRIMEZONE) -- Carnegie:
The net profit for the first half year 2003 was SEK 66 million (142 million). The net profit for the second quarter was SEK 43 million, down 19 per cent Y/Y and up 87 per cent from the first quarter 2003.
Earnings per share for the first half year were SEK 0.99 (SEK 2.13), of which SEK 0.64 in the second quarter (SEK 0.79).
Total income for the first half year was SEK 975 million, down 22 per cent Y/Y. Total income for the second quarter was SEK 511 million, down 14 per cent (Y/Y) and up 10 per cent from the first quarter 2003. Securities income in the second quarter was SEK 241 million, down 12 per cent Y/Y. Investment Banking income was SEK 74 million, down by 39 per cent Y/Y. Asset Management & Private Banking income was SEK 196 million, unchanged Y/Y.
Total expenses for the first half year were SEK 872 million, down 17 per cent Y/Y. Total expenses for the second quarter were down 10 per cent (Y/Y) to SEK 445 million, including redundancy costs of SEK 31 million related to the personnel reduction announced in connection with the first quarter results. The operating expenses in the second quarter excluding profit-share and redundancy expenses were down by 17 per cent (Y/Y). The estimated cost base before profit-share of SEK 1,500 - 1,600 million in 2003 remains unchanged.
Assets under management amounted to SEK 49 billion at end of June, due to increasing asset values of close to SEK 5 billion and a small net inflow in the second quarter.
Carnegie's share of the total turnover on the Nordic stock exchanges was 8.8 per cent in the first half year 2003, an improvement from the first quarter (7.6 per cent). In Investment Banking, Carnegie is clearly ranked as No 1 in the first half year in the Nordic M&A advisory league table in terms of announced and completed assignments, both in terms of transaction volume and in number of assignments. During the second quarter, a number of Carnegie's mutual funds received better rankings, and Carnegie now holds 4- or 5-star rankings for funds representing about 75 per cent of the assets under management in equity mutual funds.Quotations from Karin Forseke, CEO: "During the past quarter we have seen signs of stabilisation in market conditions; the war in Iraq and the peak in related global tension have passed, bringing some comfort to financial markets, the turnover on stock exchanges has seen an increase and we have actually seen some improvement in M&A-activity in the opening of the third quarter. I definitely feel that there is a shift in sentiment, but we must remember that the activity is starting from a very low level."
"Our clients are at the forefront of our focus and by embracing the challenges and opportunities that the current environment provides enables us to adjust and implement changes to position ourselves for today and tomorrow. Since the peak in 2002 we have reduced our cost base by 15 per cent, this includes a reduction in staff of 20 per cent from the peak. We will now continue to build for the future and have initiated a number of projects not only to maximise efficiency but also to ensure that our targeted clients will receive the best quality in service and products in our field."
Teleconference
Carnegie's CEO Karin Forseke will present the second quarter results at a teleconference held 16 July at 4.00 PM (CET). It will be open to the public. In order to participate, please call +44 (0)20 7162 0125. 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.
To view this release as an Adobe (.pdf) visit the following link: http://reports.huginonline.com/911022/120343.pdf
Carnegie -- The Nordic investment bank -- operates in three business areas: Securities, Investment Banking and Asset Management & Private Banking. Carnegie provides a wide array of financial products and services to Nordic and international clients from offices in seven countries: Sweden, Denmark, Norway, Finland, Luxembourg, the UK and the US.