Carnegie -- Net profit SEK 203 million (SEK 66 million) for the first half year 2004


STOCKHOLM, Sweden, July 15, 2004 (PRIMEZONE) -- Carnegie's net profit for the first half year of 2004 was SEK 203 million (SEK 66 million), corresponding to earnings per share of SEK 3.04 (SEK 0.99). The net profit for the second quarter was SEK 82 million (SEK 43 million), an increase of 91% Y/Y.

Total income for the first six months 2004 was SEK 1,387 million (SEK 975 million), up 42% Y/Y. Income generated in the second quarter was SEK 653 million, up 28% Y/Y and 11% down from the previous quarter. In the first six months of 2004 Securities income increased by 49% to SEK 654 million. Securities income in the second quarter of SEK 284 million was down by 23 per cent from the previous quarter, in line with the turnover development on the Nordic stock exchanges. Income in Investment Banking was up 48% in the first half year to SEK 253 million, after a strong second quarter generating income of SEK 139 million. Asset Management & Private Banking income was up 32% to SEK 481 million in the first half year, mainly reflecting the value increase in mutual funds Y/Y and stronger private banking brokerage activity.

Total expenses before profit-share for the first half year were SEK 797 million, (SEK 794 million), up 5% Y/Y excluding redundancy expenses. Total expenses before profit-share in the second quarter were SEK 409 million, up by 14% Y/Y excluding redundancy expenses, reflecting investments in IT-infrastructure and an underlying increase in personnel expenses of around 5%. Based on current market conditions, management's estimate of the cost range for 2004 is revised to SEK 1,500 -- SEK 1,600 million.

Assets under management amounted to SEK 63 billion at 30 June 2004, an increase of SEK 8 billion from year-end, due to an inflow of SEK 4 billion and increasing asset values of SEK 4 billion.

Quotations from Karin Forseke, CEO:

"The first six months' result is a significant improvement compared to last year with net profit close to the full year result for 2003. The year 2004 started with a strong market sentiment that during the second quarter subsided in connection with global concerns around development of interest rates, price of oil and other macro economic factors. However, year on year market sentiment has improved and we are operating at a higher level of market activity than 2003."

"Carnegie's firm market position enables us to continue to build our platform. I am pleased to see that this was evidenced during the second quarter by a number of important recruitments in all business areas."

Auditors' examination

This interim report has not been reviewed by the company's auditors.

Teleconference

Carnegie's CEO Karin Forseke will present the second quarter results at a teleconference held 15 July at 4.00 PM (CET). It will be open to the public. In order to participate, please call +44 (0)20 7162 0183. 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.

Contact persons

For further information, please contact Karin Forseke (CEO) +46 8 5886 90 10, 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 operating in 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.

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The following files are available for download:

http://www.waymaker.net/bitonline/2004/07/15/20040715BIT20510/wkr0001.pdf

Interim report H1(04)