BEST YEAR IN HQ's HISTORY

BEST YEAR IN HQ's HISTORY

• OPERATING INCOME SEK 986 (931) MILLION + 6%
• OPERATING PROFIT SEK 405 (350) MILLION + 16%
• OPERATING PROFIT EXCL TRADING SEK 420 (276) MILLION + 52%
• PROFIT AFTER TAX SEK 290 (250) MILLION + 16%
• EARNINGS PER SHARE AFTER DILUTION SEK 10.5 (9.2) + 14%
• OPERATING MARGIN 41 (38)%
• ASSETS UNDER MANAGEMENT SEK 79.2 (77.6) BILLION, NET INFLOW SEK 8.3 (8.4)
BILLION
• PROPOSED DIVIDEND SEK 10.00 (6.00) PER SHARE

COMMENTS FROM CEO MIKAEL KÖNIG
Despite the unfavourable market climate during the second half of the year HQ
Bank is reporting its best year-end ever. Income increased by 6 percent and
operating earnings by 16 percent, which demonstrates the scalability and
stability of our business model. Adjusted for the Trading business, operating
earnings increased by a substantial 52 percent. With the exception of Trading,
all services areas are demonstrating strong growth. For example, Corporate
Finance is reporting doubled operating earnings compared to 2006. This
development is explained by continuous focus on delivering added value and
repeat income, as well as by talented personnel and cost awareness.     
It was naturally gratifying to be voted ”Sweden's best private bank” in January
2008 by the prestigious magazine Euromoney. Our ambition is naturally to
continue with our proven successful strategy and to maintain this lead. 
During 2008 we will expand the business in Alternative Investments, which is an
area with great potential, and we will transform this into a natural component
of Private Banking's product offering. One crucial factor in our success is our
distribution power. Unique and attractive products open up opportunities for
significant distribution via external channels. Furthermore work is ongoing to
dismantle Trading in its current form. This means lower risk and further
clarifies the business model.