Stabile activity level compared to Q1 2008, but earnings are affected; focus remains on costs and long-term strengthening of earnings base

Stabile activity level compared to Q1 2008, but earnings are affected; focus
remains on costs and long-term strengthening of earnings base 

Interim financial report for the period ended 31 March 2009
- Q1: Net interest and fee income of DKK 48m (DKK 48m)
- Q1: Negative EBTDA of DKK 28m (negative EBTDA of DKK 10m)
- Q1: Pre-tax loss of DKK 39m (pre-tax loss of DKK 36m)
- Q1: Recurring revenue/cost ratio 65% (80%)
- Q1: AUM of DKK 16.1bn (DKK 20.3bn)

Consolidated results
- The Group maintained the same level of activity for Q1 2009 as for Q1 2008
despite the continued complex market conditions for the Group's Business Areas. 
- The business basis of the Group's Danish Banking activities were affected by
the continued difficult market conditions and particularly the Private Banking
division realised a lower level of activity in Q1. Within Investment Banking
the Group noted a satisfactory level of activity. 
- The Q1 results were affected by the fact that the Group, as a strategic step
in its launch of Capinordic Bank in Sweden, chose to offer attractive interest
rates which had a negative effect on net interest income. Furthermore, the Q1
results were affected by negative value adjustments of the Group's own
portfolio. 
- The Swedish market shows great interest in the Group's products, and the
Group retains a high inflow of customers within the Business Areas Banking and
Private Financial Services. The Group is focusing on offering new and more
products to the Group's large customer base in the Swedish market. 
- During Q1 2009, the Group streamlined its organisation into three Business
Areas and implemented a management team, particularly strengthening the
Business Area of Asset Management with new profiles and a substantial knowledge
capital. 
- The Group aims to continue to strengthen its recurring revenue and improve
the relative ratio between recurring revenue and costs. Capinordic is therefore
analysing the Group's Business Areas with a view to a resource allocation to
and increased focus on those of the Group's business activities that achieve a
satisfactory development. 

Capinordic's Business Areas
Banking, negative EBTDA of DKK 26m (negative EBTDA of DKK 25m)
- The Group's Banking division saw a lower level of activity in Q1 2009 and
realised a decline in net interest and fee income of 29 per cent to DKK 16m
(DKK 22m). 
- The lower level of activity is primarily related to Private Banking where
both advisory fees and brokerage fees from trading activities were lower than
in previous quarters. Results were further affected by negative value
adjustments to the Group's own portfolio of DKK 8m (negative adjustments of DKK
5m). 
- The Group's Investment Banking noted a satisfactory level of activity in Q1
in relation to Corporate Finance. Within Investment Banking, the Group realised
commission income of DKK 8m (DKK 1m) in Q1. 
- The cost level is strained by the costs of participating in the State
Guarantee Scheme, while the cost cuts previously made will begin to take effect
from mid-2009 and will have full impact in 2010. 
- The products of Capinordic Bank were well received in the Swedish market,
where the Bank launched a deposit campaign in Q1. The campaign resulted in more
than four thousand new customers in Q1. 

Asset Management, EBTDA of DKK 0m (negative EBTDA of DKK 1m)
- The return on the assets under management was satisfactory, particularly in
view of the extremely volatile markets. The return on most of the funds was
better than their benchmark, and some of the funds are positioned at the very
top of Morning Star within their respective categories. 
- The earnings base of Asset Management remains characterised by last year's
large price drops in the financial markets, and the level of income is thus
lower than in preceding quarters. In Q1, net interest and fee income of the
Asset Management division amounted to DKK 12m (DKK 8m). 
- Capinordic has strengthened its knowledge capital and recruited several new
profiles. The Group notes an increasing interest in its Asset Management
products, which are expected to attract further management mandates and thereby
provide the Group with a broader basis for its business. 
- Total assets under management (AUM) amounted to DKK 16.1bn and remained
largely unchanged during Q1. 

Private Financial Services, EBTDA of DKK 4m (DKK 6m)
- The Group maintained a high gross inflow of customer agreements to Private
Financial Services. As previously communicated, the Group has launched several
initiatives to improve the percentage of renewed agreements, and the Group now
sees a clear effect of these initiatives. 
- Private Financial Services realised an increase in net interest and fee
income of 18 per cent to DKK 20m(DKK 17m) for Q1. The rising level of activity
is related to the acquisition of Factor Brokers AB in December 2008. 
- During Q1, the Group completed the merger between Monetar Pensionsförvältning
AB and Nordisk Fondservice AB, which is expected to lead to various synergies
and cost savings. 

Post-period events
- Capinordic A/S held its Annual General Meeting on 21 April 2009. Two new
members of the Supervisory Board were elected at the general meeting: Daniel
Grossmann as a representative of the major shareholder Verlinvest s.a. and
Lennart Andersson, who has in-depth knowledge of Capinordic's Swedish
activities. Lars Öijer did not stand for re-election. 

Lasse Lindblad, CEO, says:
“From the beginning of the year, Capinordic expected earnings to be volatile,
but of course it is not satisfactory to present a deficit for Q1. As a
strategic step in our launch of Capinordic Bank in Sweden, we also chose to
offer attractive interest rates which resulted in lower net interest income. On
the other hand we saw an inflow of over four thousand new customers in our
Swedish bank branch which will offer greater opportunities of cross-selling
opportunities in the group. 

Our Danish Banking activities, and in particular the Private Banking division,
are facing a number of challenges as a result of the market situation. On the
other hand we maintained a satisfactory level of activity in our other Business
Areas. 

We are therefore in the process of analysing the Group's Business Areas with a
view to a strategic streamlining of the organisation and a resource allocation
to those activities showing the greatest opportunities.” 

Additional information:
Lasse Lindblad
CEO
Mobile: +45 4094 0708
Tel.: +45 8816 3000
E-mail: ir@capinordic.com