Carnegie: Year-end report 2005

Net profit 2005 SEK 667 million (SEK 401 million)

• Carnegie’s net profit for 2005 increased by 66% to SEK 667 million (SEK 401 million). Net profit for the fourth quarter increased by 69% Y/Y to SEK 267 million (SEK 158 million). Earnings per share for the full year were SEK 9.98 (SEK 6.01) and SEK 9.68 (SEK 5.94) after full dilution. • The Board of Directors proposes a dividend of SEK 634 million, or SEK 9.19 (SEK 5.93) per share outstanding at the record date, corresponding to a Tier 1 ratio including the new share issue of SEK 94 million in January 2006, of 15%. The proposed dividend corresponds to a pay-out ratio of 95% (100%). • Total income in 2005 was up 32% Y/Y to SEK 3,514 million (SEK 2,672 million). Total income in the fourth quarter was up 51% Y/Y to SEK 1,213 million. In 2005 Securities’ income increased by 25% to SEK 1,503 million, mainly reflecting the turnover increase of 28% in the Nordic stock markets. Investment Banking had a strong second half year and income for the full year increased by 44% Y/Y to SEK 733 million. Asset Management income increased by 61% to SEK 791 million, whereof performance fees accounted for SEK 268 million (SEK 34 million). Private Banking income increased by 4% Y/Y to SEK 486 million. On a like-for like-basis, reflecting structural changes, Private Banking income increased by 18%. • Total expenses before profit-share for the full year were SEK 1,674 million (SEK 1,586 million), of which SEK 517 million (SEK 427 million) in the fourth quarter. Total expenses ended 5% above management’s estimated cost range for 2005, due to a provision of SEK 64 million, corresponding to Carnegie’s total commitment to the software development company Capital C, which was communicated in a press release during the last quarter. Based on current market conditions, management’s estimated cost range for 2006 is SEK 1,700-1,800 million.

About Us

Carnegie is the leading and independent Nordic investment and private bank. Our operations within Corporate Finance, Securities, and Wealth Management are among the market leaders within their respective sectors. Together, they build an unbeatable combination of integrated knowledge, guiding our clients towards better business. Carnegie operates in seven countries and has approximately 650 employees.


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