INTERIM REPORT JANUARY 1 - SEPTEMBER 30 2006 - UPDATED
OPERATING INCOME SEK 651 (334) MILLION
OPERATING EARNINGS SEK 236 (71) MILLION
EARNINGS AFTER TAX SEK 168 (50) MILLION
EARNINGS PER SHARE SEK 12.4 (5.6)
OPERATING MARGIN 36 (21) PERCENT
ASSETS UNDER MANAGEMENT INCREASED BY SEK 13 BILLION SINCE THE START OF THE YEAR TO SEK 67 BILLION, OF WHICH NET INFLOW SEK 5.5 BILLION
Comments from CEO Patrik Enblad
During the third quarter HQ again exceeded by a wide margin its financial targets for volume growth, profitability and capital adequacy. Despite continued rapid growth and the fact that the third quarter is seasonally weak, the operating margin rose to 36 (18) percent in the quarter.
We are now seeing the fruit of long-term and strategic efforts commenced in 2002, which placed a clear focus on added-value services and on HQ becoming a market leader in each of its niches.
The net inflow also continued during the third quarter. Overall during the year the net inflow has amounted to SEK 5.5 billion, corresponding to annualised organic growth of 14 percent. During 2006, HQ has managed an average of SEK 62 billion, compared with an average of SEK 36 billion during 2005. Asset management fees and net interest income from custodian account clients increase the proportion of repeat income and contribute to more stable revenues, while the risk level is continuously lowered. This also means that 113 percent of HQ Private Banking’s current expenses, excluding profit sharing, are today covered by repeat income.
So far this year earnings per share have more than doubled to SEK 12.4 (5.6). HQ’s aim over time is to transfer at least 80 percent of net earnings to its shareholders.