Pareto Öhman publishes annual report 2011
Pareto Öhman's annual report for 2011 is now available in Swedish on the company's website www.paretoohman.se.
Mats Carlsson, CEO, Pareto Öhman AB, +46 8 402 52 86
This information is disclosed in accordance with the Securities Market Act. It was released for publication at 11 a.m. CET on 24 April 2012.
Pareto Öhman is since 15 September 2011 part of the Pareto group in Norway. Below is a summary of the financial result for 2011 for the Pareto group including Pareto Öhman.
Sound Pareto Financials in Challenging Market
After a demanding year for the financial industry, Pareto was able to close its books with an operating profit of NOK 750 million and a net profit of NOK 436 million. As of year-end, equity stood at more than NOK 3.7 billion.
Today, Pareto is a Nordic investment bank with a good market position. The main areas of activity are counseling and broking in the securities and project markets, ship/rig and insurance broking, and asset/wealth management. A steadily increasing share of group revenues come from international clients; the group now has offices in Stockholm, Malmö, New York, Singapore, and Rio de Janeiro, in addition to seven Norwegian cities.
The consolidated figures reflect positive contributions from all areas of activity in 2011. Bond broking/underwriting, real estate syndication and offshore broking in particular had a good year, while fund management and freight chartering revenues suffered from falling markets and low rates.
Pareto Securities remains the paramount contributor, delivering more than half of last year’s operating profit. In 2011 the company was involved as adviser/manager in most of the major equity issues on the Oslo Børs, including the Aker Drilling, Sevan Drilling and Höegh LNG listings. In total, Pareto Securities participated in equity issues/placements of more than NOK 18 billion. Since 2004, the company has managed more than 80 Oslo Børs/Oslo Axess listings. Furthermore, the company last year managed high-yield bond issues totaling more than NOK 16 billion. Pareto Securities has a predominant position as a broker of high-yield bonds in the Norwegian second-hand market. Last year also saw the acquisition of the Swedish brokerage firm Öhman Fondkommission, now Pareto Öhman – included in the company accounts from mid-September.
Pareto Project Finance experienced healthy growth in both revenues and profit. The company strengthened its position in the Norwegian market for project financing, through the purchase/sale and syndication of real estate to the tune of NOK 5 billion and shipping/offshore projects totaling about NOK 3.5 billion. At year-end, its daughter company Pareto Business Management managed investment companies with a combined gross value of NOK 46 billion.
Pareto Forvaltning enjoyed a positive net subscription for both mutual funds and discretionary asset management. However, declining markets both at home and abroad substantially reduced revenues and profit. Assets under management as of year-end stood at NOK 40 billion. The flagship fund Pareto Aksje Norge turned ten years old and ended the year with the best ten-year track record of all mutual funds with a Norwegian stock market mandate. Similarly, Pareto Aksje Global, having had the same asset manager team for four years, registered the best four-year returns of all 81 Norwegian funds with a global stock mandate. In the field of high-yield bonds, 2011 turned out to be another good year with excess returns and growth in assets under management.
For Pareto Wealth Management, which in addition provides external funds and general wealth management, 2011 was an eventful year marked by restructuring. The company merged with sister company Pareto PPN, hired several employees from former Orkla Finans, and built a chain of regional offices. Profits improved markedly.
Pareto Nordic Investments used 2011 to streamline its operations. The company represents a continuation of the fund management business in former Orkla Finans.
Ship/rig and insurance broking
Both Johan G. Olsen Shipbrokers and Pareto Offshore registered another excellent year, after brisk activity in the newbuilding markets for supply ships and rigs. Chartering activities in Pareto Bassøe Shipbrokers had a more challenging year, but the company nevertheless achieved a satisfactory profit.
In its first full year of operations as part of the Pareto group, Pareto Forsikringsmegling managed to swing from deficit to surplus. The company focuses on the domestic market for casualty/pension insurance.
Value adjustments to the parent company’s securities portfolio reduced profits by close to NOK 50 million last year, as compared to an upward adjustment of NOK 100 million in 2010. This portfolio now amounts to approximately NOK 2.5 billion.
Pareto has a 15 percent ownership in Pareto Bank, which has now completed its fourth year of operations. Continued strong growth helped bring total assets up to NOK 7.6 billion at year-end. Net profit came in at almost NOK 48 million, as compared to less than NOK 23 million the year before.
The Pareto group, key figures
Profit before tax
No. of employees
Consolidated figures in NOK million. Pareto Bank not included. Pareto Öhman included effective mid-September.
The annual report is available on www.pareto.no
Pareto Öhman AB is part of the Pareto Securities group. Pareto Öhman is an independent Swedish investment bank focused on the Nordic market. Pareto Öhman offers Swedish and foreign institutions, companies and private individuals investment services related to trading in stocks, derivatives and fixed income instruments, equity research and advisory services within corporate finance. The Pareto Securities group has a total of 370 employees, with its headquarters in Oslo and offices in Stockholm, New York, Singapore, Kristiansand, Stavanger, Bergen, Trondheim and Malmö.