Interim Report 1 January – 30 June 2013

Financial data for the Group (operating income statement)

• Operating income amounted to SEK 829m (873).
• Expenses before variable remuneration totalled SEK 672m (768).
• Profit before variable remuneration amounted to SEK 158m (105).
• Items affecting comparability had a negative impact on earnings of SEK 10m (neg: 68).
• Profit before credit provisions was SEK 49m (loss: 42).
• Net profit was SEK 43m (loss: 71).
• The Group has a strong financial position with equity totalling SEK 2.0bn, a Tier 1 ratio of 13.6% and a capital ratio of 20.2% at 30 June 2013.

Operations

• A new business area, Wealth Management, was created. It comprises the following units: Funds, Private Banking, Structured Finance and Investment Strategy. The aim is to increase coordination in the field of savings.
• Net inflows to the fund operation totalled SEK 2.7bn in the first half of 2013, which means that Carnegie continues to capture market shares in the Swedish fund market.
• Carnegie carried out the highest number of equity capital market (ECM) transactions in the Nordic region in January-June 2013.
• Carnegie was named investment bank of the year in Denmark and Sweden by the publication Euromoney.
• Peter Lagerlöf was named analyst of the year and Carnegie was awarded most first places in Financial Hearings’ analyst rankings 2013.

Carnegie is experiencing a positive trend

President and CEO Thomas Eriksson’s comments on earnings

Carnegie is experiencing a positive trend and the company made considerable progress in 2013. Despite market conditions remaining cautious, we succeeded in improving our earnings compared with the second half of 2012. The improvement in earnings was primarily attributable to lower costs but also to a gradual improvement in income in the Investment Banking & Securities business area. Commission income increased and activity levels in M&A and ECM advisory services were high. The fund operation continued to show its strength by attracting new capital and we continued to capture market share in the Swedish market. Operations in Private Banking and Structured Finance were stable but reported slightly lower income year-on-year.

The many demonstrations of customer appreciation of our services were also encouraging to note and, of late, Carnegie has received a number of awards. Euromoney named Carnegie the best investment bank in Denmark and Sweden, Carnegie was awarded most first places in Financial Hearings’ analyst rankings and Söderberg & Partners named Carnegie Arranger of the Year of Structured Products, to name but a few.

The improvement in earnings does not mean that we will rest on our laurels – there is still potential to streamline and reduce costs, primarily on the support side. It is equally important to focus heavily on strengthening the offering, improving distribution and selectively recruiting new employees. We have already strengthened the organisation through the recruitment of a number of senior people during the summer: new analysts, brokers, investment bankers and a new head of the Investment Strategy unit.

We have an expressed objective of increasing the pace of growth in the field of savings. The organisational coordination of operations in Funds, Private Banking, Structured Finance and Investment Strategy into one shared business area called “Wealth Management” enables us to create enhanced conditions for growth and to utilise knowledge and skills in the various units.

The market trend for the financial industry is difficult to forecast. Nevertheless, the underlying conditions are positive for a strong second half in 2013; we have a good pipeline for M&A, ECM and DCM transactions, we see increased activity among institutional clients and the value of Carnegie’s assets under management is increasing.

Our success and profitability will be determined by how well we succeed in serving our customers. We were pleased to note the positive responses we received from customers in the first half of 2013, but are concurrently humble looking forward to the task ahead. Carnegie is a financial bank of knowledge and we will always strive to guide our customers toward better business.

Thomas Eriksson

For further information, please contact:

Andreas Koch, Head of Communications, phone: 46 73 417 86 39, e-mail: andreas.koch@carnegie.se

Carnegie is a leading independent investment bank with Nordic focus. Carnegie provides value-added services in securities brokering, investment banking, private banking and asset management to institutions, corporations and private clients. Carnegie has approximately 700 employees in seven countries.