Interim report January - June 2001

Interim report January - June 2001 Carnegie first half-year 2001 - net profit SEK 359 million (-39 percent) · Total income for the first half-year 2001 was SEK 1,888 million, down 18 percent from the first half-year 2000 (SEK 2,315 million). Income for the second quarter 2001 was SEK 840 million, down 29 percent compared to the second quarter 2000. Total income first half-year 2001 for business area Securities was down 33 percent, compared to the first half-year 2000. Income from Investment Banking was at the same level as last year and income from Asset Management & Private Banking increased by 10 percent. · Total expenses (excluding bonus expenses) were up 25 percent during the first half-year 2001. Expenses for the second quarter were up 11 percent compared to the second quarter last year. Total expenses including bonus expense were down 9 percent the first half year 2001, due to decreasing bonus expenses (-39 percent). · Operating profit was SEK 525 million (SEK 814 million), a decrease of 36 percent. Operating profit during the second quarter 2001 was SEK 202 million, down 37 percent compared to first quarter 2001 and down 48 percent compared to second quarter 2000. Net profit was SEK 359 million (SEK 584 million) for the first half-year 2001 and earnings per share SEK 5.63 (9.22), a decrease of 39 percent. · D. Carnegie & Co AB was listed on the O-list of the Stockholm Stock Exchange on 1 June, 2001. The offering was subscribed more than 30 times and the market capitalization at the offering price SEK 115 was SEK 7.7 billion. The market capitalization at 29 June, 2001 was SEK 8.3 billion at a share price of SEK 124.50. · CEO's comment on the first six months of 2001 The market activity during the first half-year of 2001 was characterized by a substantial slowdown, a long period of decline in stock indices and lower volatility in the stock markets. These trends have had a significant negative impact on income and profit in the investment banking industry worldwide. Carnegie's total income during the first half-year 2001 was down 18 percent compared to the first half-year of 2000. The decrease was attributable to business area Securities, where income was down 33 percent. Net commission income was down 14 percent, while underwriting fees were down 70 percent. Income from market making activities and proprietary trading was down 37 percent. Income from Investment Banking business area, however, was at the same level as during the first half of last year, despite substantially reduced market activities. During the first six months of 2001 Carnegie had strong M&A (Mergers & Acquisitions) income but was hurt by a weak IPO (Initial Public Offering) market. Income from business area Asset Management & Private Banking increased by 10 percent during the first half of 2001. Total assets under management increased by SEK 3 billion to SEK 82 billion despite substantially lower market values. The increase in expenses (before bonus expenses) during the first quarter 2001 (+45 percent) has now leveled off. The expenses for the second quarter were 10 percent higher than the second quarter last year. For the first half-year 2001, the increase was 25 percent. Total expenses (including bonus expenses) for the first half-year 2001 decreased by 9 percent. "Carnegie has continued to improve its market position during the first half of 2001. In business area Securities Carnegie has strengthened its overall market position, both in terms of market shares and rankings. Also in Investment Banking, Carnegie has taken market shares and strengthened its market position. In a market in which official statistics show a decline of over 60 percent in Nordic M&A activities, Carnegie's income was at the same level as during the corresponding period last year. And in Asset Management & Private Banking, Carnegie has continued to attract substantial new funds, both institutional and private throughout the Nordic region. This has helped to further improve our Asset Management & Private Banking income, which was up 10 percent despite the poor markets", says Lars Bertmar, CEO. "Carnegie's profit for the first half-year is affected by declining income because of difficult markets and increasing costs (excluding bonus costs) because of ongoing investments for the future, but our target of continuing our growth relative to competition has been met." Stockholm, 17 July 2001 Lars Bertmar Chief Executive Officer Teleconference The half-year report will be presented today by Lars Bertmar (CEO) and Mats-Olof Ljungqvist (CFO) during a teleconference at 2.00 PM (CET), (GMT +1). In order to participate, please call 020 82 40 8248 (UK), 303 267 1002 (North America) or +44 (0)20 8240 8248 (rest of the world). A power-point-presentation will be available at www.carnegie.se (Investor Relations). For further information, please contact Birgitta Henriksson, Investor Relations, telephone +46 8 676 86 39, mobile telephone +46 70 812 86 39. Auditors' examination This interim report has been subject to a general review by the company's auditors. Financial calendar 2001 The interim report for January-September 2001 will be published on October 16, 2001. Carnegie's financial reports are available at www.carnegie.se (Investor Relations). ------------------------------------------------------------ This information was brought to you by Waymaker http://www.waymaker.net The following files are available for download: http://www.waymaker.net/bitonline/2001/07/17/20010717BIT00380/bit0001.doc http://www.waymaker.net/bitonline/2001/07/17/20010717BIT00380/bit0003.pdf