Interim Report January – June 2012

Financial data for the Group

• Operating income amounted to SEK 857m (1,041).
• Operating expenses totalled SEK 831m (936).
• Profit before items affecting comparability amounted to SEK 26m (105).
• Items affecting comparability had a negative impact of SEK 68m (neg: 28) on profit, which were primarily related to personnel cut-backs. Before credit reserves, a loss of SEK 42m (profit:77) was reported.
• The Group has a strong financial position with equity totalling SEK 2.1bn and a Core Tier 1 ratio of 13.1% at the close of the reporting period.

Operation

• Thomas Eriksson was appointed President of the Carnegie Group and will assume the position on 15 August.   
• Carnegie’s Head of Research Peter Lagerlöf was named Sweden’s best analyst.
• Carnegie is capturing market shares in the fund market and is displaying an inflow of SEK 1.7bn since the beginning of the year.  
• Christian Begby, new President of Carnegie’s Norwegian operation, Carnegie ASA.

Carnegie attracts capital and adjusts the cost level in an uncertain market climate

President and CFO, Pia Marions, comments the report

Uncertainty concerning the economic trend in Europe and the US has continued to dominate the financial markets. Following a strong start to the year, the stock-exchange index fell worldwide during the second quarter, which reduced activities with private individuals and institutional investors.

Under these conditions, Carnegie has performed well. We continue to capture market shares in several segments. Since the beginning of the year, Carnegie has attracted SEK 1.7bn to the fund operation and we are at the top as advisors in the Nordic region for capital raising, mergers and acquisitions in 2012, with respect to the number of transactions completed. Transactions include issue of preference shares/bonds for Eniro and Hemsö, advisor in the largest property transaction ever in Denmark (Carlsberg’s divestment of the old brewery premises), advisor for Thrane & Thrane in the public offering from Cobham plc, advisor in the acquisition of Borkum Riffgrund Offshore Wind for Kirkbi and William Demant, advisor in the sale of part of the BTX-Group and JKF Industri for EQT, advisor for Kinnevik in the acquisition of Metro, equity capital market transactions for Spar Nord, Frontline, TDC and William Demant to name a few.

Profit before items affecting comparability amounted to SEK 26m in the first six months of the year, which is an improvement compared with the second half of 2011, but lower than the first half of 2011. We will continue to adjust the operations to increase efficiency and realize synergies. We have a great potential to decrease costs at the same time as we create conditions for growth, particularly within the savings area.

Between year-end 2011 and June 2012, we have reduced costs by an amount corresponding to SEK 250m on an annualised basis. Taking into consideration the measures already implemented and those currently being carried out, we expect to achieve a cost level for 2013 where the operating costs would amount to approximately SEK 1,300m (excluding bonuses, depreciation and amortisation at the Group level and financing costs). The corresponding operating costs for the full-year 2011 amounted to SEK 1,700m, which entails a decrease of SEK 400m on an annualised basis.

During periods of major uncertainty, the need for expert advice is the greatest. Carnegie is an independent advisor and we always put the customer first. We see major demand for alternative investments and fixed-income instruments, which is confirmed through our successful investment in corporate bond operation.  

Thomas Eriksson will now be assuming the position of President and CEO and I would like to take the opportunity to welcome him to Carnegie.

Pia Marions,

President and CFO

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 eight countries.