Catella AB (publ), Interim report 1 January – 31 March 2011

First quarter of 2011, january – march

• Net sales during the first quarter amounted to SEK 138 M (0).
• Profit for the quarter after tax amounted to SEK -4 M (23).
• Profit for the quarter per share for total operations amounted to SEK -0.05 (0.27).
• During the period, a decision was made to initiate the process of selling the subsidiary Banque Invik’s credit-card and acquiring operations, or the entire bank. Accordingly, these operations are recognised as a divestment group held for sale. This means that Banque Invik’s net profit (after tax) is recognised in the consolidated income statement on a separate line entitled “Profit for the period from divestment group held for sale.” Correspondingly, the bank’s comparative figures for prior years are recognised in the consolidated income statement.

Significant events after the end of the period

• Catella acquires the shares of EKF Enskild Kapitalförvaltning AB, name being changed to Catella Förmögenhetsförvaltning AB.
• Catella has agreed to acquire 30 per cent of its subsidiary Catella Capital Intressenter AB.

CEO's Comments

For Catella, the start of a financial year is normally a weak earnings period. Accordingly, a strong fourth quarter of 2010 was followed, as expected, by weaker profits for the first quarter of 2011.

One explanation is that transaction volumes in Corporate Finance are always at the lowest at the beginning of a year. Another reason is that a portion of the performance fees in Catella’s other operating segment, Asset Management, is calculated per full-year and thus not recognised until the final quarter of the year.

However, 2011 commenced with considerable business momentum and several structural decisions were made to strengthen Catella’s position. The purpose of the decision to divest Banque Invik’s credit card and acquiring operations, or the entire bank, was to streamline and focus the operations. The sales process is proceeding according to plan.

The Corporate Finance operating segment handles a large number of business projects that will generate results later in the year.

For its Asset Management operating segment, Catella recognised lower management volumes of SEK 3bn during the first quarter, partly as an effect of certain assignments being discontinued at Catella’s initiative due to weak profitability. At the same time, new fund products were established that are expected to make positive contributions to management volumes in the future. All of Catella’s Asset Management units have positive performance expectations for 2011.

Furthermore, we established a new operation in the market for fixed-income products and acquired operations aimed at consolidating Catella’s role as a wealth manager. These activities and several of the other initiatives undertaken during the first quarter of the year are presented in greater detail in Catella’s Annual Report for the 2010 financial year.

Johan Ericsson, CEO Catella

For more information, please contact:
Johan Ericsson
Chief Executive Officer, Catella
46 8 463 33 10

Press contact:
Anne Rådestad
Head of Communications, Catella
46 8 463 34 29, 46 73 654 74 50

About Catella: Catella is a European finance group active in Corporate Finance and Asset Management. In these operating segments, Catella focuses on selected segments in which advanced specialist expertise and local presence, combined with international reach, are key in creating added value for clients. Catella has approximately 420 employees working at offices in 24 cities in 13 European countries. Catella share is listed on First North and traded under the abbreviations CAT A and CAT B. Remium AB is Catella’s Certified Adviser, 46 8 454 32 00. Read more about Catella at www.catella.se.

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