ALL FINANCIAL TARGETS MET

January – June

• OPERATING REVENUE SEK 436 (585) MILLION - 25 %
• OPERATING PROFIT SEK 160 (249) MILLION - 36 %
• PROFIT AFTER TAX SEK 114 (178) MILLION - 36 %
• DILUTED EARNINGS PER SHARE SEK 4.2 (6.4) - 34 %
• OPERATING MARGIN 37 (43) %
• ASSETS UNDER MANAGEMENT SEK 68.1 (85.2) BILLION, NET INFLOW SEK 3.4 (4.0) BILLION


COMMENTS FROM CEO MIKAEL KÖNIG
Considering the inclement market climate our business has demonstrated a good second quarter, and it is particularly pleasing that all units are making a positive contribution to profits.
The net inflow of assets under management during the second quarter was SEK 3 billion in HQ Private Banking, which contributes to further growth in repeat revenue. The net inflow is explained mainly by an attractive value proposition and a consistent strategy. In addition, there was a contribution from the acquisition of SFK Svensk Förvaltningskonsult of just over SEK 1.1 billion in net inflow. This business has been integrated according to plan and provides us with access to the occupational pension market and an opportunity to offer fund management services within the framework of Skandia.
It is also pleasing that under the current circumstances we are able to deliver an operating margin during the second cuarter of 38 percent and that repeat revenue covered 102 percent of the group’s expenses excluding profit sharing. Factors contributing to this are a consistently implemented strategy and a continued high level of cost consciousness.
The efforts in Alternative Investments are proceeding as planned and during the second quarter we successfully launched HQ Loans –a fund that invests in a well diversified portfolio of Nordic corporate loans. Despite a challenging market climate the fund on closing had attracted over SEK 1 billion from both our private banking clients and institutions.
During the autumn we will continue the work of increasing our market share outside the Stockholm area and further strengthening our position in Emerging Markets.
The operating target of SEK 100 billion in managed assets by 2010 is unchanged.