INTERIM REPORT JANUARY 1 – SEPTEMBER 30, 2007 - HEADED FOR THE BEST YEAR IN HQ’S HISTORY

• OPERATING INCOME SEK 755 (651) MILLION + 16%
• OPERATING PROFIT SEK 315 (236) MILLION + 33%
• PROFIT AFTER TAX SEK 225 (168) MILLION + 34%
• EARNINGS PER SHARE AFTER DILUTION SEK 8.2 (6.2) + 32%
• OPERATING MARGIN 42 (36)%
• ASSETS UNDER MANAGEMENT SEK 82.4 (67.1) BILLION, OF WHICH NET INFLOW SEK 6.2 (5.5) BILLION

COMMENTS FROM CEO MIKAEL KÖNIG

The financial turbulence during the third quarter, with a considerably raised cost of risk and decreased liquidity, led to unfavourable conditions for the industry as a whole. The market climate has also affected the trading operations, which are reporting their first loss-making quarter since 1994.
 But excluding Trading, HQ continues to deliver. Earnings growth excluding Trading was 54 percent, while income grew by 26 percent, which emphasises the scalability of HQ’s business model. The third quarter’s net inflow of SEK 2.1 billion was highly gratifying. The average volume of assets under management during the period was SEK 82 (62) billion, growth of 32 percent. Repeat income therefore continues to increase much more rapidly than expenses, which provides a stable basis for continued profitable growth.
 In the future HQ will place greater focus on expanding the business in the Alternative Investments unit. For our clients this means access to new fields of investment, decreased dependence on shares for capital growth and a generally lower level of risk. This business has great potential and strengthens HQ Private Banking as a complete improver of wealth. Unique and attractive products also open up a significant opportunity for distribution via external channels. Distribution power has been further reinforced in the past quarter through new strategic alliances with Swedbank and Finnish company Aktia.