STRONG GROWTH IN ASSETS UNDER MANAGEMENT

JANUARY – DECEMBER

• OPERATING REVENUE SEK 768 (818) MILLION • OPERATING PROFIT SEK 177 (278) MILLION • OPERATING PROFIT EXCL ACQUISITION EFFECT IN HQ DIRECT SEK 177 (193) MILLION • PROFIT AFTER TAX SEK 134 (246) MILLION • DILUTED EARNINGS PER SHARE SEK 4.8 (9.0) • OPERATING MARGIN 23 (34) PERCENT • ASSETS UNDER MANAGEMENT INCREASED SEK 30.8 BILLION SINCE THE START OF THE YEAR TO SEK 85.1 (54.3) BILLION, OF WHICH NET INFLOW SEK 8.0 (5.0) BILLION • PROPOSED DIVIDEND SEK 6.00 (6.00) PER SHARE COMMENTS FROM CEO MIKAEL KÖNIG Conditions for conducting traditional market making have changed dramatically in recent time. Reduced spreads between bid and ask prices, greatly deteriorated liquidity, and an increased proportion of computer-controlled trade have resulted in lower margins. For full year 2009 the trading operations therefore show negative operating earnings of SEK -29 (-49) million. This is far from satisfactory and overshadows the positive developments in other parts of the group during the fourth quarter. In HQ Private Banking our consistent efforts are having the desired effect and we are continually strengthening our market position. Net inflow during the fourth quarter was as much as SEK 2.8 (1.3) billion, which represents annualised organic growth of 18 percent. In addition to continued attractive asset management outcomes, both in emerging markets and on the Swedish market, volumes from external distribution are contributing to an increasing extent. From the start of 2010 we have had a new organisational structure, and the strategic work during 2010 will be largely about emphasising our three business areas: Investment Banking, Private Banking and Asset Management. Within the newly formed HQ Asset Management we have brought together our entire asset management organisation, including the increasingly important area of alternative investments. We have recently strengthened our team in this area and we see an attractive business situation in the real estate sector, as a consequence of new realities and needs following the credit crisis. At the end of the year HQ Bank was managing some SEK 85 billion, which is level with our all-time high from 2007, and an increase of SEK 30.8 billion, or 57 percent, since the preceding year-end. We therefore enter 2010 with a considerably higher, more stable and broader income base than in the previous year. For further information please contact Mikael König, CEO, telephone +46 8 696 17 00.