Interim report January 1 - September 30, 2002

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INTERIM REPORT JANUARY 1 - SEPTEMBER 30 2002 · OPERATING EARNINGS SEK 10 MILLION BEFORE RESTRUCTURING COSTS · OPERATING EARNINGS SEK -16 (-23) MILLION, INCLUDING RESTRUCTURING COSTS OF SEK 26 (14) MILLION · THIRD-QUARTER OPERATING EARNINGS SEK 4 MILLION BEFORE NON- RECURRING ITEMS Performance and financial position Group Hagströmer & Qviberg (H&Q) reports for the period January 1, 2002 until September 30, 2002 earnings before tax and minorities of SEK -16 (-23) million. The earnings during the period have been burdened by restructuring costs of SEK 26 million, of which SEK 15 million for the closure of offices in Luxembourg and New York, and SEK 11 million for staff redundancies. Total operating income was SEK 272 (357) million. Adjusted for income of a non-recurring nature amounting to SEK 7 (58) million, income decreased by 11 percent. Net income from commissions and fees decreased by 25 percent to SEK 179 (238) million. Income from financial advisory services and underwriting decreased compared to the same period in the previous year by 5 percent to SEK 70 (74) million. Net income from financial transactions including dividends and net interest associated with operations amounted to SEK 47 (4) million. Adjusted for corporate finance-related holdings of SEK -4 (-47) million this corresponds to unchanged earnings compared to the same period in the previous year. Operating expenses for the period amounted to SEK -288 (-380) million, a decrease compared to the same period in the previous year of 24 percent. Staff expenses decreased by 33 percent to SEK 171 (255) million. Other expenses, excluding bad debt, credit losses and items affecting comparability, decreased by 28 percent to SEK 89 (123) million. The group's liquid funds amounted to SEK 438 (1,474 per December 31, 2001) million. Shareholders' equity amounted to SEK 345 (389 per December 31, 2001) million, corresponding to SEK 67 (75 per December 31, 2001) per share. Capital adequacy for the group amounted to 35 percent (26 percent per December 31, 2001). The number of employees in the group on September 30 amounted to 178 (254 per September 30, 2001; 246 per December 31, 2001). The average number of employees during the period amounted to 232 (312). H&Q Investment Banking Operating income for H&Q Investment Banking amounted to SEK 128 (108) million, an increase of 19 percent compared to the same period in the previous year. Earnings for the business unit were positive. The number of employees on September 30 was 49 (78 per September 30, 2001; 73 per December 31, 2001). H&Q Private Banking Operating income for H&Q Private Banking amounted to SEK 135 (190) million, a decrease of 29 percent in relation to the same period in the previous year. Earnings were negative for the business unit, which is explained by the closure of the office in Luxembourg. H&Q Private Banking continues to build on its strategy of an open architecture with external partnerships. To further strengthen the services offering an alliance was created during September with Dexia Banque Internationale à Luxembourg, Luxembourg's leading private bank. The third quarter showed a continued net inflow of clients and volumes, partly as a result of our focus on Financial Planning and absolute oriented asset management. Total managed capital decreased to SEK 12 (18 per December 31, 2001) billion as a consequence of lower market values. The number of employees on September 30 was 70 (106 per September 30, 2001; 102 per December 31, 2001). Outlook The level of activity in the financial sector is very low, partly as a result of almost three years of stock market decline and structural changes in the industry. Hagströmer & Qviberg has met this by focusing on our core areas; Private Banking including Financial Planning, and Investment Banking comprising Corporate Finance and automated share trading. In these areas we are seeing continued growth. In addition, several cost-cutting programmes have been implemented in the past 18 months. Current costs excluding bonuses have been significantly reduced, from an annual SEK 460 million to just over SEK 250 million. Hagströmer & Qviberg will therefore be able to demonstrate positive earnings in the future given that the level of activity remains no lower than that during the third quarter. Stockholm, October 17, 2002 Patrik Enblad, Chief Executive Officer, Telephone +46 8 696 17 00 Scheduled Reports and Meetings Year-end report 2002January 30, 2003 Annual report 2002 March 2003 AGM April 4, 2003 ------------------------------------------------------------ This information was brought to you by Waymaker The following files are available for download: The Full Report The Full Report