INTERIM REPORT JANUARY 1 - SEPTEMBER 30 2004 · OPERATING EARNINGS SEK 121 (44) MILLION · OPERATING INCOME SEK 416 (278) MILLION · EARNINGS AFTER TAX AND MINORITY SEK 79 (30) MILLION, CORRESPONDING TO SEK 15.2 (5.7) PER SHARE · UNCHANGED FULL-YEAR FORECAST Earnings and financial position Group Hagströmer & Qviberg (H&Q) reports for the period January 1 to September 30, 2004, operating earnings of SEK 121 (44) million, and earnings after tax and minority of SEK 79 (30) million. The level of activity on Stockholmsbörsen was high during the initial months of the year, but has since declined. During the third quarter, turnover on Stockholmsbörsen was 33 percent lower than during the first quarter. H&Q's earnings have followed this pattern during the year. Cost control remains good, as does the ongoing capacity to generate income. In total operating income amounted to SEK 416 (278) million, an increase of 50 percent compared with the same period in the previous year. Net income from commissions and fees increased by 61 percent to SEK 235 (146) million. Of net income from commissions and fees, SEK 210 (140) million was from secondary fees, an increase of 50 percent. Net income from commissions and fees also includes income of SEK 79 (40) million from financial advisory services and underwriting, an increase of 98 percent. The net result of financial transactions including dividends increased by 57 percent to SEK 160 (102) million. Operating expenses for the period amounted to SEK 295 (234) million, an increase compared to the previous year of 26 percent. The increase in expenses is explained mainly by higher personnel expenses as a consequence of higher bonus costs during 2004. Bonus provisions are directly attributable to underlying earnings, which for the current year are considerably higher than in the previous year. Personnel expenses thus increased by 36 percent to 222 (163) million. Other expenses increased by 3 percent to 73 (71) million. Adjusted for recovered bad debt of SEK 4 million, other expenses have risen by 8 percent compared to the pervious year. The increase is explained mainly by marketing expenses for new products. The group's liquid funds amounted to SEK 1,018 (1,142 per December 31, 2003) million. Shareholder equity amounted to SEK 362 (404 per December 31, 2003) million, corresponding to SEK 77 (78 per December 31, 2003) per share. Capital adequacy for the group amounted to 31 percent (35 percent per December 31, 2003). The number of employees in the group amounted to 188 (168 per December 31, 2003). The average number of employees during the period amounted to 178 (172). Redemption The share redemption programme approved by the annual general meeting has been completed during the third quarter, with payments made to the shareholders on September 29. Shareholder equity has through this reduced by approximately SEK 102 million, while the number of shares outstanding has reduced by 501,524. The board of directors has, through this, continued to work with a capital structure that is appropriate for the time, while assets have effectively been distributed to H&Q's shareholders. H&Q Investment Banking Operating income for H&Q Investment Banking amounted to SEK 244 (143) million, an increase of 71 percent compared to the same period in the previous year. The increase in income is explained mainly by a higher level of activity on the financial market in general, and for H&Q in particular. Institutional stock brokerage continues to increase as a result of a strong brand and good analysis products. Trade on H&Q's own account increased during the period, mainly during the first half of the year. The market for corporate finance business has increased during the year, and H&Q has initiated and participated in a number of transactions. The business unit reports earnings before tax and minority of SEK 102 (30) million. The number of employees amounted to 62 (53 per December 31, 2003). The increase in the number of employees is attributable mainly to Corporate Finance and Institutional Stockbrokerage. ------------------------------------------------------------ This information was brought to you by Waymaker The following files are available for download: The full report

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