STOCKHOLM, Sweden, Oct. 21, 2004 (PRIMEZONE) -- Carnegie's net profit for the first nine months of 2004 increased by 77% from the same period last year to SEK 239 million (SEK135 million), corresponding to earnings per share of SEK 3.59 (SEK 2.02). The net profit for the third quarter was SEK 36 million (SEK 69 million).
Total income for the first nine months 2004 was SEK 1,867 million (SEK 1,500 million), up 25% Y/Y. Total income generated in the third quarter was SEK 480 million, down by 8% Y/Y and 26% down from the previous quarter. Securities income for the first nine months increased by 29% Y/Y to SEK 862 million. Securities income in the third quarter of SEK 208 was, down by 9% Y/Y reflecting a zero result from the trading operations. Investment Banking income was up 25% in the first nine months to SEK 322 million, of which SEK 70 million was recorded in the third quarter. Asset Management & Private Banking income was up 19% to SEK 683 million in the first nine months of which SEK 202 million in the third quarter.
Total expenses before profit-share for the first nine months were SEK 1,163 million, (SEK 1,124 million), up 4% Y/Y. Total expenses before profit-share in the third quarter were SEK 366 million, up 4% compared to the average quarterly expenses (excluding redundancy expenses) in 2003. Based on current market conditions, management's estimate of the cost range for 2004 SEK 1,500 -- SEK 1,600 million remains unchanged.
Assets under management (AUM) amounted to SEK 60 billion at 30 September 2004, an increase of SEK 5 billion from year-end, composed by a net inflow of SEK 3 billion and increasing asset values of SEK 2 billion.
It is the Board's view that the principles behind Carnegie's dividend policy should remain intact also when the new regulatory framework described in Basel II is implemented at the end of 2006, i.e. that excess capital above a desired and prudent level of regulatory capital should be distributed as dividend. The Board's intention is to adjust to the new regulatory environment primarily through using subordinated debt.
Carnegie's nomination committee for 2005 has been established and consists of Mats Lagerqvist (Robur), Anders Lannebo (Lannebo Fonder) and Mikael Nordberg (Firstnordic Fonder) .The Chairman of Carnegie's Board is co-opted to the nomination committee. The nomination committee will present its proposal for board members to be elected at the AGM 2005 in connection with the year-end report presented in February 2005.
Quotations from Karin Forseke, CEO:
``The result for the first nine months improved substantially, primarily due to the strong markets we experienced in the first quarter of the year. The third quarter income levels were low, but we are confident that we have a solid platform and we continue to improve our position with our clients."
Auditors' examination
This interim report has been reviewed by the company's auditors.
Teleconference
Carnegie's CEO Karin Forseke will present the third quarter results at a teleconference held 21 October at 4.00 PM (CET). It will be open to the public. In order to participate, please call +44 (0) 20 7162 0186. The conference call will also be accessible as an audio live web cast (including slide presentation) at www.carnegie.se/ir. For those unable to listen to the live web cast, a replay will be available at www.carnegie.se/ir approximately one hour after the event.
Contact persons
For further information, please contact Karin Forseke (CEO) +46 8 5886 90 10, Mats-Olof Ljungkvist (CFO) +46 8 5886 90 13 or Birgitta Henriksson (IR) +46 8 5886 86 39.
Carnegie is an independent Nordic investment bank operating in Securities, Investment Banking and Asset Management & Private Banking. Carnegie provides a wide array of financial products and services to Nordic and international clients from offices in eight countries: Sweden, Denmark, Norway, Finland, Luxembourg, Switzerland, the UK and the US.
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The following files are available for download:
http://www.waymaker.net/bitonline/2004/10/21/20041021BIT21820/wkr0001.pdf
Carnegie's 9M results