STOCKHOLM, Sweden, Oct. 16, 2001 (PRIMEZONE) -- Total income for Carnegie's (SSE:CAR) first three quarters was SEK 2,609 million, down 15 percent.
Improved Market Positions in all Business Areas
Securities income of SEK 1,252 million was down 30 percent, whilst Investment banking income was up 4 percent to SEK 656 million and Asset Management & Private Banking income rose by 8 percent to SEK 701 million.
Total expenses of SEK 1,841 million (including bonus) were down 10 percent. Total expenses excluding bonus were up 26 percent, but leveling off, mainly due to a slower increase in number of employees.
Operating profit was affected by SEK -134 million (SEK 54 million) from valuation of principal investments, mainly Carnegie's 10 percent holding in Orc Software.
Net profit was SEK 437 million (down 42%).
The Board intends to propose the introduction of an equity-linked incentive plan. Extra shareholders' meeting is planned for 28 November 2001.
Quotes from Carnegie's CEO, Lars Bertmar:
-Despite unstable markets, Carnegie still manages to grow relative to competition in all business areas; this illustrates the strength of Carnegie's business model. Our net profit of SEK 437 million corresponds to a yearly return on equity of 45 percent, which allows us to continue our efforts to grow relative to competition.
-- Income from Securities was substantially lower because of the
market slowdown. Carnegie's relative position, however, continues
to strengthen - including the position with non-Nordic
institutional client base.
-- The market for Investment Banking services has been very slow.
Despite this, Carnegie's Nordic focus and the continuous
development of long-term client relationships have resulted in an
even stronger presence in the Nordic M&A market as well as a
leading position in Nordic IPO transactions.
-- Asset Management & Private Banking shows stable income generation.
The decline in assets under management, from SEK 79 billion at the
start of the year to SEK 66 billion at the end of September,
mainly reflects declining asset valuations because of the markets.
-- The cost increase (excluding bonus) reflects our commitment to
continue strengthening our competitive position in order to take
full advantage of improvements in the markets.
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Teleconference
A teleconference to discuss Carnegie's third quarter results will be held at 3.30 PM (CET). The teleconference will be open to the public. In order to participate, please call +44 (0) 20 8240 8246.
A slide presentation will be available at www.carnegie.se (Investor Relations) and at www.financialhearings.com. A replay of the webcast from the teleconference will be available at www.carnegie.se (Investor Relations) on 17 October from 8.00 AM (CET).