STOCKHOLM, Sweden, July 17, 2002 (PRIMEZONE) -- The net profit for Carnegie's first halfyear 2002 was SEK 142 million (SEK 359 million), down 60 per cent from H1(01). The net profit for the second quarter was SEK 53 million, down 61 per cent from the second quarter of 2001 and down 41 per cent from the first quarter 2002.
Earnings per share were SEK 0.79 for the second quarter of 2002 (SEK 2.13) and SEK 2.13 for the first halfyear of 2002 (SEK 5.63).
Carnegie has retained or strengthened its market positions in all business areas during the first halfyear. Carnegie was ranked number one in terms of trading volume on the Nordic stock exchanges and the backlog in Investment Banking has improved since year-end.
Return on equity for the last 12 month period was 26 per cent.
Total income for H1(02) was SEK 1,243 million, down 35 per cent from the same period last year. The Q2(02) Y/Y drop was 31 per cent and the drop from Q1(02) was 8 per cent. Income from Securities was down 39 per cent, Investment Banking was down 52 per cent and Asset Management & Private Banking was down 11 per cent from the first half of 2001.
Assets under management declined by SEK 13 billion from SEK 73 billion at year-end, to SEK 60 billion at 30 June 2002, reflecting a continued decline in asset valuations of SEK 15 billion and a net inflow of SEK 2 billion.
Total expenses in H1(02) were SEK 1,054 million, down 22 per cent from H1(01), reflecting total operating expenses excluding bonus increasing by 2 per cent, and bonus expenses declining by 64 per cent. Total expenses excluding bonus for the second quarter were down 2 per cent (Y/Y) and down 2 per cent from Q1(02). In line with the increased emphasis on cost efficiency, 70 employees are anticipated to leave Carnegie during the course of 2002. The net effect on number of employees at year end will be dependent on the recruitment in the targeted growth areas.
Result from principal investments for the first half year amounted to SEK 17 million (SEK 34 million), and included a net effect of SEK 17 million related to Orc Software. The major part of Carnegie's holding in Orc Software was sold during the period.Quotations from Lars Bertmar, CEO: "The stock markets continued to decline during the second quarter and the Carnegie Nordic index was down 20 per cent for the first half of 2002. This development caused reduced income in all business areas. Especially our trading and investment banking income was substantially reduced. In Investment Banking, however, the backlog has improved from yearend.
"The effects on total income from deteriorating markets were partly compensated by improved market positions in many areas. The effects on net income were also partly offset by reduced costs. Our focus on both improving our market positions and to improve our cost efficiency will continue."
"In line with the increased emphasis on costefficiency, 70 employees are anticipated to leave Carnegie during the course of 2002. The net effect on number of employees at yearend will be dependent on the recruitment in the targeted growth areas, which is continuously taking place during the year, in order to take advantage of Carnegie's competitive position and a possible recovery in the markets."
Auditor's examination
This interim report has been reviewed by the company's auditors.
Teleconference
A teleconference to discuss the first half year results will be held on 17 July at 4.00 PM (CET). The teleconference will be open to the public. In order to participate, please call 44 (0)20 8240 8245. The conference call will also be accessible as an audio live webcast (including slide presentation) at www.carnegie.se/ir. For those unable to listen to the live webcast, a replay will be available at www.carnegie.se/ir approximately one hour after the event.
Financial calendar
Carnegie's interim report for JanuarySeptember 2002 will be published on 16 October 2002. Additional information is available at www.carnegie.se/ir.
Carnegie is the leading Nordic investment bank operating in three principal business areas: Securities, Investment Banking and Asset Management & Private Banking. Carnegie provides a wide array of products and services to Nordic and international clients from offices in seven countries: Sweden, Denmark, Norway, Finland, Luxembourg, U.K. and the U.S.