POSITIVE TREND IN ALL AREAS

POSITIVE TREND IN ALL AREAS

JANUARY - JUNE

• OPERATING REVENUE SEK 424 (436) MILLION - 3%
• OPERATING PROFIT SEK 114 (160) MILLION - 29%
• PROFIT AFTER TAX SEK 87 (114) MILLION - 24%
• DILUTED EARNINGS PER SHARE SEK 3.1 (4.2) - 26%
• OPERATING MARGIN 27 (37)%
• ASSETS UNDER MANAGEMENT INCREASED SEK 14.7 BILLION SINCE THE START OF THE YEAR
TO SEK 69.0 BILLION, OF WHICH NET INFLOW SEK 3.4 (3.4) BILLION

COMMENTS FROM CEO MIKAEL KÖNIG
The first six months of the year have been successful. All our areas of business
are demonstrating a positive trend and we have further advanced our positions.
The net inflow of new volumes in HQ Private Banking was SEK 3.4 billion, which
represents an organic growth rate of 15 percent. During the period assets under
management increased by 27 percent to amount to SEK 69.0 billion at the end of
June. This is SEK 14.7 billion more than at the start of the year, which will
contribute to a higher proportion of repeat revenue and continued profitable
expansion.

The merger with HQ Direct was completed on April 1. This business is developing
according to plan, and existing and new clients alike are trading increasingly
actively through HQ Direct's trading platform, DMA. During the second quarter HQ
was the third-largest participant on the Stockholm stock exchange, with a market
share of 6.3 percent. In addition, liquidity and the willingness to accept risk
have generally increased during the period and have contributed to ever better
prospects for HQ Investment Banking. The trading operations, which have a much
clearer focus on market making, reported net profit from financial transactions
and dividends of SEK 79 (48) million for the period.

Cost control has remained a high priority, and despite some costs of a
non-recurring nature, expenses are in line with the established target. The
group's current expenses excluding profit sharing were 57 (107) percent covered
by repeat revenue. This substantial decline is explained by a lower proportion
of repeat revenue in HQ Direct. As previously communicated we will work hard to
return to 100 percent coverage of expenses. Our ambition, among other things, is
to realise further synergy when, next year, we bring together the operations in
Stockholm into new office premises. Our target to reduce costs by SEK 75 million
annually for the merged business has thus been raised to a minimum of SEK 90
million in annual savings.

We have an established and successful business concept, and an organisation and
technical platform that is able to take on more new clients and new capital. In
the past year we have strengthened our offering of products and services, our
local presence and our distribution power. Going forward these proactive efforts
will increasingly contribute to revenues and improved profitability.