STOCKHOLM, Sweden, April 17, 2002 (PRIMEZONE) -- Carnegie today announced a net profit for the first quarter of 2002 was SEK 90 million (SEK 223 million), a decline of 60 percent from the first quarter 2001. Earnings per share were SEK 1.35 for the first quarter of 2002 (SEK 3.51).
Return on equity for the last 12-month period was 31 percent.
Carnegie Nordic Index was unchanged for the period from year-end to March 31, 2002, as well as year/year. Nordic equity trading volumes in the first quarter 2002, were 26 percent below the first quarter of 2001. The announced Nordic M&A-transaction volume was up by 120 percent compared to the first quarter 2001, mainly due to the announcement of the Telia/Sonera merger. The volume of M&A-transactions completed in the first quarter 2002, was down by 23 percent year/year. The activity in the IPO market was close to zero. Inflow to equity funds was marginal.
Despite the weak market conditions, Carnegie continued to strengthen its market position in all business areas.
Total income for Carnegie's first quarter was SEK 649 million, down 38 percent from the first quarter 2001 and down 22 percent from the last quarter of 2001.
Income from business area Securities declined by 44 percent to SEK 312 million from the first quarter in 2001, mainly due to lower turnover in the Nordic equity markets. Commission income was SEK 248 million, down 26 percent, while income from proprietary trading and market making was SEK 50 million, down 72 percent. Investment Banking income of SEK 101 million was down 58 percent, due to weak markets. Asset Management & Private Banking income was SEK 236 million, down 5 percent. Assets under management declined by SEK 3 billion from SEK 73 billion at 31 December 2001, to SEK 70 billion at 31 March 2002, reflecting a continued decline in asset valuations of SEK 5 billion and a positive inflow of SEK 2 billion.
Total expenses in the first quarter of 2002 were SEK 557 million, down 23 percent, reflecting an increase in total operating expenses excluding bonus of 5 percent, and bonus expenses declining by 62 percent.
Result from principal investments for the first quarter of 2002 was SEK 38 million (SEK -6 million), of which the market to market valuation of Orc Software accounted for SEK 39 million.
At the Annual General Meeting on March 14, 2002 the shareholders voted in favor of the Warrant Program 2003-2006 to employees. The program will, assuming full exercise of the warrants, correspond to a dilution of 3.6 percent of the share capital and an increase in equity of SEK 379 million.
The first 25 percent (6.6 million shares) of the IPO lock-up shares held by current and former Carnegie personnel will be released on April 18. If there is sufficient interest, the company intends work with external advisers to assist in making a coordinated placing of shares in the market.
On April 18, all shares held by Singer and Friedlander (30.9 percent of the share capital or approximately 20.6 million shares) also will be released from the IPO lock up. A disposal would only be contemplated later this year as set out under "Transfer restricted shares -- release of lock-up" in this report.
Quotations from Lars Bertmar, CEO:
"The markets have continued to be very slow during the first quarter of 2002. The impact of the bad markets was especially severe for our trading and investment banking income."
"While continuing to focus our efforts on serving our clients and establishing Carnegie as the leading Nordic investment bank, we also need to continue to take measures to reduce costs."
Auditor's examination
This interim report has not been reviewed by the company's auditors.
Teleconference
A teleconference to discuss the first quarter results will be held on April 17, 2002, at 4 p.m. (CET). The teleconference will be open to the public. In order to participate, please call +44 20 8240 8240. 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 financial information will be presented at the following dates during 2002:
Interim report January - June: July 17, 2002
Interim report January - September: October 16, 2002
Carnegie is the leading Nordic investment bank and asset management firm 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.
Additional information is available at www.carnegie.se/ir
The full report with financial tables can be found at the following URL: http://reports.huginonline.com/855819/102129.pdf