Financial data for the Group:
· Operating income amounted to SEK 1,723m (2,261*). The decline was mainly due to discontinued operations, lower activity in the market for corporate transactions and commission trading.
· Operating expenses totalled SEK 1,754m (2,185*). The decrease was attributable to the on-going restructuring programme and that no variable remuneration was expensed for 2011.
· Items affecting comparability had a negative impact of SEK 237m (pos: 395*) on earnings.
· An operating loss of SEK 31m (profit: 76*) was reported before items affecting comparability. Including items affecting comparability, the company posted a loss of SEK 268m (profit: 472*) before credit losses.
· The net loss for the year was SEK 254m (profit: 577*).
· The Group has a strong financial position, with equity totalling SEK 2.2bn, a capital ratio of 18.2% and a Tier 1 ratio of 12.5% at year-end.
Company events during the year
· Successful integration of the HQ Bank and HQ Fonder acquisitions.
· Restructuring work initiated to reduce the cost base through centralisation and integration of support activities, more efficient system solutions and reduced staffing.
· Multiple signs of high customer appreciation: Euromoney named Carnegie best Nordic investment bank, Prospera gave first-place rankings to the operations in Norway and Denmark and Funds and Private Banking received a number of awards and improved ratings from among others Euromoney and Morningstar.
*) Pro forma 2010: Including profit from HQ Bank and HQ Fonder but excluding the trading loss of SEK 1.2bn in HQ Bank. .
Positive signs in early 2012
The past year has been characterised by major economic turmoil in the Eurozone and the resulting turbulence in financial markets. The situation affected activity among institutional investors and reduced the number of transactions in the M&A and ECM markets.
As a consequence, Carnegie’s earnings for 2011 were unsatisfactory. Although we delivered positive contributions on an operational level, we still reported an operating loss if financial expenses and depreciation/amortisation on Group level are included. The Group was also charged with considerable expenses in the form of items affecting comparability, primarily related to the on-going restructuring programme. At the business area level, Private Banking displayed a stable trend during 2011. While Funds were negatively impacted by lower asset values, they succeeded in attracting new capital and new customers despite the uncertainty in the market. Our corporate advisory operation, Investment Banking, reported weaker development compared with 2010. The year began on a strong note but declined as market turmoil increased. The Securities business area was adversely impacted by low commission-driven trading on the Nordic exchanges last year.
During 2011, we have devoted time and energy to integrating the companies acquired in 2010 and to launching a comprehensive restructuring programme aimed at increasing efficiency and reducing costs. One main component in the on-going restructuring is the centralisation and integration of support operations, which is aimed to achieve savings of more than SEK 250m. The new organisation comprises three independent business areas, each constituting a separate company, with the aim of creating greater ownership of the entire business chain.
We are pleased that 2012 has started in a positive manner with increased activity in the brokerage operations, a very good “pipeline” in corporate advisory services, a strong inflow to our funds and a private banking operation that continues to attract new customers and capital. Our vision is to be the leading financial advisor in the Nordic region and in 2012 we will continue to develop the operation and offer advice from the foremost experts in the market. A combination of local entrepreneurship, global investment skills and high internal efficiency will provide us with a strong platform for continued value generation.
Frans Lindelöw, VD och koncernchef
For further information, please contact:
Andreas Koch, Head of Communications, phone: 46 73 417 86 39, e-mail: firstname.lastname@example.org
Carnegie is a leading independent investment bank with Nordic focus. Carnegie provides value-added services in securities brokering, investment banking, private banking and asset management to institutions, corporations and private clients. Carnegie has approximately 800 employees in eight countries.