Carnegie: Net Profit First Nine Months SEK 720 Million (SEK 400 million).STOCKHOLM, Sweden -- Carnegie's (STO:CAR) net profit for the first nine months 2006 was SEK SEK In currencies, this is the abbreviation for the Swedish Krona. Notes: The currency market, also known as the Foreign Exchange market, is the largest financial market in the world, with a daily average volume of over US $1 trillion. 720 million (SEK 400 million), a Y/Y increase of 80%. The net profit generated in the third quarter was SEK 137 million (SEK 161 million). Earnings per share for the first nine months were SEK 10.44 (SEK 6.00), fully diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. SEK 10.31 (SEK 5.96). Total income for the first nine months 2006 increased by 42% to SEK 3,256 million (SEK 2,301 million). Income in the third quarter was SEK 777 million (SEK 847 million), a Y/Y decrease of 8%. In the third quarter, Securities' income was SEK 347 million, a decrease of 4%. Investment Banking generated SEK 158 million, 16% below income from the third quarter 2005. Asset Management income was SEK 158 million, down 13% Y/Y and Private Banking income was down by 2% to SEK 114 million. Assets under management Assets Under Management (AUM) is a term used by financial services companies in the mutual fund and money management or investment management business to gauge how much money they are managing. amounted to SEK 102.5 billion, an increase of SEK 3.5 billion from the previous quarter, mainly reflecting increasing asset values of SEK 5 billion, a small net outflow and a reclassification Reclassification The process of changing the class of mutual funds once certain requirements have been met. These requirements are generally placed on load mutual funds. Reclassification is not considered to be a taxable event. of SEK 1 billion. Total expenses before profit-share were SEK 1,226 million (SEK 1,157 million), an increase of 6% Y/Y. Total expenses for the third quarter was SEK 396 million (SEK 384 million), a Y/Y increase of 3%. Total expenses for the full year are expected to be below SEK 1.7 billion. Dividend policy - the Board of Directors have discussed the dividend policy in light of the new rules for capital adequacy, effective from 1 January 2007. The overall policy remains, Carnegie shall distribute as dividend all excess cash not necessary for the development of the business. Business requirements on risk capital shall be assessed through Carnegie's internal business planning process. The aim is to optimize optimize - optimisation the capital structure in terms of Tier 1 and Tier 2 capital Tier 2 Capital A term used to describe the capital adequacy of a bank. Tier II capital is secondary bank capital that includes items such as undisclosed reserves, general loss reserves, subordinated term debt, and more. Notes: This is related to Tier 1 Capital. . In the new regulatory environment, a CAD ratio of 12 per cent is considered prudent. In order to be able to explore future business opportunities in the Securities operations, and to address the increased need for liquidity, it is the Board's view that a certain increase of the total risk capital is required in the medium term, which will be addressed partly through retaining a portion of total earnings for 2006. The Board of Directors has decided to investigate further a share-based long-term incentive programme directed to key employees, aimed to be presented to the AGM AGM annual general meeting AGM n abbr (= annual general meeting) → AG f AGM n abbr (= annual general meeting) → JHV f on 29 March 2007. Personnel changes: Mats-Olof Ljungkvist, CFO See Chief Financial Officer. and member of Group Management has decided to resign from Carnegie with effect from 1 March 2007. Ulf Fredrixon, currently Head of Credit and Finance at Carnegie, will take over the role as CFO. He will also join Group Management. This information was brought to you by Waymaker http://www.waymaker.net |
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