How do you experience the current economic situation?
We see the transaction market starting to pick up again thanks to increased risk appetite among investors, which is positive. Of course, there is geopolitical uncertainty due to conflicts and upcoming elections in the USA, but we believe that the market will continue to spin faster and that we may see a very active market by 2025. There is a pent-up need for transactions.
How was 2023 for Carnegie?
It went quite well considering the circumstances. We were, of course, affected by the low volume in the stock market, but it also gave us much-needed time to carry out some strategic investments as part of a growth strategy. Through these investments, we are increasing our recurring revenues, contributing to a stable financial foundation. Several interesting transactions were completed in the Nordics, especially towards the end of the year, driven by increased risk appetite. Carnegie has been an advisor in the largest IPOs of the year, such as Norconsult and DOF, as well as Rusta, where Carnegie was the sole financial advisor.
And what about this first quarter?
Our operating income increased by 21% in the first quarter compared to the previous year, and our managed capital has increased to 402 billion SEK, which is a record for us. All business areas and countries have shown positive development, especially towards the end of the quarter, with March being the best month in a long time. Our experience is that we have advanced our positions and gained market share in several areas.
Tell us more about the strategic initiatives.
In September, Carnegie announced a new business initiative, Montrose by Carnegie, a digital investment platform for market-active individuals. We launched Carnegie Commissioned Research, marking the first time Carnegie is investing in commissioned analysis, following several requests from customers and investors. However, a significant event for our business during the year is the acquisition of parts of Erik Penser Bank’s securities business, which contributed to a significant increase in managed capital in Private Banking with many new customers, an increase of about 80 companies in commissioned analysis, and a Corporate Finance team leading in smaller transactions, enabling us to broaden our customer segment within Investment Banking.
How have you worked with your clients during the year?
We work very closely with our clients. It’s important for us to always understand how we can help our clients. It requires us to listen and have a good understanding of both the customer and the market. Clients often see us as the most important meeting point between knowledge and capital.
Link to our annual and sustainability report of 2023>