Since the third quarter of 2018, the Banking business area has been reported as a disposal group held for sale. Total income from remaining operations in the quarter was in line with the previous year, despite significantly lower variable earnings in Equity, Hedge and Fixed Income Funds and Property Investment Management, which emphasises Catella’s stable earnings platform. Assets under management increased by SEK 21.9 Bn in the year, with the acquisition of APAM contributing SEK 15.9 Bn, which increases Catella’s fixed earnings, although the main benefit is derived from increased opportunities to generate performance-based fees by creating value for our customers. Compared to the previous year, external and personnel expenses increased in the quarter, due to initiatives in Property Investment Management and Equity, Hedge and Fixed Income Funds. These proactive initiatives, in combination with significantly lower performance-based income, affected operating profit, which was down by 60% year-on-year.
FOURTH QUARTER 2018
- Total income SEK 698 M (689)
- Net sales SEK 686 M (679)
- Operating profit SEK 60 M (156)
- Profit/loss before tax SEK 62 M (176)
- Profit for the period from remaining operations SEK 23 M (134)
- Profit for the period SEK -119 M (87), of which attributable to parent company shareholders SEK -133 M (67)
- Profit for the period was affected by wind down expenses of SEK 164 M and deferred tax income of SEK 51 M attributable to the Banking business area, while income of SEK 384 M from agreed assets/liabilities transfers, which are judged to be due to Catella, have not been included in profit. Income of SEK 258 M is expected to be recognized in 2019 and SEK 126 M to be recognized at the end of 2019 or at the beginning of 2020.
- Earnings per share* SEK -1.58 (0.81)
FULL YEAR 2018
- Total income SEK 2,216 M (2,013)
- Net sales SEK 2,159 M (1,998)
- Operating profit SEK 352 M (412)
- Profit/loss before tax SEK 337 M (446)
- Profit for the period from remaining operations SEK 210 M (337)
- Profit for the period SEK -28 M (284), of which attributable to parent company shareholders SEK -112 M (192)
- Earnings per share* SEK -1.33 (2.35)
- Equity* SEK 1,442 M (1,729)
- Equity per share* SEK 17.14 (21.12)
- Accrued, non-chargeable (not recognized for profit), variable earnings** in Systematic Funds totalled SEK 0 M at the end of the period.
- The Board intends to proposes dividend for 2018 of SEK 1.20 (1.00) per class A and class B share.
* Attributable to parent company shareholders. Includes disposal group held for sale.
** Variable earnings are calculated on the basis of Systematic Macros’ performance-based management fees. In order for the performance-based management fee to be settled at year end, and recognized for profit/loss, returns must be higher than comparative indices and the most recent level settled (High watermark). Accordingly, actual settlement at year end may be higher, lower or entirely absent relative to the indicated amount. Amounts can never fall below zero.
This is information that Catella AB (publ) is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact person set out above, at 07.00 CET on 22 February 2019.
About Catella: Catella is a leading specialist in property investments and advisory and fund management, with operations in 15 countries. The group manages assets of SEK 190 billion. Catella is listed on Nasdaq Stockholm in the Mid Cap segment. Read more at catella.com.