Last year demanding for Arctic: – Strong start to 2024

– A good order book and high activity in the bonds market have contributed to a strong start to the year, says Arctic CEO Mads Syversen.

Arctic Securities had a profit before tax of NOK 74 million in 2023, compared to NOK 104 million in 2022. The Arctic Group ended up with a profit before tax of NOK 91 million, compared to NOK 186 million in 2022.

– The result itself is obviously a little disappointing, but I always look behind the numbers. The start of 2023 was unusually tough, and there was a wait-and-see mood in the equity markets, says Syversen.

However, activities picked up significantly during the year. Arctic has taken its share of equity investments and has a significant market share in high-yield bonds.

– I am proud of the work we have put in and the fact that we have strengthened our market position, adds Syversen.

He explains that Arctic has a broad and well-organized sector and product platform. The subsidiaries in the group deliver good results and dividends to the parent company.

Gaining market share in the bond market

The debt capital market was most active in 2023. The Nordic bond market has also become attractive to foreign issuers and investors. Arctic was the facilitator for several bonds and has a leading market share of high-yield bonds.

– It is gratifying that we are taking large market shares. This clearly shows that Arctic is consolidating its position as a leader in the debt capital market, says managing director Mads Syversen.

A weaker year for equity investments

Developments in the financial markets surprised most people throughout last year.

Shipping and oil-related business had a positive development in 2023, which has continued into 2024. At the same time, last year was a weaker year for share issues and IPOs. It has been "challenging to raise capital for growth companies and equity investors have been waiting."

– Among the few who added capital

Historic interest rate increases created major challenges for the property sector, and there were few new transactions in the project market last year. Arctic contributed to several capital raisings, refinancing processes and assistance with larger transactions in 2023.

– We are among the very few who managed to add capital to the Norwegian property market in 2023, the Arctic boss emphasizes.

Positive start to 2024

The first months of 2024 are characterized by a high level of activity. The Arctic CEO is looking at record levels for both global and national stock markets. At the same time, geopolitical tensions can create challenges for growth and productivity.

– You never quite know what will happen. There is still some uncertainty in the markets, says Syversen, who nevertheless believes that Arctic is set up for a good year:

– We entered 2024 with a good order book. So far this year, bond activity is still high, and Arctic has a large supply of new assignments. We have successfully carried out the first IPO of the year and have also been an adviser in larger M&A processes which are expected to be concluded now during the first half of the year. I believe in a good 2024 for Arctic.