DGAP-News: Baader Bank AG / Key word(s): Half Year Results Baader Bank generates a modestly negative result for the first half of 2016 27.07.2016 / 08:00 The issuer is solely responsible for the content of this announcement. --------------------------------------------------------------------------- Baader Bank generates a modestly negative result for the first half of 2016 - Dramatic decline in market trading volumes - Historically low number and volume of capital market transactions - Earnings before taxes slightly negative, at EUR -2.1 million - Administrative expenses fall by -10.7% to EUR 46.3 million - Equity ratio 15% Unterschleissheim, July 27, 2016 The volatile atmosphere in financial markets caused investors to be restrained in their trading activities and corporate customers to be hesitant to conduct capital market transactions in the first half of 2016. Net commission income declined by -19.1%, from EUR 27.3 million in the first half of last year to EUR 22.1 million in the reporting period. The trading profit of EUR 24.5 million was -22.9% lower than the prior-period comparison figure. Fortunately, net interest income, including current income, rose by 76.8% to EUR 1.9 million. Baader Bank generated an operating result of EUR -2.8 million in the first half of 2016 (PY: EUR 3.2 million). Administrative expenses were lowered by -10.7%, from EUR 51.8 million to EUR 46.3 million, mainly due to decreased personnel expenses and the cost reduction program initiated already in 2015. Amortization and depreciation of intangible assets and property, plant, and equipment declined modestly from EUR 5.1 million to EUR 4.9 million. It was not necessary to charge write-downs on receivables or recognize impairments of securities in the reporting period. The subsidiaries Baader & Heins Group and Conservative Concept Portfolio Management Group made positive contributions to the consolidated result, whereas Baader Helvea Group made a negative contribution, due in part to the closure of the Geneva office and the relocation of its head office to Zurich. Consolidated earnings before taxes (EBT) amounted to EUR -2.1 million for the period ended June 30, 2016 (PY: EUR 3.5 million). Including the fund for general banking risks, the Baader Bank Group's capital amounted to EUR 118.2 million as of June 30, 2016 (December 31, 2015: EUR 121.7 million). The equity ratio came to 15%. Business performance in the first half of 2016 In the Market Making segment, Baader Bank acquired additional third-party banks as clients for OTC trading. Baader Bank also connected additional trading partners to the GETTEX exchange in Munich, where the bank is the exclusive market maker, in the first half of 2016. The bank also implemented new forms of exchange trading (quote request process) on the stock exchanges in Frankfurt and Stuttgart. In the Investment Banking segment, Baader Bank established itself as a service provider to trading-savvy fin-tech companies. The cooperation arrangements with Scalable Capital, Investify, and the Swiss firm Werthstein have been very well received. Moreover, the considerably intensified efforts to acquire new asset manager clients have already begun to show positive results. Baader Bank also succeeded in further increasing the number of international institutional clients. A new office was opened in Boston, Massachusetts (USA), to serve these clients. Finally, the bank advised on several capital market transactions, despite the extreme restraint displayed by issuers in the first half of 2016. Outlook for the second half of 2016 In the Market Making segment, Baader Bank expects trading volumes to stabilize at the currently very low level. The bank expects to connect additional partners to GETTEX, for both over over-the-counter and exchange trading, in the second half of 2016. In the Investment Banking segment, the transaction pipeline is well filled and can be expected to deliver good profit contributions after the summer break, assuming a receptive market environment. Commission income is expected to benefit from the bank's intensive relationships with institutional clients, which were also confirmed by the excellent results of the 2016 EXTEL survey, and the expansion of business with asset providers and fin-tech companies. Key figures at a glance

Baader Bank Group                                   H1 2016  H1 2015
                                                    EUR'000  EUR'000      %
Income                                               50,099   61,628  -18.7
thereof net interest income and current income        1,869    1,057   76.8
thereof net commission income                        22,053   27,257  -19.1
thereof trading profit/loss                          24,457   31,705  -22.9
thereof other income                                  1,720    1,609    6.9
Expenses                                            -52,240  -58,162  -10.2
thereof personnel expenses                          -26,554  -31,924  -16.8
thereof administrative expenses and other           -20,599  -20,484    0.6
operating expenses
thereof depreciation, amortization, and              -4,886   -5,395   -9.4
impairments
thereof profit/loss from shares in associated          -201     -359  -44.0
companies
Earnings before taxes (EBT)                          -2,141    3,466      -

Operating result*                                    -2,760    3,162      -

Total assets                                        644,636  576,330   11.9

*Gross income less personnel and other administrative expenses, and depreciation, amortization, and impairments of intangible assets and property, plant, and equipment. (Gross income = Net interest income and current income, net commission income, and trading profit/loss)

Contact                                      Baader Bank AG
Florian E. Schopf                            Weihenstephaner Straße 4
Managing Director                            85716 Unterschleißheim,
Corporate Policy Department/ Investor        Germany
Relations                                    www.baaderbank.de
T +49 89 5150 1013
[email protected]

Susanne Stickler
Manager Investor Relations
T +49 89 5150 1879
[email protected]

--------------------------------------------------------------------------- 27.07.2016 Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group AG. The issuer is solely responsible for the content of this announcement. The DGAP Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases. Archive at www.dgap.de --------------------------------------------------------------------------- Language: English Company: Baader Bank AG Weihenstephaner Str. 4 85716 Unterschleissheim Germany Phone: +49 89 5150 1013 Fax: +49 89 5150 29 1880 E-mail: [email protected] Internet: www.baaderbank.de ISIN: DE0005088108 WKN: 508810 Listed: Regulated Unofficial Market in Berlin, Dusseldorf, Hamburg, Hanover, Munich (m:access), Stuttgart, Tradegate Exchange; Open Market in Frankfurt End of News DGAP News Service --------------------------------------------------------------------------- 486335 27.07.2016