17.03.2017
Baader Bank AG DE0005088108
DGAP-News: Baader Bank improves annual results in 2016 and systematically continues the realignment of its group strategy
DGAP-News: Baader Bank AG / Key word(s): Preliminary Results
Baader Bank improves annual results in 2016 and systematically continues the
realignment of its group strategy
17.03.2017 / 08:00
The issuer is solely responsible for the content of this announcement.
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Baader Bank improves annual results in 2016 and systematically continues the
realignment of its group strategy
- Baader Bank generated earnings before tax at group level of EUR -2.1
million, which represents a
EUR 5.5 million improvement compared with the previous year. Baader Bank, as
a company, is closing the financial year 2016 with break-even earnings
before tax of EUR 4,000.
- Its strong market position in the core German-speaking markets was
confirmed in both market making and the capital markets. Despite a generally
stagnant environment, it also achieved an increase in market share in the
cash equity business.
- Baader Bank has established itself as a strong partner for both
traditional and digital asset managers, and now provides the full range of
banking services to fintechs, including the currently largest European
robo-adviser.
- In the area of asset management services, Baader Bank more than doubled
the funds under its management.
Unterschleissheim, 17 March 2017
The earnings before tax of Baader Bank Group improved to EUR -2.1 million
(+72%) in 2016. Baader Bank AG, in its stand-alone financial statements, was
able to generate break-even earnings of EUR 4,000. Despite an overall fall
in 2016 in securities turnover on German stock markets of around 16%, the
company was pleased to be able to maintain its trading income, derived
primarily from market making, at a constant level of EUR 52.8 million. The
increase in non-stock market business made a significant contribution. Net
commission income decreased to EUR 40.7 million (-19%). Lower brokerage and
transaction fees, a lower volume of issues and structural one-off effects at
the Swiss group company Baader Helvea set the tone here. Net interest income
and current income increased to EUR 3.2 million (+29%). Overall, the total
income of Baader Bank Group in 2016 was EUR 100.5 million (-10%).
Group costs fell steeply compared to the prior year, to EUR 102.6 million
(-14 %). Personnel, administrative and other operating expenses fell, in
some cases substantially, compared to the previous year, and were below
budget overall. As well as the lower variable remuneration elements that are
profit-linked, the main cause was the cost reduction measures introduced in
2015 and fully effective in 2016.
At the balance sheet date, there was no exceptional amortisation of
associated companies in Baader Bank Group, nor any impairments of
non-current assets. EUR 584,000 was transferred to the reserve for general
banking risks. Including this reserve, Baader Bank Group had equity of EUR
118 million (-3%) as of 31 December 2016. The equity ratio shown on the
balance sheet at the year-end remained unchanged at 17%.
"In view of the clear drop in turnover of securities on German stock
markets, the steady level of trading income at Baader Bank is a clear
indication of our strength in market making", stressed Nico Baader, Chairman
of the Board. "By applying a strict risk policy we have managed to avoid the
amortisation and valuation losses we suffered last year, and to further
develop our market areas with strategically valuable investments." With an
excellent equity ratio, this banking institution is ideally equipped to face
future increases in capital and investment requirements.
Business report 2016
Baader Bank has maintained its leading position as a Market Maker on the
German stock markets. It was retained as a specialist on four of the five
flotations in the Prime Standard segment of the Frankfurt Stock Exchange.
The bank was able to expand its collaboration with partner banks in
off-market trading substantially during 2016. Almost all major direct banks
in the German-speaking region now use its trading products. This means it
has now reached the position of a market leader in this sector too.
"Significant changes are currently reshaping the systems and structures of
the German stock exchange landscape. The change-over from classic price
determination in closed order books to differentiated multi-market-maker and
quote-request models is leading to a shift in securities turnover towards
the platforms that run these models," explains Nico Baader.
In view of this, Baader Bank adjusted its systems in 2016 and proactively
built up its skills in the market making area, in order to meet all the
prerequisites needed to exist in this newly formed market environment.
In Investment Banking, Baader Bank strengthened its position by acquiring
further international customers, gaining market share in the cash equity
business, and high-quality capital market operations.
Top places in the 2016 Extel Survey also testify to the bank's strong market
presence as a local Multi-asset Broker in the core markets of Germany,
Austria and Switzerland. There were also top spots for equity sales and
execution services in the German Equities categories. In the second half of
the year, Baader Bank made some promising extensions to its skills in the
areas of CSA brokerage and clearing services.
In the Capital Markets sector, Baader Bank assisted and implemented a total
of 4 capital placements with an issue volume totalling around EUR 80 million
acting as a so-called Bookrunner. In addition, Baader Bank advised on more
than 40 transactions with an issue volume exceeding EUR 1.2 billion as
Technical Lead and service provider for major name clients who demand top
quality service and execution. In a sluggish market, the bank's market share
in 2016 for equity capital markets took it to a solid sixth place in the
league tables for transactions of up to EUR 100 million, based on the
overall number of flotations and equity transactions in Germany, Austria and
Switzerland. For transaction volumes up to EUR 250 million the institution
was one of the top 15 banks.
During 2016, Baader Bank shifted its focus towards collaboration with fund
managers, family offices and asset managers and extended its product range
of Banking Services for their end customers in the area of accounts and
custody business.
This will enable it to meet the needs of digital asset managers and
fintechs, a growing presence on the market, and the clearly increasing
demand for trading, IT and regulatory expertise. As an outsourcing partner,
Baader Bank offers the full spectrum of banking services for asset
management processes, and also offers existing market interfaces, combined
with high quality and security standards.
Europe's largest market player in digital asset management and other
successful robo-advisers already actively use the services provided by
Baader Bank.
The volume of assets in custody rose by 73% during the financial year 2016
to around EUR 1.6 billion, the number of custody accounts increased from
3,300 to just short of 5,800 (+75%). This business area also has huge
potential in terms of the generated order flow.
The assets under management by the Asset Management Services at the end of
2016 totalled EUR 5.35 billion, an increase of 118.2% over the prior year.
The number of clients rose to 56. In addition, Baader Bank currently acts as
the buy side trading desk for over 140 funds.
Outlook for 2017
"Baader Bank has a very strong position in its core markets, and will be
able to exploit consolidation trends in market making and multi-asset
brokerage to its advantage. In addition, the capital markets area will be
successful, with favourable conditions for capital raising and IPOs", Nico
Baader is convinced.
With two further successful product areas in banking services and asset
management services, the group is constantly evolving to become a leading
provider of full service bank and corporate brokerage services within
Germany, Austria and Switzerland. "Thanks to the integrated business model,
combined with involvement in the positive trends of our newly acquired
customer groups, such as asset managers and fintechs, Baader Bank will find
its way back to solid earnings and become more attractive to shareholders",
says the Chairman of the Board.
Baader Bank AG's group accounts for 2016 will be made available in early May
2017, when the AGM is called, on the Baader Bank website, under the heading
"Financial Reports".
Baader Bank Group 2015 2016 Change
compar-
ed to
prior
year
EUR'000 EUR'000 absolu- rel-
te / ati-
EUR'00- ve
0 / %
Income 111,997 100,477 -11,52- -10
0 %
of which net interest income and current 2,495 3,227 732 29
income %
of which net commission income 50,147 40,747 -9,400 -19
%
of which trading profit/loss 52,553 52,809 256 0 %
of which other income 6,802 3,694 -3,108 -46
%
Expenses 119,590 102,610 -16,98- -14
0 %
of which personnel expenses 54,209 50,289 -3,920 -7
%
of which administrative expenses and 42,242 41,344 -898 -2
other operating expenses %
of which depreciation, amortisation and 20,579 9,943 -10,63- -52
impairment 6 %
of which transfer to reserve for general 0 584 584 100
banking risks %
of which profit/loss from shares in 2,560 450 -2,110 -82
associated companies %
Earnings before tax (EBT) -7,593 -2,133 5,460 72
%
Operating result* 52 -1,778 -1,830 -
Total assets 576,330 578,536 2,206 0 %
*Gross income less personnel and other
administrative expenses, and amortisation
of intangible assets and depreciation of
property, plant and equipment (Gross
income = Net interest income and current
income, net commission income and trading
profit/loss)
Contacts
Florian E. Schopf Susanne Stickler Baader Bank AG
Managing Director Manager Investor Weihenstephaner
Keynote speech/Investor Relations T +49 89 Strasse 4 85716
Relations T +49 89 5150 5150 1879 Unterschleissheim,
1013 susanne.stickler@ba Germany
florian.schopf@baaderban aderbank.de www.baaderbank.de
k.de
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17.03.2017 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.
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Archive at www.dgap.de
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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
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