07.03.2018
FinTech Group AG DE000FTG1111
DGAP-News: Rising Market Volatility Drives FinTech Group's Numbers to Record Highs - Berenberg Initiates Coverage with 40 EUR Price Target
DGAP-News: FinTech Group AG / Key word(s): Market Report
Rising Market Volatility Drives FinTech Group's Numbers to Record Highs -
Berenberg Initiates Coverage with 40 EUR Price Target
07.03.2018 / 07:00
The issuer is solely responsible for the content of this announcement.
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Corporate News / Frankfurt am Main, 7 March 2018
Rising Market Volatility Drives FinTech Group's Numbers to Record Highs -
Berenberg Initiates Coverage with 40 EUR Price Target
* Trading activity soars: FinTech Group executes more than 2M securities
transactions in the first two months of 2018 - up 40% compared to same
period last year
* flatex continues to attract new clients with its market leading offering
- already more than 8,000 new customers in 2018
* Berenberg initiates coverage of FinTech Group AG - price target 40 EUR
Frankfurt, Germany - FinTech Group AG's (German WKN: FTG111, ISIN:
DE000FTG1111, Ticker: FTK.GR) online brokerage business sets record marks in
January and February 2018: more than 1M securities transactions were settled
in each month. Both January and February set new all-time record months in
trading activity. Key driver behind the strong start in the new year has
been the increased market volatility - caused mainly by expectations for a
sooner-than-anticipated increasing of interest rates, from which FinTech
Group will also benefit in the medium-term.
"The financial year 2018 started tremendously, both our B2B segment and
particularly our B2C brokerage business", said Frank Niehage, CEO of FinTech
Group AG. "Market volatility is reawakening after reaching a 20-year low in
2017. The impact is impressive: two consecutive record months. At the same
time, we are reaping the harvest we have sown in the last two years. Our B2C
clients are trading actively - for the best price, with the best products,
and on the best platform flatex has ever offered."
In both 2016 and 2017, market volatility stagnated at historic lows, and so
did interest rates. Both are key drivers of FinTech Group's B2C business,
which accounts for more than 70% of revenues. Despite the challenging market
conditions in the previous periods, FinTech Group's management successfully
focused on growing and developing its low-cost core business flatex and its
highly efficient transaction systems, to be prepared exactly for these
current volatile periods. On February 5, when the Dow Jones Index dropped
about 1,500 points (almost 6%), FinTech Group executed more than 100,000
transactions - a record day.
"We kept emphasizing that market volatility is a 'hidden reserve' of our
brokerage business - this has been proofed since the beginning of the year.
In addition, the reason for the significant increase in volatility - the
sudden rise in interest rates expectations - is another driver for our
success. Currently, our treasury portfolio is invested in
ultra-short-durated assets, and can be flipped in a matter of weeks. This is
where the interest-rate reversal kicks in: We expect an increase in interest
income of 8M EUR from our treasury portfolio, should EURIBOR increase by 1
percentage point", commented Muhamad Chahrour, Chief Financial Officer of
FinTech Group.
This development has also convinced Joh. Berenberg, Gossler & Co. KG to
initiate the coverage on FinTech Group AG, describing the ecosystem "finance
meets technology" as "the best of both worlds". Berenberg analyst Martin
Comtesse sets the price target at 40 EUR, which corresponds to a 40% upside
potential based on the current share price.
About FinTech Group AG
FinTech Group AG (WKN: FTG111, ISIN: DE000FTG1111, Ticker: FTK.GR) is a
modern smart bank: We offer innovative financial technology, our own core
banking system, and a regulatory liability umbrella.
Our cash cow is retail broker flatex which, through our advanced technology,
can offer top-quality service at an affordable price. This makes flatex the
fastest growing trading platform in Europe. Our smart technology is easy to
scale, so we also successfully offer it to B2B customers. We provide vital
services for many well-known institutions and even state infrastructure.
We help start-ups and disruptive business ideas that require a banking
license to rapidly become a success through our white label banking.
In a time of bank consolidation, low interest rates, and digitization we are
ideally positioned for further growth. Our goal is to become Europe's
leading provider of financial technology
Disclaimer
This release may contain forward-looking statements and information, which
may be identified by formulations using terms such as "expects", "aims",
"anticipates", "intends", "plans", "believes", "seeks", "estimates" or
"will". Such forward-looking statements are based on our current
expectations and certain assumptions, which may be subject to variety of
risks and uncertainties. The results actually achieved by FinTech Group AG
may substantially differ from these forward-looking statements. FinTech
Group assumes no obligation to update these forward-looking statements or to
correct them in case of developments, which differ from those anticipated.
Contact:
Roman Kessler
Head of Communications
FinTech Group AG
Rotfeder-Ring 5
D-60327 Frankfurt/Main
+49 (0) 69 450001 041
[email protected]
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07.03.2018 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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Language: English
Company: FinTech Group AG
Rotfeder-Ring 5
60327 Frankfurt am Main
Germany
Phone: +49 (0) 69 450001 041
E-mail: [email protected]
Internet: www.fintechgroup.com
ISIN: DE000FTG1111, DE0005249601
WKN: FTG111
Listed: Regulated Unofficial Market in Berlin, Dusseldorf,
Frankfurt (Scale), Hamburg, Munich, Stuttgart, Tradegate
Exchange
End of News DGAP News Service
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661151 07.03.2018
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