23.03.2018
Baader Bank AG DE0005088108
DGAP-News: Baader Bank improves consolidated annual result considerably in 2017 and systematically pursues Group strategy
DGAP-News: Baader Bank AG / Key word(s): Final Results
Baader Bank improves consolidated annual result considerably in 2017 and
systematically pursues Group strategy
23.03.2018 / 07:50
The issuer is solely responsible for the content of this announcement.
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Press release:
Baader Bank improves consolidated annual result considerably in 2017 and
systematically pursues Group strategy
- Operating result turned around, at EUR 9.4 million compared to the
previous year to EUR 7.7 million.
- Significant improvement in earnings before tax: growth from EUR -2.13
million to EUR 4.26 million.
- Amortisation, depreciation and restructuring expenses depress the total
annual result/Selan consolidation has positive effect
- Positive business development in all business lines
Unterschleissheim, 23 March 2018: The positive sentiment in capital markets
and the consolidation of Selan Group visibly influenced Baader Bank's total
annual result.
As a consequence of the market environment, trading profit/loss and net
commission income had good momentum, as they did in the first half-year. Net
commission income improved by 14.2% from EUR 40.7 million to EUR 46.5
million. This growth was mainly due to higher client commission income and
higher income from the Multi Asset Brokerage and Capital Markets business
lines compared to the previous year. Trading profit/loss also rose, albeit
by somewhat less in total than net commission income, increasing from EUR
52.8 million to EUR 57.7 million. Market making equities was the main driver
for this rise despite exchange turnover on the relevant stock markets not
changed significantly.
In June 2017, Baader Bank reversed its original intention to sell Selan
Holding GmbH. As a result, Selan Group was consolidated retroactively as of
1 January 2017, which led to a significant impact on Baader Bank Group's
income, expense and asset positions and to a significant expansion of the
consolidated balance sheet (see overview of key figures). The newly reported
"revenue" item of EUR 12.1 million due to the inclusion of Selan Group is
accounted for by the feed-in payment for electricity generated by the wind
farm.
Administrative expenses increased from EUR 98.6 million to EUR 110.2
million. These administrative expenses include EUR 2.6 million of operating
costs and EUR 4.2 million of depreciation and amortisation of the wind farm
due to the first-time inclusion of Selan Group in the consolidated financial
statements as well as the restructuring costs at Baader Bank AG in the
amount of EUR 3.7 million. Excluding these items, administrative expenses
are roughly the same as those of the previous year at EUR 99.7 million. This
shows that the positive effects of the cost cutting initiative of recent
years are continuing, but despite this, the AG could not generate any profit
at separate financial statement level.
The Selan Group, Baader Helvea and Baader & Heins subsidiaries in particular
made positive contributions to Group earnings.
The operating result at Group level increased overall by EUR 9.4 million to
EUR 7.7 million. Earnings before tax were EUR 4.3 million, thus recording
growth of EUR 6.4 million. Group earnings after taxes reached EUR 2.4
million.
Total assets on the reporting date amounted to EUR 764.8 million. Baader
Bank Group's equity ratio as at 31 December 2017 is 13% and the modified
equity ratio taking account of the fund for general banking risks is 16%.
Baader Bank AG's total capital ratio under supervisory law is approximately
17% (previous year 15%).
Course of business in 2017
Exploiting new market potential in Market Making
In 2017, Baader Bank was commissioned for a total of six IPOs on the German
Stock Exchange's Prime Standard segment. Vapiano SE, Delivery Hero AG, Jost
Werke AG, VARTA AG, BEFESA SE and HelloFresh SE commissioned Baader Bank as
the specialist for their IPOs on the Frankfurt Stock Exchange's Prime
Standard segment, as a result of which Baader Bank acquired the majority of
the specialist mandates awarded in Germany and was able to maintain its
strong position.
In the Market Making business line, Deutsche Börse Holding's electronic
trading platform Xetra was superseded by the new "T7" trading platform in
mid-2017. Baader Bank also assumed responsibility for trading in German and
US equities in the new "global market" segment of the Vienna Stock Exchange.
As part of this Austrian trading partnership, the important groundwork for
the transition to trading in open order books was laid.
Recovery of transactions in the Capital Markets business line
In the 2017 financial year, Baader Bank advised on 13 equity capital markets
transactions with a total volume of approximately EUR 1.93 billion.
In the 2017 equity league tables, Baader Bank came second in Germany
measured on placed volumes up to EUR 100 million. The bank came third for
transaction volumes up to EUR 250 million. Including the entire GSA region,
Baader Bank came sixth in volumes of up to EUR 100 million (2016: seventh).
Baader Bank was once more able to prove its qualitative strengths in
securities technology and in 2017 was able to show a broad spectrum of
high-quality services in numerous mandates.
Influx of clients to Banking and Asset Management Services led to
significant growth in deposit volumes
In the institutional client business, Baader Bank recorded a significant
increase in collaborations with traditional asset managers, online asset
managers and family offices in the 2017 financial year. With the increase of
account and custody clients, the need for additional services and interface
solutions displaying the entire asset management process grew. The number of
client deposits increased to approximately 14,500 with a deposit volume of
approximately EUR 2.5 billion (56% increase in comparison to the previous
year).
Since 2016, Baader Bank has been offering to take over buy-side trading
desks. As at the reporting date in 2017, it held 159 mandates for funds for
which it renders this service. This means a considerable increase of
approximately 66% in comparison to the previous year (96 fund mandates).
After doubling the volume of assets managed by the asset management services
between 2015 and 2016 (total volume as at 31/12/2016: EUR 5.35 billion), an
increase of 14.02% to EUR 6.10 billion was achieved over the course of 2017.
The number of fund mandates remained near to constant at 55 mandates (fund
mandates as at 31/12/2016: 56).
Awards signify the dominant market position of Baader Bank as a regional
broker with first-class research expertise
In this year's Extel Survey 2017, Europe's most important external ranking
of institutional equity brokers, Baader Helvea once again achieved top
rankings in the core regions of Germany, Austria and Switzerland for
research, sales and trading/execution services. The results of the 2017
Thomas Reuters Awards were equally pleasing for the Baader Helvea Equity
research team. In June 2017, Baader Helvea became the research partner of
the Stage Programme of SIX Swiss Exchange (SIX), reinforcing its leading
position in Switzerland.
Alongside other Baader Bank business lines, in the 2017 financial year the
Research business line faced structural market changes with the start of
MiFID II, which will have a significant impact on existing and potential
Baader Bank client relationships due to unbundling - the separation of
research from other brokerage services.
The 13th Baader Helvea Swiss Equities Conference took place in the 2017
financial year in Bad Ragaz. 57 leading Swiss companies and 270
institutional investors from 20 countries attended as guests. The Baader
Investment Conference, which took place for the sixth time in Munich in
September 2017, this time ran for four (previously three) conference days.
With approximately 750 investors from 33 countries and 175 listed companies
from Germany, Switzerland and Austria, we reached a new participant record.
2018 outlook
In the 2018 financial year, a consolidation trend will continue to show
within securities trading institutions. The start of MiFID II at the turn of
the year has a direct impact on the framework conditions of the markets in
which Baader Bank operates. Due to the increasing costs of regulatory
measures and the introduction of new technologies, smaller providers in
particular are exposed to increasingly challenging competition in Baader
Bank's market environment.
Based on the existing business lines, Baader Bank will continue to be able
to compensate for market fluctuations based on diversified sources of
income. Trading-like services from fundamental business lines that complete
the range of products are geared towards a change in client needs from a
regulatory perspective and are monitored continuously with regard to their
profitability.
For 2018, a higher profit is expected from normal business activity.
Baader Bank AG's 2017 Consolidated Annual Report will be made available
mid-May 2018, when the annual general shareholders' meeting is called, on
Baader Bank's website under the heading "Financial Reports".
Overview of key figures
Baader Bank Group 2017 2016 Delta
EUR'000 EUR'000 %
Income 121,317 100,477 20.7
of which interest income and current income 1,502 3,227 -53.5
of which net commission income 46,539 40,747 14.2
of which trading profit/loss 57,683 52,808 9.2
of which revenue 12,135 0 100.0
of which other income 3,458 3,695 -6.4
Expenses -117,05- -102,61- 14.1
8 0
of which personnel expenses -54,702 -50,288 8.8
of which administrative expenses and other -42,586 -41,345 3.0
operating expenses
of which depreciation, amortisation and -18,344 -9,943 84.5
impairment
of which addition to fund for general banking 0 -584 -100.0
risks
of which profit/loss from shares in -1,426 -450 >100.0
associated companies
Earnings before tax (EBT) 4,259 -2,133 -
Operating result* 7,650 -1,778 -
Total assets 764,844 578,536 32.2
Reported in accordance with the provisions of the German Commercial Code
(Handelsgesetzbuch - HGB).
*Gross income less personnel and other administrative expenses, 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, revenue)
For additional information:
Baader Bank AG
Weihenstephaner Straße 4
85716 Unterschleißheim, Germany
Katharina Ariane Beyersdorfer
Senior Manager Group Communication
T +49 89 5150 1016
F +49 89 5150 291016
M +49 172 6659 389
[email protected]
http://www.baaderbank.de
About Baader Bank AG:
Baader Bank AG is one of the leading investment banks across the
German-speaking region. As a family-run, full-service bank headquartered in
Unterschleissheim near Munich with 450 employees, it is active in the
business segments of Market Making, Capital Markets, Multi Asset Brokerage,
Asset Management Services, Banking Services and Research.
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23.03.2018 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.
The DGAP Distribution Services include Regulatory Announcements,
Financial/Corporate News and Press Releases.
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 1111
E-mail: [email protected]
Internet: www.baaderbank.de
ISIN: DE0005088108
WKN: 508810
Listed: Regulated Unofficial Market in Berlin, Dusseldorf,
Frankfurt, Hamburg, Hanover, Munich (m:access), Stuttgart,
Tradegate Exchange
End of News DGAP News Service
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