18.03.2016
Baader Bank AG DE0005088108
DGAP-News: The Baader Bank Group achieves the turnaround in its 2015 operating result - Overall result below plan due to writedowns and impairments
DGAP-News: Baader Bank AG / Key word(s): Preliminary Results/Final Results
The Baader Bank Group achieves the turnaround in its 2015 operating result -
Overall result below plan due to writedowns and impairments
18.03.2016 / 08:03
The issuer is solely responsible for the content of this announcement.
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The Baader Bank Group achieves the turnaround in its 2015 operating result
- Overall result below plan due to writedowns and impairments
- The operating result was EUR 12.7 million higher than in 2014.
- Thanks to the positive development of the Market Making segment, the
trading profit was 20% higher than in 2014.
- The cost reduction measures initiated in 2015 are already showing
positive effects.
- Baader Bank reported a loss before taxes of EUR 7.6 million for fiscal
year 2015, due to non-recurring writedowns and impairments in the
investment book.
- Total assets declined by 13% to EUR 576 million, mainly due to the
reduction of risk assets.
- The equity ratio rose to 17%.
Unterschleißheim, March 18, 2016.
The Baader Bank Group increased both its operating result and its gross
profit considerably over the respective prior-year figures in fiscal year
2015. The modest decrease in commission income, which declined by 4% to EUR
50.1 million, resulted in large part from the cessation of interbank bond
trading in 2014. Nonetheless, net commission income contributed 45% of the
bank's total income, mainly thanks to the positive development of the
Investment Banking segment.
The trading profit rose substantially, by 20% to EUR 52.6 million, as a
result of Baader Bank's stepped-up trading activity in exchange-traded
funds, ETPs, and foreign securities. Moreover, the acquisition of
additional order books and over-the-counter trading partners had a positive
effect on Baader Bank's competitive position in the Market Making segment.
As can be expected considering Baader Bank's business model, net interest
income and current income accounted for only 2% of total income.
Total expenses were nearly unchanged from last year, having risen by only
3% to EUR 119.6 million. The reduction of personnel expenses and the
lower-than-budgeted other administrative expenses had a positive effect on
the overall result. Thus, the intensive cost reduction program initiated in
2015 is already producing positive effects and should continue to produce
positive effects in the future.
However, Baader Bank recognized impairment losses of EUR 20.6 million in
2015. The increase over the prior year resulted mainly from impairments of
investment book positions and securities classified as noncurrent assets.
Baader Bank reported a consolidated loss of EUR 7.6 million before taxes
for 2015.
Including the fund for general banking risks, the Baader Bank Group's
equity amounted to EUR 122 million as of December 31, 2015 (December 31,
2014: EUR 132 million), and the equity ratio came to 17% (December 31,
2014: 16%).
Business developments in 2015
In the Market Making segment, Baader Bank won nearly all the IPO order
books awarded by the Frankfurt Stock Exchange in 2015. In over-the-counter
trading, additional third-party banks were connected to the trading systems
of Baader Bank. As a result, the order volume increased considerably.
Baader Bank supported the migration of stock exchange systems at the Munich
Stock Exchange (MAX-One 2.0, gettex) and the Stuttgart Stock Exchange
(XITARO).
Thus, Baader Bank strengthened its market position as one of the biggest
order book-keeping institutions in the German-speaking world and reinforced
the high quality of its trading activity in its traditional core business
segment.
In the Investment Banking segment, the institutional equities and
derivatives business of Baader Bank and its Swiss subsidiary Helvea
exhibited a positive development in 2015. Thus, the integration of the
Helvea Group into Baader Bank as the local broker for international clients
in the German-speaking countries of Germany, Austria, and Switzerland has
been successfully completed. The bank's own ETF Sales Desk was expanded
further, thereby creating significant potential in the effort to deepen and
broaden client relationships on the investor side.
Baader Bank advised on numerous capital market transactions in 2015 and
occupied the top rank in the Equity League Tables for transactions up to
EUR 100 million in the countries of Germany and Austria.
Outlook for 2016
Baader Bank will focus on further expanding its operating business in 2016.
In the Market Making segment, the bank will strive to increase its market
shares in its stock exchange activities and connect additional third-party
banks in Germany and abroad to its trading systems in the OTC business. The
bank is already making preparations for MiFID II and the introduction of a
new stock exchange system at the Frankfurt Stock Exchange.
In the Investment Banking segment, Baader Bank opened a new office in
Boston, Massachusetts, in February in order to better serve investors on
location. The Zurich office will be expanded further during the course of
2016. Baader Bank expects capital market transactions to rise in the
current year and plans to intensify its business with asset managers. The
bank will also expand its offering of services for the FinTech industry
(e.g., "Robo-Advisors").
"The basic conditions in the markets in which Baader Bank operates were
very challenging last year. Securities markets were characterized by high
volatility in the equity market and growing uncertainty among investors
worldwide," said Nico Baader, Chairman of the Executive Board of Baader
Bank.
"The Executive Board in its new composition resolved to focus on the two
core business segments of Market Making and Investment Banking and took
steps to streamline both the product portfolio and the equity investment
portfolio and pare back peripheral activities in 2015. Our future
activities will be focused on expanding the operating core business," added
Nico Baader.
The 2015 Annual Report of Baader Bank AG will be published in the
"Financial Reports" section of Baader Bank's website in early May 2016,
together with the notice of meeting for the annual general meeting to be
held on May 22, 2016.
Baader Bank Group 2014 2015 Change Change from from Prior Prior Year Year EUR'000 EUR'000 absolute/ relative /% EUR'000 Income 116,512 111,997 -4,515 -4% Net interest income and current 3,227 2,495 -732 -23% income Net commission income 52,402 50,147 -2,255 -4% Trading profit/loss 43,761 52,553 8,792 20% Other income 17,122 6,802 -10,320 -60% Expenses 116,277 119,590 3,313 3% Personnel expenses 61,037 54,209 -6,828 -11% Administrative expenses and other 42,044 42,242 198 0% operating expenses Depreciation, amortization, and 9,920 20,579 10,659 > 100% impairments Net income/expenses from interests 3,276 2,560 -716 -22% in associated companies Earnings before taxes (EBT) 235 -7,593 -7,828 > -100% Operating result* -12,648 52 12,700 > 100% Total assets 663,293 576,330 -86,963 -13% * Gross profit less personnel and other administrative expenses and less depreciation, amortization, and impairments of intangible assets and property, plant, and equipment (Gross profit = net interest income and current income, net commission income and trading profit/lossContact Florian E. Schopf Managing Director Corporate Policy Department/Investor Relations T +49 89 5150 1013 [email protected] Susanne Stickler Manager Investor Relations T +49 89 5150 1879 [email protected] Baader Bank AG Weihenstephaner Straße 4 85716 Unterschleissheim, Germany www.baaderbank.de --------------------------------------------------------------------------- 18.03.2016 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. Media archive at www.dgap-medientreff.de and 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; Open Market in Frankfurt End of News DGAP News Service --------------------------------------------------------------------------- 446701 18.03.2016
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