Baader Bank AG — Earnings Release 2008

Apr 22, 2008

News Details

Corporate | 22 April 2008 14:10

Baader Wertpapierhandelsbank AG: Baader cushions consequences of the financial crisis in Q1 2008

Baader Wertpapierhandelsbank AG / Miscellaneous

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Baader cushions consequences of the financial crisis in Q1 2008

Munich (Germany), 22 April 2008

Baader Wertpapierhandelsbank AG, which is based in Unterschleissheim
(Germany) concluded Q1 2008 with a profit, despite exceptionally difficult
conditions on the stock market. In the first three months, Germany’s
leading securities trading bank generated net profit after taxes of EUR 5.8
million, down from EUR 8.6 million and thus a decrease of 33.4% compared
with the same period of the previous year. Profit from ordinary activities
amounted to EUR 5.4 million in Q1 2008 (previous year: EUR 11.8 million).
This higher post-tax profit was due to an extraordinary tax effect in the
form of a tax refund and revaluation of deferred tax assets.

'Given the turbulence on the capital markets triggered by the credit crisis
in the USA, we can be satisfied with this result', said Uto Baader,
Chairman of the Board of Directors, at the Accounts Press Conference in
Munich. According to the Chairman, both the strict risk management and the
Group’s broad setup proved their worth in the crisis and helped to cushion
the impact of the general financial crisis on Baader. 'We thus have the
tools to keep the ship on course, even in troubled waters', he continued.
The uncertain situation on the capital markets was especially reflected in
net fee and commission income, which fell to EUR 10.1 million (previous
year: EUR 13.7 million). In contrast, net trading income remained almost
stable at EUR 16.1 million (previous year: EUR 17.1 million). A proposal
will be made to the Annual General Meeting that an unchanged dividend of
EUR 0.25 be distributed to the shareholders.

The fact that Baader Wertpapierhandelsbank AG has succeeded in
significantly extending its position as a leading securities trading bank
and the largest stock broker in Germany, particularly during the crisis,
shows how well positioned the Bank is. It boosted its market share amongst
the provider of specialist activities on the Frankfurt Stock Exchange from
January to March to 38%, up from 31% (monthly average in 2007). 'This was
primarily thanks to our high price and execution quality,' commented
Baader.

The acquisition of DBM Deutsche Börsenmakler GmbH (DBM) with retrospective
effect from 1 January 2008 can be considered part of Baader’s
diversification strategy taken several years ago within its own core
business areas. 'Our strategy is to broaden the Group by investing in our
core business counter-cyclically and opening up new business areas that
have an affinity to securities trading', commented Baader. By acquiring
DBM, Baader has also advanced to become the market leader in stock exchange
trading with funds. 'Since only 1% of fund sales are currently via the
stock exchange, we expect promising potential', said the Chairman of the
Board of Directors and emphasised the advantages of fund trading on the
stock exchange, adding 'this path is less expensive, transparent and offers
tradeability at any time'.

In fund trading on the stock exchange, investors save a selling markup of
up to 5.75% which is incurred when purchasing fund units via an asset
management company. Stock exchange fees are incurred instead, but these are
far lower. Furthermore, constant tradeablity is also guaranteed during the
stock exchange hours of 9 a.m. to 8 p.m. Another benefit is that investors
can find out which price they would have to pay or would receive at any
time.

Key figures (EUR million) Q1 2008 Q1 2007
Net fee and commission income 10.1 13.7
Net trading income 16.1 17.1
Administrative expenses - 21.6 - 20.4
Profit from operations 5.0 11.6
Profit from ordinary activities 5.4 11.8
Net profit after taxes 5.8 8.7

Diversification bears fruit in 2007

In financial year 2007, Baader benefited from both the positive stock
exchange developments and the sharp fluctuations on the markets as they
were accompanied by high levels of trading amongst investors. Both net
trading income and net fee and commission income reflect this trend. 'We
thus strengthened our role as Germany’s leading securities trading bank',
said Baader. In doing so, the increase in net fee and commission income of
26.3% to EUR 46.5 million far outstripped the rise in net trading income
(of 4.6% to EUR 52.0 million).

The foreign activities of Baader Wertpapierhandelsbank AG are also
beginning to have a positive effect. The equity investments in securities
trading companies in India and Oman contributed around EUR 1.8 million in
the last three months of 2007, significantly boosting earnings in Q4 2007
to EUR 6.8 million (previous year: EUR 1.0 million). 'We are thus preparing
the ground more and more for additional growth outside Germany', added
Baader. Germany’s leading securities trading bank acquired an equity
investment in Parsoli Corporation Ltd. in Mumbai, India. Parsoli is
authorised as a financial service provider by the Indian Central Bank (RBI)
and the Capital Market Supervisory Authority (SEBI) and is a member of the
National Stock Exchange of India, the Bombay Stock Exchange, its affiliated
derivatives exchanges and the commodity and product exchange MCX (Multi
Commodity Exchange of India Ltd.). Baader also entered into an equity
investment with two Omani partners in 2007 which together operate the
country’s largest securities trader, Gulf Baader Capital Markets S.A.O.C.
in Muscat.

Overall, Baader Wertpapierhandelsbank AG lifted its profit from ordinary
activities by 38.0% in 2007 to EUR 35.2 million (previous year: EUR 25.5
million), generating the best profit that the Bank has ever seen in its
25-year history. Overall, Baader Wertpapierhandelsbank AG generated profit
after taxes of EUR 29.0 million (previous year: EUR 30.6 million). The
sound prior-period profit was the result of a new tax rule. The 2007 figure
corresponds to profit per share of EUR 0.64 (previous year: EUR 0.67)

At the end of last year, equity amounted to EUR 165.4 million (previous
year: EUR 152.6 million). As of the reporting date, the Group had 298
employees (previous year: 266 employees) and the number of order books
managed climbed from 120,579 (71%) to 206,428. Equities accounted for
12,891 of these order books, securitised derivatives such as warrants,
certificates and ETFs for 183,047, bonds and participation certificates for
9,307 and actively managed funds for 1,183 order books.

Key figures (EUR million) Financial year 2007 Financial year 2006
Net fee and commission income 46.5 36.8
Net trading income 52.0 49.7
Administrative expenses 75.6 63.1
Profit from operations 32.3 36.2
Profit from ordinary activities 35.2 25.5
Net profit after taxes 29.0 30.6

Contact:

Thomas Spengler

Corporate Communications Manager

Baader Wertpapierhandelsbank AG

Weihenstephaner Str. 4

85716 Unterschleissheim

Phone: +49 (0) 89 5150 1030

Mobile: +49 (0) 160 7188830

E-mail: Thomas.Spengler@Baaderbank.de

http://www.Baaderbank.de

22.04.2008 Financial News transmitted by DGAP

Language: English
Issuer: Baader Wertpapierhandelsbank AG
Weihenstephaner Str. 4
85716 Unterschleissheim
Deutschland
Phone: +49 (0)89/ 5150-0
Fax: +49 (0)89/ 5150-1111
E-mail: Info@Baaderbank.de
Internet: www.Baaderbank.de
ISIN: DE0005088108
WKN: 508810
Listed: Regulierter Markt in Berlin, Frankfurt (Prime Standard),
Stuttgart, München; Freiverkehr in Hamburg, Düsseldorf

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