Baader Bank AG — Earnings Release 2007

Feb 20, 2008

News Details

Corporate | 20 February 2008 10:09

Baader Wertpapierhandelsbank AG: Diversification and foreign activities of Baader Wertpapierhandelsbank AG bear fruit

Baader Wertpapierhandelsbank AG / Final Results

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Diversification and foreign activities of Baader Wertpapierhandelsbank AG
bear fruit

Unterschleissheim (Germany), 20 February 2008

Baader Wertpapierhandelsbank AG in Unterschleissheim benefited from the
increase in volatility on the stock exchange in the past financial year and
the high related trading activities of investors. Growth in both net
trading income and net fee and commission income reflect this trend. ‘This
has enabled us to strengthen our position as a leading securities trading
bank in Germany’, said Uto Baader, Chairman of the Board of Directors at
Baader Wertpapierhandelsbank AG in Unterschleissheim.

The fact that net fee and commission income (up 26.3% to EUR 46.5 million)
has increased substantially more than net trading income (up 4.6% to EUR
52.0 million) makes it clear that the diversification strategy taken
several years ago is taking hold within the Bank’s own core business areas.
For instance, the relatively new areas of trading with securitised
derivatives and the institutional agency business have primarily
contributed to this rise in the net fee and commission income. 'This has
proven our strategy of broadening the Group by investing in our core
business counter-cyclically and opening up new business areas that have an
affinity to securities trading to be correct', commented Baader. The
acquisition announced last week of the Deutsche Börsenmakler GmbH (DBM) in
Frankfurt – the leading order book specialist in trading funds on the stock
exchange – can also be seen in this context.

The foreign activities of Baader Wertpapierhandelsbank AG are also bearing
their first fruit. 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 for additional growth outside Germany', added Baader. Germany’s
leading securities trading bank acquired an equity investment in Parsoli
Corporation Ltd. in Bombay, India. Parsoli is authorised as a financial
service provider by the Indian central bank and the capital market
supervisory authorities (SEBI). The company 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.

Below the line, 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 or 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) 1 January – 31 December 1 January – 31 December
2007 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
Earnings after taxes 29.0 30.6

Contact:

Thomas Spengler

Head of Corporate Communications

Baader Wertpapierhandelsbank AG

Weihenstephaner Strasse 4

85716 Unterschleissheim

Phone +49 (0) 89 5150 1030

Mobile: +49 (0) 160 7188830

E-mail: Thomas.Spengler@Baaderbank.de

http://www.Baaderbank.de
20.02.2008 Financial News transmitted by DGAP

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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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