Baader Bank AG — Earnings Release 2011

Oct 13, 2011

News Details

Corporate | 13 October 2011 11:40

Baader Bank AG: Baader Bank feels the impact of the sovereign debt crisis

Baader Bank AG / Key word(s): Quarter Results/Quarter Results

13.10.2011 / 11:40

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Baader Bank feels the impact of the sovereign debt crisis

Unterschleissheim, 12 October 2011

During the third quarter of 2011, Baader Bank AG felt the impact of the sovereign debt crisis. 'Our business is subject to politically driven capital markets which are highly unpredictable,' said Uto Baader, Chairman of the Executive Board of Baader Bank AG in Unterschleissheim.

In the reporting period, impairments on securities in particular led to a year on year decline in net trading income at Baader Bank from EUR13.3 million to EUR8.2 million; in the nine-month comparable period this equates to a drop of 20.8% to EUR35.3 million. Nevertheless, in a quarterly and nine-month comparison, the net fee and commission income remained level at EUR7.6 million and EUR25.5 million respectively. This can be attributed primarily to the successful development of investment banking activities. Additionally, earnings were negatively impacted by impairments on securities in the banking book in accordance with the strict 'lower of cost or market' rule.

In the third quarter of the year, the income from ordinary activities amounted to minus EUR9.0 million (3rd quarter 2010: EUR1.9 million). In the nine-month comparable period, income from ordinary activities was down to minus EUR3.8 million against EUR8 million in the previous year. From July to September, post-tax results showed a loss of EUR 9.3 million (third quarter 2010: EUR1.1 million profit); the first nine months of the current year showed a post-tax loss of EUR4.4 million (previous year: EUR11.9 million profit).

The increase in administrative expenses over the first nine months of 2011 is due to the expansion of investment banking activities. 'These expenses should thus be viewed as an investment in the future,' said Baader. In the period July to September 2011, administrative expenses were slightly higher at EUR19.5 million than in the same quarter of 2010 (EUR19.0 million). This corresponds to an increase from EUR59.1 million to EUR63.8 million in the nine-month comparable period.

The Group's equity amounted to EUR100.1 million as at 30 September 2011 (31 December 2010: EUR110.3 million). In the first nine months of the year, earnings per share amounted to minus EUR0.10 (previous year: EUR0.26).

The Group employed a staff of 412 employees as at 30 September 2011 (30 September 2010: 367).

Key figures in EUR m	1 Jan – 30 Sep 2011	1 Jan – 30 Sep 2010		Q3 2011	Q3 2010
Net interest income	4.7	4.1		1.7	1.3
Net fee and commission income	25.5	26.0		7.6	7.7
Net trading income	35.3	44.6		8.2	13.3
Administrative expenses	– 63.8	– 59.1		– 19.5	– 19.0
Net income from ordinary activities	– 3.8	8.0		– 9.0	1.9
Net income after tax	– 4.4	11.9		– 9.3	1.4

The Executive Board

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Published by:

Baader Bank Aktiengesellschaft

Contact: Thomas Spengler

Weihenstephaner Str. 4

85716 Unterschleissheim

Tel. +49 89 5150-1030

Fax +49 89 5150-291030

thomas.spengler@baaderbank.de

www.Baaderbank.de

End of Corporate News

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Language:	English
Company:	Baader Bank AG
	Weihenstephaner Str. 4
	85716 Unterschleissheim
	Germany
Phone:	+49 (0)89/ 5150-0
Fax:	+49 (0)89/ 5150-291030
E-mail:	info@Baaderbank.de
Internet:	www.Baaderbank.de
ISIN:	DE0005088108
WKN:	508810
Listed:	Freiverkehr in Berlin, Düsseldorf, Hamburg, Hannover, München (m:access), Stuttgart; Open Market in Frankfurt

End of News	DGAP News-Service

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