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Baader Bank AG — Earnings Release 2012
Mar 4, 2013
4539_rns_2013-03-04_e2856dd0-5374-4d2c-87f3-bef15687a997.html
Earnings Release
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Corporate | 4 March 2013 07:30
Baader Bank AG: Baader Bank reports profit of EUR 8.8 million after tax in 2012
Baader Bank AG / Key word(s): Final Results
04.03.2013 / 07:30
Baader Bank reports profit of EUR 8.8 million after tax in 2012
In the 2012 financial year, the Baader Bank Group achieved a provisional net profit after tax of EUR 8.8 million (previous year: EUR 0.7 million). The operating result was EUR 11.1 million (previous year: EUR 1.0 million).
Baader Bank's retained earnings are EUR 8.4 million. A dividend of EUR 0.05 (previous year: EUR 0.03) will be proposed to shareholders at the Annual General Meeting on 17 June 2013. The distribution will be made from the taxable deposit account.
Net interest income and other current income fell by 5.1% to EUR 6.5 million, primarily due to a lower interest margin.
A substantial increase in net fee and commission income was recorded. Compared with 2011, it increased by 25.6% to EUR 39.2 million. This reflects the successful expansion of the business model in the area of investment banking.
Investors were cautious in the volatile stock market environment of 2012, causing stock exchange turnover to plummet. Turnover on the Frankfurt Stock Exchange fell by 27.7% compared with the previous year, while Baader Bank's net trading income declined by 23.3% to EUR 35.5 million.
This also resulted in a change in the basis of measurement for contributions to the fund for general bank risks in accordance with Section 340e (4) HGB, so that a sum of EUR 2.8 million could be released (previous year: EUR 5.9 million).
At EUR 93.2 million, administrative expenses were 3.9% above the previous year's level of EUR 89.8 million, mainly due to increased regulatory requirements. The Baader Bank Group employed 430 people at the end of the year (31 December 2011: 414).
At the end of the year the Group had equity totalling EUR 138.9 million when taking into account the fund for general banking risks (31.12.2011: EUR 135,1 million). The Group's equity ratio at the reporting date is 21.6%.
Outlook
Market making should be significantly boosted by higher securities turnover. The expansion of OTC trading and further consolidation expected within the sector are also expected to have a positive impact.
In investment banking, Baader Bank expects to benefit from two developments: the growing significance of capital market financing for companies and demand among institutional investors for specialist trading partners with local expertise.
The planned acquisition of the Swiss broker Helvea will represent an important milestone for business with institutional investors (see press release of 30.11.2012). Following the merger, clients of both institutions will benefit from a wider regional focus on equities from Germany, Austria and Switzerland.
Based on these assumptions, targeted and forecast growth for the years 2013 and 2014, as measured by average pre-tax earnings (3-year average), is also expected to brighten prospects for average annual profit before tax.
| Key figures in EUR m | 2012 | 2011 | Change |
| Net interest income and other current income | 6.5 | 6.9 | -5.1% |
| Net fee and commission income | 39.2 | 31.2 | 25.6% |
| Net trading income | 35.5 | 46.3 | -23.3% |
| Administrative expenses | -93.2 | -89.8 | 3.9% |
| Other income/expenses | 3.9 | 1.1 | >100% |
| Loan loss provisions | 19.2 | 5.3 | >100% |
| Operating result | 11.1 | 1.0 | >100% |
| Net profit after taxes | 8.8 | 0.7 | >100% |
| Equity | 111.6 | 105.0 | 6.3% |
| Fund for general banking risks | 27.3 | 30.1 | -9.3% |
| Equity ratio | 21.6% | 19.6% | 10.4% |
End of Corporate News
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| Language: | English |
| Company: | Baader Bank AG |
| Weihenstephaner Str. 4 | |
| 85716 Unterschleißheim | |
| Germany | |
| Phone: | +49 89 5150 1882 |
| Fax: | +49 89 5150 29 1880 |
| E-mail: | [email protected] |
| Internet: | www.baaderbank.de |
| ISIN: | DE0005088108 |
| WKN: | 508810 |
| Listed: | Freiverkehr in Berlin, Düsseldorf, Hamburg, Hannover, München (m:access), Stuttgart; Frankfurt in Open Market |
| End of News | DGAP News-Service |
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