Baader Bank's semi-annual results increase once again
All figures are preliminary and unaudited Group figures
In the first half of 2021, Baader Bank's earnings before tax were EUR 43.8 million, exceeding the previous year's result by more than 80% (first half of 2020: EUR 24.0 million). The Group's total earnings increased by 21% to a total of EUR 135.6 million (first half of 2020: EUR 112.0 million). Operating profit rose to EUR 59.4 million (first half of 2020: EUR 52.7 million). EUR 18.4 million were added to the fund for general banking risks in the first half of the year (first half of 2020: EUR 15.0 million).¹
The earnings contributions of the three subsidiaries of the Baader Bank Group, the Swiss Baader Helvea Group, Baader & Heins Capital Management AG and the Selan Group, were highly consistent compared to the previous half year and, overall, contributed positively to the semi-annual results.
Customer groups with an affinity for stock markets ensure high trading activities and sales volumes
Revenues developed significantly positively overall, with a continued stable trend, particularly with regard to the trading platforms where Baader Bank acts exclusively as a market maker. The trading sentiment among international institutional investors and on the capital and IPO markets was very lively in the first half of the year. Trading income rose by a further 36%, bringing it to EUR 115.1 million (first half of 2020: EUR 84.7 million). Commission revenues increased to EUR 53.2 million (first half of 2020: EUR 51.4 million). Overall, net commission income decreased by EUR 12.5 million to EUR 9.7 million. This can be explained by trade-induced commission expenses, which, due to the high trading volumes, lead to a structurally lower commission income overall (first half of 2020: EUR 22.2 million).
Current income and net interest income improved somewhat at EUR -0.5 million (first half of 2020: EUR -1.5 million). Revenue remained virtually constant at EUR 5.7 million (first half of 2020: EUR 5.6 million). Other income increased to EUR 5.6 million (first half of 2020: EUR 1.0 million).
Continued growth rates in the B2B platform business with FinTech account and securities account clients
The account and securities account business is growing consistently. Compared to the same period in the previous year, the number of accounts and securities accounts increased by more than 300% to approx. 315,000 (first half of 2020: approx. 73,000). The securities account volume increased by around 70% to a total of nearly EUR 9.3 billion (same period in the previous year: EUR 5.5 billion). The high level of interest in investing, particularly among private investors, continues to spur on B2B business with online asset managers and neo-brokers. Among the users of the digital offers are, on the one hand, active client groups, which operated increasingly in the short to medium term, and on the other hand long-term investors with a preference for ETFs and savings plans.
Stable cost trends and lower-risk provisioning expenses
Total expenses increased moderately in the first half of 2021 compared to the same period in the previous year to EUR 91.8 million (first half of 2020: EUR 88.0 million). The increase is due in part to the higher amount added to the fund for general banking risks. While personnel expenses rose by EUR 9.0 million to EUR 42.3 million, the overall trend in expenses still represents a disproportionately low increase of around 4% compared to income and earnings growth. This particularly demonstrates the scalability of the business activities of Baader Bank.
Other administrative expenses and other operating expenses, as well as depreciation and amortisation on intangible assets and property, plant and equipment, remained virtually consistent with the same period in the previous year. Expenses for other depreciation and amortisation and risk provisions, on the other hand, reduced significantly by 89% to EUR 1.4 million for the first half of 2021 (first half of 2020: EUR 13.0 million). These include amortisation and write-ups on receivables and certain securities as well as allocations for provisions in the lending business.
As of 30/06/2021, the number of employees (in full-time positions) in the Group amounted to 417 (31/12/2020: 387).
Balance sheet total increases to EUR 1.2 billion
As at 30/06/2021, Baader Bank's total assets had risen by around 39% since 31/12/2020 to EUR 1,234.3 million (31/12/2020: EUR 888.6 million). The balance sheet equity ratio amounted to 12.7% (31/12/2020: 13.6%), and the Common Equity Tier 1 ratio (CET1 ratio) amounted to 15.9% (31/12/2020: 14.6%). The continued growth in net assets combined with improving capital ratios demonstrated the strength of the capital resources.
Outlook - focus on growth
In the second half of 2021, the focus of activities will be on securing and expanding the strong market position of Baader Bank within on- and off-exchange market making in Germany and the successful development of the platform business, including FinTechs, digital asset managers and, in particular, neo-brokers. The expansion of the brokerage business is also on the agenda. Whereas individual market participants are withdrawing from the brokerage sector, Baader Bank continues striving in this regard to achieve sustainable business expansion and an increase in market share.
The conditions are ideal for Baader Bank's growth activities: with its efficient IT and process infrastructure, it operates as a reliable partner in the global capital market environment and in securities-related trading and banking services. The continued high trading volumes can reliably be handled thanks to Baader Bank's solid capital and liquidity position, even during particularly volatile market phases. Baader Bank 2.0 is therefore in pole position for the new stock exchange culture, and not just in Germany.
With regard to the financial figures, Baader Bank is very much on target and maintains its forecast. For the rest of the year, the Board of Directors continues to expect earnings before tax at the Group level to exceed the 2020 result of EUR 56.0 million, if the conditions remain the same. However, the development of the first half of 2021 will not necessarily continue for the entire year.
Overview of key figures - 1st half-year 2021 ²
All figures are preliminary and unaudited
|BAADER BANK GROUP |
Key P&L figures
|1st half-year 2021 |
|1st half-year 2020 |
|Income ||135.6 ||112.0 ||21.0 |
|Of which || || || |
|Net interest income and current income ||-0.5 ||-1.5 ||68.0 |
|Net commission income ||9.7 ||22.2 ||-56.5 |
|From commission revenue ||53.2 ||51.4 ||3.5 |
|Net trading income ||115.1 ||84.7 ||35.9 |
|Revenue ||5.7 ||5.6 ||2.0 |
|Other income ||5.6 ||1.0 ||>100.0 |
|Net income from interests in associates ||0.0 ||0.02 ||-100.0 |
| || || || |
|Expenses ||-91.8 ||-88.0 ||4.4 |
|Of which || || || |
|Personnel expenses ||-42.3 ||-33.3 ||27.0 |
|Other administrative expenses and other operating expenses ||-25.5 ||-22.7 ||12.6 |
|Amortisation and depreciation on intangible assets and property, plant and equipment ||-4.1 ||-4.0 ||4.3 |
|Other amortisation and depreciation/Risk provision ||-1.4 ||-13.0 ||-89.2 |
|of which write-downs/write-ups of loans and advances and certain securities as well as additions to provisions in lending business ||-1.4 ||-13.0 ||-89.2 |
|Additions to the fund for general banking risks ||-18.4 ||-15.0 ||22.6 |
| || || || |
|Earnings before tax (EBT) ||43.8 ||24.0 ||82.0 |
| || || || |
|Operating result³ ||59.4 ||52.7 ||12.7 |
|BAADER BANK GROUP |
Key balance sheet figures
| ||30/06/2021 |
|Total assets || ||1,234.3 ||888.6 ||38.9 |
|Balance sheet equity ratio || ||12.7% ||13.6% ||- |
|Common Equity Tier 1 ratio (CET 1) || ||15.9% ||14.6% ||- |
¹ The transfer to the fund for general banking risks also takes into account the statutory transfer to the fund for general banking risks in accordance with Section 340e HGB at the end of the year.
² Financial figures of the Baader Bank Group; all figures preliminary and unaudited; reported in accordance with the provisions of the German Commercial Code (Handelsgesetzbuch - HGB).
³ Gross profit (= net interest income + current income + net commission income and trading income + revenues) less personnel expenses and other administrative expenses as well as amortisation/depreciation on intangible assets and property, plant and equipment.
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