Baader Bank considerably increases operating earnings
Benefitting from a favourable capital market environment Baader Bank considerably increased its net trading and net fee and commission income in the first quarter 2015, thereby outperforming the very positive corresponding quarter of the previous year. Net trading income grew significantly to EUR19.7 million, a rise of 22%. A steep growth in turnover in the equities, funds/ETFs and securitised derivatives business segments made a major contribution to this. Bond trading on the other hand was impacted by the ECB's buyback programme.
Investment Banking's performance was also developed also very favourably. Driven especially by good business development in the Corporates & Markets business and Helvea companies, net fee and commission income rose by 12% to EUR14.4 million. The subsidiary Baader & Heins Capital Management AG also made a positive contribution to results, while Conservative Concept Portfolio Management AG posted a small loss.
As expected, net interest income continues to decline, due primarily to portfolio reallocations to non-interest-bearing assets. The income from these investments is predominantly reflected in 'Other income and expenses'.
Administrative expenses grew by 7.9%, or EUR2.3 million, to EUR31.1 million. This is attributable in particular to higher variable remuneration components resulting from increased earnings. In addition, personnel expenses rose due to a new remuneration model for employees in operational units, which was introduced in 2015 as a result of the new Remuneration Regulation for Institutions (Institutsvergütungsverordnung).
At 31 March 2015 the Baader Bank Group employed a total of 469 people (31 March 2014: 478).
Operating profit increased by 68% to EUR5.5 million (Q1 2014: EUR3.3 million).
Net profit after tax rose by a substantial 85% to EUR4.8 million as at 31 March 2015 (Q1 2014: EUR2.6 million).
Taking into account the fund for general banking risks, the Baader Bank Group's total own resources as at 31 March 2015 stood at EUR137.3 million (31 December 2014: EUR132.0 million). The equity ratio as at 31 March 2015 was 15.8%.
The 2014 consolidated annual report and the report for the first quarter of 2015 are available on our website (financial statements, quarterly report).
| Key figures in EUR million | Q1 2015 | Q1 2014 |
| Net interest income | -0.1 | 0.9 |
| Current income | 0.3 | 0.3 |
| Net fee and commission income | 14.4 | 12.9 |
| Net trading income | 19.7 | 16.2 |
| Administrative expenses | 31.1 | 28.9 |
| Other income and expenses | 1.4 | 2.5 |
| Risk provisions | 0.5 | -0.5 |
| Operating profit | 5.5 | 3.3 |
| Net profit after tax | 4.8 | 2.6 |