Baader Bank's results for the first nine months confirm the continued positive development of operating results; period result lower due to portfolio valuation effects.
In the first nine months of 2015, Baader Bank increased its operating result appreciably, by EUR 9.3 million, over the corresponding figure for the first nine months of last year. The two pillars of net commission income and trading profit showed sustained strength, while net interest income was less than the respective year-ago figures, as expected.
The net commission income of EUR 39.2 million was 4.1 percent higher than the corresponding figure for the first nine months of 2014. This increase resulted in large part from the very good performance of the institutional equities and derivatives business of Baader Bank and the Swiss subsidiary Helvea, and from the excellent performance of the bank's capital market activities. This is an especially positive development considering the discontinuation of commission income from the tied agency business in fixed-income securities.
The trading profit exhibited a similarly positive development, rising by 11.3 percent to EUR 40.4 million. The main drivers of this positive performance were market-making in funds and exchange-traded products, in foreign equities, and over-the-counter trading in general.
Compared to the first nine months of last year, administrative expenses were reduced by 7.5 percent to EUR 69.5 million. This decrease resulted mainly from the lower variable compensation components and from the cost reduction measures initiated within Baader Bank at the start of this year.
The general declines in the listed prices of equities and corporate bonds, which were massive in some cases, caused substantial valuation losses in Baader Bank's investment book in the months of August and September 2015. For this reason, the "other result" was EUR 14.9 million less than the corresponding figure for the first nine months of 2014. The negative valuation result more than offset the steady positive development of the operating result, leading to a negative result from ordinary activities of EUR -1.4 million.
"Even though the temporary valuation losses in the bank's securities holdings pushed the overall result into negative territory, the results for the first nine months of 2015 show very clearly that Baader Bank's operating business is growing at a steady pace," said Nico Baader, Chairman of the Board of Managing Directors.
Including the reserve for general banking risks, the total capital of Baader Bank Group amounted to EUR 129.6 million as of September 30, 2015 (December 31, 2014: EUR 132.0 million). The capital ratio was 16.9 percent (December 31, 2014: 16.4 percent).
The Interim Report for the First Nine Months of 2015 is available on Baader Bank's website in the "Financial reports" section.
| Excerpted from the income statement, in EUR'000 | 01/01/-09/30/2015 | 01/01/-09/30/2014 |
| Net interest income, including current income | 1,511 | 2,964 |
| Net commission income | 39,205 | 37,667 |
| Trading profit/loss | 40,351 | 36,255 |
| Administrative expenses | -69,485 | -75,152 |
| Operating result | 3,919 | -5,430 |
| Other result, including risk provisions | -5,280 | 9,659 |
| Result from ordinary activities | -1,362 | 4,229 |
| Profit/loss after taxes | -1,984 | 2,746 |
Contact:
Baader Bank AG
Florian Schopf
Managing Director
Weihenstephaner Strasse 4
85716 Unterschleissheim, Germany
T +49 89 5150 1013
F +49 89 5150 29 1013
M +49 160 71888 26
florian.schopf@baaderbank.de
www.baaderbank.com