In the first nine months of 2014, the Baader Bank Group posted an operating profit of EUR4.2 million (first nine months of 2013: loss of EUR1.9 million). Net profit after taxes stood at EUR3.0 million (first nine months of 2013: loss of EUR2.9 million). Equities market-making enjoyed marked earnings growth, while Corporates & Markets contribution to results also increased significantly.
The rise in net trading income of nearly 18% over the first nine months to EUR36.3 million was mainly due to the positive trend in equities market-making. In the third quarter, Baader Bank was engaged by stock market newcomers Zalando and Rocket Internet as a specialist for trading on the Frankfurt Stock Exchange.
Net fee and commission income fell year on year to just under EUR37.7 million, due primarily to falls in income at the subsidiaries and in Inter Dealer Brokerage Fixed Income. This area of the business was wound up with effect from 30 September 2014 as a result of the ongoing technical and regulatory restructuring. Corporates & Markets saw steady increases in income from customer business and capital market transactions. Baader Bank's activities during the reporting period included acting as joint global coordinator for the capital increase at Westgrund AG and as sole bookrunner for the same process at Medigene AG. In line with expectations, net interest income continued to decline. This trend was attributable to the current level of interest rates and the policy of investing freed-up liquidity in higher-rated bonds.
Administrative expenses were kept at virtually the same level as last year. As at 30 September 2014, the Baader Bank Group employed 490 staff (30 September 2013: 478).
Taking into account the fund for general banking risks, the Group's own resources stood at EUR137.9 million as at 30 September 2014 (31 December 2013: EUR135.4 million). The equity (leverage) ratio on the reporting date, 30 September 2014, was 18.5%.
Baader Bank's future business development will depend very much on what will happen on the capital markets, something that is impossible to predict. The result for 2014 as a whole will also be adversely affected by necessary restructuring costs connected with winding up the Inter Dealer Brokerage Fixed Income business.
| Key figures in EUR million | Q1-3 2014 | Q1-3 2013 |
| Net interest income | 1.6 | 3.4 |
| Current investment income | 1.4 | 1.4 |
| Net fee and commission income | 37.7 | 39.8 |
| Net trading income | 36.3 | 30.8 |
| Administrative expenses | -82.3 | -80.4 |
| Other income and expenses | 9.7 | 3.2 |
| Operating profit | 4.2 | -1.9 |
| Net profit/loss after taxes | 3.0 | -2.9 |