- The operating result was EUR 12.7 million higher than in 2014.
- Thanks to the positive development of the Market Making segment, the trading profit was 20% higher than in 2014.
- The cost reduction measures initiated in 2015 are already showing positive effects.
- Baader Bank reported a loss before taxes of EUR 7.6 million for fiscal year 2015, due to non-recurring writedowns and impairments in the investment book.
- Total assets declined by 13% to EUR 576 million, mainly due to the reduction of risk assets.
- The equity ratio rose to 17%.
Unterschleißheim, March 18, 2016.
The Baader Bank Group increased both its operating result and its gross profit considerably over the respective prior-year figures in fiscal year 2015. The modest decrease in commission income, which declined by 4% to EUR 50.1 million, resulted in large part from the cessation of interbank bond trading in 2014. Nonetheless, net commission income contributed 45% of the bank's total income, mainly thanks to the positive development of the Investment Banking segment.
The trading profit rose substantially, by 20% to EUR 52.6 million, as a result of Baader Bank's stepped-up trading activity in exchange-traded funds, ETPs, and foreign securities. Moreover, the acquisition of additional order books and over-the-counter trading partners had a positive effect on Baader Bank's competitive position in the Market Making segment.
As can be expected considering Baader Bank's business model, net interest income and current income accounted for only 2% of total income.
Total expenses were nearly unchanged from last year, having risen by only 3% to EUR 119.6 million. The reduction of personnel expenses and the lower-than-budgeted other administrative expenses had a positive effect on the overall result. Thus, the intensive cost reduction program initiated in 2015 is already producing positive effects and should continue to produce positive effects in the future.
However, Baader Bank recognized impairment losses of EUR 20.6 million in 2015. The increase over the prior year resulted mainly from impairments of investment book positions and securities classified as noncurrent assets. Baader Bank reported a consolidated loss of EUR 7.6 million before taxes for 2015.
Including the fund for general banking risks, the Baader Bank Group's equity amounted to EUR 122 million as of December 31, 2015 (December 31, 2014: EUR 132 million), and the equity ratio came to 17% (December 31, 2014: 16%).
Business developments in 2015
In the Market Making segment, Baader Bank won nearly all the IPO order books awarded by the Frankfurt Stock Exchange in 2015. In over-the-counter trading, additional third-party banks were connected to the trading systems of Baader Bank. As a result, the order volume increased considerably. Baader Bank supported the migration of stock exchange systems at the Munich Stock Exchange (MAX-One 2.0, gettex) and the Stuttgart Stock Exchange (XITARO).
Thus, Baader Bank strengthened its market position as one of the biggest order book-keeping institutions in the German-speaking world and reinforced the high quality of its trading activity in its traditional core business segment.
In the Investment Banking segment, the institutional equities and derivatives business of Baader Bank and its Swiss subsidiary Helvea exhibited a positive development in 2015. Thus, the integration of the Helvea Group into Baader Bank as the local broker for international clients in the German-speaking countries of Germany, Austria, and Switzerland has been successfully completed. The bank's own ETF Sales Desk was expanded further, thereby creating significant potential in the effort to deepen and broaden client relationships on the investor side.
Baader Bank advised on numerous capital market transactions in 2015 and occupied the top rank in the Equity League Tables for transactions up to EUR 100 million in the countries of Germany and Austria.
Outlook for 2016
Baader Bank will focus on further expanding its operating business in 2016.
In the Market Making segment, the bank will strive to increase its market shares in its stock exchange activities and connect additional third-party banks in Germany and abroad to its trading systems in the OTC business. The bank is already making preparations for MiFID II and the introduction of a new stock exchange system at the Frankfurt Stock Exchange.
In the Investment Banking segment, Baader Bank opened a new office in Boston, Massachusetts, in February in order to better serve investors on location. The Zurich office will be expanded further during the course of 2016. Baader Bank expects capital market transactions to rise in the current year and plans to intensify its business with asset managers. The bank will also expand its offering of services for the FinTech industry (e.g., "Robo-Advisors").
"The basic conditions in the markets in which Baader Bank operates were very challenging last year. Securities markets were characterized by high volatility in the equity market and growing uncertainty among investors worldwide," said Nico Baader, Chairman of the Executive Board of Baader Bank.
"The Executive Board in its new composition resolved to focus on the two core business segments of Market Making and Investment Banking and took steps to streamline both the product portfolio and the equity investment portfolio and pare back peripheral activities in 2015. Our future activities will be focused on expanding the operating core business," added Nico Baader.
The 2015 Annual Report of Baader Bank AG will be published in the "Financial Reports" section of Baader Bank's website in early May 2016, together with the notice of meeting for the annual general meeting to be held on May 22, 2016.
| Baader Bank Group | 2014 | 2015 | Change from Prior Year | Change from Prior Year |
| EUR'000 | EUR'000 | absolute/ EUR'000 | relative/% | |
| Income | 116,512 | 111,997 | -4,515 | -4% |
| Net interest income and current income | 3,227 | 2,495 | -732 | -23% |
| Net commission income | 52,402 | 50,147 | -2,255 | -4% |
| Trading profit/loss | 43,761 | 52,553 | 8,792 | 20% |
| Other income | 17,122 | 6,802 | -10,320 | -60% |
| Expenses | 116,277 | 119,590 | 3,313 | 3% |
| Personnel expenses | 61,037 | 54,209 | -6,828 | -11% |
| Administrative expenses and other operating expenses | 42,044 | 42,242 | 198 | 0% |
| Depreciation, amortization, and impairments | 9,920 | 20,579 | 10,659 | > 100% |
| Net income/expenses from interests in associated companies | 3,276 | 2,560 | -716 | -22% |
| Earnings before taxes (EBT) | 235 | -7,593 | -7,828 | > -100% |
| Operating result* | -12,648 | 52 | 12,700 | > 100% |
| Total assets | 663,293 | 576,330 | -86,963 | -13% |
| * Gross profit less personnel and other administrative expenses and less depreciation, amortization, and impairments of intangible assets and property, plant, and equipment (Gross profit = net interest income and current income, net commission income and trading profit/loss |
Contact
Florian E. Schopf
Managing Director
Corporate Policy Department/Investor Relations
T +49 89 5150 1013
florian.schopf@baaderbank.de
Susanne Stickler
Manager Investor Relations
T +49 89 5150 1879
susanne.stickler@baaderbank.de
Baader Bank AG
Weihenstephaner Straße 4
85716 Unterschleissheim, Germany
www.baaderbank.de