DGAP-News: Baader Bank AG / Keyword (s): Figures 9 months

Baader Bank Generates Profit Growth in Nine Month 2021

28.10.2021 / 07:30
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Baader Bank Generates Profit Growth in Nine Month 2021

Baader Bank achieves pre-tax profit of 49.0 million euros in the first nine months of 2021, an increase of 29% compared to the same period of the previous year (9M 2020: 38.1 million d ‘euros). The operating income at September 30, 2021 amounted to 64.7 million euros (9M 2020: 66.2 million euros).

After a very good start to 2021 overall and a very high level of turnover for the year, the Group’s total result over nine months amounted to 171.7 million euros. Compared to the already very strong growth in the same period last year, this represents an increase of 10% (9M 2020: 155.7 million euros). The high level of profits is based on trading income which continues to increase over nine months of comparison. This results in a total of 147.1 million euros (9M 2020: 119.8 million euros), which corresponds to a further increase of 23%. At 80.1 million euros, revenue from commission activity at the end of the first nine months was about 14% higher than in the previous year (9M 2020: 70.5 million euros) .

The contributions to the results of the three Baader Bank subsidiaries for the third quarter are slightly better than expected, therefore a positive contribution of 4.2 million euros is estimated for the first nine months of 2021 (9M 2020: 3.8 million d ‘euros). Revenues generated by the wind farm activity remained constant at 8.5 million euros (9M 2020: 9.0 million euros). Net interest income improved to -1.0 million euros (9M 2020: -2.2 million euros).

Total spending for the first nine months of 2021 is virtually unchanged from the previous year and stands at 122.7 million euros (9M 2020: 117.6 million euros). Investments were made mainly in IT resources, with an emphasis on human resources. Thus, personnel costs increased to 57.3 million euros (9M 2020: 48.7 million euros).

The result for the first nine months includes the transfer of 18.4 million euros1 to the fund for general banking risks (9M 2020: € 15.0 million) and to provisions and other non-regular amortization and depreciation charges of € 2.1 million as a provision for risk. (9M 2020: 13.2 M €).

At the end of the third quarter, the balance sheet total was up 65% to 1,463.7 million euros compared to December 31, 2020 (888.6 million euros). The balance sheet equity ratio is 10.8% (Dec. 31, 2020: 13.6%). The Common Equity Tier 1 (CET 1) rating as of September 30, 2021 is 17.3% (December 31, 2020: 14.6%).

As of September 30, 2020, the Group had 437 employees (full-time equivalent) compared to 388 as of December 31, 2020.

Market success defines the third quarter

The level of volatility in 2021 has so far been lower than in 2020, but due to its diverse business model and still digitally optimized process and infrastructure, Baader Bank is particularly successful in leveraging growth of the market. Baader Bank’s consistent earnings and earnings performance is based on its successful market positioning, promising strategic direction and prudent spending policy. Market successes can be translated into large-scale profit effects.

With over 380,000 securities accounts, optimized digital account opening processes, and automated securities account and trading processes, Baader Bank considers itself well positioned to continue growing the platform business. The level of 10.0 billion euros in deposits has been crossed. In Baader Bank’s business line market making, more trades have already been executed in the nine-month period 2021 than in 2020 as a whole.

In addition, Baader Bank successfully won mandates in the capital markets segment in the third quarter and for example supported the first European De-SPAC transaction with a German target company (HomeToGo). In addition, a capital increase was supported and successfully placed for Brain Biotech AG. With increased visibility in the markets, Baader Bank is optimistic about the capital markets environment and its rich future.

Stock markets continue to be very popular, in part because of low interest rates, the downstream effects of the pandemic, and direct, technical access to securities trading for new groups of investors. Baader Bank benefits directly from this through its B2B2C cooperation with asset managers and neo-brokers.

For the fourth quarter, the focus is on developing cooperation with fintech companies, digital asset managers and neo-brokers, among others, and on securing its successful position in the exchange market and over-the-counter market making in Germany. When it comes to its results, Baader Bank is still on target and sticks to its forecast of exceeding pre-tax profit from 2020 at the Group level, assuming the overall parameters remain unchanged.

Overview of key figures – 9M 2021²
All figures are preliminary and unaudited

Key figures of the income statement
9M 2021
millions of euros
9M 2020
millions of euros
in %
Returned 171.7 155.7 10.3
of which
Net interest income and current income -1.0 -2.2 54.5
Net commission income 10.6 26.7 -60.3
commission income 80.1 70.5 13.6
Net operating income 147.1 119.8 22.8
Returned 8.5 9.0 -5.6
Other income 6.5 2.4 170.8
Net income from investments in associates 0 0.04 -100.0
Expenses -122.7 -117.6 4.3
of which
Personal expenses -57.3 -48.7 17.7
Other administrative and other operating expenses -38.6 -34.5 11.9
Amortization and depreciation of intangible and tangible fixed assets -6.3 -6.2 1.6
Other depreciation and amortization / Provision for risks -2.1 -13.2 -84.0
Supplements to the fund for general banking risks -18.4 -15.0 22.7
Profit before tax (EBT) 49.0 38.1 28.6
Operational results ?? 64.7 66.2 -2.3
Key figures in the balance sheet
9M 2021
millions of euros
millions of euros
in %
Total assets 1463.7 888.6 64.7
Balance sheet equity ratio 10.8% 13.6%
Common Equity Tier 1 (CET 1) ratio 17.3% 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 article 340e HGB at the end of the year.
² Financial figures of the Baader Bank Group; all figures are preliminary and unaudited; declared in accordance with the provisions of the German Commercial Code (Handelsgesetzbuch – HGB).
³ Gross margin (= net interest income + current income + net commission income and trading income + income) less personnel costs and other administrative costs as well as amortization / depreciation on intangible and tangible fixed assets.

For more information and media requests:

Florian E. Schopf
General manager
Company spokesperson
Group Strategy & Communication Manager

T +49 89 5150 1013
+49 160 7188826

[email protected]

Baader Bank SA
Weihenstephaner Street 4
85716 Unterschleissheim, Germany

28.10.2021 Distribution of a Corporate News, transmitted by DGAP – a service of EQS Group AG.
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