DGAP-News

Baader Bank significantly improves operating performance despite volatile financial market conditions in the first half of 2015

DGAP-News: Baader Bank AG / Key word(s): Half Year Results
Baader Bank significantly improves operating performance despite
volatile financial market conditions in the first half of 2015

29.07.2015 / 08:00

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Baader Bank significantly improves operating performance despite volatile
financial market conditions in the first half of 2015

Despite a volatile capital market environment, the Baader Bank Group
achieved a substantial improvement in its operating performance, with net
fee and commission income and net trading income both well up on the
prior-year period while expenses began to see the benefits of the group's
cost-cutting program.

Net interest income was negative at EUR-0.1 million, following the
portfolio restructuring towards non-interest-bearing assets. The overall
current investment income rose to EUR1.2 million.

Net fee and commission income improved by 19.8%, reaching EUR27.3 million.
This growth was mainly attributable to a marked increase in commission
income from the Corporates & Markets division. The division significantly
increased its commissions from both the cash equities business and from
capital markets transactions. This increase more than offset the loss of
income from the interbank bond trading business that was discontinued last
year. Baader Bank further strengthened its position in capital markets
business in the first half of 2015, acting as lead manager in four
successful placements.

Net trading income also increased significantly, rising by 21.2% to EUR31.7
million, largely thanks to a good performance in market making for funds
and ETFs. The increase in OTC trading is especially encouraging. During the
period, Baader Bank concluded new agreements with additional prominent
order flow providers in this area.

Administrative expenses were slightly higher, increasing by 2.2% to EUR51.8
million overall. This heading includes personnel expenses, which rose by
5.8% as a result of higher variable remuneration and higher pension costs.
However, the cost-cutting measures implemented at the start of the year are
already bearing fruit, and meant that other administrative expenses could
be reduced by 3.0%. The programme is expected to continue having a positive
impact on Baader Bank's earnings in the second half of 2015 and from 2016
onwards.

Despite the encouraging performance by the operating units, operating
profit declined by 6.7% to EUR3.5 million. This was attributable to a