News and financial reports

Baader Bank generates earnings growth in the nine-month period 2021

Baader Bank achieves earnings before taxes of EUR 49.0 million in the first nine months of 2021, an increase of 29 % compared with the same period of the previous year (9M 2020: EUR 38.1 mn). The operating result as at 30 September 2021 amounts to EUR 64.7 million (9M 2020: EUR 66.2 mn).

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

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

Total expenses for the first nine months of 2021 are almost unchanged compared to the previous year and amount to EUR 122.7 million (9M 2020: EUR 117.6 mn). Investments were made primarily in IT resources, with a focus on human resources. Thus, personnel expenses increased to EUR 57.3 million (9M 2020: EUR 48.7 mn).

The result for the first nine months includes the transfer of EUR 18.4 million¹ to the fund for general banking risks (9M 2020: EUR 15.0 mn) and provisions and other non-regular depreciation/amortisation and write-downs of EUR 2.1 million as risk provision. (9M 2020: EUR 13.2 mn).

At the end of the third quarter, total assets were up by 65 % to EUR 1,463.7 mn compared to 31 Dec 2020 (EUR 888.6 mn). The balance sheet equity ratio is 10.8 % (31 Dec 2020: 13.6 %). The Common Equity Tier 1 quote (CET 1) as of 30 Sep 2021 is 17.3 % (31 Dec 2020: 14.6 %).

As of 30 September 2020, the Group had 437 employees (in full-time equivalents) compared to 388 as of 31 December 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 diversified business model and a further digitally optimised process and infrastructure, Baader Bank particularly succeeds in leveraging market growth. Baader Bank's consistent earnings and profit performance is based on its successful market positioning, a promising strategic orientation and a conservative expense policy. The market successes can be converted into earnings effects at scale.

With more than 380,000 securities accounts, optimised digital account opening processes and automated securities account and trading processes, Baader Bank considers itself well positioned for further growth in the platform business. The level of EUR 10.0 billion in deposits was crossed. In Baader Bank's business line market making, more trades were executed already in the 2021 nine-month period than in the whole of 2020.

Furthermore, 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). Additionally, a capital increase was successfully supported and placed for Brain Biotech AG. With a raised profile in the markets, Baader Bank is looking to the capital market environment with its rich future with optimism.
Outlook

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

For the fourth quarter, the focus is on further developing the cooperation business with Fintech companies, digital asset managers and neo-brokers, among others, and securing its successful market position in exchange and over-the-counter market making in Germany. With regard to its earnings, Baader Bank is still on target and sticking to its forecast of exceeding the pre-tax profit from 2020 at Group level, under the assumption that the overall parameters remain unchanged.

Overview of key figures - 9M 2021 ²
All figures are preliminary and unaudited

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 Section 340e HGB at the end of the year.
² Financial figures of the Baader Bank Group; all figures preliminary and unaudited; reported in accordance with the provisions of the German Commercial Code (Handelsgesetzbuch - HGB).
³ Gross profit (= net interest income + current income + net commission income and trading income + revenues) less personnel expenses and other administrative expenses as well as amortisation/depreciation on intangible assets and property, plant and equipment.

For further information and media enquiries:

Florian E. Schopf
Managing Director
Company Spokesperson
Head of Group Strategy & Communication

T +49 89 5150 1013
M +49 160 7188826

florian.schopf@baaderbank.de
https://www.baaderbank.de

Baader Bank AG
Weihenstephaner Strasse 4
85716 Unterschleissheim, Germany