Baader Bank with strong first quarter results in 2022

All data is based on provisional and unaudited consolidated figures

Baader Bank recorded total earnings before tax of EUR 10.3 million for the first quarter of the current financial year (Q1 2021: EUR 32.8 million). Although this is below the result for the record quarter Q1 2021, it is still in line with the strong first quarter in 2020 and the strong last quarter in 2021.

The development compared to the previous year's extraordinary first quarter is due to the normalising trend in volatility compared with the market fluctuations seen during the exceptional years of 2020 and 2021. Baader Bank is compensating for the effect of lower volatility with a steadily increasing order flow from its in-house platform business.

The subsidiaries included in the Group all made a positive contribution to the quarterly result. The operating result as at 31 March 2022 amounted to EUR 23.6 million (Q1 2021: EUR 49.1 million). As at the first quarter of 2022, return on equity after tax was 12.7% (Q1 2021: 89.6%). Earnings per share stood at EUR 0.11 (Q1 2021: EUR 0.59).


Further growth in account business and stable mandate situation in capital markets business

The collaboration and securities account business continues to show rapid growth. At the end of the first quarter 2022, Baader Bank was managing around 627,000 securities accounts (31/12/2021: 502,000), meaning that the deposit volume saw an increase of approx. 13 %. This growth affects the number of trades and trading volumes, with the total number of orders increasing in comparison with the same quarter of the previous year and the previous quarter.

In the capital markets business Baader Bank has, among other things, advised on a capital increase and has acted as a specialist on several occasions for new listings, particularly on the Frankfurt Stock Exchange, including once again for a Special Purpose Acquisition Company (SPAC).

Total revenues for the first quarter of 2022 stood at EUR 57.0 million (Q1 2021: EUR 91.8 million). At EUR 48.8 million, the trading result remains at a high level (Q1 2021: EUR 76.8 million). Commission income decreased to EUR 5.0 million (Q1 2021: EUR 8.4 million). This is due to trade-related commission expenses that overcompensate for the actual increases in commission income.

Interest income remains characterised by the low-interest-rate environment and, together with current income, amounted to EUR 0.4 million (Q1 2021: EUR -0.3 million), i.e. at the level of the same quarter of the previous year. Revenues fell to EUR 2.5 million (Q1 2021: EUR 3.1 million). At the end of the quarter, other income stood at EUR 1.1 million (Q1 2021: EUR 3.8 million).

Growth investments in personnel and IT infrastructure

Total expenses at the end of the first quarter of 2022 amounted to EUR 46.7 million (Q1 2021: EUR 58.9 million). Personnel expenses amounted to EUR 17.6 million for the first quarter (Q1 2021: EUR 24.9 million). Due in particular to IT investments, the other administrative expenses and operating expenses rose to EUR 15.5 million (Q1 2021: EUR 12.6 million).

The quarterly result also includes expenses in the amount of EUR 9.8 million for the contribution to the fund for general banking risks.¹ The sum of the contribution has decreased in line with the development of the trading result.

As at 31 March 2022, the Group had 456 employees (in full-time equivalents) (31/12/2021: 448).

Total assets successively increased, strong CET 1 ratio

The robust growth is also reflected in the balance sheet total. At EUR 2.3 billion as of the reporting date 31 March 2022, this represents a further increase of 26 % compared with the end of last year (31 December 2021: EUR 1.82 billion).

The CET 1 ratio was increased slightly to 22.6 % as of 31 March 2022 (31/12/2021: 22.1 %).

Forecast for 2022 confirmed

Provided the general conditions remain unchanged, the Board of Directors expects market volatility to normalise during 2022, particularly in the second half of the year, when compared with the highly volatile preceding years of 2020 and 2021. At the same time, the number of securities transactions and the volume of sales are expected to continue developing at the same level as in the previous year due to the continuing growth of customers, market volumes and products.

In view of this financial year's first quarter, the Board of Directors of Baader Bank confirms the forecast made and expects the Baader Bank Group's earnings before tax for the 2022 financial year to be around EUR 30 million, with a cost-income ratio of around 80% and a return on equity after tax of around 15%.

Overview of key figures 2021 ²

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 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 3
M

Baader Bank AG
Weihenstephaner Strasse 4
85716 Unterschleissheim, Germany