Active investors and traders lift DAB bank’s first-quarter profit before taxes to €8.65 million
Compared to the first quarter of last year, DAB bank executed 30% more trades for customers / Customer assets reach new record level / Three first-place titles in this year’s Broker Elections
Munich, May 3, 2011.
Fueled by a substantial increase in trades executed for customers, which drove the bank’s net commission income higher, DAB bank generated a solid profit before taxes of €8.65 million in the first quarter of 2011, marking a moderate increase over the corresponding year-ago figure (Q1 2010: €8.54 million).
In the period from January to March 2011, DAB bank executed 1,379,749 trades for its customers, that being greater than 30% more trades than were executed in the first quarter of 2010 (Q1 2010: 1,047,967). “The investors and traders of our B2C unit are showing more confidence in the markets again. That is also reflected in the fact that, immediately after the catastrophe in Japan, 45% of trades executed were buy orders and customer trading activity was generally on a higher level than a year ago,” said Dr. Markus Walch of the DAB bank Management Board. “Another contributing factor has been the many new products and services we have introduced for our traders, such as FOREX currency trading and combination orders. Despite the investments we have made in our program for the future, ‘DAB one,’ we generated a very solid profit in the first quarter of 2011.”
The high level of customer trading activity provided a boost to the bank’s net commission income. At €24.55 million, it was more than 9% higher than the highest figure registered previously, in the fourth quarter of 2008. As expected, the bank’s net financial income declined as a result of the situation in the financial markets, by slightly more than €3 million to €13.79 million. Nonetheless, the net interest income of €12.85 million was stable, being only slightly less than 3% lower than the corresponding year-ago figure (Q1 2010: €13.19 million). At €29.78 million, the administrative expenses in the first quarter of 2011 were nearly unchanged from the first quarter of last year.
At €27.07 billion, the total volume of customer assets held in custody continued to rise in the first three months of 2011, reaching new record levels in both business units of individual investors (B2C) and independent asset managers (B2B).
The number of securities accounts carried for customers of DAB bank’s B2C unit rose to 512,961; but due to a decline in the B2B unit, the total number of securities accounts fell slightly, to 619,467. “We continue to focus on active investors and traders,” said Markus Gunter of the DAB bank Management Board. “Our new customer acquisition campaign is squarely aimed at these target groups. For us, the quality of new customers is the most important criterion. Thus, we are pleased that the number of trades executed per securities account in the first quarter of 2011 was about one third higher than the corresponding year-ago figure.”
The results of this year’s “Broker Elections” made it clear that customers are highly satisfied with the products and services of DAB bank. DAB bank was awarded first place in all three categories in which it competed; thus, it was named “Best Investment Fund and ETF Broker,” “Best Certificate Broker” and “Best FOREX Broker” of the year 2011. And in the customer survey for best-loved bank conducted every year by the magazine €uro, DAB bank achieved first place in the “brokerage” category.
The new products and services launched in the first quarter as part of the “DAB one” program were likewise aimed at further increasing the satisfaction of DAB bank’s customers. Using the DAB MasterCard, for example, customers can now withdraw cash without paying a fee from ATMs all around the world. And thanks to a new app, they can also conduct trades and conduct their banking business on their iPads. And they can choose from an even wider selection of no-fee ETF-linked savings plans. By taking advantage of the new “Star Partner ETF” program, moreover, customers can trade the ETFs of selected partners for a low flat fee of €4.95 per trade.
Key indicators and operating results of DAB bank in the first quarter of 2011, according to IFRS:
|Trades executed per securities|
|Customer assets||€ bn||27.07||26.79||24.48|
|thereof in investment funds||€ bn||12.73||12.76||11.78|
|Net financial income*||k€||13,787||20,627||16,989|
|Net commission income||k€||24,547||23,545||22,461|
|Profit before taxes||k€||8,651||4,866||8,538|
|Net profit for the period||k€||5,866||-26||5,869|
|Cost-income ratio||in %||77.5||88.5||77.7|
|Earnings per share||€||0.08||0.00||0.08|
* Net financial income = Net interest income before credit risk provisions + Trading profit/loss + Profit/loss from investments.