Corporate Communications vom 16.02.2009
DAB bank posts pretax profit of EUR 11.5 million for fiscal year 2008
Strong profit in the fourth quarter / Dividend of 11 cents per share proposed / Administrative expenses reduced by means of active cost management
Munich, February 16, 2009
The DAB bank Group, Munich, posted a positive pretax profit of EUR 11.49 million for fiscal year 2008. In terms of its operating performance, that is excluding the valuation effects in the bank's investment portfolio in the third quarter, the pretax profit for the year would have been EUR 39.57 million, not far below the record profit of 2007 (EUR 45.52 million). The fourth-quarter pretax profit was EUR 10.01 million. "In the crisis year of 2008, the business model of DAB bank proved to be robust and viable," said Alexander von Uslar of the DAB bank Management Board. "Despite the unprecedented turmoil in the capital markets and the associated restraint in the trading behavior of investors, we managed to generate a solidly positive profit for the full year, thanks in no small part to our strong performance in the fourth quarter."
After deduction of taxes and minority interests, the net profit of DAB bank came to EUR 8.36 million. At the annual shareholders' meeting to be held on May 14, 2009, the management will propose distributing the entire net profit to shareholders in the form of a dividend of 11 cents per share. Once again, the dividend will be paid on a tax-free basis.
The net commission income of EUR 108.42 million was 24.2 % lower than the corresponding previous-year figure. Due to the valuation effects in the investment portfolio in the third quarter, the net financial income, defined as the sum of the net interest income, the trading profit or loss and the profit or loss from investments, declined from the previous year: At EUR 28.36 million, it was 23.1 % less than the corresponding figure for 2007. By means of active cost management, however, DAB bank lowered its administrative expenses by nearly EUR 12 million from EUR 141.02 million in 2007 to EUR 129.21 million in 2008.
Due to the plummeting stock markets, the customers of DAB bank were less active in 2008 than in 2007. In its individual investors unit (B2C), DAB bank executed 4.43 million trades for its customers, 10.8 % lower than the previous-year figure. All together, including the business customers unit (B2B) and FondsServiceBank, the number of trades executed declined 19.7 %, from 11.51 in 2007 to 9.24 million in 2008.
The number of securities accounts carried for customers in the B2C and B2B segments continued to grow, posting net gains of 16,500 (B2C) and almost 2,000 (B2B) in 2008. In this respect, DAB bank experienced disproportionate growth especially in the fourth quarter. The fact that the total number of securities accounts declined slightly, by 1.4 %, from 1,106,322 in 2007 to 1,091,013 in 2008, was due exclusively to a planned reduction of more than 33,000 securities accounts in the FondsServiceBank segment.
The volume of customer assets held in securities accounts and deposits was heavily affected by the worldwide drop in stock markets and indexes. Whereas the DAX lost more than 40 % of its value in 2008, for example, the volume of customer assets under administration in DAB bank declined by only slightly less than 30 %, from EUR 32.82 billion to EUR 23.16 billion.
"Due to the situation in the financial markets, we are unable at this time to make a reliable forecast of the business developments in 2009," Alexander von Uslar said. "The developments in fiscal year 2008 made it clear that DAB bank can be successful even amid an extremely difficult market environment. Therefore, we are cautiously optimistic as we look forward to the new year."
The figures provided herein have not been audited. DAB bank will publish its annual report for fiscal year 2008 on March 17, 2009.
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