DGAP-News: DAB Bank's profit before taxes jumps to EUR48.33

DGAP-News: DAB Bank AG / Key word(s): Final Results DAB Bank's profit before taxes jumps to EUR48.33 million in financial year 2014 27.02.2015 / 07:15 --------------------------------------------------------------------- DAB Bank's profit before taxes jumps to EUR48.33 million in financial year 2014 Positive non-recurring effect of EUR24.90 million resulting from change of majority shareholder and related liquidation of investments / Operating result also much higher Munich, February 27, 2015. The DAB Bank Group (Munich) generated a profit before taxes of EUR48.33 million in financial year 2014, which was more than twice as high as the prior-year result (2013: EUR19.22 million). This sharp increase resulted particularly from the change of the majority shareholder and the related liquidation of investments with the previous majority shareholder. On December 17, 2014, BNP Paribas Beteiligungsholding AG notified the Management Board of DAB Bank AG that UniCredit Bank AG had transferred its shares in DAB Bank AG to BNP Paribas Beteiligungsholding AG in accordance with the terms of the purchase agreement signed by the parties. Subsequently, the intragroup liabilities of UniCredit Bank AG to the DAB Bank Group were unwinded at fair market terms. Due in particular to the fact that interest rates had declined since the inception of these investments, DAB Bank realized non-recurring income of EUR25.59 million. At the same time, DAB Bank incurred non-recurring expenses of EUR0.70 million on this transaction, so that the unwinding of these investments increased the bank's profit before taxes by EUR24.90 million on balance. DAB Bank also performed very well in its operating business. Adjusted for the effect described above, the profit before taxes amounted to EUR23.44 million, reflecting an increase of about 22% over the prior-year result. DAB Bank registered substantial gains in all key operating indicators in 2014. The number of customers rose by around 30,000 to reach 650,549. At EUR36.37 billion, customer assets held in custody as of 31 December 2014 were almost EUR4 billion higher than the corresponding prior-year figure, mainly as a result of very strong net fund inflows. Furthermore, DAB Bank executed 5.52 million trades for its customers in 2014, reflecting a substantial increase of 11% over the very high number for 2013. "DAB Bank continued to generate strong operational growth in 2014," said Ernst Huber, Management Board Spokesman of DAB Bank. "Our award-winning checking account, our successful campaign to induce customers to switch their investment holdings to a securities account with DAB Bank, and our attractive offering of products and services for securities trading were among the factors that helped us acquire numerous new customers again last year, and they were even more active than in prior years." While the net commission income of EUR85.71 million was little changed from the prior-year figure, net interest income soared from EUR38.64 to EUR69.41 million. The unwinding of direct investments previously held with UniCredit Bank AG contributed EUR21.37 million to this increase of nearly EUR31 million over the prior-year result. The trading and investment profit of EUR5.87 million was 8% less than the prior-year figure. This figure also contains a positive non-recurring effect of EUR4.22 million. DAB Bank continued to practice strict cost discipline in 2014. Despite the non-recurring expense effect of EUR0.70 million, administrative expenses rose by only slightly less than 2% to EUR110.84 million, even as total operating income rose by 23%, from EUR130.27 million in 2013 to EUR159.99 million in 2014. The annual shareholders' meeting of DAB Bank AG will be held in Munich on May 29. At this meeting, a resolution will be adopted to transfer the shares held by DAB Bank AG's minority shareholders to BNP Paribas Beteiligungsholding AG as the majority shareholder, in exchange for an appropriate cash settlement. Due to the voluntary public takeover offer by the new majority shareholder, no dividend payments are planned. The figures stated herein are still preliminary. DAB Bank will publish its Annual Report 2014 containing the final results on March 24, 2015. Key indicators and results of DAB Bank (audited, but not yet officially adopted numbers): <pre> Key indicators 2014 2013 Change Customers No. 650,549 620,897 +4.8% Securities accounts No. 625,769 617,070 +1.4% Bank accounts No. 252,892 204,721 +23.5% Trades executed No. 5,517,396 4,964,739 +11.1% Trades per securities account, No. 8.88 8.06 +10.2% annualized Customer assets EUR bn 36.37 32.49 +11.9% thereof held in investment funds EUR bn 17.91 15.45 +15.9% Operating results Net interest income kEUR 69,411 38,640 +79,6% Trading and investment profit kEUR 5,873 6,382 -8,0% Net commission income kEUR 85,705 85,953 -0,3% Administrative expenses kEUR 110,835 108,733 +1,9% Profit before taxes kEUR 48,333 19,217 +151,5% Consolidated profit after taxes kEUR 32,019 12,271 +160,9% Cost-income ratio % 69.6 85.0 -18.1% Earnings per share EUR 0.35 0.13 +176.9% </pre> <pre> Key indicators Q4/2014 Q3/2014 Q4/2013 Customers No. 650,549 642,580 620,897 Securities accounts No. 625,769 622,007 617,070 Bank accounts No. 252,892 242,694 204,721 Trades executed No. 1,496,450 1,326,120 1,247,032 Customer assets EUR bn 36.37 35.75 32.49 thereof held in investment funds EUR bn 17.91 17.81 15.45 Operating results Net interest income kEUR 32,177 12,466 11,495 Trading and investment profit kEUR 3,749 142 -317 Net commission income kEUR 21,606 20,941 23,346 Administrative expenses kEUR 27,273 26,955 28,526 Profit before taxes kEUR 29,529 6,347 4,427 Profit after taxes kEUR 19,418 4,253 2,930 Earnings per share EUR 0.21 0.05 0.03 </pre> --------------------------------------------------------------------- 27.02.2015 Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group AG. The issuer is solely responsible for the content of this announcement. The DGAP Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases. Media archive at www.dgap-medientreff.de and www.dgap.de --------------------------------------------------------------------- Language: English Company: DAB Bank AG Landsberger Straße 300 80687 München Germany Phone: +49 (0)89 500 68 1696 Fax: +49 (0)89 500 68 669 E-mail: ir@dab.com Internet: www.dab-bank.de ISIN: DE0005072300 WKN: 507230 Listed: Regulated Market in Frankfurt (Prime Standard); Regulated Unofficial Market in Berlin, Dusseldorf, Hamburg, Hanover, Munich, Stuttgart End of News DGAP News-Service --------------------------------------------------------------------- 327423 27.02.2015