News and financial reports

Baader Bank targeting diversified growth in its cooperation partner business

In today's ad hoc announcement, Baader Bank has issued a statement about a change in the competitive situation in its cooperation partner business. Scalable Capital's expanded business model opens up new competitive momentum for Baader Bank and offers possibilities for new ways in which the two companies cooperate in the medium term.

This step will not have any immediate impact on Baader Bank's account and securities account customers who are currently connected to Scalable Capital. As in the past, Scalable Capital's future offering will include trading via the electronic trading platform gettex, where Baader Bank acts as a market maker.

Irrespective of these developments, Baader Bank maintains a good position for future growth with a long-term and diversified basis in the cooperation partner business. Baader Bank already enjoys numerous collaborative relationships in the neobroker segment with partners such as Smartbroker+, Finanzen.net ZERO, Traders Place and Sino, with a diversified product range and broad end-customer base – thereby securing Baader Bank's long-term earnings potential. Baader Bank is consistently driving forward the diversification of its B2B2C cooperation business by onboarding new partners and expanding existing partnerships. Together with its cooperation partners, Baader Bank is constantly developing its product portfolio in order to offer clients innovative and market-driven solutions, such as 24/7 crypto trading, bond trading, the use of interest and currency accounts and the extension of trading hours. It is also possible to trade Swiss shares over the counter via Baader Bank. Therefore, the fundamentally positive development trend in Baader Bank's cooperation partner business is expected to continue.

Accordingly, the positive trend in Baader Bank's cooperation partner business is expected to continue. If any end customers do switch bank, this may dampen Baader Bank's growth in this area temporarily but not permanently, as it will be possible to partially offset this with future growth thanks to new and existing cooperation partners.

"We will continue to pursue our strategy of Baader Bank being the neutral partner at our cooperation partners' side. We will not compete with neobrokers, asset managers or any other customer groups we work with and will instead focus on providing a high-performance banking and trading platform for these partners", says Oliver Riedel, Deputy CEO of Baader Bank. Baader Bank is sticking with its basic range of services and will gradually expand this selection. With services in market making, brokerage, capital markets, fund services, account services and research services, diversified growth beyond the cooperation partner business is one of the bank's key strategic goals.

The success of Baader Bank's current strategy is reflected in its earnings too. In the current financial year, Baader Bank recorded significant growth in all income components (earnings from commission business, trading business and interest rate business) and reported earnings before tax of EUR 28.5 million as at 30/09/2024. Baader Bank's equity as at 30/09/2024 was EUR 180.5 million (31/12/2023: EUR 165.5 million) and its total capital ratio was 21.31 % (31/12/2023: 23.0 %). On this basis, Baader Bank considers itself to be in a solid position for its current business activities despite the changed market landscape.

For further information and media inquiries:

Marlene Constanze Hartz

Senior Manager

Group Communication

T +49 89 5150 1044
marlene.hartz@baaderbank.de

Baader Bank AG

Weihenstephaner Strasse 4

85716 Unterschleissheim, Germany

https://www.baaderbank.de

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About Baader Bank AG:

Baader Bank is one of the leading European partners for investment and banking services. Trading and banking are combined using a single powerful platform that offers a unique setup and optimum access to the capital market using a secure, automated and scalable approach. As a family-run full-service bank with its headquarters in Unter-schleissheim near Munich, Baader Bank AG employs around 550 staff members and operates in Market Making, Capital Markets, Brokerage, Fund Services, Account Services and Research Services.