DAB bank AG / Half Year Results/Quarter Results 29.07.2008 Release of a Corporate News, transmitted by DGAP - a company of EquityStory AG. The issuer is solely responsible for the content of this announcement. --------------------------------------------------------------------------- First-half pretax profit on the level of the year-ago figure, despite the much weaker market environment in 2008 / Net financial income for the first half of 2008 twice as high as the year-ago figure / Substantially reduced costs / Profit after taxes higher than the year-ago figure Munich, July 29, 2008. The DAB bank Group (Munich), which operates in Germany and Austria, generated a pretax profit of 22.53 million in the first six months of 2008, that being on the level of the corresponding figure for the first half of 2007 (Q1-Q2 2007: 22.67 million). The pretax profit for the second quarter of 2008 was 9.05 million (Q2 2007: 10.08 million). At 15.17 million, the profit after taxes and minority interests for the first six months of 2008 was nearly 5% higher than the year-ago figure (Q1-Q2 2007: 14.50 million). 'Thanks to the solid increase in the net financial income and the practice of strict cost management, we managed to earn a profit in the first half of 2008 that was on the level of the profit for the first half of 2007, although the market situation was immeasurably worse and the number of trades executed were substantially less in the current year, as compared with last year,' said Alexander von Uslar of the DAB bank Executive Board. 'As there have been no signs for a market recovery up to now, we anticipate that the full-year profit for 2008 will likewise be somewhere on the level of the profit for 2007.' Investor sentiment was dampened by the falling stock market indexes, with the DAX losing about 20% from the beginning of this year to the end of July. Other negative factors weighing on the markets were the rising interest rates in the euro zone, surging food and energy prices, which pushed the rate of inflation higher, and slowing economic growth. Amid these conditions, DAB bank executed 4,436,009 trades for its customers in the months from January to June 2008, that being 25.1% less than in the corresponding year-ago period (Q1-Q2 2007: 5,919,593). Consequently, the net commission income of 56.03 million was 23.6% less than the corresponding figure for the first half of 2007 (Q1-Q2 2007: 73.36 million). On a positive note, the net financial income of DAB bank exhibited strong growth. At 26.95 million, the net financial income for the first six months of 2008 was twice as high as the corresponding year-ago figure (Q1-Q2 2007: 13.48 million). At the same time, DAB bank lowered its costs considerably from the year-ago period. The administrative expenses for the period from January to June 2008 amounted to only 64.70 million, as compared with 68.29 million for the first six months of 2007. As of June 30, 2008, the number of securities accounts administered by DAB bank amounted to 1,095,198. Whereas the number of securities accounts carried for individual investors (B2C segment) and for business customers (B2B segment) were little changed, the number of securities accounts in the FondsServiceBank segment was reduced by nearly 12,000, as planned. Moreover, the volume of customer assets under administration declined slightly, from 29.48 billion at the end of the first quarter to 29.04 billion at the end of the second quarter. This decrease was caused by the continued decline of stock market indexes around the world. Key indicators and operating results of the DAB bank Group according to IFRS, first half<pre> Key indicators First Half First Half 2008 2007 Securities accounts No. 1,095,198 1,085,324 Trades executed No. 4,436,009 5,919,593 Trades per securities account No. 8.06 11.25 (annualized) Customer assets under administration bn 29.04 32.84 thereof in investment funds bn 15.83 18.04 Operating results First Half First Half 2008 2007 Net financial income* k 26,950 13,478 Net commission income k 56,027 73,362 Administrative expenses k 64,701 68,292 Profit before taxes k 22,533 22,672 Net profit k 15,170 14,496 Cost-income ratio in % 74.2 75.1 Earnings per share 0.20 0.19</pre> Key indicators and operating results of the DAB bank Group according to IFRS, by quarter<pre> Key indicators Q2/2008 Q1/2008 Q2/2007 Securities accounts No. 1,095,198 1,107,685 1,085,324 Trades executed No. 2,054,783 2,381,226 2,712,782 Trades per securities account No. 7.48 8.63 10.05 (annualized) Customer assets under bn 29.04 29.48 32.84 administration thereof in investment funds bn 15.83 15.92 18.04 Operating results Q2/2008 Q1/2008 Q2/2007 Net financial income* k 11,497 15,453 4,360 Net commission income k 27,030 28,997 34,453 Administrative expenses k 31,022 33,679 33,219 Profit before taxes k 9,046 13,487 10,081 Net profit for the quarter k 5,934 9,236 6,480 Cost-income ratio in % 77.4 71.4 76.7 Earnings per share 0.08 0.12 0.09</pre> * Net financial income = Net interest income before credit risk provisions + Trading profit/loss + Profit/loss from investments. Contact: If you have queries, please contact Dr. Jürgen Eikenbusch, DAB bank, +49 89 500 68 595 or communications@dab.com. DGAP 29.07.2008 --------------------------------------------------------------------------- Language: English Issuer: DAB bank AG Landsberger Straße 300 80687 München Deutschland Phone: +49 (0)89 500 68 595 Fax: +49 (0)89 500 68 669 E-mail: communications@dab.com Internet: www.dab.com ISIN: DE0005072300 WKN: 507230 Listed: Regulierter Markt in Frankfurt (Prime Standard); Freiverkehr in Berlin, Hannover, Stuttgart, München, Hamburg, Düsseldorf; Foreign Exchange(s) Paris End of News DGAP News-Service ---------------------------------------------------------------------------
DGAP-News: DAB bank generates first-half profit on the level of the year-ago period
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