DAB bank AG / Quarter Results 27.10.2008 Release of a Corporate News, transmitted by DGAP - a company of EquityStory AG. The issuer is solely responsible for the content of this announcement. --------------------------------------------------------------------------- Munich, October 27, 2008. The DAB bank Group, which operates in Germany and Austria, earned a pretax profit of 1.48 million in the first nine months of 2008. The operating profit for the third quarter amounted to 7.03 million and for the first nine months, it came to 29.57 million. However, since September 15, when U.S. investment bank Lehman Brothers filed for protection under Chapter 11, the crisis in the financial markets has worsened considerably, leading to a massive widening of credit spreads. The mark-to-market valuation of DAB banks conservatively composed investment portfolio at September 30, 2008 reduced the value of the portfolio by 28.08 million. 'We measured the value of our investment portfolio strictly on the basis of current market values. Therefore, we are not carrying any undisclosed liabilities as we enter the fourth quarter,' said Alexander von Uslar of the DAB bank Executive Board. 'Now as before, DAB bank is comfortably capitalized and possesses ample liquidity.' DAB banks equity ratio was 11.18% at September 30, 2008 (December 31, 2007: 10.90%) , which is significantly higher than the minimum required regulatory ratio of 8%. Also at September 30, DAB banks liquidity ratio, which is calculated in accordance with the German Liquidity Regulation, came to 3.98 (December 31, 2007: 4.88), also well above the minimum required regulatory ratio of 1.0. 'DAB bank has had a good start into the fourth quarter. Since mid-September, we have seen a substantial increase in the trading activity of our customers, along with the attendant positive effects on our commission income,' Alexander von Uslar said. In the third quarter, DAB banks customers were extremely restrained in their trading activity until mid-September, due in part to the weak markets, but also due to the fact that investors are traditionally less active in the summer months. However, their trading activity picked up again in the second half of September. DAB bank executed a total of 1,145,620 trades for its individual investors (B2C segment) and business customers (B2B segment) in the third quarter, that being 5.1% more than in the second quarter of 2008. Including FondsServiceBank, DAB bank executed a total of 1,977,271 trades for its customers, 3.8% less than in the preceding quarter. The net commission income amounted to 23.18 million in the third quarter (Q3 2007: 34.30 million). Thanks to strict cost management, DAB banks administrative expenses were reduced even further, to 30.41 million in the third quarter, 12.0% less than the corresponding figure for the year-ago quarter (Q3 2007: 34.57 million). At September 30, 2008, DAB bank administered a total of 1,086,945 securities accounts. While the number of securities accounts carried for individual investors (B2C) and business customers (B2B) held steady, in the FondsServiceBank segment that number was lower by almost 8,000 securities accounts, as planned. As a result of the continued decline in key stock market indexes around the world, the volume of customer assets under administration declined 9.3%, from 29.04 billion at June 30 to 26.33 billion at September 30. Key indicators and operating results of the DAB bank Group according to IFRS, for the nine-month period ended September 30<pre> Key indicators 9M 2008 9M 2007 Securities accounts No. 1,086,945 1,094,959 Trades executed No. 6,413,280 8,596,783 Trades per securities account, annualized No. 7.80 10.85 Customer assets bn 26.33 32.79 thereof in investment funds bn 14.22 17.82 Operating results 9M 2008 9M 2007 Net financial income* k 12,595 24,535 Net commission income k 79,209 107,657 Administrative expenses k 95,109 102,866 Profit before taxes k 1,481 33,812 Net profit k 940 18,785 Cost-income ratio in % 98.5 75.3 Earnings per share 0.01 0.25</pre> Key indicators and operating results of the DAB bank Group according to IFRS, for the third quarter<pre> Key indicators Q3/2008 Q2/2008 Q3/2007 Securities accounts No. 1,086,945 1,095,198 1,094,959 Trades executed No. 1,977,271 2,054,783 2,677,190 Trades per securities account, No. 7.27 7.48 9.82 annualized Customer assets bn 26.33 29.04 32.79 thereof in investment funds bn 14.22 15.83 17.82 Operating results Q3/2008 Q2/2008 Q3/2007 Net financial income* k -14,355 11,497 11,057 Net commission income k 23,182 27,030 34,295 Administrative expenses k 30,408 31,022 34,574 Profit before taxes k -21,052 9,046 11,140 Quarterly net profit k -14,230 5,934 4,289 Cost-income ratio in % 325.0 77.4 75.6 Earnings per share -0.19 0.08 0.06</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 oder communications@dab.com. DGAP 27.10.2008 --------------------------------------------------------------------------- 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 AG: 29.57 million profit before valuation effects at September 30,
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