DGAP-News: Baader Wertpapierhandelsbank AG: Baader Wertpapierhandelsbank becomes Baader Bank AG with a full banking licence – synergies due to integration of subsidiary

Baader Wertpapierhandelsbank AG / Miscellaneous

31.07.2008 

Release of a Corporate News, transmitted by DGAP - a company of EquityStory AG.
The issuer is solely responsible for the content of this announcement.
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Unterschleissheim (Germany) 31 July 2008

The path to becoming a fully functional bank is clear for Baader
Wertpapierhandelsbank AG of Unterschleissheim. Baader’s application for
this status has been agreed to by the Bundesanstalt für
Finanzdienstleistungsaufsicht (BaFin – German Financial Supervisory
Authority). At the same time, Baader will become a member of the
Entschädigungseinrichtung deutscher Banken (EdB – Compensation Fund of
German Banks). Once the entry into the commercial register has been
completed, the institution will be known under its corporate name, Baader
Bank AG. 'Receiving the full banking licence is a significant sign of the
faith that is placed in the capability of our bank', commented Uto Baader,
Chairman of the Baader Wertpapierhandelsbank AG Board of Directors.

The BaFin has granted Baader Wertpapierhandelsbank AG of Unterschleissheim
an extension to its permit to conduct banking business pursuant to article
1 (1a) clause 2 numbers 1a, 1c and 3 as well as clause 3 of the
Kreditwesengesetz (KWG – German Banking Act) (investment advice, placement
business, financial portfolio management as well as own account deals) as
well as to conduct banking business pursuant to article 1 (1) clause 2,
numbers 1, 2, 5, 8 and 9 of the KWG (deposit business, lending business,
safe custody business, guarantee business and giro business).

With effect of this notification, the soon to be Baader Bank AG will become
a member of the EdB and thus leave the Entschädigungseinrichtung der
Wertpapierhandelsunternehmen (EDW – German Compensatory Fund of Securities
Trading Companies).
This means that Baader Wertpapierhandelsbank AG has met the requirements
necessary to merge with its wholly owned full-bank subsidiary, Baader
Service Bank GmbH, retrospectively as at 1 January 2009. This planned
streamlining of the Group structure enables the Baader Group to create
synergies in the areas of IT, processing and risk control and generates the
basis for continued growth in the core business areas, which are currently
covered by Baader Service Bank. A merger will mean that the services that,
to date, have been offered by two institutions, can now be bundled into a
financially sound and efficient banking unit. 'At the same time, we are
expanding the equity base for the business operated by Baader Service
Bank', added Uto Baader.

Baader Service Bank GmbH operates as an all-round service provider for
asset managers and other institutional customers as well as an arranger of
financial innovations with a high level of quality in advice and service.
The main products and services provided by the Bank include certificates,
publicly offered funds, single hedge funds and funds of hedge funds as well
as managed accounts. Baader Service Bank currently has 26 employees and
reported net profit of EUR 0.56 million with total assets of EUR 53.3
million in 2007.


Thomas Spengler – Corporate Communications Manager
Baader Wertpapierhandelsbank AG
Postfach 1102
85701 Unterschleissheim
Germany
Tel. +49 (0) 89/5150-1030 
Fax: +49 (0) 89/5150-2424 
Mobile: +49 (0) 160/7188830
E-mail: Thomas.Spengler@Baaderbank.de



DGAP 31.07.2008 
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Language:     English
Issuer:       Baader Wertpapierhandelsbank AG
              Weihenstephaner Str. 4
              85716 Unterschleissheim
              Deutschland
Phone:        +49 (0)89/ 5150-0
Fax:          +49 (0)89/ 5150-1111
E-mail:       Info@Baaderbank.de
Internet:     www.Baaderbank.de
ISIN:         DE0005088108
WKN:          508810
Listed:       Regulierter Markt in Berlin, Frankfurt (Prime Standard),
              München, Stuttgart; Freiverkehr in Hannover, Hamburg,
              Düsseldorf
End of News                                     DGAP News-Service
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