Key Figures of DAB bank Group (IFRS) Q2 2004 15,579 11,663 25,716 2,903 2,195 88.7 1,951.8 144.9 18.8 0.03 5.94 459,528 12.78 816,535 7.09 553 483 Results
Net commission income Net financial income Administrative expenses
Result from ordinary activities before taxes Net profit/loss
Cost-income ratio Balance sheet Total assets Shareholders’ equity
Capital ratio (German Banking Act) Share
Earnings per share
End of quarter share price (Xetra) Key operating figures
Securities accounts
Volume of securities accounts and deposits Trades
Trades per securities account per year Employees
Employees (headcount) Employees (full-time basis)
k€ k€ k€ k€ k€ in % € mn € mn in % € € number € bn number number number number Q1 2005 23,750 8,635 27,637 9,586 7,966 76.4 2,165.0 168.3 12.3 0.11 5.77 913,308 19.41 1,982,855 8.95 638 568 Q2 2005 21,683 8,187 29,823 2,450 1,981 92.4 2,267.3 159.6 11.3 0.02 6.38 925,017 21.14 2,015,516 8.77 634 564
Business developments 9
Developments in the
financial services industry 10
Operating results 13
Balance sheet indicators and
regulatory ratios 14
Employees 15
Outlook 15
Consolidated income statement 16
Consolidated balance sheet 17
Consolidated statement of changes
in equity 18
Cash flow statement 18
Quarterly summary 19
Segment reporting 20
Notes 22
Boards, Financial calender 23 Letter to our shareholders 4
DAB bank share 6
C o n t e n t s
C o n t e n t s
D
Letter to our shareholders
Shareholders Information Company Quarterly Report
Dear shareholder:
DAB bank continued on a path of successful growth in the second quarter, adding 11,709 net new securities accounts and increasing the volume of customer assets under management by € 1.73 billion, to reach € 21.14 billion. Thus, we have already surpassed our full-year target of € 20 billion in customer assets under management.
Continued growth, higher profit
DAB bank generated a pretax profit of € 2.45 million in the second quarter. Considering the historically low level of interest rates, we were satisfied with our net financial income. The net commission income was slightly higher than the corresponding figure for the prior-year quarter and the administrative expenses remained on a high level, due to project-related costs. Adjusting for the negative profit contribu-tion of FSB FondsServiceBank (-€ 0.80 million), the net profit for the second quarter of 2005 was € 0.35 million higher than the net profit for the second quarter of 2004 (€ 2.90 million).
Despite the general trend of the market, the number of trades executed within the DAB bank Group was higher than both the correspond-ing figure for the precedcorrespond-ing quarter and the prior-year quarter. In this respect, the acquisition of FSB, whose business does not depend on stock market trends, has already yielded benefits for the Group.
The first half of 2005 was one of profitable growth for DAB bank. We generated a pretax profit of € 12.04 million in the first half of the year, 27.5% higher than the corresponding figure for the first half of 2004 (€ 9.44 million).
Integration of FSB proceeds on schedule and direktanlage.at reports a very successful quarter
The integration of FSB into DAB bank is proceeding according to plan and the legal merger process has been initiated. In addition, we made important preparations for the IT migration in the second quarter.
In Austria, our subsidiary direktanlage.at impressively underscored its market leadership position in the second quarter. With 31,315 securities accounts (prior-year quarter: 28,352), 118,599 trades executed (prior-year quarter: 92,922) and € 1.38 billion in customer assets under management (prior-year quarter: € 1.01 billion), our Austrian subsidiary made good progress in all its operational perform-ance indicators. The pretax profit of € 2.29 million already exceeds the pretax profit for the full year 2004 (€ 1.74 million).
Letter to our shareholders
Focus on the customer
As part of our product and service initiative, we recruited a new “star partner” for certificate and warrant trading, HSBC Trinkaus & Burkhardt KGaA. Moreover, we introduced an Interactive Guided Tour, hosted by German actor Til Schweiger. He explains our Internet analysis tools, ranging from Stock Investor to Certificate Investor, to every customer and prospective customer in a concise, easy-to-understand manner. We also hosted a series of seminars entitled “Focus on Commodities” in seven cities, at which our experts and business partners made themselves available in person to answer questions about the latest trends. In April 2005, we also held our 8th Investment Congress for our B2B partners, featuring lectures and workshops on the latest trends and developments in the financial markets. More than 600 financial intermediaries participated in this year’s Investment Congress.
First-time payment of a dividend
The consistent execution of our business strategy has paid off for our shareholders: For the first time since it was founded, DAB bank has paid a dividend. The payment of a 15 cents-per-share dividend, representing a full distribution of the profit for the period, was resolved at the annual shareholders meeting on May 13, 2005. Ms. Christine Licci was elected to the Supervisory Board of DAB bank, succeeding Dr. Stefan Jentzsch as the new Chairwoman.
In the second half of 2005, we intend to continue our successful operating performance and execute our plans, including the integration of FSB, the implementation of a new basic banking system and the optimization of our Internet portal. As the No. 1 direct bank for securities-related services, we intend to build on our strong market position and continue on a course of profitable growth.
We affirm our profit goal for 2005, which is to generate a consolidated pretax profit of € 21 million for the full year 2005, representing a 30% increase over the previous year.
Your DAB bank Management Board
The DAB bank share
The DAB bank share
The stock market environment
The national and international stock markets were not guided by a coherent sense of direction in the first half of 2005. The markets are still being influenced by the continuing run-up of oil prices and the ongoing anxieties about interest rate developments. In Germany, the general state of the economy and the job market did not provide any positive stimulus. The political environment was dominated by the debate surrounding the upcoming national parliament elections. The German market has been driven primarily by foreign institutional investors. German individual investors, on the other hand, have with-drawn € 3.6 billion from domestic stock funds since the beginning of the year.
In the second quarter of 2005, the leading German index DAX, and its European counterpart EuroStoxx 50, diverged significantly from the Dow Jones and Nikkei indexes. While the DAX gained 7.76% and the EuroStoxx 50 rose by 7.80% in the first half of the year, the Dow Jones lost 4.71% and the Nikkei remained nearly unchanged, with only a slight gain of 0.83%. With share prices at only twelve times earnings, the DAX is historically inexpensive, also compared to other international markets, and therefore has further appreciation poten-tial, by international standards, beyond the share price gains that have recently occurred. Second-line German stocks have performed even better: The MDAX has risen 17.61% since the end of last year and the SDAX has gained 20.94% in the same period.
Compared to the second quarter of 2004, when the overall trading vol-ume was relatively weak (39.6 million trades), the second quarter of the current year was more active, with 45.0 million trades executed during the period. On the other hand, the volume of trades executed in the German stock exchanges was 7.3% lower than the trading volume in the first quarter of the year (48.6 million trades).
Shareholders Information Company Quarterly Report
120 %
100 %
80 %
Comparison of DAB bank shares with DAX and SDAX
DAB bank SDAX DAX
The DAB bank share
The DAB bank share
The DAB bank share began the quarter with sideways movement in April and ended the quarter with a substantial increase in June. Having opened at € 5.85 on April 1, 2005, the share price fell to its low of € 5.42 on May 20, 2005 before rising to its high of € 6.95 on June 21, 2005. The share closed the quarter at € 6.38.
We continued to intensify our investor relations activities in the second quarter. DAB bank presented its first quarter results on April 26, 2005. The annual shareholders meeting was held in Munich on May 13, 2005. DAB bank participated in three investor conferences in the second quar-ter. Two of these conferences were held in London on May 25, 2005, one at WestLB and one at Sal Oppenheim, and the third was the German Corporate Conference at Deutsche Bank in Frankfurt on June 1, 2005. At these events, our representatives made themselves available to answer the questions of investors and stock analysts.
Opening price, Xetra (04/01/2005) Highest price, Xetra (06/21/2005) Lowest price, Xetra (05/20/2005) Closing price, Xetra (06/30/2005) Market capitalization (06/30/2005)
Key figures on the DAB bank share
Earnings per share SIN SICOVAM Reuters code Bloomberg ticker ISIN code Shares outstanding Stock exchange segments
Stock exchanges 507230 22040 DRNG DRN GR DE 000 507 230 0 75,187,007 75,187,007 shares
SDAX, Frankfurt; Nouveau Marché, Paris Xetra, Frankfurt, Munich, Stuttgart, Berlin, Düsseldorf, Hamburg, Hanover, Bremen, Paris € 5.85 € 6.95 € 5.42 € 6.38 € 479.7 mn € 0.02 Free float 23.64% HypoVereinsbank AG 76.36%
Shareholder Structure at June 30, 2005
6.0
5.0 7.0
DAB bank share price development in the second quarter 2005 in euros
Business developments
Business developments
Situation of the general economy and the financial services sector
The fundamental economic conditions remained essentially unchanged in the second quarter of 2005. While the global econ-omy continued to experience robust growth, driven by the twin locomotives of the United States and China, economic growth in the EMU zone remained weak, especially in Germany. Nonetheless, some positive signs have been registered in the recent past. For example, the IFO Business Climate Index was slightly higher for the first time after four consecutive declines. This improvement was likely helped by the continuing weakness of the euro, which boost-ed the competitiveness of German exporters. On the other hand, domestic demand again failed to improve, due to factors such as the continued high level of unemployment and insecurity about the jobs market, as well as high gasoline prices and the political debate concerning an increase in the value-added tax.
Despite the less-than-satisfactory economic data, the German stock market in particular performed extremely well, repeatedly hitting new highs for the year since the middle of the second quarter. It must be noted, however, that this growth was fueled mainly by foreign investors, while German investors, and particularly individ-uals, did not return to the stock market, despite the rising trend of German stock indexes. As a result of this pessimism, the volume of shares traded on the German stock exchanges declined in the second quarter of 2005, despite the fact that the DAX reached a three-year high. Consequently, the banks generated less commis-sion income from stock market trades.
Developments at DAB bank
The above-mentioned developments notwithstanding, DAB bank Group continued to grow in the second quarter of 2005, both in terms of its customer base and the volume of assets under manage-ment. Most of these gains were attained in the B2B sector. In total, DAB bank added 11,709 net new customers in the second quarter and the volume of customer assets under management rose to an all-time high of € 21.14 billion, representing an increase of € 1.73 billion, or 8.9%, over the preceding quarter. Apart from the strong operating performance, we also proceeded on schedule with the integration of FSB FondsServiceBank GmbH (FSB) into DAB bank AG and made important preparations for the legal merger.
As part of our service and quality initiative, we intensified our eff-orts to address customers and prospective customers in a targeted manner. A good example of these activities is the Interactive Guided Tour of the DAB bank world, which was made available on the Internet in the second quarter of 2005. In a film setting, our best-known customer and spokesman Til Schweiger explains the online analysis tools of DAB bank in an entertaining and easy-to-understand manner.
We signed up a new “star partner,” HSBC , to give our customers broader access to certificates and warrants. In collaboration with our business partners we also held a series of seminars entitled “Focus on Commodities” in seven major cities of Germany. At these events, we provided background information and answered the questions of our seminar participants.
Finally, we hosted our 8th Investment Congress in April. At this event, held in Munich, we explored the latest market developments with more than 600 asset managers and financial intermediaries in attendance.
Shareholders Information Company Quarterly Report
Business developments
Trades, securities accounts and customer assets under
management
Two million trades executed for customers in the second quarter
Overall, the number of trades executed for customers of the DAB bank Group in the second quarter was satisfactory. Groupwide, a total of 2,015,516 trades were executed, representing a substan-tial increase over the corresponding figure for the prior-year quar-ter (816,535 trades). We executed 1,896,917 trades for our cus-tomers in Germany (DAB bank AG: 744,311 trades; FSB : 1,152,606 trades) and 118,599 trades for our customers in Austria. For DAB bank AG, this performance represents an increase of 2.9% and for direktanlage.at AG an increase of 27.6%. On an annualized Group-wide basis, the second-quarter performance translates to 8.77 trades per securities account per year (2004: 6.88). The corre-sponding figure for Germany (excluding FSB) is 6.68 trades per securities account per year (2004: 6.45) and the corresponding figure for Austria is 10.41 trades per securities account per year (2004: 13.52).
Well on the way to welcoming our one millionth securities account customer
We added 11,709 net new securities accounts in the second quarter of 2005, continuing a trend of steady gains. At June 30, 2005, DAB bank Group overall carried 925,017 securities accounts, as compared to 459,528 securities accounts in the prior-year quarter. Of this number, DAB bank AG carried 447,571 securities accounts, FSB 446,131 securities accounts and direktanlage.at AG 31,315 securities accounts. The total number of B2C securities accounts in Germany came to 421,272, representing an increase of 8,434 over the corresponding prior-year figure. In the B2B business in Germany, we extended our market leadership position by adding 457,055 net new securities accounts (DAB bank AG: 10,924 securities accounts, FSB: 446,131 securities accounts), bringing the total number to 503,745. In Austria, direktanlage.at AG increased its securities accounts by 2.9% on a net basis, bringing the total to 31,315.
Q2 2004 723,613 n/a 92,922
Securities trades (number)
DAB bank AG FSB FondsServiceBank GmbH direktanlage.at AG Q3 2004 576,202 n/a 72,092 Q4 2004 656,785 1,405,609 93,253
Securities accounts (number)
DAB bank AG FSB FondsServiceBank GmbH direktanlage.at AG Q1 2005 780,851 1,090,547 111,457 Q2 2005 744,311 1,152,606 118,599 Q2 2004 431,176 n/a 28,352 Q3 2004 435,769 n/a 28,646 Q4 2004 443,773 384,555 30,023 Q1 2005 443,560 439,330 30,418 Q2 2005 447,571 446,131 31,315
Business developments
Customer assets under management shoot over the year to end target of 20 billion euro
Customer assets under management shot past the € 20-billion mark for the first time, gaining € 1.73 billion during the second quarter to reach € 21.14 billion at the end of June 2005. Thus, assets under management were 65.4%, or € 8.36 billion higher than the corresponding figure for the prior-year quarter (€ 12.78 billion). Of the total amount, customer assets of € 19.32 billion are held in securities accounts and € 1.82 billion in cash deposits. Most of the growth was experienced in securities accounts, which picked up € 8.07 billion to reach € 19.32 billion. The volume of assets under management in Germany increased by € 7.74 billion to € 18.14 billion (DAB bank AG: € 12.86 billion, FSB: € 5.28 billion) and in Austria they increased by € 0.33 billion, or 38.8%, to reach € 1.18 billion. The main growth driver was the volume of assets in invest-ment funds, which increased 134.0% over the prior-year quarter to reach € 12.17 billion. The volume of assets in cash deposits increased by € 0.29 billion, or 19.0%. Q2 2004 12.78 11.77 n/a 1.01 11.25 10.40 n/a 0.85 5.20 5.00 n/a 0.20 1.53 1.37 n/a 0.16
Volume of securities accounts and deposits (€ bn)
Volume of securities accounts and deposits DAB bank AG
FSB FondsServiceBank GmbH direktanlage.at AG Volume of securities accounts DAB bank AG
FSB FondsServiceBank GmbH direktanlage.at AG
thereof in investment funds DAB bank AG FSB FondsServiceBank GmbH direktanlage.at AG Deposits DAB bank AG FSB FondsServiceBank GmbH direktanlage.at AG Q1 2005 19.41 13.35 4.80 1.26 17.76 11.89 4.80 1.07 10.98 5.92 4.80 0.26 1.65 1.46 0.00 0.19 Q2 2005 21.14 14.48 5.28 1.38 19.32 12.86 5.28 1.18 12.17 6.61 5.28 0.28 1.82 1.62 0.00 0.20
FSB consolidated for the first time as of 01/01/2005.
Volume of securities accounts and deposits in €bnDepot- und Einlagevolumen in Mrd. € Q2/2005
Depotvolumen in Deutschland Depotvolumen in Österreich Einlagen in Österreich Einlagen in Deutschland 0.20 deposits in Austria 1.62 deposits in Germany 18.14 volume of securities accounts in Germany 65.5% thereof investment funds 23.7% thereof investment funds
1.18 volume of securities accounts in Austria
Shareholders Information Company Quarterly Report
Business developments
Q2 2004 412,838 386,295 26,543 738,913 649,849 89,064 6.29 5.51 0.78 1.89 1.73 0.16 0.87 0.72 0.15 7.16 6.23 0.93 B2C (business-to-consumer) Securities accounts thereof Germany thereof Austria Trades thereof Germany thereof AustriaVolume of securities accounts thereof Germany
thereof Austria
thereof in investment funds thereof Germany thereof Austria Deposits thereof Germany thereof Austria
Volume of securities accounts and deposits thereof Germany thereof Austria number number number number number number € bn € bn € bn € bn € bn € bn € bn € bn € bn € bn € bn € bn Q1 2005 418,724 391,094 27,630 790,279 684,831 105,448 6.83 5.93 0.90 2.02 1.84 0.18 1.00 0.82 0.18 7.83 6.75 1.08 Q2 2005 421,272 393,267 28,005 753,578 642,868 110,710 7.19 6.20 0.99 2.16 1.96 0.20 1.10 0.91 0.19 8.29 7.11 1.18 Q2 2004 810 753 57 46,690 44,881 1,809 77,622 73,764 3,858 4.96 4.89 0.07 3.31 3.27 0.04 0.66 0.65 0.01 5.62 5.54 0.08 B2B (business-to-business) Financial intermediaries thereof Germany thereof Austria
Retail customer securities accounts thereof Germany
thereof Austria Trades thereof Germany thereof Austria
Volume of securities accounts thereof Germany
thereof Austria
thereof in investment funds thereof Germany thereof Austria Deposits Germany Austria
Volume of securities accounts and deposits Germany Austria number number number number number number number number number € bn € bn € bn € bn € bn € bn € bn € bn € bn € bn € bn € bn Q1 2005 835 761 74 494,584 491,796 2,788 1,192,576 1,186,567 6,009 10.93 10.76 0.17 8.95 8.88 0.07 0.65 0.64 0.01 11.58 11.40 0.18 Q2 2005 876 793 83 503,745 500,435 3,310 1,261,938 1,254,049 7,889 12.13 11.94 0.19 10.02 9.94 0.08 0.73 0.71 0.02 12.86 12.65 0.21
Operating results
Operating results
Substantial increase in pretax profit for the first half of 2005
The profit from ordinary activities before taxes in the second quarter of 2005 was € 2,450 thousand (second quarter 2004: € 2,903 thou-sand). The Germany segment (DAB bank AG and FSB) contributed € 1,309 thousand and the Austria segment (direktanlage.at AG) con-tributed € 1,141 thousand to the Groupwide result. The overall pre-tax profit for the first half of 2005 was € 12,036 thousand (first half of 2004: € 9,441 thousand). The consolidated net profit after taxes for the second quarter of 2005 was € 1,981 thousand (second quar-ter of 2004: € 2,195 thousand) and the consolidated net profit afquar-ter taxes for the first half of 2005 was € 9,947 thousand (first half of 2004: € 8,086 thousand).
The bank’s operating performance in the second quarter can be attributed in large part to the following developments:
1. The net financial income was lower than in the prior-year quarter, but in line with the average figure for the preceding quarters. 2. The net commission income was slightly higher than the
corre-sponding figure for the prior-year quarter.
3. The administrative expenses remained high, due to project-related costs.
4. The second-quarter results of direktanlage.at AG and FSB were € 1,141 thousand and -€ 800 thousand, respectively. In both cases, the operating results were ahead of the plan targets.
Considering the fact that DAB bank assumed the operating losses of FSB, the results of the second quarter of 2005 were substantially higher than those of the corresponding prior-year quarter.
Total income higher
The total income, which we define as the sum of net financial income/expenses, commission income and net other operating income/expenses (or net other income/expenses), for the second quarter of 2005 amounted to € 42,431 thousand (second quarter 2004: € 36,404 thousand). Thus, total income was 16.6% higher than the corresponding figure for the prior-year quarter. The Ger-many segment generated total income of € 37,631 thousand (thereof FSB: € 5,062 thousand) and the Austria segment generated total income of € 4,800 thousand.
Net financial income satisfactory, net commission income higher
The net financial income/expenses (defined as the sum of net inter-est income before provisions for possible losses, the profit/loss from investments and the trading profit/loss) for the second quarter of 2005 amounted to € 8,187 thousand (thereof FSB: € 31 thousand), as compared to € 11,663 thousand in the second quarter of 2004. Considering the difficult state of the capital markets and the contin-ued low level of interest rates in particular, these are very solid results.
The net commission income for the second quarter 2005 was € 21,683 thousand, clearly higher than the corresponding prior-year figure (€ 15,579 thousand). The Germany segment generated € 18,815 thousand (thereof FSB: € 3,259 thousand) and the Austria segment € 2,868 thousand of the total net commission income. Overall, the net commission income for the first half of 2005 was € 45,433 thousand, as compared to € 38,023 thousand in the first half of 2004, indicative of a 19.5% increase.
Shareholders Information Company Quarterly Report
Operating results
Costs affected by project work
The total expenses of the DAB bank Group, consisting of the provisions for possible losses, commission expenses and administrative expenses, for the second quarter of 2005 amounted to € 39,981 thousand (second quarter 2004: € 33,133 thousand). The Germany segment accounted for € 36,322 thousand (thereof FSB: € 5,863 thousand), the Austria segment for € 3,659 thousand of the total expenses in the second quarter of 2005.
The administrative expenses for the second quarter of 2005 amounted to € 29,823 thousand (second quarter 2004: € 25,716 thousand). Of this amount, FSB accounted for € 4,215 thousand. Due to project-related costs, the administrative expenses were € 17,773 thousand, slightly high-er than the prior-year figure (€ 17,004 thousand). Phigh-ersonnel expenses amounted to € 9,140 thousand (thereof FSB: € 1,474 thousand); the increase over the prior-year figure (€ 6,935 thousand) was caused mainly by the incorporation of FSB’s personnel expenses. At the same time, the marketing expenses remained nearly unchanged at € 2,620 thousand (second quarter 2004: € 2,699 thousand).
The cost-income ratio, which we define as the quotient of administrative expenses (including restructuring and integration expenses) divided by the sum of net interest income after provisions for possible losses, the net commission income, the profit/loss from investments, the trading profit/loss and the net other operating income/expenses or net other income/expenses, for the second quarter of 2005 was 92.4% (second quarter 2004: 88.7%). For the first half of 2005 DAB bank shows a cost-income ratio of 83.5% (first half 2004: 82.7%).
Balance sheet indicators and regulatory ratios
The total assets of the DAB bank Group at June 30, 2005 amounted to € 2,267.3 million, indicating a slight increase of 4.6% over the corre-sponding figure at year-end 2004 (€ 2,168.5 million).
At June 30, 2005, the liable equity of DAB bank AG, determined in accordance with bank regulatory principles (on the basis of German Commercial Code financial statements), amounted to € 82,766 thousand (year-end 2004: € 121,705 thousand). This decrease can be attributed to the reclassification of software from property, plant and equipment to intangible assets. Under bank regulatory principles, this reclassification caused the creation of a corresponding offsetting item against liable equity. The risk assets fell 1.9% from their level at year-end 2004
(€ 729,847 thousand) to reach € 715,780 thousand, while the offsettable amount for market risk positions rose to € 1,118 thousand (year-end 2004: € 714 thousand). Thus, the sum total of items that must be offset declined 1.2% from € 738,772 thousand to € 729,755 thousand. On this basis, the equity ratio was 11.6% (December 31, 2004: 16.7%), still com-fortably within the prescribed limit.
Employees/Outlook
Employees
At June 30, 2005, the DAB bank Group had 634 employees (prior year: 553). Of this number, 543 employees worked in Germany (DAB bank AG: 453, FSB: 90) and 91 employees in Austria.
Outlook
We affirm our stated profit goal:
>>To generate a consolidated pretax profit of € 21 million,
representing a 30% increase over 2005.
To achieve this goal, we need to execute our central projects accord-ing to plan. Another important condition is for German individual investors to regain their confidence in stocks as an investment alter-native and engage in stock market transactions to a greater degree than they did in the second quarter.
A number of arguments support the view that the stock market envi-ronment will become more friendly in the coming months. In terms of fundamentals, it can be pointed out that German stocks are histori-cally inexpensive, also compared to international markets, and the DAX stocks continue to generate an attractive dividend yield. In terms of psychology, the upcoming elections for the German national parliament will provide a needed shot of confidence. Furthermore, the financial markets have recently shown themselves to be considerably more resilient than before in response to external events, particularly the continued run-up in crude oil prices and the terror attacks in London.
In the second half of the year, we intend to focus our efforts on fur-ther expanding our line-up of products and services and on intensify-ing our sales activities with the goal of better exploitintensify-ing the poten-tial of our customer base with a view to active trading behavior. In addition, we will continue to pursue our two centralized projects, namely the integration and merger of FSB into DAB bank AG and the introduction of a new basic banking system, Flexcube. As always, we will apply a policy of active cost management.
Q2 2004 553 468 n/a 85 483 404 n/a 79 Employees Employees (headcount) DAB bank AG FSB FondsServiceBank GmbH direktanlage.at AG Employees (full-time) DAB bank AG FSB FondsServiceBank GmbH direktanlage.at AG number number number number number number number number Q1 2005 638 449 100 89 568 390 97 81 Q2 2005 634 453 90 91 564 395 87 82
Shareholders Information Company Quarterly Report
Consolidated income statement (IFRS)
for the period January 1 to June 30, 2005
in k€ Quarterly Report 04/01/2005– 06/30/2005 19,659 8,897 10,762 -202 10,964 32,043 10,360 21,683 461 -3,036 9,140 17,773 2,910 29,823 – 2,207 – -6 2,450 469 1,981 – 1,981 0.02 0.02 75,187,007 75,219,167 Interest income Interest expenses Net interest income Provisions for possible losses
Net interest income after provisions for possible losses Commission income
Commission expenses Net commission income Trading profit/loss Profit/loss from investments Personnel expenses Other administrative expenses
Depreciation/amortization of property, plant and equipment and intangible assets
Administrative expenses
Restructuring-/integration expenses Net other operating income/expenses Amortization (and impairment) of goodwill Net other income/expenses
Result from ordinary activities before taxes Income taxes
Net profit/loss
Allocation of net profit/loss to retained earnings Consolidated net profit/loss
Earnings per share (basic) Earnings per share (diluted)
Weighted average shares outstanding (basic) Weighted average shares outstanding (diluted)
Year to date 01/01/2005– 06/30/2005 35,078 17,089 17,989 14 17,975 63,635 18,202 45,433 872 -2,039 18,255 33,068 6,137 57,460 3,400 2,682 – 7,973 12,036 2,089 9,947 – 9,947 0.13 0.13 75,187,007 75,223,754 Year to date 01/01/2004– 06/30/2004 40,142 14,947 25,195 300 24,895 50,830 12,807 38,023 325 -7,080 13,748 31,520 3,415 48,683 – 2,702 736 -5 9,441 1,355 8,086 – 8,086 0.11 0.11 75,187,007 75,300,499 Quarterly Report 04/01/2004– 06/30/2004 22,291 7,045 15,246 99 15,147 22,897 7,318 15,579 148 -3,731 6,935 17,004 1,777 25,716 – 1,848 368 -4 2,903 708 2,195 – 2,195 0.03 0.03 75,187,007 75,285,933
Financial Statements
Assets
Cash reserve Receivables from banks Receivables from customers Provisions for possible losses Trading assets
Financial assets
Property, plant and equipment Intangible assets
Income tax assets Other assets Total assets Quarterly Report 06/30/2005 34,485 322,188 432,168 -4,020 23,903 1,330,954 5,379 53,990 39,494 28,718 2,267,259 Annual Report 12/31/2004 34,163 418,143 428,773 -3,997 46,587 1,119,571 5,376 44,882 50,084 24,951 2,168,533 in k€
Liabilities and shareholders’ equity
Liabilities to banks Liabilities to customers Trading liabilities Provisions Income tax liabilities Other liabilities Subordinated capital Liabilities Subscribed capital Additional paid-in capital Retained earnings
Accumulated other comprehensive income/loss Consolidated net profit/loss
Shareholders’ equity
Total liabilities and shareholders' equity
Quarterly Report 06/30/2005 85,773 1,947,824 19,910 8,847 13,835 23,339 8,136 2,107,664 75,187 59,769 13,708 984 9,947 159,595 2,267,259 Annual Report 12/31/2004 77,900 1,831,627 41,872 8,788 19,421 20,439 8,154 2,008,201 75,187 59,769 13,706 392 11,278 160,332 2,168,533 in k€
Consolidated balance sheet (IFRS)
at June 30, 2005
Shareholders Information Company Quarterly Report
in k€
Shareholders’ equity on January 1
Changes 01/01 - 06/30 Subscribed capital Additional paid-in capital Profit reserves
Accumulated other comprehensive income/loss Accumulated profit/loss
Shareholders’ equity on March 31 Consolidated Statement of Changes
in Equity (IFRS)
for the period January 1 to June 30, 2005
2005 160,332 – – 2 -1,331 592 159,595 2004* 134,617 – – 896 8,086 1,323 144,922
Financial Statements
in k€Cash and cash equivalents on January 1
Cash flow from operating activities Cash flow from investing activities Cash flow from financing activities
Foreign exchange-induced changes in cash and cash equivalents
Cash and cash equivalents on March 31 Consolidated Cash Flow Statement
(IFRS)
for the period January 1 to June 30, 2005
2005 34,163 239,695 -228,671 -10,702 – 34,485 2004 21,282 56,237 -50,843 4,217 – 30,893 * Pro forma figures due to first time application of revised IAS 39 (further details given in the other disclosures on page 22).
in k€
Interest income Interest expenses Net interest income Provisions for possible losses
Net interest income after provisions for possible losses Commission income
Commission expenses Net commission income Trading profit
Profit/loss from investments Personnel expenses Other administrative expenses
Depreciation/amortization of property, plant and equipment and intangible assets Administrative expenses
Restructuring-/integration expenses Net other operating income/expenses Amortization (and impairment) of goodwill Net other income/expenses
Result from ordinary activities before taxes Income taxes
Net profit/loss
Allocation of net profit/loss to retained earnings Consolidated profit loss
Quarterly Summary of
Consolidated Income Statements (IFRS)
2nd quarter 2004 22,291 7,045 15,246 99 15,147 22,897 7,318 15,579 148 -3,731 6,935 17,004 1,777 25,716 – 1,848 368 -4 2,903 708 2,195 – 2,195 3rd quarter 2004 19,488 7,608 11,880 -125 12,005 22,813 6,986 15,827 544 -5,279 7,714 12,518 1,782 22,014 – 1,989 368 -4 2,700 372 2,328 – 2,328 4th quarter 2004* 15,771 7,769 8,002 -1,312 9,314 24,578 6,610 17,968 419 -1,646 8,196 15,136 2,101 25,433 – 2,466 368 -3 2,717 10,891 13,608 12,774 864 1st quarter 2005 15,419 8,192 7,227 216 7,011 31,592 7,842 23,750 411 997 9,115 15,295 3,227 27,637 3,400 475 – 7,979 9,586 1,620 7,966 – 7,966
Financial Statements
2nd quarter 2005 19,659 8,897 10,762 -202 10,964 32,043 10,360 21,683 461 -3,036 9,140 17,773 2,910 29,823 – 2,207 – -6 2,450 469 1,981 – 1,981Shareholders Information Company Quarterly Report
in k€ Germany 15,691 23,202 -13 275 15,704 22,927 39,615 32,345 840 324 -2,185 -7,126 15,998 11,609 29,734 28,360 5,757 3,020 51,489 42,989 3,400 – 2,680 2,546 – – Net interest income01/01/2005–06/30/2005 01/01/2004–06/30/2004 Provisions for possible losses
01/01/2005–06/30/2005 01/01/2004–06/30/2004
Net interest income after provisions for possible losses 01/01/2005–06/30/2005
01/01/2004–06/30/2004 Net commission income
01/01/2005–06/30/2005 01/01/2004–06/30/2004 Trading profit/loss
01/01/2005–06/30/2005 01/01/2004–06/30/2004 Profit/loss from investments 01/01/2005–06/30/2005 01/01/2004–06/30/2004 Personnel expenses
01/01/2005–06/30/2005 01/01/2004–06/30/2004 Other administrative expenses
01/01/2005–06/30/2005 01/01/2004–06/30/2004
Depreciation/amortization of property, plant and equipment and other intangible assets 01/01/2005–06/30/2005 01/01/2004–06/30/2004 Administrative expenses 01/01/2005–06/30/2005 01/01/2004–06/30/2004 Restructuring-/integration expenses 01/01/2005–06/30/2005 01/01/2004–06/30/2004 Net other operating income/expenses
01/01/2005–06/30/2005 01/01/2004–06/30/2004
Amortization (and impairment) of goodwill 01/01/2005–06/30/2005 01/01/2004–06/30/2004 Austria 2,298 1,993 27 25 2,271 1,968 5,818 5,678 32 1 146 46 2,257 2,139 3,341 3,160 380 395 5,978 5,694 – – 9 156 – 736 Consolidation – – – – – – – – – – – – – – -7 – – – -7 – – – -7 – – – Group 17,989 25,195 14 300 17,975 24,895 45,433 38,023 872 325 -2,039 -7,080 18,255 13,748 33,068 31,520 6,137 3,415 57,460 48,683 3,400 – 2,682 2,702 – 736
Income Statement by region
Segment report (IFRS)
for the period January 1 to June 30, 2005
Germany 84.9 84.3 543 468 3,768,315 1,601,940 893,702 431,176 Cost-income ratio (in %)
01/01/2005–06/30/2005 01/01/2004–06/30/2004 Employees (headcount) 06/30/2005 06/30/2004 Trades (number) 01/01/2005–06/30/2005 01/01/2004–06/30/2004 Securities accounts (number)
06/30/2005 06/30/2004 Austria 72.3 72.5 91 85 230,056 218,633 31,315 28,352 Group 83.5 82.7 634 553 3,998,371 1,820,573 925,017 459,528
Further particulars by region
Segment Reporting
in k€
Contingent liabilities
Contingent liabilities
from guaranties and warranty agreements Other commitments
from rental and leasing agreements Total 12/31/2004 1,335 23,112 24,447 06/30/2005 923 27,303 28,226 Contingent liabilities and other obligations
Other disclosures
IFRS basis
This interim report has been drawn up in accordance with International Financial Reporting Standards (IFRS), including, in particular, the provisions of IAS 34 (Interim Financial Report-ing).
We applied the revised International Accounting Standards published by the International Accounting Standards Board (IASB) in connection with its Improvement Project, as well as the new International Financial Reporting Standards, for the first time as of January 1, 2005. With the exception of the changes resulting from the first-time application of the revised IAS and the new IFRS, we applied the same recognition and measurement criteria that were applied in the consolidated financial statements for 2004 (a detailed description of which can be found on pp. 64 of the 2004 Annual Report).
The only significant change we made in this regard was the nearly complete reclassification of the securities holdings of DAB bank AG from the available-for-sale category to the fair value through profit and loss category. Apart from a net total effect in the amount of € 727 thousand, neither this reclassification nor the first-time application of the new and revised accounting standards materially affected the presentation of the net assets, financial condi-tion and earnings of DAB bank. The prior-year figures affected by these changes were restat-ed, for the sake of comparability, in accordance with IAS 8.22 (retrospective application). Retrospective recognition of those unrealized gains pertaining to fiscal year 2004 that were additionally contained in the available-for-sale reserve would have only shifted from one quarter to another the income and expenses contained in the profit/loss from investments. For the sake of continuity in presentation, we opted not to make any adjustments in this regard.
In accordance with IFRS 3, goodwill will no longer be amortized in the future. Instead, an impairment test will be conducted every year, or more often if there are indications of possi-ble impairments, to determine the necessity of recognizing impairment losses. With regard to the € 18,138 thousand goodwill of direktanlage.at AG that is carried on our books, we still do not anticipate a need to recognize impairment losses in the future, due to the positive busi-ness performance of this company.
A segment report by geographical markets, having the same structure as that in the consoli-dated financial statements for 2004, appears on pp. 20.
Changes to the consolidation group
Compared to the first quarter of 2005, no changes have occurred in the consolidation group. The statements made in the interim report for the first quarter of 2005 on the subject of the first-time consolidation of FSB FondsServiceBank GmbH, Unterhaching, continue to apply without changes.
Changes in the Supervisory Board
Effective May 13, 2005, Ms. Christine Licci was elected to the Supervisory Board. She has been appointed the Chairwoman of the Board.
Events after June 30, 2005
No significant events that would have a material impact on the financial or operational development of the DAB bank Group have occurred since the period closing date of June 30, 2005.
Shareholdings of Members of the Management Board and Supervisory Board Share purchases and sales in the reporting period
Shareholders Information Company Quarterly Report
Management Board Jens Hagemann Alexander von Uslar Supervisory Board Nikolaus Barthold Gunter Ernst Dr. Volker Jung Christine Licci Johannes Maret Andreas Wölfer Treasury stock Shares held at 06/30/2005 – – 3,500 – – – – – – Options held at 06/30/2005 – – 345 – – – – – –
Notes
Provisional date 10/25/2005 03/14/2006 04/25/2006 05/11/2006 07/25/2006 10/24/2006 Corporate Calendar Event 3rd quarter report 2005 Annual report 2005 1st quarter report 2006 Annual general meeting 2nd quarter report 2006 3rd quarter report 2006
Supervisory Board
Christine Licci
(Chairwoman of the Supervisory Board)
Andreas Wölfer
(Vice-Chairman of the Supervisory Board)
Nikolaus Barthold Gunter Ernst Dr. Volker Jung Johannes Maret Management Board Jens Hagemann
Alexander von Uslar
Corporate Communications
Gloria Pfaue
Telephone: +49/89/500 68-989
Fax: +49/89/500 68-999
DAB bank AG direktanlage.at AG
Address Landsberger Straße 428 Elisabethstraße 22
D-81241 Munich A-5020 Salzburg
Telephone from Germany: 01802/25 45 00 from Austria: 0810/20 12 21
from all other countries: +49/89/88 95 -91 00 from Germany: 01803/00 56 67
from all other countries: +43/662/20 70 - 444
Internet www.dab-bank.de www.direktanlage.at
[email protected] [email protected]
Fax from Germany: 089/500 68 - 630 from Austria: 0662/20 70 - 499
