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MarketScreener Homepage  >  Equities  >  Xetra  >  Comdirect bank AG    COM   DE0005428007

COMDIRECT BANK AG

(COM)
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comdirect bank : growing rapidly and increasing profitability

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10/29/2019 | 01:41am EST

DGAP-News: comdirect bank AG / Key word(s): 9 Month figures/Forecast
comdirect growing rapidly and increasing profitability (news with additional features)

29.10.2019 / 07:30
The issuer is solely responsible for the content of this announcement.


comdirect growing rapidly and increasing profitability

  • 174k net new customers in the first nine months of 2019
  • Record group profit of EUR175.7m thanks to sale of ebase
  • Target for pre-tax profit for 2019 raised to more than EUR185m

Quickborn / Frankfurt/Main, 29 October 2019. comdirect group gained 174k net new customers in the first nine months, bringing its current total to 2.70m. At the same time, comdirect generated a good pre-tax profit of EUR60.6m in its core business. Including the gain on disposal from the sale of ebase, comdirect group's pre-tax profit has reached a record level of EUR175.7m. "comdirect has continued to grow well in a difficult market environment," says Arno Walter, CEO of comdirect bank AG. "We are where our customers need us to be. Via our new banking partnership with Borussia Dortmund, we are also showing BVB fans how modern mobile banking and brokerage work. In order to be equipped for future growth, we have continued to work on our cost efficiency as well as on digitising and optimising our processes. All this leads not just to a good pre-tax profit, but to a positive customer experience as well."

Accelerated growth in customer base and assets under control continues
The number of customers in the core B2C business stood at 2.70m as of the end of the first nine months of 2019. With a net total of 174k new customers, growth is still at a very high level (compared to 160k in the previous year). With a rise of 135k to 1.52m, the number of custody accounts also increased robustly. The number of current accounts rose by 106k to 1.67m. Total assets under control rose 21% from EUR62.1bn as of the end of 2018 to EUR75.1bn. The reason for this sharp increase is the record net fund inflows of EUR7.8bn, particularly in custody accounts, and positive market value effects.


Growth in net commission income and net interest income
Income in comdirect's core business increased by 8% to EUR273.1m in the first nine months (previous year: EUR252.2m). Net commission income benefited from the larger customer base and more active trading, climbing to EUR161.3m (previous year: EUR155.5m). At 18.1m, the number of orders executed in the first nine months of 2019 is 14% higher than in the previous year (15.9m). Net interest income after provisions for possible loan losses rose from EUR86.2m in the previous year to EUR94.3m despite the still clearly negative interest environment.

Administrative expenses went up by 7% from EUR198.8m in the previous year to EUR212.5m, essentially as a result of growth. In addition to higher costs for sales and staff, mandatory contributions for the deposit insurance scheme also climbed once more. The fact that other administrative expenses remained stable at the same time is thanks to the bank's improved economies of scale.

Good result in core business despite increased investment in growth
comdirect posted a good pre-tax profit of EUR60.6m (previous year: EUR53.4m) in its core business (from continued activities) despite a further increase in investment in growth compared to the same period of the previous year. According to Walter, "The investment in growth and the scaling of our business model are now resulting in increased profitability." The contribution to earnings from discontinued activities, including the gain on the disposal of ebase to FNZ Group in mid-July 2019 was EUR115.1m before tax. comdirect group's pre-tax profit was therefore a record EUR175.7m in total. In an ad hoc disclosure at the start of the month, comdirect had already raised the target communicated after the first six months for a pre-tax profit for 2019 as a whole of more than EUR170m to more than EUR185m before tax.

Efficiency and scalability through the use of new technology
In the past nine months, comdirect has worked intensively on the scalability of its business model, modernising its IT infrastructure as well as digitising and optimising work processes along the customer interface. Standard processes are being made faster and more efficient through the use of new technology, such as a hybrid chat bot, robotic process automation (RPA), a new full text search on the website and an intelligent voice dialogue system. In the fourth quarter, comdirect will offer its customers the option of carrying out simple services for themselves - such as cancelling a VISA card, ordering a new one or changing the card's limit - quickly and directly in the voice dialogue system.

Coming soon: A smart financial companion for insurance as well
In addition, comdirect expects to add insurance to its range before the end of November. Customers will be able to use a new portal to both compare and manage insurance services. "As a smart financial companion, we want to make our customers' lives easier," says Walter. "They should be able to turn to us for all their financial sector needs - concisely and digitally. Naturally, this also includes insurance." comdirect's cooperation partner is JDC, a leading pool of brokers in Germany. Customers will be able to upload their existing insurance policies so that they can do without piles of thick folders. They can also check their cover with a requirement analysis and report claims through the portal.

Brokerage and banking platform business expanded
As the top address for saving, investing and trading with securities, TraderFox will soon be joining Guidants on comdirect's brokerage interface (API). This means that traders will be able to execute orders with comdirect without having to leave their customised information interface at one of the external partners.

As the official banking partner to HSV and, since August, BVB as well, comdirect offers an attractive banking package for football fans. In addition to mobile payments at all points of sale in stadiums, this includes a free fan account and - for BVB - also a fan custody account, including a payment wristband and the prize-winning comdirect app styled in the colours of the chosen team.

Merger of comdirect with Commerzbank announced
Commerzbank announced its intention to acquire further shares in comdirect bank AG on 26 September 2019. According to Commerzbank, this is part of its goal to merge comdirect with Commerzbank. The process that will now follow is legally regulated, and a public bid by Commerzbank to acquire shares from other shareholders would entail an immediate statement by the Board of Managing Directors. The statement will be published on comdirect.de/acquisitionoffer.

Overview*

in EURk Q1 18 Q2 18 Q3 18 Q4 18 Q1 19 Q2 19 Q3 19
Net interest income after              
provisions 26,262 30,218 29,739 30,748 31,830 31,008 31,445
Net commission income 59,247 48,644 47,658 50,771 50,149 53,777 57,369
Other income              
components 3,423 3,768 3,228 558 5,307 4,540 7,678
Administrative expenses 63,032 67,087 68,718 80,749 74,798 70,876 66,824
Pre-tax profit from              
continued activities 25,900 15,543 11,907 1,328 12,488 18,449 29,668
Pre-tax profit from              
discontinued activities 3,399 3,109 4,412 5,125 5,606 5,006 104,444
Pre-tax consolidated              
profit 29,299 18,652 16,319 6,453 18,094 23,455 134,112
Consolidated net profit 21,697 13,618 12,002 3,052 14,382 17,644 121,935
 
in EURk 9M 18 9M 19 9M 19 vs.
      9M 18
Net interest income after      
provisions 86,219 94,283 9.4%
Net commission income 155,549 161,295 3.7%
Other income      
components 10,419 17,525 68.2%
Administrative expenses 198,837 212,498 6.9%
Pre-tax profit from      
continued activities 53,350 60,605 13.6%
Pre-tax profit from      
discontinued activities 10,920 115,056 953.6%
Pre-tax consolidated profit 64,270 175,661 173.3%
Consolidated net profit 47,317 153,961 225.4%
 * The business of ebase is reported under as "discontinued activities" on account of its sale in July 2019. The figures for the previous year were restated accordingly

Contacts for this press release
Annette Siragusano
Tel. +49 (0) 41 06/704-1960
E-mail: annette.siragusano@comdirect.de

Ullrike Hamer
Tel. +49 (0) 41 06/704-1545
E-mail: ullrike.hamer@comdirect.de

Notice for editors
Further information on business performance in the first nine months of 2019 can be found here:
https://www.comdirect.de/cms/ueberuns/de/investorrelations/veroeffentlichungen.html

All press releases can be found at www.comdirect.de/presse

Follow us on Twitter at https://twitter.com/comdirect or https://twitter.com/Arno_Walter

If you do not wish to receive information, please inform us at presse@comdirect.de


Additional features:

Document: http://n.eqs.com/c/fncls.ssp?u=VQMRMJIUGV
Document title: press release


29.10.2019 Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group AG.
The issuer is solely responsible for the content of this announcement.

The DGAP Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases.
Archive at www.dgap.de


Language: English
Company: comdirect bank AG
Pascalkehre 15
25451 Quickborn
Germany
Phone: + 49 (0) 4106/704-0
Fax: + 49 (0) 4106/708-2580
E-mail: ir@comdirect.de
Internet: www.comdirect.de
ISIN: DE0005428007
WKN: 542800
Listed: Regulated Market in Frankfurt (Prime Standard); Regulated Unofficial Market in Berlin, Dusseldorf, Hamburg, Hanover, Munich, Stuttgart, Tradegate Exchange
EQS News ID: 898437

 
End of News DGAP News Service

898437  29.10.2019 

fncls.ssp?fn=show_t_gif&application_id=898437&application_name=news&site_id=zonebourse

© EQS 2019
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Financials (EUR)
Sales 2019 356 M
EBIT 2019 85,0 M
Net income 2019 162 M
Debt 2019 -
Yield 2019 2,21%
P/E ratio 2019 11,3x
P/E ratio 2020 26,6x
Capi. / Sales2019 4,93x
Capi. / Sales2020 4,54x
Capitalization 1 757 M
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Technical analysis trends COMDIRECT BANK AG
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Mean consensus OUTPERFORM
Number of Analysts 4
Average target price 13,03  €
Last Close Price 12,44  €
Spread / Highest target 12,5%
Spread / Average Target 4,70%
Spread / Lowest Target -7,56%
EPS Revisions
Managers
NameTitle
Arnold P. Walter Chief Executive Officer
Jochen Sutor Chairman-Supervisory Board
Frauke Hegemann Chief Operating Officer
Dietmar von Blücher Chief Financial & Investment Officer
Sabine Schmittroth Member-Supervisory Board
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