2017 Annual report: comdirect publishes certified figures for the financial year 2017
Today the comdirect group is publishing its annual report for 2017. Preliminary figures have already been presented at the financial statements press conference in Frankfurt in January.
The comdirect group closed the financial year 2017 with a pre-tax profit of €94.9m. Pre-tax return on equity stands at 15.8%. The target of around €85m before taxes announced mid-year was significantly exceeded. “The good result demonstrates that we have a sustainably profitable business model, which also stands up very well in a challenging market environment," says comdirect bank AG CEO Arno Walter. At €120.7m before taxes, the previous year’s high result was due to non-recurring income of around €41m before taxes from the VISA transaction. Without the non-recurrent VISA effect, pre-tax profit is around 19% above the previous year.
The success is based on a continuing strong growth that comdirect
has once again significantly accelerated through the acquisition of onvista bank and onvista media, says Walter.
Innovations such as cominvest or the voice-controlled finance skills like Alexa that succeed and move the market stand behind the dynamic growth. For example, customers have already used the digital asset management cominvest to invest over € 200 million since the launch of the service in May 2017 until the end of 2017. These new offerings make comdirect a smart financial centre for very simple, intuitive and digital banking - as well as the top address for saving, investing and trading with securities. This also matches with the needs of an increasingly mobile generation.
Dividend proposal at 25 cents, profit retention for further growth
After-tax profit amounts to €71.5m, compared with €92.5m in the previous year. The dividend to be proposed at the annual general meeting is 25 cents per share, as in the previous year. The remaining sum of the after-tax profit is to be transferred to retained earnings and used for strengthening the equity basis for further growth.
High net commission income more than compensates for decline in net interest income
The comdirect group’s total earnings stood at €379.4m (previous year: €381.6m). The main source of earnings was the net commission income, which at €251.9m marked a record high and exceeded the previous year’s figure of €215.4m by 17%. At 17.2m, the number of B2C trades in 2017 was 21% above the previous year (14.2m). The persistent zero interest rate environment led to a decline in net interest income after provisions for possible loan losses of 20% to €95.6m (previous year: €118.9m). The decline was more than offset by the sharp increase in net commission income. Other income stood at €31.8m. This was primarily due to a positive result from financial investments. The high levels of the market indices were used to realise share price gains in own investment. In the previous year (€47.3m), other income included the earnings from the VISA transaction.
The administrative expenses of €284.5m were 9% above the previous year’s figure (€261.0m). Reasons for the increase in particular included the rise in other administrative and personnel expenses resulting from the integration of onvista, greater mandatory contributions for the deposit insurance scheme and costs related to implementing major regulatory projects.
Strong growth in customer numbers and assets under control
With a significant increase in its customer base and assets under control, the comdirect group has strengthened its position as one of the leading online brokers in Germany. The total number of customers climbed to 3.34m in 2017, an increase of 221k. The number of custody accounts rose by 209k to 2.08m. Total assets under control increased by €15.6bn to the record level of €91.4bn. Totalling €10.8bn, net fund inflows in the group were also at a record level (previous year: €8.4bn).
The number of customers in the B2C business line (comdirect bank AG, including the onvista bank division) has increased by 205k to 2.29m since the start of the year. In the same period, the number of custody accounts rose by 195k to 1.20m. Of these, 102k customers and custody accounts are the result of the acquisition of onvista bank GmbH, concluded as of 3 April 2017. The number of current accounts rose by 75k to 1.43m. Total assets under control climbed in the previous financial year by €13.0bn to €59.02bn, and the portfolio volume increased by €9.3bn to €37.09bn. €3.0bn in assets under control came from onvista bank GmbH as of 3 April 2017.
The B2B business line (ebase GmbH) increased its customer base to 1.05m (year-end 2016: 1.04m). Assets under control rose to a new high of €32.35bn (year-end 2016: €29.75bn).
The annual report is available now at www.comdirect.de/ir
|in € k||Q3 16||Q4 16||Q1 17||Q2 17||Q3 17||Q4 17|
|Net interest income after provisions||28,784||27,105||24,513||23,393||24,769||22,949|
|Net commission income||51,459||55,509||59,148||61,050||61,579||70,151|
|in € k||2016||2017||2017 vs. 2016|
|Net interest income after provisions||118,886||95,624||-19.6 %|
|Net commission income||215,412||251,928||17.0 %|
|Other income||47,326||31,836||-32.7 %|
|Administrative expenses||260,960||284,527||9.0 %|
|Pre-tax profit||120,664||94,861||-21.4 %|
|After-tax profit||92,511||71,544||-22.7 %|