DGAP-News: MWB"s Nine-Month Result for 2001 as Bad as Expected
2001-10-17 00:00
Strategic Readjustment Decided/Personnel and Administrative Expenses Markedly Lower
Gräfelfing/Munich, October 17, 2001. Munich-based securities house MWB"s result for the first nine months of business year 2001 was, as expected, negative compared to the same period in the previous year. But the company was able to significantly lower its administrative and personnel costs. MWB management in the third quarter also began implementing a concept for the company"s strategic readjustment, in which the individual fields of specialist business, market making, asset management and IPO consulting are partially streamlined, restructured and reoriented.
Turnover in foreign shares in Germany, the most important influencing element in the company"s core business, fell to EUR54.4 billion in the third quarter from EUR77.5 billion in the second quarter of 2001. As a result of this market development, the Group"s financial and commission result was EUR-0.5 million through September 30, 2001, after achieving a plus of EUR25.2 million in the same period of the previous year. This result already includes adjustments for trading positions and own shares. Earnings before tax dropped to EUR-8.1 million compared to a plus of EUR 15.7 million in the previous period. Through consistent optimization of trading processes and strict cost control, MWB has achieved savings in administrative expenses of EUR2.2 million compared to the previous year"s period, bringing them down to only EUR5.3 million. Personnel expenses fell by EUR1 million compared to the previous year due to a lack of earnings-dependent components, lowering them to EUR2.3 million.
The current stock market environment and the resulting much lower turnover in foreign stocks in Germany make the business much riskier, especially for these stocks in which simultaneous trading at the home markets takes place only to a limited time, such as in the U.S.A.
"Although for numerous shares the chances of recovery seem greater than the risk of a further drop, investors remain very uncertain and are avoiding risk, especially with foreign stocks," says MWB Speaker of the Board Thomas Posovatz. "The shock after the attacks on the World Trade Center still sits deep and may postpone a revival of market turnover in the near term."
MWB AG (www.mwb.de) has been listed in the SMAX since April 1999. It is a leading specialist and market maker for foreign securities in Germany. MWB has seats on the Munich, Berlin, Frankfurt, Düsseldorf and Stuttgart stock exchanges. It is also active in the IPO and asset management with its wholly owned subsidiary MWB Wertpapierhandelsbank.
Gräfelfing/Munich, October 17, 2001. Munich-based securities house MWB"s result for the first nine months of business year 2001 was, as expected, negative compared to the same period in the previous year. But the company was able to significantly lower its administrative and personnel costs. MWB management in the third quarter also began implementing a concept for the company"s strategic readjustment, in which the individual fields of specialist business, market making, asset management and IPO consulting are partially streamlined, restructured and reoriented.
Turnover in foreign shares in Germany, the most important influencing element in the company"s core business, fell to EUR54.4 billion in the third quarter from EUR77.5 billion in the second quarter of 2001. As a result of this market development, the Group"s financial and commission result was EUR-0.5 million through September 30, 2001, after achieving a plus of EUR25.2 million in the same period of the previous year. This result already includes adjustments for trading positions and own shares. Earnings before tax dropped to EUR-8.1 million compared to a plus of EUR 15.7 million in the previous period. Through consistent optimization of trading processes and strict cost control, MWB has achieved savings in administrative expenses of EUR2.2 million compared to the previous year"s period, bringing them down to only EUR5.3 million. Personnel expenses fell by EUR1 million compared to the previous year due to a lack of earnings-dependent components, lowering them to EUR2.3 million.
The current stock market environment and the resulting much lower turnover in foreign stocks in Germany make the business much riskier, especially for these stocks in which simultaneous trading at the home markets takes place only to a limited time, such as in the U.S.A.
"Although for numerous shares the chances of recovery seem greater than the risk of a further drop, investors remain very uncertain and are avoiding risk, especially with foreign stocks," says MWB Speaker of the Board Thomas Posovatz. "The shock after the attacks on the World Trade Center still sits deep and may postpone a revival of market turnover in the near term."
MWB AG (www.mwb.de) has been listed in the SMAX since April 1999. It is a leading specialist and market maker for foreign securities in Germany. MWB has seats on the Munich, Berlin, Frankfurt, Düsseldorf and Stuttgart stock exchanges. It is also active in the IPO and asset management with its wholly owned subsidiary MWB Wertpapierhandelsbank.