Gontard & MetallBank AG i.I.
Gontard & Metallbank AG english

Corporate-News announcement sent by DGAP. The sender is solely responsible for the contents of this announcement. ——————————————————————————– – Nine-month loss of Euro 7.7 million – Change in business focus Frankfurt/Main, 13 August 2001 – The exploration of new sources of income that the bank has embarked on was no short-term remedy for Gontard & MetallBank’s strong dependency on capital market developments, and the resulting impact of the continued market slump. As a result, the bank recorded a loss of DM 16.1 million (Euro 8.2 million) for the third quarter of the current business year (1 April to 30 June 2001). The bank’s aggregate results before taxes for the first nine months of the business year 2000/2001 (1 October 2000 to 30 June 2001) was a loss of DM 15.1 million (Euro 7.7 million). Profit before taxes for the comparable period of the previous business year (1 October 1999 to 30 June 2000), which had been characterised by a pronounced stock market boom, was DM 108.9 million (Euro 55.7 million). Net interest income for the period under review amounted to DM 22.8 million (Euro 11.7 million), compared to DM 28.7 million (Euro 14.7 million) for the same period of the previous business year. Besides a decline in loans and advances to customers, the decrease was the result of the non-recurrence and of interest income on the previous year’s period gains. Net commission income for nine months was DM 48.4 million (Euro 24.8 million), after DM 65.5 million (Euro 33.5 million) for the same period of the previous business year. As in the previous quarter, the continued reluctance of investors as well as the shortfall in commission income from new issues contributed to this development. Predominantly as a result of marking Gontard & MetallBank’s securities holdings to market, the bank incurred an aggregate trading loss of DM 12.9 million (Euro 6.6 million) for the first nine months of the business year, compared to a trading profit of DM 101.3 million (Euro 51.8 million) for the same period of the previous business year. Administrative expenses for the period from 01 October 2000 to 30 June 2001 amounted to DM 70.4 million (Euro 36.0 million) (9 months of 1999/2000: DM 71.6 million / Euro 36.6 million). For the fourth quarter of the current business year (1 July to 30 September 2001), the Board of Managing Directors of Gontard & MetallBank AG envisages additional burdens upon financial performance, due to provisioning requirements for loans and pre-IPO shareholdings, amounting to tens of millions of euros. These burdens are expected to be partially offset by extraordinary income on the planned sale of shareholdings Taken together, the provisioning requirements and extraordinary income will result in projected extraordinary expenditure of approximately Euro 8 million. In order to regain profitability, Gontard & MetallBank has reviewed its strategic focus. Initial restructuring measures that have already been taken will become effective in the business year 2001/2002. There will be an increased focus on expanding traditional banking services to high net worth private clients, with a view to producing more stable income. Whilst the existing client base holds significant potential, the bank has set itself ambitious goals regarding the acquisition of new clients. In the near future, a state-of-the-art portfolio management system will be offered as a special service to clients of the Asset Management division: high net worth private clients as well as independent asset managers outside the bank. In parallel with the expansion of the Asset Management division, the bank is in the process of refocusing the Investment Banking division. This includes the establishment of a specialist M&A team within our existing Corporate Finance department. The team has already been awarded three initial mandates. In addition, a restructuring team specialises in providing services to companies that have encountered financial difficulties. In a conference call starting today, at 2 p.m. CET, the Board of Managing Directors of Gontard & MetallBank AG will comment on the end of message, (c) DGAP 13.08.2001