flatexDEGIRO: CET1 ratio to increase to over 27 % following BaFin’s approval to re-apply credit risk mitigation techniques for DEGIRO margin loans

• Group’s risk weighted assets to decrease by approximately 450 million Euro
•  Solid capital structure opens up further opportunities in the ongoing financial planning process

Frankfurt/Main - flatexDEGIRO AG (WKN: FTG111, ISIN: DE000FTG1111, Ticker: FTK.GR), Europe's leading online broker, announced today that the German Federal Financial Supervisory Authority (BaFin) has today informed flatexDEGIRO Bank AG that it approves the re-application of credit risk mitigation techniques (CRMT) for DEGIRO margin loans with immediate effect. BaFin’s decision is based on flatexDEGIRO’s successful progress in remedying the relevant shortcomings, following an assessment by BaFin in consultation with the special commissioner.

The re-application of CRMT for DEGIRO margin loans will lead to an immediate reduction of flatexDEGIRO Group’s risk weighted assets (RWA). Based on the last reported figures as of 30 June 2023, RWA would thus have been reduced by approximately one third or 450 million Euro to approximately 900 million Euro. Based on this, flatexDEGIRO Group’s Common Equity Tier 1 (CET1) ratio is thereby to increase to over 27 percent versus a regulatory required CET1 ratio of approximately 15.4 percent, leading to a regulatory capital surplus of approximately 100 million Euro.

Frank Niehage, CEO of flatexDEGIRO: “Resolving these important findings in less than twelve months after the introduction of measures is a major achievement. It allows us now to put a stronger focus again on commercial topics, such as the expansion of our margin loan offering to all DEGIRO customers over the coming weeks. I would like to thank my colleague Steffen Jentsch, who heads the overall task to remediate all audit findings, as well as all colleagues involved for their outstanding performance in successfully improving our processes, documentation and controls in this immensely important project. I would also like to take this opportunity to thank BaFin and the Special Commissioner for the cooperative involvement in this matter.”

It is flatexDEGIRO’s declared goal to firmly anchor the improvements and the corresponding mindset in the organizational and process structure. This will make flatexDEGIRO even more future-proof and fit for further organic and inorganic growth.

Dr. Benon Janos, CFO of flatexDEGIRO: “The re-application of the credit risk mitigation techniques leads to a substantial improvement of our CET1 ratio and the regulatory capital surplus we hold beyond regulatory requirements. This provides our Group with a capital structure that opens up further opportunities, which we will evaluate and communicate to the capital market at the appropriate time following completion of the ongoing financial planning process and corresponding coordination with the Supervisory Board and the regulator.”

Contact:

Achim Schreck
Head of IR & Corporate Communications
flatexDEGIRO AG

Omniturm – Große Gallusstraße 16-18
D-60312 Frankfurt/Main
Phone +49 (0) 69 450001 0

[email protected]

About flatexDEGIRO AG

flatexDEGIRO AG (WKN: FTG111, ISIN: DE000FTG1111, Ticker: FTK.GR) operates a leading and fastest growing online brokerage platform in Europe. Based on modern, in-house state-of-the-art technology, customers of the flatex and DEGIRO brands are offered a wide range of independent products with execution on top TIER 1 exchanges. The technological edge as well as the high efficiency and strong economies of scale enable flatexDEGIRO to continuously improve its service offering to customers.

With over 2.5 million customer accounts and over 67 million securities transactions settled in 2022, flatexDEGIRO is the largest retail online broker in Europe. In times of bank consolidation, low interest rates and digitalization, flatexDEGIRO is ideally positioned for further profitable growth.

For more information visit https://www.flatexdegiro.com/en