flatexDEGIRO AG

Hello and welcome to ReflectX DGRO Quadratree Analyst Call. My name is Caroline and I'll be your coordinator for today's event. Please note this call is being recorded and for the duration of the call your lines will be on listen-only mode. However, you'll have an opportunity to ask questions at the end of the call. This can be done by pressing star 1 on your telephone keypad to register your questions. If you require assistance at any point, please press star 0 and you'll be connected to an operator. I will now hand over the call to your host, Mr. Frank Niago, the CEO of Flexx Djiro, to begin today's conference. Thank you.

Yeah, good morning, everyone, from Frankfurt to our Q3 earnings call. Pleasure to be here with Dr. Binon Janos, our CFO, as well as Achim Schreck, our head of IR. Like always, I'm happy to do the introduction and share with you some highlights of last quarter. And then obviously I hand over to the CFO to run you through much more details. So as we've promised in our last call, we've managed our cost. We saw in the first half of this year a lot of one-offs. And we promised to manage our marketing spend. And we are quite happy that a client grows with reduction of marketing spend as possible. and that management is on top of things. We're also very happy to benefit from increase of interest rates due to our setup as a full-fledged bank. And obviously, you know, in very challenging times, be it the geopolitical situation, not only here in Europe, but also in the Middle East, and as well as with high inflation and interest rates, we distinguish ourselves from many Traditional brokers who only enjoy a brokerage license and cannot run a fully collateralized credit book like we do, as well as due to our treasury policy in the past last years, we never invested a huge amount of our money into fixed income products. So today we enjoy 4% at the central bank daily liquidity, no risk. with a huge amount of money. So this obviously helps us to compensate lower trading activities, which is an industry-wide phenomenon. We also had an IT integration, I would say the biggest in the history of Digiro, and that happened last week without any serious noise. So our IT system is very robust and performing very well. like always. So all in all we are quite happy with the Q3 numbers. We are back in the forecasted margin and we will continue like that for the rest of the year. So all in all for us a good quarter in that environment and obviously with our commercial activities which we started after BaFin cleared our credit risk mitigation situation positively, we will now enlarge the credit book and we also increased the interest rates at FlatEx for that credit product because we didn't follow the interest hikes of the ECB over the last 12 months and our competitor Analyze showed us that we were still quite low. So we used that opportunity to increase. And we will do the same as usual with the effect of 1st of January. So our interest income should increase by enlarging the credit book on one hand side and by an increase in interest rates. That's all for the moment with respect to the highlights. I'm happy to hand over to Benon and he will run you through more details.

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