AMSTERDAM: Dutch online broker BinckBank said it roll out its low-price service in Italy in 2012, entering its fourth market, after it fell very slightly short of quarterly net profit expectations on Monday.
The broker, set up in 2000, grew quickly by offering lower fees than the traditional Dutch banks such as ING and ABN AMRO, which later followed suit by cutting trading fees for retail investors.
It rolled out its platform in Belgium in 2006, where its retail operations broke even within 18 months, then entered the French retail market in September 2008, where it is on course to break even within three or four years.
"Italy is one of the largest brokerage markets in Europe and in several respects comparable to the Netherlands. Our research indicates that there is room in Italy for a specialist player such as BinckBank," Chief Executive Koen Beentjes said in a statement.
BinckBank reported a net profit of 10.2 million euros, up 6 percent from the third quarter thanks to a pickup in equity markets, which increased commission income.
Analysts had forecast net profit of 11 million euros on average, with the range between 6.4 and 16.1 million euros, a Reuters poll of seven analysts showed.
BinckBank, which competes with bank ING in the Netherlands, bank KBC in Belgium and broker Boursorama in France, said it proposed to pay a total dividend of 0.51 euros per share. Analysts had forecast 0.52 euros per share.
The broker's stock has surged more than 25 percent since the start of the fourth quarter, fuelled partly by speculation that it is a takeover target, with U.S. giant brokerage Charles Schwab Corp and private equity firm Permira both considered possible suitors.
Comments
Comments are closed for this article.