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Cortal increases net income to 12.2 million euros in 1999

Cortal increases net income to 12.2 million euros in 1999

Cortal continues to achieve rapid growth in the beginning of 2000, tripling the value of its transactions in one year, having become a direct member of the Paris Bourse on March 27th 2000

The net income of Cortal was 12.2 million euros in 1999, compared to 10.6 million euros in 1998. This represents a net return on equity of 27% (23% in 1998) and is a result of the strong growth of income and investments.

The increase in activity of its two product lines, mutual funds and brokerage, has enabled Cortal to increase its net banking revenues by 24% to 102 million euros in 1999. At the same time, marketing expenses for the recruitment of new clients have increased by 31%, to 13.7 million euros. IT expenses dedicated to increasing the capacity for processing client orders grew by 37% and reached 13.4 million euros in 1999.

Combined with the growth of online broking amongst private investors and a constant focus on innovation, these investments have enabled Cortal to show accelerating growth in the beginning of 2000. This growth can be highlighted by:

- a 89% growth of mutual funds (Sicav and life insurance) collected in January and February 2000 compared to the same period in 1999
- a three-fold increase in the number of trades in January and February with orders for more than 2 billion euros executed in those two months

Following this success, Cortal will increase its number of investments in 2000 and continue to be innovative in serving European private investors. This can be demonstrated through:

- the announcement of the partnership with TRADING in mid-March (giving free access to financial analysis on Nasdaq and the main European stock exchanges, which means a basis of 44 000 shares)
- the adhesion to the Paris Bourse the March 27th, which will enable a faster return of executed orders on the markets
Investment in trading by digital telephone and WAP technology

The number of online accounts are expected to more than double in the year 2000. (At the end of February Cortal had 56 000 online accounts).

The mission of Cortal is to help European individuals build and manage their savings. Customers are given access to services covering all mutual funds and principle stock markets. e-cortal is the online broking service of Cortal. A company of BNP Paribas, Cortal showed a net return on equity of 27% in 1999 and boasted 488,000 clients at the end of February 2000.