The online brokerage business of Consors Italy will be stopped
CortalConsors takes new strategic decisions according to its integration plan "2 weeks, 2 months, 2 quarters" having started in May and finishing in November. After having closed the investment banking branch of Consors Capital Bank AG in Frankfurt, CortalConsors restructures now two national units which don't have the potential to show the critical mass on a stand alone basis within previewed time frame. These restructurings support the ambitious goal of the group CortalConsors to break even in 2003, even if we were to remain under the present market environment .
Consors Switzerland, ranking 3rd on the Swiss online brokerage market, is sold to Swissquote. Consors Switzerland counts 11,600 customers and 27 stock exchanges to trade on. Together, Consors Switzerland and Swissquote will be in a position to become a market leader.
CortalConsors has decided to stop the online brokerage business of Consors Italy. In Italy, the pricing competition has been dramatic since 2000: on the heavy trader segment, which constitutes the core business of Consors Italy, the margins are four times lower than in France or in Germany. Facing these conditions, Consors Italy will not be profitable in the near future. CortalConsors will concentrate its development in Italy on the Independent Financial Advisor business and on the distribution of savings products to private investors (like mutual funds, life insurance and discretionary portfolio management).
Olivier Le Grand, CEO CortalConsors: "Despite the market environment we maintain our objective to realise our strategic plan and to break even in 2003. Therefore, we currently check each and every engagement of the group and set up new adapted structures which will lead us to success. Our aim is to be No 1 in Europe - in size, in range of products, in services as well as in results."
After the acquisition of Consors Discount-Broker AG by BNP Paribas in May 2002, Cortal and Consors are in the process of merging their businesses and realizing strategic synnergies as well as costs effects. 24 internal workgroups are currently preparing, in each of their domain, the action plans which will be finalised by November. They concern six countries: Belgium, France, Germany, Italy, Luxembourg and Spain.