Banks - Cooperative banks increase profits significantly
The cooperative financial group overcame the interest shock and significantly increased its profit in the previous year. This amounted to 14.4 billion Euros before taxes, a significant leap from 4.2 billion Euros in the previous year. The group announced in Frankfurt that it expects a nearly fivefold increase in results of around 10.8 billion Euros for 2023, compared to 2.3 billion Euros in the previous year.
The rapid interest rate increase in 2022 led to market losses for government bonds, which make up a large part of the assets of the institutions. As a result, the papers had to be revalued, resulting in a significant loss of 6.8 billion Euros in the balance sheet. However, the result from financial assets returned to the positive area in 2023 with 1.34 billion Euros. The classic banking business also contributed to the recovery, as reported by the group. The deposits in the lending business grew by 2.4 percent.
"The cooperative financial group is ready for investments in the future and is well-positioned. The result for 2023 is also an expression of the successful joint strategic work," explains the President of the German Federal Association of Volksbanken and Raiffeisenbanken (BVR), Marija Kolak. She stated that the economic challenges are enormous and Germany needs a change in economic policy. The planned easing of write-off conditions falls far short. "We need a tangible corporate tax reform to release the investment brake and not fall behind internationally," demands Kolak.
To the cooperative financial group belong, among others, 697 (previous year: 737) Volksbanken and Raiffeisenbanken, the Sparda-Banken, and the DZ-Bank-Group. They report serving more than 30 million customers, of whom 17.8 million are shareholders at the same time.
The cooperative financial group, based in Frankfurt am Main, has associations in Germany. In the past quarterly figures, they reported a remarkable increase in profit, surpassing 14.4 billion Euros. Despite the losses from revalued government bonds, the positive result from financial assets helped to recuperate.
After overcoming the interest shock, the group anticipates a substantial increase in profits for 2023, estimated at around 10.8 billion Euros in Frankfurt. Marija Kolak, the President of the German Federal Association of Volksbanken and Raiffeisenbanken (BVR), highlighted the importance of investments and a corporate tax reform for economic growth.
Belonging to the cooperative financial group are various institutions, such as 697 Volksbanken and Raiffeisenbanken, Sparda-Banken, and the DZ-Bank-Group. These entities serve more than 30 million customers, with 17.8 million being shareholders simultaneously.
The financial group's robust performance and future-ready approach have positioned it well in the Frankfurt financial market, making it an influential player in Germany's financial sector.
