Dekabank on course for record profit thanks to interest rate turnaround
Dekabank is on course for a record profit in the billions. The Deka Group currently expects an economic result for the year as a whole that is 10 to 20 percent higher than the record profit of just under 985 million euros achieved in 2022, the Wertpapierhaus der Sparkassen announced in Frankfurt on Tuesday. "The business development in the fourth quarter has made us confident so far," said CEO Georg Stocker. Like other financial institutions, the bank is benefiting from the rise in interest rates.
After another successful third quarter, Dekabank has already exceeded the profit forecast for the year as a whole, which was raised by the Management Board in August to more than 800 million euros. At the end of September, the balance sheet showed an economic result of just under 998 million euros. This also exceeded the figure for the same period last year, which was exceptionally good thanks to positive valuation effects for certificates, among other things.
However, at 648 million euros, sales of funds and certificates at Deka, which is wholly owned by the savings banks, were significantly below the previous year's level of around 20.4 billion euros at the end of September. This was due to the loss of a major mandate with a volume of around 19 billion euros in institutional business.
Business with private investors has recently been good: In this area, the savings bank subsidiary collected 18.7 billion euros in fresh funds from January to September inclusive - an increase of almost a quarter (24 percent) compared to the same period last year. In contrast, the sales performance in business with institutional investors such as insurance companies and pension funds amounted to minus 18.1 billion euros after nine months, compared to plus 5.3 billion euros a year earlier.
The rise in interest rates has positively Impacted Dekabank, contributing to their expected annual profit significantly higher than the 2022 record of 985 million euros. According to the quarterly figures, Dekabank's economic result for the year to date surpasses the updated forecast of over 800 million euros.
Source: www.dpa.com
