- DZ Bank Group's earnings exhibit a decrease during the initial half of the year.
DZ Bank Group's First Half 2024 Earnings Dip sees a decrease in pre-tax profits to 1.71 billion euros, a sliding from the previous year's 1.93 billion euros. The group's net income followed suit, plunging from 1.4 to 1.25 billion euros, as reported in Frankfurt.
According to CEO Cornelius Riese, "Given the present economic and geopolitical climate, this isn't exactly a cakewalk." The group managed to maintain its growth trajectory. Interest income and fee income saw an increase, but the trading result took a significant hit, turning negative. This happened due to adjustments in the valuation of our in-house bonds, among other factors. Administrative expenses had a minor decrease.
DZ Bank CEO Anticipates Market Volatility
The Central Institute of Volks- and Raiffeisenbanks expressed satisfaction with each of its group companies. For instance, Union Investment reported strong sales to both personal and institutional clients. R+V Insurance showed a steady premium growth across all insurance sectors. DZ Bank's own banking operations also performed well.
Riese forecasts heightened uncertainty in global politics and financial markets in the upcoming months. "Under these circumstances, we anticipate finishing the year within our sustainable earnings range of 2.0 to 2.5 billion euros for 2024," he added. The group closed out the previous year with an impressive pre-tax profit of nearly 3.2 billion euros.
DZ Bank AG contributed to the group's pre-tax profits, which decreased to 1.71 billion euros in the first half of 2024. Despite this dip, Riese, the CEO of DZ Bank, forecasts a finish within the group's sustainable earnings range for 2024.
