- LBBW Anticipates Profitable 2024 with Positive Outlook
Giant LBBW Thrives Despite Recession, Boasts Boosted First-Half Pre-Tax Profit
In defiance of the economic downturn, the mammoth state bank of Baden-Württemberg (LBBW) is reporting a higher first-half pre-tax profit due to enduring high interest rates. The pre-tax profits soared by six percent, reaching 731 million euros, as declared by CEO Rainer Neske in Stuttgart.
"Navigating through substantial global uncertainties and a lagging German economy, we're marching ahead with success," Neske stated. All sectors contributed to the group's earnings, delivering in the millions digitally. The overall profit surged by four percent to 509 million euros.
LBBW is the most prominent German state bank. CEO Neske affirmatively upheld the outlook, anticipating a pre-tax profit exceeding 1 billion euros for 2023, following 1.37 billion euros in 2022. Neske asserted that they've effectively managed risks, invested in growth sectors, and successfully executed a strategy centered around expansion and relevance. "Thus, we gaze optimistically towards the impending months, even in these complicated circumstances, and foresee a prosperous year-end, following a powerful first half."
Heightened Risk Protection
LBBW's income - the total earnings of the bank - saw a two percent growth to 2.05 billion euros in the first semester. The risk provision for delinquent loans increased by 37 percent to 118 million euros in the same timeframe. Although it largely stemmed from additional provisions within the framework of blanket assumptions in the previous year, it was attributed to specific cases in the real estate sector during this year. LBBW belongs to the Southwest Sparkassen Association, the state of Baden-Württemberg, and the city of Stuttgart.
As of June 30, LBBW employed 10,603 individuals, an increase of 106 from the end of the preceding year.
Despite the Economic slowdown affecting many entities globally and a lagging German economy, LBBW's CEO, Neske, confidently stated that they are thriving, attributing their success to high interest rates and contributions from all sectors.
In the face of these challenging economic conditions, Neske predicted that LBBW's pre-tax profit will surpass 1 billion euros for 2023, largely due to their strategic focus on risk management, investment in growth sectors, and expansion efforts.
