Turnaround in interest rates affects annual financial statements / Important
The course has been set in the Sparda Group
Frankfurt (ots) –
– Accumulated total assets increase to EUR 84.9 billion
– Net interest income rises to EUR 940.9 million in the new interest rate environment
– Commission income rises to a record level of EUR 314.5 million
– Sparda banks call for rethinking housing policy – sustainable
Construction financing comes into focus
The Sparda banks have the year 2022, which is characterized by significant market changes
with significantly increased interest surpluses and commission income
can. Against the background of the developments on the capital market and that
However, the net profit for the year is offset by the associated valuation effects
to EUR 43.7 million compared to the previous year. “We are – like the whole
sector – in view of the inflation-related new interest rate policy of the ECB
trend reversal situation. The figures for the 2022 financial year already show
that our member banks are on the right track. The
Earnings are stronger and customer deposits are up again
increased significantly. On top of that important strategic decisions
were made, such as the consolidation of IT in the group
a shared service provider. With the upcoming IT migrations, we
however, also aware that there is still a lot of homework on us in common
get. However, the course has been set for this,” said the CEO
of the Association of Sparda Banks, Florian RENTSCH.
However, the political environment is causing uncertainty at this point. “The
Conception of the digital euro is currently threatened by the actual need in the market
to pass by, with the regulations for energetic equipment and renovation
of residential buildings, there is still great uncertainty and a
consumer and bank-friendly solution to the general terms and conditions dilemma is not yet
in sight. Especially in these times we need reliable framework conditions,
especially in housing policy, but also in the regulation of smaller and
medium-sized banks,” RENTSCH continues.
Customer loans slightly up, new lending weaker –
Home finance business under pressure due to interest rate turnaround
The group’s new lending is EUR 7.2 billion compared to EUR 8.0 billion in
previous year to the level of 2020. “This hangs in
Essentially together with the increased interest rates in mortgage lending
continues to lead to noticeable reluctance on the part of customers – also because the
Residential real estate prices despite the minor corrections of the past
months are still quite high,” says CEO Uwe STERZ
Mortgage financing at the Sparda banks across the group in 2022
dropped almost 10 percent.
Florian RENTSCH adds: “If this trend is not stopped, the
socio-political consequences fatal. The housing policy collapse is not
abstract bogeyman anymore, but is imminent. We need
the right political course and, above all, reliability
for prospective buyers, which rules they apply to after purchasing a property
have to fulfill. Because, like our recently published Sparda living study
shows that the desire for a property in our country remains high.
However, the uncertainty is at least as great.”
RENTSCH continues: “We as the Sparda Group have here as part of our
Possibilities already responded and with its own program the advice
strengthened group-wide with regard to sustainable construction financing. The politics is
now asked to ensure reliable and fair framework conditions. This includes
also a reduction in the far too high additional purchase costs, for example through
Exemption from real estate transfer tax when buying an owner-occupied property.”
Customer deposits are rising again – total assets as a result as well
The new interest rate environment is also changing the business policy assessment of the
traditionally present at the Sparda banks. After increase of
interest rates, the market again offers sufficiently attractive investment opportunities.
Consequently, the Sparda banks are again campaigning for customer deposits
Attractive conditions of sometimes over 3% for short-term time deposits (up to
one year) and up to 1.5% on money market accounts. The customer deposits are in the year
Increased to EUR 74.2 billion in 2022 (previous year EUR 72.8 billion).
After the combined total assets of the Sparda banks in the past
After the 2021 financial year had risen only moderately, the eleven Sparda banks are now coming
in 2022 together to EUR 84.9 billion (+ 3.7 percent). The hard core capital could
increased again to EUR 5.5 billion compared to the previous year (EUR 5.2 billion).
the rate is now 17.0 percent.
Boom in fund business slows down, but trend remains positive – home savings
gaining ground again
In the fund business, which is largely the case at the Sparda banks
mediated through Union Investment is one after the record year 2021
Correction made downwards. After a good EUR 2.7 billion in 2021, the
Sparda banks brokered funds worth around EUR 1.9 billion last year.
This means that the level of 2020 has almost exactly been reached again. On the other
In 2022, the Sparda banks will have building society contracts with a volume of
almost EUR 1.7 billion brokered and thus around 28 percent more than in the previous year (1.3
billion EUR). Due to the lower volume of home savings, the
This means that declines in fund business cannot be fully compensated for. The
Brokerage business with insurance companies had a volume of EUR 95.2 million and
thus roughly at the level of the previous year.
“Of course, as with all market participants, the new world of interest rates is taking off
the investment products of the Sparda banks. While the fund business up again
has fallen back to the normal level before the securities boom, there was a strong
Increase in building savings. However, it is clear to see that the longstanding
Trend suggests greater interest in securities and it’s here
will continue at a higher level. We see here also for the customers of
Sparda Group still has significant potential in the investment that is required for a
balanced old-age provision are also essential and will be in the future,” he said
RETIREMENT
Net interest income jumps up – upward trend in commission income
continues – administrative expenses slightly reduced
The development of the interest surplus makes in view of the increased interest rates
a significant jump compared to the previous year and will be EUR 941 million in 2022
(2021 = EUR 879 million). That makes a gain of 7.1 percent. “The risen
interest rate environment is – at least in the medium term – a clearly positive impetus for
Sparda business model,” says STERZ.
Commission income also increased again, by a total of EUR 30.3 million.
EUR to the record level of almost EUR 315 million (10.7 percent). causative
this includes, in particular, commission income from payment transactions. Here
were able to pay the full account maintenance fees after obtaining customer consents
be collected. The commission income from the brokerage business
however, slightly declining.
Administrative expenses fell minimally by EUR 1.1 million in 2022. the cost
Income ratio improved to 74.6% (previous year: 80.6%). “Of course we know
correctly classify this sideways movement. Because the IT migrations from
seven Sparda banks in the next few years until 2026 will make their mark in the
leave behind administrative costs. In addition, there are foreseeable tariff increases, since the
currently valid collective agreement for the Sparda banks will expire this fall”,
so RENTSCH.
One-off effects in the valuation result cloud the positive development –
Net income decreased
The profit before tax is compared to last year of 54.9
million euros down to 43.7 million euros. While operating income before evaluation
still shows a significant increase to EUR 331 million (2021: EUR 222 million),
the valuation result has an impact of EUR -232 million.
“These one-off effects, which we have to identify across the industry, do not apply to the
Sparda-Banken essentially on the valuation of the securities. are there
in particular fixed-income securities affected by the Sparda banks
directly or through their special funds. The share portion is with all
Sparda banks of secondary importance. In the depreciated securities
However, due to the “pull-to-par” effect, there is potential for attribution
be realized in part as early as 2023 if interest rates remain stable,” he said
STERZ.
Continued high membership rate with declining membership numbers
A trend reversal in terms of member development in the Sparda Group
however, could not be achieved. The proportion of customers who are at the same time
Subscribed to membership shares of one of the eleven Sparda banks is still behind
as before and almost unchanged at a remarkable 84 percent. “Belonging to the truth
but also that we have, in total, over the past few years – also in view of the
Introduction of account fees and those that have since been abolished
Custody fees – have lost members. Of course we want this trend
stop and are firmly convinced that he has cooperative ideas,
to be not only a customer, but also a co-owner of a bank and for them
Commitment to the community is still important today,” says RENTSCH. Die Sparda-Banken
will also be broadcast on their digital channels in the coming months, for example
jointly focus more on how the
Involve cooperative banks socially and socially actively.
About the Association of Sparda Banks:
The association of Sparda banks registered association with seat in Frankfurt am Main is
Auditing association within the meaning of the cooperative law. As a “staff position” he is
also the mouthpiece of the group to the outside world. In addition to examining the
Association members are also responsible for advising and supporting the association
legally and economically independent Sparda banks in
cooperative, legal, tax, business,
organizational and personnel matters. In addition, he takes
the tasks of advocacy and promotes the political
Dealing with social and financial issues.
About the Sparda Group:
The group of Sparda banks consists of eleven economically and legally
independent Sparda banks in Germany. With 3.8 million customers and 3.2
million members, the institutes are among the most important retail banks in
Germany. The Sparda banks are a cooperative member of the
Federal Association of German Volks- und Raiffeisenbanken (BVR) and part of
Cooperative Financial Group.
Press contact:
Katja Riedel
Advisor to the Board of Directors
public relations
Association of Sparda banks eV
Tower 185 – 17th floor
Friedrich-Ebert-Anlage 35-37
60327 Frankfurt am Main
Phone: +49 (0) 69 / 79 20 94 – 150
Fax: +49 (0) 69 / 79 20 94 – 190
Email: mailto:[email protected]
Further material: http://presseportal.de/pm/76672/5562168
OTS: Association of Sparda Banks eV