Sparkasse: Half-year profit more than doubled

2023-09-14 08:00:03

The savings bank recorded increasing savings deposits and stable loans in the first half of the year. Customer loans remained virtually unchanged at a volume of 9.7 billion euros, while savings deposits rose by seven percent to 5.8 billion euros. The balance sheet total fell slightly to 15.3 billion euros.

According to CEO Stefanie Christina Huber, three factors led to earnings before taxes more than doubling from 39.8 to 101.6 million euros. On the one hand, there is net interest income, which results from the increased interest margins. During the zero interest rate phase, banks did practically no business with savings deposits. The trading area and our own investments also contributed eleven million euros, and ultimately provisions could have been liquidated.

On the other hand, as with all banks, housing loans are declining; at the Sparkasse, only half as many housing loans were granted in the first half of 2023 as in the first half of 2022. Demand was particularly high at that time because it was clear that the lending guidelines were being tightened and interest rates were rising would. The loan customers have been contacted, many have refinanced, and the majority now have fixed-interest loans. The default rate of 0.45 percent is below the Austrian banking average.

Huber says that corporate customers are noticing a reluctance to provide investment loans and a need to increase liquidity. “However, I don’t see a wave of insolvencies,” says the Sparkasse boss.

Meanwhile, the share held by the Allgemeine Sparkasse share management company in the bank is being expanded. As reported, Erste Bank is gradually retreating to ten percent, while small shareholders will continue to hold 4.3 percent. The Sparkasse is now at 78.86 and will increase it to 85.7 percent by 2026.