Thanks to the very good interest rate business, which brought “margins back to normal levels,” Oberbank has earned better than ever. The interest result rose by 47 percent to almost 600 million euros, the bottom line was a profit following taxes of 383 million euros. That means an increase of 57 percent.
Business got off to a slow start in the current year, said Oberbank General Director Franz Gasselsberger when presenting the annual balance sheet. He assumes that “the bottom has passed”. The company’s results are better than expected, and the high level of collective agreements means more money in consumers’ wallets.
Demand for housing loans in the first quarter was 20 percent higher than the previous year. By 2023, these had fallen by half, according to Gasselsberger. The government’s housing package comes at the right time. In addition, capital market interest rates have passed their peak and real estate prices are also moving in the right direction.
The demand for loans at Oberbank is anyway driven by strong corporate business. 16 billion (plus seven percent) of the 20 billion euros (plus 4.6 percent) in new loans went to companies – with the good development being driven by the good first half of the year. Risk provisions have doubled to 84 million euros. In connection with loan defaults, Gasselsberger speaks of a normalization of the value adjustment ratio – this has also doubled.
Deposits increased in the second half of the year – the magnitude surprised him, says Gasselsberger. 19 billion euros (plus 6.6 percent) of customer money are in the accounts, and another 20 billion are being managed in securities depots. For Gasselsberger, this is another indication that residential construction will pick up once more.
Image: VOLKER WEIHBOLD
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Image: VOLKER WEIHBOLD
A third of the income comes from Oberbank’s foreign business; North Rhine-Westphalia (Germany) is the defined expansion area with, according to Gasselsberger, “tremendous potential”.
The good development led to an increase in equity. The core capital ratio, the key figure that is intended to indicate the stability of a bank, is 18.88 percent. This makes Oberbank one of the best capitalized European banks, according to its boss. As already announced, the dividend will be doubled to one euro per share.
