The RLB’s investments in important companies in Austria such as Raiffeisen International, voestalpine or Hypo Oberösterreich und Energie AG have contributed a great deal to the earnings of Upper Austria’s largest bank in recent years. However, since the current valuations of the investments are always relevant for profits and these fluctuate greatly, the bank’s results also fluctuate. The profit before taxes for the period fell by 34.1 percent to EUR 295.9 million. This was almost exclusively due to the contributions from the investments. The operating result, which was negative at EUR 222 million two years ago and a whopping EUR 502.6 million last year, has now settled at EUR 347.7 million.
In return, RLB is making good money in traditional banking, not least thanks to higher interest rates. Customers are saving more again, deposits as of June 30th were at 14.1 billion euros, 6.4 percent more than exactly a year before, and the financing volume rose slightly to 26.2 billion euros. The bottom line is that RLB is building up equity and, including earnings in the first half of the year, has a core capital ratio of 17 percent, which is significantly above the requirements of the banking regulator. General Director Heinrich Schaller expects stable business development in the second half of the year.
Although the earnings contributions of the investments fluctuate, the investment business remains an essential part of the bank, says Schaller. As a kind of confirmation, RLB is taking a stake in Leonding-based fire service equipment supplier Rosenbauer together with KTM boss Stefan Pierer and Red Bull co-owner Mark Mateschitz. The majority takeover is expected to become legally effective at the end of the year.
Author
Dietmar Mascher
Deputy Editor-in-Chief, Head of Business Department
Dietmar Mascher