Savings banks generate profit of € 4.6 billion in 2009 € 2.3 billion paid in income taxes

17.03.2010 – Press Release No. 27/2010

The 431 savings banks in Germany substantially increased their profitability in fiscal 2009. Earnings before taxes totalled € 4.6 billion, i.e. € 2.7 billion more than in 2008. The taxes due on these profits amounted to € 2.3 billion, approx. € 1.3 billion more than in the previous year. “The savings banks significantly strengthened their reserves and paid plenty of taxes”, said Heinrich Haasis, President of the German Savings Banks Association (DSGV – Deutscher Sparkassen- und Giroverband) today at the annual financial press conference in Frankfurt/Main.

The substantial increase in Net Income for the Year was due to both the positive development of Net Interest Income and an improvement of the Valuation Result. Net Interest Income amounted to € 22.7 billion, which was 10 per cent higher than in 2008. Despite the substantial decline in the volume of trading, Net Commission Income amounted to € 6 billion, which was approximately at the previous year’s level.

The Valuation Result (losses on loans and securities) was much better in 2009 than in the previous year and amounted to € 5.3 billion, compared with € 6.3 billion in 2008. Value adjustments in the lending business totalled € 2.7 billion, which was not as high as had been expected in view of the economic situation. The value of security holdings continued to grow, increasing by € 1.3 billion relative to the previous year.

Savings banks accrued prudential reserves of € 3.4 billion in 2009. The savings banks’ Net Income for the Year amounted to € 2.3 billion, which was € 1.4 billion higher than in 2008. “With its prudential reserves and the Net Income for the Year, the savings banks continued to considerably strengthen their assets to be prepared for future financial challenges.

Approx. 45 per cent of the entire workforce in the German banking sector was employed in the Savings Banks Finance Group in 2009. The savings banks alone had 249,600 employees, including 18,600 trainees. The percentage share of trainees in the total workforce was 50 per cent higher than the average in the banking sector. 

Berlin/Frankfurt, 17 March 2010