Savings Banks achieved an operating result of EUR 10 billion before valuation in 2018

In the past fiscal year, Germany’s 384 Savings Banks generated an operating result of EUR 10 billion before valuation. “This is a very remarkable result, particularly in view of the significant decline in net interest income”, said Helmut Schleweis, President of the German Savings Banks Association (DSGV) at today’s financial press conference of the Savings Banks Finance Group in Frankfurt/Main.

In the past year, net interest income fell by 3.5 percent or EUR 747 million. “Savings Banks succeeded in investing the largest part of their new deposits in valuable lending business. This is a great business achievement of Savings Banks – one which has considerably supported net interest income”, said the DSGV President. At the same time, net commission income increased by 2.7 percent (EUR 209 million) to a level of EUR 7.8 billion.

Savings Banks kept their administrative expenses stable at EUR 18.9 billion last year. Personnel expenses fell by EUR 39 million to a level of EUR 12.1 billion. A total of 209,558 people were employed by Savings Banks – either part-time or full-time – at the end of 2018. 

With over 13,000 branches, Savings Banks have by far the most extensive branch network in Germany. The number of branches decreased by 485 in the course of 2018.

Valuation expenses decreased significantly, by EUR 643 million to EUR 4.1 billion. In the lending business, Savings Banks had virtually no need to accrue additional loan loss provisions. In the securities trading business, on the other hand, write-downs amounted to EUR 1.4 billion, almost entirely due to stock-market-related valuation adjustments in liquidity reserves. With approx. EUR 2.7 billion, Savings Banks were able to increase their contingency reserves, and hence, to strengthen their assets.

Savings Banks once again paid EUR 2.8 billion in income-related taxes, virtually the same amount as in the previous year. Savings Banks therefore continue to be one of Germany’s biggest taxpayers.

Net income amounts to EUR 2.2 billion, which is close to EUR 100 million more than in 2017. The Savings Banks’ cost-income ratio before valuation amounted to 65.5 percent, while their tier-1 ratio was at a very impressive level of 16.2 percent.