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2023 was a successful year for the Raiffeisen Group. The group managed to increase its profit by 17.7 percent to 1.39 billion francs. This is another record snow.
In particular, the banking group was able to significantly increase its revenue from client business. Business success increased by 354.5 million francs to 1.7 billion francs. “We managed to grow in all business areas and gain market share in customer businesses,” Heinz Huber, CEO of Raiffeisen Switzerland, said in a press release about the result.
Compared to the already very good previous year, operating income increased by a further 540.2 million francs, reaching 4.1 billion francs, an increase of 15.3 percent. In particular, earnings from interest transactions contributed to this. Net profit increased by 20.5 percent to 522.7 million francs.
Effort has also increased, although significantly less. This is primarily due to staff increases, the bank reported. Last year, 404 new full-time positions were created, primarily in onsite customer support.
Almost every fifth mortgage in Raiffeisen
While the bank increased its number of customers by 55,000, it also managed to gain 56,000 new members. Business volume also grew in 2023. Mortgage receivables increased by 3.6 percent to 211 billion francs. This allowed Raiffeisen to further expand its already strong position in an intensely competitive environment. Market share increased slightly from 17.6 percent to 17.8 percent. The share of value adjustments made for impaired receivables in total customer loans is at a very low level of 0.1 percent.
Raiffeisen also managed to increase customer funds by 3.1 billion francs to 207.8 billion francs. Its market share, which was 14.5 percent last year, increased to 15.1 percent. The refinancing rate remains quite high at over 93.4 percent. This means that almost all customer loans are covered by customer deposits.
According to the bank, more than 90 percent of the profits go to the cooperative capital. Systemically important banks must improve their capital by 2026. According to Raiffeisen, these requirements would already be met today. The short-term liquidity ratio of 157 percent is also well above the legal minimum ratio of 100 percent.
The bank expects solid results for this year. This figure is likely to be below 2023 due to the expected decline in interest margin.
Source :Blick
I’m Tim David and I work as an author for 24 Instant News, covering the Market section. With a Bachelor’s Degree in Journalism, my mission is to provide accurate, timely and insightful news coverage that helps our readers stay informed about the latest trends in the market. My writing style is focused on making complex economic topics easy to understand for everyone.
