21.04.2016
Erste Bank und Sparkassen Group posts operating earnings of EUR 864.6 m
New: report on value added by Sparkassen Group
- Operating earnings of EUR 864.6 m. achieved (+3.4%)
- Loans to customers grow from EUR 66.8 bn. to EUR 68.8 bn.
- Net interest income rose by 3.9% to EUR 1,564.6 m.
- George: More than 500.000 users
- Every 71st euro in value added in Austria is connected with Sparkassen Group
- Enabler effect: EUR 1 m. provided by Sparkassen Group create the basis for EUR 1.79 m. in economic output
The Sparkassen Group has once again concluded a successful year. In spite of ongoing weakness in the economy, low interest rates and the rising cost of compliance with regulatory requirements, operating earnings of EUR 864.6 m. could be achieved (+3.4% compared to the previous year).
Positive credit growth
Loans and advances to customers have increased from EUR 66.8 bn. to EUR 68.8 bn., or 2.9%. Particularly corporate loans exhibited strong growth, rising to EUR 28.9 bn. in 2015 compared to EUR 27.4 bn. in the previous year. Loans to private household grew further as well, increasing from EUR 32.8 bn. to EUR 34 bn. (+3.6%). Loans to the public sector declined slightly, from EUR 3.5 bn. to EUR 3.4 bn.
With respect to new lending, 2015 exhibited a very positive trend as well. Erste Bank und Sparkassen Group has extended EUR 13.3 bn. in new loans, an increase of 5.4% year-on-year. At Erste Bank and Sparkassen a credit crunch is thus nowhere in sight”, stresses Thomas Uher, chairman of the management board of Erste Bank Oesterreich.
Customer deposits increase
There was a moderately positive trend in customer deposits compared to the previous year: they amounted to EUR 68.2 bn. (+3.3%) in 2015. A greater amount of money is currently held in current accounts, which increased in volume from EUR 34.2 bn. to EUR 37.9 bn, while time deposits (i.e.,savings deposits with an agreed maturity) decreased from EUR 31.7 bn. to EUR 30.3 bn. (-4.6%). Due to persistently low interest rates, ever more customers are seeking out alternatives to savings accounts in order to preserve the value of their assets. The managed investment concept YOUINVEST, which offers solutions for various levels of risk tolerance and different investment goals, had total assets under management of EUR 819 m. (+60.3%) as of year-end.
Commission and interest income surge
Net interest income as the most important income component rose by 3.9% in 2015, from EUR 1,503.3 m. to EUR 1,564.6 m. Net commission income could be increased by 4.4% from EUR 774.2 m. to EUR 808.4 m. The increase in commission income can be largely attributed to growth in the securities business, payment services and new loans. Administrative expenses have slightly increased as well, from EUR 1,562.8 m. in 2014 to EUR 1,604.5 m. (+2.7%) in 2015. A major factor in this increase were deposit insurance costs of EUR 21.5 m. Operating earnings could be increased from EUR 836.5 m. in 2014 to EUR 864.6 m. in 2015.
“Operating earnings of approx. EUR 865 m. represent a great success in view of additional burdens related to compliance with regulatory requirements”, Thomas Uher emphasizes further.
The number of employees has increased to 12,460, or by 210 full-time equivalent employees compared to year-end 2014. Thus the Sparkassen Group has succeeded in creating jobs in a difficult economic environment. In terms of headcount, Erste Bank und Sparkassen employed around 15,500 people.
The number of branch offices at the Sparkassen Group remained essentially steady; there were 1,132 branch offices at year-end 2015 (incl. 185 OMV banking service stations).
The number of customers has increased to 3,462,463 in 2015 compared to 3,439,143 in the previous year.
In 2015 the Sparkassen Group paid around EUR 1.5 bn. in taxes. This figure includes inter alia social security contributions, payroll tax, municipal taxes, corporate tax, and the bank levy.
The Sparkassen Group has contributed EUR 21.2 m. to public welfare activities in Austria in 2015. In this context numerous social, charitable and cultural initiatives were supported. Education and youth projects were once again a major focus.
Innovation leader with George
A year ago, we introduced George, today we have active already over half a million users. With George Erste Bank and Sparkassen have chosen an active approach to Digital Banking. With success: Since the launch of George 5 million transactions with a turnover of more than EUR 4 billion were made.
Value added by the Sparkassen Group
For the first time Erste Bank und Sparkassen Group has commissioned a report on value added, which demonstrates the importance of the Sparkassen Group to Austria's economy. “With this study our actual impact on the domestic economy is shown in great detail for the first time”, says Gerhard Fabisch, president of the Austrian Savings Banks Association.
On behalf of the Sparkassen Group, Industriewissenschaftliches Institut (Institute for Industrial Research/ IWI) has calculated the sector's economic footprint as well as its regional economic effects.
As a leading financial institution, the activities of Sparkassen Group are strengthening Austria as a business location and are generating economic output and added value in Austria on a direct, indirect and induced level. Directly by the business activities of the Sparkassen Group itself, and indirectly through companies integrated into the production process via intermediate inputs. Induced effects are resulting from the consumption made possible by employment, resp. investment that is generated (directly and indirectly) in Austria's economy.
In total, output valued at EUR 7.8 bn. has been generated in Austria's economy through Sparkassen Group. The value of output represents the value of all goods and services produced by Erste Bank und Sparkassen, including intermediate inputs of suppliers. In companies this metric is basically equivalent to sales. It includes EUR 3.7 billion in direct effects from the direct activities solely attributable to ongoing operations of the Sparkassen Group, EUR 2.1 billion in indirect effects from the intermediate inputs of suppliers and service providers, as well as EUR 2.0 billion in induced effects due to consumption and investment activities.
Erste Bank und Sparkassen Group has created direct and indirect value added of EUR 4.1 bn. in 2015. “This is equivalent to more than one percent of Austria's gross value added, which is greater than the direct contribution of the food industry or the telecommunications industry”, Fabisch points out. Value added represents the contribution of Erste Bank und Sparkassen to Austria's national income, which results from the total value of its economic output less intermediate inputs of suppliers.
Overall, 31,457 jobs were secured in Austria in 2015 by the activities of Erste Bank und Sparkassen. This represents nearly three times as many people as are employed by the “research and development” sector. Every 143rd employed person in Austria is therefore connected with Sparkassen Group through one of the above mentioned effects. Around EUR 1.4 billion in wages were paid to these employees.
On the macroeconomic level, the provision of financing by Erste Bank und Sparkassen has generated domestic output (e.g. through fixed asset investment and construction spending) valued at EUR 18.86 bn.