In brief

In 2024, the Volksbanken Raiffeisenbanken Cooperative Financial Network achieved profit before taxes of €10.8 billion – the second-highest figure since the first consolidated financial statements were prepared. While this result is below the record figure of €14.4 billion from 2023, it highlights once again the Cooperative Financial Network’s sustained high level of profitability.

Net interest income remained stable compared with the previous year at €24.3 billion. Growth in lending of around 2.6 percent played an important part in this context. Net fee and commission income increased again as well, rising by 7.4 percent to €9.5 billion. This was primarily driven by payments processing, including card processing, and securities brokerage. On the other hand, gains and losses on trading activities amounted to a net loss of €0.7 billion and gains and losses on investments deteriorated moderately to a net gain of €1.1 billion. The latter item once again benefited from positive valuation effects.

Loss allowances were scaled up significantly to €4.9 billion in light of the prevailing macroeconomic conditions and the upward trend in corporate and personal insolvencies. Administrative expenses rose slightly to €20.8 billion. Key drivers here included additional hires and adjustments to collective pay agreements. The cost/income ratio increased moderately to 57.1 percent.

The Cooperative Financial Network’s consolidated total assets grew by 2.5 percent to €1.64 trillion in 2024. The key components of this total grew at similar rates: The lending volume rose by 2.6 percent and customer deposits by 2.9 percent. Net profit after taxes stood at €7.5 billion.

The Cooperative Financial Network also continued to strengthen its capital base. Equity rose by 4.9 percent to €150.3 billion. The Tier 1 capital ratio increased to 16.3 percent and the total capital ratio to 16.9 percent – proof of the network’s robust level of capital. The current ratings awarded by the rating agencies underpin this. The Cooperative Financial Network continues to have a credit rating of AA– from Fitch and of A+ from Standard & Poor’s, in both cases with a stable outlook.