Shifting interest rates drive record results for BKS Bank

In July 2024, Herta Stockbauer will hand over the presidency of BKS Bank, part of the 3-Bank Group, to her successor Nikolaus Juhasz. Before then, the outgoing chairman, who can look back on a career at the bank that spanned more than 30 years – including 20 years as a member of the board – can once again look forward to a new record result: The bank has delivered. With annual profits of €179.1 million almost triple the result for 2022 (+€115.5 million).

The increase in earnings can be attributed primarily to shifting interest rates, which resulted in the interest rate business normalizing last year. Interest income increased to €322.3 million; Other interest income increased by €21.7 million to €47.4 million, while interest expenses quadrupled to €121.1 million.

Also noteworthy is the result for companies accounted for using the equity method, which rose from €20.7 million to €90.4 million.

In the field of lending, claims on customers increased by 3.3%. At group level, €1.5 billion of new financing was granted in the previous year. 90.9% of it was provided to corporate clients. In the private client sector, demand was modest, mainly due to the huge decline in housing financing. High inflation rates and restrictive lending standards under KIM-VO as well as high energy and material costs have also caused uncertainty and hesitation.