4,276 members, more than 9,000 customers and an increase in total assets to 207 million euros: Volksbank Kirnau can look back on a successful 2019 financial year.
Osterburken. The 2019 financial year was very successful for Volksbank Kirnau. Despite the challenges in finance, the balance sheet total rose year-on-year by 15 million to now 207 million and for the first time in the long history of the bank exceeded the 200 million euro mark.
The chairman of the supervisory board, Gerhard Baar, opened and chaired the general assembly in the building site. In his remarks, bank board member Bernhard Eckert went into the general conditions of the past financial year. The dynamics in the area of regulation and digitization continue to represent a major challenge for regional banks. Eckert named the low interest rate policy of the European Central Bank (ECB) as a further increasing burden, which is having an ever more negative impact on the banks’ earnings. Nevertheless, the bank’s board of directors reported a positive development for the 2019 financial year. The balance sheet total had risen above the 200 million euro mark for the first time.
120 million euros loan
“At the end of the year, a total of 4276 members were involved in Volksbank Kirnau,” said Eckert. The customer deposits have risen to 147.8 million euros. The lending business developed well. Loans totaling 120.2 million euros have been loaned out. Volksbank Kirnau, with its branches in Rosenberg, Osterburken, Ahorn and Ravenstein, looks after more than 9,000 customers, as Eckert said.
He also pointed out that customer behavior has changed significantly. The bank’s services and customer care are increasingly in demand on the diverse digital channels offered.
The total customer volume to be looked after is currently 364 million euros (plus 4.7 percent compared to the previous year).
As Eckert went on to explain, Volksbank Kirnau had again succeeded in generating a satisfactory annual profit in an environment of low interest rates and the resulting low margins. After deducting taxes and the allocation to the reserves, there remains a balance sheet profit of 424,000 euros, which corresponds to the previous year’s result and will be allocated to the reserve.
“The ECB and the Federal Financial Supervisory Authority (BaFin) have unequivocally urged all banks to refrain from paying dividends,” said Eckert. The aim is to prepare for the possible economic consequences of the current corona pandemic. The meeting followed the recommendations of the banking regulator. The dividend planned for the 2019 financial year will be allocated to equity and carried over to the new financial year.
Actually, according to Dieter Ehmann, board member of the bank, Volksbank Kirnau wanted to celebrate its 140th anniversary this year with many events and customer events. However, due to the corona restrictions, these could not have taken place. As a bank in the region, the institute understood quickly and well from the beginning how to deal with the challenges of the pandemic.
Numerous communication channels
On the one hand, it is important to protect employees and customers; on the other hand, it is now the task of the cooperative bank to be there for customers and partners on site. “And that on all communication channels, be it in the open bank branches on site, via the Internet, app or even by telephone,” says Ehmann. This is perceived and reflected positively by customers.
In his further remarks, Ehmann went into the social commitment of Volksbank Kirnau. Last year, kindergartens, schools and clubs were again supported with around 20,000 euros in donations. Furthermore, “VolksBänke” were ordered for all districts of the cities and municipalities in the business area as part of the “140th anniversary”. These will be handed over soon.
Ehmann thanked all employees, executives and employees of the Finanzverbund for their great commitment in these troubled times: “This is the only way to secure and further expand the good position of the bank in the market.” His thanks were also due the supervisory board and the cooperative auditing association for constructive cooperation.
In the activity report of the Supervisory Board, Gerhard Baar informed about the unqualified auditor’s report by the Baden-Württemberg Cooperative Association after the management, loans and annual financial statements had been checked. The approval of the annual financial statements and the resolution on the appropriation of profits were made unanimously, as was the discharge of the members of the Board of Management and the Supervisory Board.
Supervisory boards confirmed
In the subsequent elections to the Supervisory Board, the regular departing Supervisory Board members Klaus Häffner (Berolzheim) and Karl-Peter Maurer (Merchingen) were unanimously re-elected. The amendment to the Articles of Association due to changes in the law and ordinances in connection with the corona pandemic met with just as broad approval.
© Fränkische Nachrichten, Monday, November 30th, 2020
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