Positive annual result: first online representatives meeting at Brandenburger Bank. | Brandenburg meeting point

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Corona is currently swirling around a lot. The Brandenburger Bank also felt this and for the first time had to hold its representatives’ meeting online. The premiere was a success. 74 member representatives joined in. They experienced how board member Jens-Uwe Oppenborn first dealt with the economic framework conditions in the past financial year, which have had a significant impact on the business success of the bank. He reported that 2019 was marked by a significant economic downturn. With an increase in gross domestic product of only 0.6%, growth was similarly low as it was last in 2013.

He was very satisfied with the course of the past financial year. On balance, the development of the Brandenburger Bank in the past financial year met and in some cases even exceeded the expectations of the Management Board in terms of both growth and profitability. One sees in the regionality as well as in the close personal customer relationships the still functioning recipe for success of the cooperative bank.

In 2019, Brandenburger Bank was able to further expand its lending business in the region. “Even in the increasingly difficult interest rate environment, we stand by our members and customers as a reliable financing partner,” emphasizes the Management Board. The negative interest rate policy of the European Central Bank (ECB) represents an increasing challenge. “It burdens savers, increases the risk of speculative bubbles in the financial and real estate market and – as economic studies show – has a long-term negative effect on the entire economy”, so Oppenborn. He also demands: “The new ECB boss Christine Lagarde, who has been in office since 2019, should recognize the signs of the times and usher in a return to market rates – carefully but sustainably.”

Despite the difficult interest rate situation, the cooperative bank received further customer deposits in 2019 and increased this balance sheet item by 11 percent to 504.1 million euros. In addition, the assets managed in securities accounts and at cooperative partner institutions such as Bausparkasse Schwäbisch Hall or R + V-Versicherung rose by 1.5 percent. “With interest rates as low as we are currently seeing, it is particularly important to focus on more profitable forms of investment such as stocks and funds and not to leave all of your savings in the current or overnight account,” emphasizes Oppenborn.

Above all, the continuing boom in the property and real estate industry led to a considerable expansion of the lending business. The loan commitments to private and corporate customers increased by 16% – or 61 million euros – to a total of 435 million euros in the past financial year. This above-average growth results not only from private construction and consumer finance – but also from the provision of loans and investment finance for the domestic economy. The credit union’s total assets rose by 7.5 percent in 2019 to a new high of 646.5 million euros.

In addition, the volume of loans that the cooperative bank brokered to partner institutions such as Münchner Hypothekenbank eG or DZ HYP increased by 7.2 percent to 32.4 million euros. In addition, the Brandenburger Bank brokered low-interest loans from public development banks to private and corporate customers in the amount of 4.9 million euros.

“A particularly pleasing number for me is the increase in our membership by 143 people to 8,328 people,” reports board member Frank Robby Wallis afterwards. “Our members honor our important role in the regional lending and deposit business. For us, this is a central part of our cooperative funding mandate. We are therefore very pleased about the further growth in loans, deposits and members, “confirms the Management Board and adds:” Our commitment to our 8,328 members and the region is not limited to the traditional banking business. This is shown by our diverse support services for local associations and initiatives. ”Social projects and associations in the region, for example, benefit from this. Overall, the Brandenburger Bank helped numerous kindergartens, schools and associations in the business area last year with 161,000 euros.

The bank also plays an important role as an employer and trainer. Wallis explains: “We currently employ 120 people, including 10 trainees.” In 2019, the Brandenburger Bank paid taxes of 1,641,343.26 euros.

In the course of its first virtual meeting of representatives, the Brandenburger Bank will report in detail on its past earnings situation. The operating result before valuation of 5.2 million euros could be improved compared to 2018; the reported net income for the year amounted to EUR 436,613.80 and was thus roughly at the previous year’s level. “The current interest rate environment is of course noticeable in our earnings development,” said Frank Robby Wallis. He recalled that in September 2019 the European Central Bank raised the interest rate to 0.5 percent that credit institutions have to pay for parking customer deposits with the ECB. “For every 100,000 euros that we invest at the ECB, we pay up to 500 euros per year. 20 years ago this idea would have been found absurd – today it is a reality, ”emphasizes the bank’s board member. “Although we hope for a turnaround in interest rates soon, we realistically assume that the interest rate environment will remain unchanged for some time. That is why we are taking countermeasures through cost discipline and the expansion of non-interest-related sources of income. ”

The 8,328 shareholders of the cooperative bank receive a dividend of 3.25 percent on their subscribed shares as a profit sharing. The meeting passed a resolution to this effect unanimously.

The bank’s reserves were also increased by 3.3 million euros. The economic equity of the Brandenburger Bank increases to 61.8 million euros. The member representatives were satisfied with the business policy for 2019. Under the leadership of the deputy chairman of the supervisory board Matthias Nadler, the representatives adopted the annual report and approved the actions of the management board and the supervisory board. The members also showed agreement in the elections to the Supervisory Board. Brita Meißner and Matthias Nadler were (re) elected to the supervisory body for a further three years.

The representatives then had the opportunity to rate the first online representatives meeting. In addition to a lot of praise and a few suggestions for improvement, most of the participants agreed: The technical and organizational quality was good – the personal contact and the conversations that usually followed in connection with a joint meal were missed by many participants.

The 2019 annual report is available here: [Klick].

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