Alberto Naef and Luke Ladurner
The board of directors of the Südtiroler Volksbank presented the results of the annual balance sheet on Wednesday Approved in 2023 with a net profit of over 100 million euros.
First the Sparkasse, then the Volksbank.
The two large South Tyrolean credit institutions presented the results of the 2023 annual balance sheet on Friday.
Volksbank achieved a net profit of over 100 million euros.
The net assets are continuously increasing and reach 910 million euros, which corresponds to a book value of 18.9 euros per share.
President Lukas Ladurner said on Friday: “The Volksbank is solid, efficient and growing. This confirms the previous year’s high level of remuneration of around 1 euro per share, which corresponds to a return of 12%.
The Volksbank’s results for 2023 confirm the trend of recent years and are a very good start to the strategic plan “I-mpact 2026”, which was developed over the past year and approved in November 2023, according to a press release Bank.
The most important results at a glance:
– a positive development of customer volumes in all key business areas with an accompanying increase in market shares. The managed customer funds reach 21.8 billion euros. In particular, direct deposits from families and companies increased by around 175 million euros, customer loans by around 40 million euros and indirect deposits (investment funds, bonds, shares, life insurance, etc.) by over 565 million euros;
– an increase of 21% in the bank’s core business revenues to over 376 million euros, thanks to an increase in interest income and a stable commission business;
– a further reduction in credit risk, which was de facto neutralized over the course of the year due to lower new provisions and, above all, thanks to positive returns through the proactive processing of positions already classified. The net share of problem loans in relation to the overall loan portfolio (net NPL ratio) has fallen further from 2.3% in 2022 to 1.9%. The coverage ratio of problem loans (provisions created) increases by almost 3% to 59% and is therefore well above the average of the Italian banking system;
– an increase in ordinary administrative costs, which, despite inflation, were lower than the increase in income. The Bank’s Cost Income Ratio (CIR) continues to improve to 49.3%, which is considered very efficient compared to Italian and European commercial banks;
– excellent profitability with a return on equity (RoTE) of 11.9%, well above the Italian and European average. The net profit of 100 million euros already takes into account 13 million euros in contributions to support the banking system and 50 million euros in taxes.
This means that Volksbank’s material net assets have continued to grow and are now over 900 million euros for the first time.
Specifically, it reaches 910 million euros, equal to a book value of 18.9 euros per share. The total net assets reach a value of 19.2 euros per share, which corresponds to the issue price of the bank’s last capital increase.
The capital ratios are very solid and continue to rise, although the planned compensation has already been deducted. The total capital ratio (TCR fully phased) increases from 16.2% to 16.6%, the core capital ratio (CET1 fully phased) from 14.4% to 15.3%, writes the bank.
VB President Lukas Ladurner explains:
“The year 2023 was a very solid year for Volksbank. Our employees have mastered the changed market environment of rising interest rates well and have made a significant contribution to expanding the bank’s entire volume and market share. My personal thanks and those of the entire Board of Directors go out to you. The bank’s solidity was further improved and net assets per share reached EUR 19.2, which corresponds to the issue price of the last capital increase. The good earnings situation gives us the opportunity to continue to support all interest groups, i.e. customers, communities, clubs, suppliers, employees and the entire catchment area. Shareholders also benefit from the increased liquidity of the share and will also receive a very good return. The Board of Directors will in fact propose to the General Meeting 50 million euros in compensation for shareholders (in line with 2023): a dividend of 0.67 euros per share (a further increase compared to the 0.62 euros per share of the previous year), the free allocation of 1 share for every 30 shares held and the continuous support of the stock’s liquidity with 3.5 million euros.”
General Director Alberto Naef adds:
“The year 2023 was an ideal transition year between the strategic plan “Sustainable 2023” and the new plan “I-mpact 2026”. We have completed the projects to revise the product offering, restructure the bank’s loan portfolio and revise internal governance (the heart of the last strategic plan), and successfully launched volume growth, social support of the catchment area and experimentation with artificial intelligence. The growth in customers, volume and market shares, the opening of the new branches in Arzignano, Caorle, PadovaFacciolati and Padova Net Center, the support of families and companies in the catchment area with around 2 billion euros in newly approved loans – together with the motivation and skills of our Employees – encourage us on our chosen path. Over the last three years, we achieved excellent results that have further strengthened the bank. We are confident that in 2024 we will be able to confirm the results of the three-year period 2021-2023.”
Deputy General Director Georg Mair at Tinkhof comments on the result as follows:
“With the very positive results in 2023, Volksbank’s solidity was further increased, which was also clearly confirmed by two internationally renowned rating agencies, S&P Global Ratings and DBRS Morningstar, with the credit rating class ‘investment grade’. Volksbank’s structural liquidity situation was also further strengthened: a green covered bond was successfully placed on the capital market in September 2023; This issue also met with a positive response internationally. In the current year, we will continue to monitor macroeconomic developments very closely and evaluate them from both a risk and an opportunity perspective, particularly with regard to interest rate risk.”
Summary presentation of the essential data
Profit and loss statement
Interest/service result
Operating profit after risk costs
Profit (loss) before taxes
Profit (loss) of the financial year
CET 1 ratio (Fully loaded)
Total Capital Ratio (fully loaded)
Total Capital Ratio (phased-in)
Tangible net assets (in € million)
% coverage ratio differences
% Coverage of Probable Defaults (UTP)
% coverage ratio loans “in bonuses”
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2024-02-09 19:39:21
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