Aschersleben / Bernburg –
The total assets of the Salzlandsparkasse increased from EUR 2.433 billion in the previous year to EUR 2.519 billion in the 2019 financial year. This corresponds to a growth of 3.5 percent.
The increase was achieved despite not always favorable conditions, according to the annual report for the completed year 2019, which was confirmed by the district council at the last meeting of the budget year 2020 in December.
It was also stated that the interest rate trend was not conducive to a better result. In addition, the Salzlandkreis is characterized by shrinking processes and structural change. Here the Sparkasse leads the demographic development and the employment rate.
Income in the Salzlandkreis grew by around 40 percent in ten years
A high unemployment rate in a national comparison and an above-average population decline due to high emigration and a large birth deficit are characteristic of this, although unemployment in the Salzlandkreis is falling further and is at a record low in this region.
According to the Sparkasse, the income trend has been positive in recent years. From 2007 to 2017, the average income grew by 40.4 percent. The average disposable income in private households in the Salzland district was 19,190 euros in 2017, however, well below the national average of 22,623 euros.
A significant increase in purchasing power is currently not expected, according to the report. Interest rate policy plays a key role in assessing the situation. Overall, the report says, the low and negative interest rate policy is having a negative impact on the profit and loss accounts of the institutions, which also means that the institutions are analyzing their cost situations.
As a result, the industry was considering thinning out the branch network, reducing staff and raising fees and prices. In 2019, Salzlandsparkasse was able to continue to rely on its customers, who have a large share in the result.
“The growth in the balance sheet was mainly influenced by the development of customer liabilities,” says the report. Overall, the objectives have been outbid compared to the planning.
The Sparkasse was able to score primarily through the private customer lending business in residential construction and through the growth in loans to public budgets. The Salzlandsparkasse estimates in its report for the financial year that it has succeeded in strengthening sales and expanding its position as market leader in the region. In this way it was possible to provide funding for many club and social projects. (mz)
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