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Pandemic ensures more card payments and online accounts

2021-03-31T08:22:32.053Z


The corona pandemic also poses major challenges for banks. "We passed the corona stress test well and, given the circumstances, got through the 2020 financial year well," said Robert Fedinger, CEO of VR-Bank Fürstenfeldbruck. The balance sheet total has grown by nine percent and amounts to 1.9 billion euros.


The corona pandemic also poses major challenges for banks.

"We passed the corona stress test well and, given the circumstances, got through the 2020 financial year well," said Robert Fedinger, CEO of VR-Bank Fürstenfeldbruck.

The balance sheet total has grown by nine percent and amounts to 1.9 billion euros.

Fürstenfeldbruck - At 18.1 million euros, the operating result is around half a million euros below that of the previous year.

But they feared a greater decline.

Customer deposits (plus 7.2 percent) and extended loans have increased.

“The model of the regional house bank has again proven its strengths in Corona times and has proven to be very stable,” says Fedinger.

The offices remained open in both lockdowns.

One tries to support the customers in the pandemic.

"We secure short-term liquidity through deferrals, development loans and company loans," reports Manfred Schätz, who has been on the board of directors of VR-Bank since January and is responsible for corporate customer business.

"The wave of insolvencies that has been conjured up so far has not yet been identified, although the burdens for many industries are already very, very high."

The pandemic has also changed a lot in the bank's core business.

As more people pay with cards in stores, the number of transactions has increased significantly.

In addition, the demand for online banking is increasing: over 2500 new accounts were activated last year.

In addition, more than 3,100 customers have switched to the electronic account statement.

This also makes a significant contribution to the topic of “sustainability”, because several pallets of extract paper are saved every year.

The low interest rate remains a challenge.

The operating result of 18.1 million euros means a further decline.

But it is still well above expectations.

At 27.5 million euros, the interest result was around 200,000 euros lower than in 2019. “Actually, we had expected a stronger slump due to the persistently low interest rate environment,” says Schätz.

“However, the decline was kept within limits thanks to the strong credit growth.” Nonetheless, further declines are expected in the next few years.

When it comes to negative interest rates, VR-Bank offers an alternative within the scope of fund asset management with the “VermögensPlus”.

The board members report that the start was promising.

In the insurance sector, the number of consultation appointments is falling, and the record result from 2019 could not be repeated.

Nevertheless, the division remains an important part of business success.

The success trend in real estate, on the other hand, is continuing.

For the first time in its history, the bank recorded commission income of almost 580,000 euros.

For the year 2021, the Management Board expects the demand for loans to remain high.

They see themselves as well equipped for questions about financial investments and can offer customers all forms of modern capital investments and pension solutions.

We also see ourselves prepared for the topic of sustainability in investments.

imu

Source: merkur

All news articles on 2021-03-31

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