The Sparkasse securities house is doing well in its fund business with customers. After the first half of the year, the bank sees itself on track, even if an important business area is shrinking.
Good business with funds for private customers is giving the savings bank service provider DekaBank a boost. In the first half of the year, the institute achieved an economic result of a good 512 million euros, more than two thirds of its annual target, as DekaBank in Frankfurt announced. At the same time, the bank’s result was 19 percent below the previous year. The reason for this is valuation effects.
In the first half of the year, the savings banks’ securities department benefited from a jump in sales. Private savers in particular, but also large customers, bought Deka products. Sales to private customers grew to 12.6 billion euros, up from 14.4 billion a year earlier.
Fund sales among savers rose by EUR 1.2 billion to EUR 4.6 billion compared to the first half of 2023. Equity funds and bond funds were particularly in demand, and sales of real estate funds also remained positive despite the real estate crisis.
However, there were declines in the certificate business, which is important for DekaBank. Sales to private customers fell by EUR 3 billion to around EUR 8.0 billion.
Dekabank remains cautious with regard to its annual targets. In view of the “geopolitical tensions and the challenging economic conditions”, the Deka Group continues to forecast an economic result of around 700 million euros for the current financial year, it said.
Source: Stern
