Banks
Demand for building society contracts by Schwäbisch Hall drops
After the turning point, the business with building society contracts was booming. Now the Schwäbisch Hall market leader is also evident: the trend comes to an end.
Germany largest building society Schwäbisch Hall had to cut back last year. The gross new business in building savings was 28.1 billion euros in 2024 – and thus around 9.4 percent below the previous year’s value. However, the institute said that one had asserted themselves well in an overall weaker market. With a market share profit from 3.5 percentage points to almost 35 percent, the position as market leader was further consolidated compared to 2023.
After the turning point, the industry leader had benefited vigorously from the Renaissance of building savings. 2022 – In the boom’s high phase – the bank recorded a gross new business of 34.1 billion euros. In the previous year, the building society shop normalized at a high level. For comparison: 2021 – before the turning point – Schwäbisch Hall had booked a new business of around 24 billion euros in the area.
“Valley sole in construction finance has passed”
The company of the cooperative financial group is also one of the largest German construction financiers. The break -in in this area seems to be stopped for the time being: with 13.6 billion euros, the new business was slightly above the previous year’s level – but is still removed from peak values. In 2023, the institute had a slump of almost 30 percent. The main reason was the construction crisis triggered by high interest, construction and energy costs.
The CEO Mike Kammann looks positively into the future: “The valley sole in construction finance has passed through and a revitalization in the market is noticeable, even if the obstacles in real estate financing (…) dismantle more slowly than hoped.” Schwäbisch Hall expects to be able to participate more in the recovering building finance for 2025. The demand for building society contracts will continue to normalize after the boom.
After a significant break -in of almost 86 percent in the previous year, the earnings situation of the Bausparkasse recovered somewhat. According to preliminary information, the profit before tax was 64 million euros (2023: 20 million euros). Among other things, the bank benefited from higher interest rates and lower costs for the administration. In 2022, however, the value was still 143 million euros.
dpa
Source: Stern
