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Oberbank profit fell by 61 percent

Oberbank profit fell by 61 percent

The bottom line was a surplus after taxes of 74.1 million euros, after 189.8 million euros in the same period last year, the bank announced on Friday. That means minus 60.9 percent. The operating business, on the other hand, was solid, with interest and commission income both increasing.

Interest income increased by 11.4 percent from EUR 285.3 million due to good credit demand. After nine months, the credit volume was 19.4 billion euros, which was 5.1 percent more than at the end of 2021. Commission income increased by 9.3 percent to 156.4 million euros.

However, the at-equity investment result was significantly weaker at minus 30.5 million euros, after a plus of 74.4 million euros in the previous year. The volatile movements on the capital markets had a negative impact. In October, Oberbank informed its investors that profits are expected to be halved this year. The main reason is the development of the voestalpine share price. These shares are valued according to the so-called “fair value method”; the loss in value has a particularly clear effect on the overall result this year.

According to the annual report, the first nine months were characterized by “political tensions, unexpectedly strong inflation, disruptions in international supply chains and significant market volatility”. For the year as a whole, the management is assuming weaker demand for credit and higher risk costs.

Source: Nachrichten

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