Oberbank more than doubled its profit in the first half of the year

Oberbank more than doubled its profit in the first half of the year
Director General Franz Gasselsberger
Image: VOLKER Weihbold

The bank earned a good 279 million euros before taxes, after 109 million in the first half of 2022. The bottom line was around 230 million euros, after around 86 million in the comparable period. Both a significant increase in interest income and a more than fourfold increase in investment income contributed to the good result.

The interest result improved by 48.5 percent to 281 million euros, the bank announced on Thursday. “This development was not only due to the higher interest rates, but also to the sustained increase in demand for credit and the higher interest income from personal investments.” The credit volume increased by 5.2 percent year-on-year to EUR 20 billion. Corporate loans (EUR 16 billion) accounted for the bulk of this, the volume of which increased by 7.7 percent.

The investment result “from companies valued at equity” more than quadrupled from EUR 22.7 million (H1 2022) to EUR 94 million (H1 2023). In contrast, income from commissions fell by 6.5 percent to EUR 102.2 million.

The costs have also risen: risk provisions in the lending business amounted to EUR 8.4 million, more than twice as much as a year ago. Administrative expenses rose by 10.5 percent to a good 185 million euros. “The cause was the increase in personnel costs under the collective agreement and the inflation-related increase in material costs,” said the Oberbank as an explanation.

Equity amounts to 3.7 billion euros. The core capital ratio is 17.21 percent, the total capital ratio is 19.02 percent.

Source: Nachrichten

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