15.7 Billion Euros in New Loans Erste Bank and Sparkassen have Awarded in 2016

O-TONES from the press conference are from about 13 pm www.erstebank.at/presseaussendung downloadable.

The savings banks have another successful year. Despite continuing relatively weak economy, low interest rates and rising expenses for the fulfillment of prescribed regulations new loans were awarded with a volume of 15.7 billion euros (+ 18.3%) and 235,000 new customers (+ 19.9%) are obtained, report to the President of the Austrian savings Banks Association Gerhard Fabisch and CEO of Erste Bank Oesterreich Stefan Dörfler in their annual balance sheet 2016th

Positive credit growth

Loans to customers of the savings bank group increased from 68.8 billion to 71 billion euros, representing an increase of 3.3%. Also in 2016, there was again an increase in loans to companies by 2.4 percent from 28.9 billion to 29.5 billion euros. A further increase there was in loans to households, the 34 billion to 35.3 billion (+ 3.9%) increased. Loans to the public sector rose after a decline in the previous period to 4.8 percent from 3.4 billion to 3.5 billion euros.

“Such an increase in new loans to 2.4 billion euros makes our employees not only proud, but also underlines a continued positive development for the Austrian economy,”said Stefan Dörfler.

Total deposits from customers and net interest income rise

Customer deposits have experienced a slight increase over the previous year: in 2016 there were 71.7 billion euros (+ 5.2%). More money is currently on current accounts, as the volume rose from 37.9 billion to 42 billion euros (+ 11%), while savings deposits with an agreed maturity of 30.3 billion to 29.7 billion euros (-2% ) declined.

Net interest income as the most important income component increased in 2016 by 3% from 1.57 billion to 1.62 billion euros. Net commission income fell by 810 million by 5.7% to 764.2 million euros. Most of the decline is due to the conversion of intra-group processes. Customer side was the general uncertainty with regard to investments in the capital markets of the major factor that has led in turn to an increased volume of deposits. Operating income decreased from 869.1 million to 814.8 million euros (-6.2%). “Given the efforts to fulfill the prescribed regulation, we therefore have a very successful year behind us,” says Doerfler.

The number of stores remained largely constant in the savings bank sector. The minimum decline to 1,103 locations (including OMV-bank sites) was mainly taken place in Lower Austria and Vienna. Staff numbers in 2016 declined slightly compared to 2015, with around 15,400 employees.

The number of customers has been very positive in 2016 over the previous year to 235,000 new customers to 3.54 million improved.

Innovation leader with George

George continues to be a successful model and standard bearer of Erste Bank and Sparkassen. “Two years after the introduction already more than 900,000 people use the most modern banking in Austria,” says Gerhard Fabisch pleased about the successful Digital offensive. George is Erste Bank and Sparkassen have decided on the subject of Digital Banking for the active participation in the market. With success: in 2016 more than 13 million transactions were made with a turnover of over 10 billion euros. 2015 there were 5 million transactions with EUR 4 billion. The average customer George is 37 years old and every fifth user is older than 50 years.

Value of the savings bank group

The Industrial Research Institute (IPI) has calculated the economic footprint of the sector and the regional economic effects on behalf of the savings bank group. “With this study can be seen in detail, how important we really for the Austrian economy,” explains Fabisch. Shall remove out IWI managing director Herwig Schneider that Erste Bank and Sparkassen last year generated more than 1.5 billion euros in fiscal and social contribution effects on social security contributions and tax payments.

“As a financial leading company the activities of the savings bank group strengthen the domestic business location and initiate on direct, indirect and induced level of production and value creation in Austria.” Directly, through the activities of the savings bank sector itself and indirectly through the integrated on inputs into the production process companies. Induced effects arise on the generated by the (direct and indirect) employment or over the generated by the investment in the Austrian economy allowed consumption.

By Sparkassengruppe a production value amounting to 8.5 billion euros was in the Austrian economy (2015: 7.8 billion) generated. The production value is the value of that made by Erste Bank and savings services and goods, and also services from suppliers are included. In companies, this figure roughly equivalent to the sales. It includes 3.9 billion euros of direct effects of the immediate savings bank activities that are solely due to the ongoing operation. Another 2.6 billion euros are indirect effects of services from suppliers and service providers and 2 billion euros induced effects due to consumption and investment activities included. Each and every 70th Euro value in the Austrian economy is linked with Erste Bank and Sparkassen, calculated Schneider.

Total hedged in 2016 by the activities of Erste Bank and Sparkassen 31,315 jobs in Austria. That’s more than three times as many people as in the industry “Research & Development” are active. For them, about 1.4 billion euros employee compensation has been disbursed.

2016 a total of 18.8 million euros have been invested in regional social, charitable, cultural, youth and educational projects. For a significant portion of the profits generated by the savings banks profit was returned to the regions – in the spirit of the common good idea.

The “Annual Report 2016” can be downloaded at: www.sparkasse.at/jahresbericht