Banks – Frankfurt am Main – Provision for Corona Risks: Less Profit for Savings Banks – Economy

Frankfurt / Main (dpa) – The savings banks in Hesse and Thuringia are likely to have made less profit in 2020. One reason: During the Corona crisis, the institutes saved considerably more money for possible loan defaults than a year earlier. Today, Monday, the Savings Banks and Giro Association Hesse-Thuringia reports on the business development of the 49 savings banks in Hesse and Thuringia.

In mid-September, the association had forecast for the year as a whole that the operating result before valuation – that is, the operating result – would be “expected to be significantly lower than in the previous year”. A value of around 760 million euros was calculated at the time, 17 percent less than a year earlier (916.2 million euros). After taxes, the public institutions in the two federal states had earned a total of 241.7 million euros in 2019.

The entire industry is gearing up for the fact that more borrowers can no longer pay their installments as a result of the pandemic. “There will certainly be more loan defaults at banks and savings banks in the coming period, including ours,” said Gerhard Grandke, the managing president of the savings bank and giro association Hesse-Thuringia, in mid-September. The regionally rooted savings banks were in great demand as lenders for companies during the pandemic.

© dpa-infocom, dpa: 210307-99-726584 / 2

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