Loans are particularly popular with Thuringians | economy

Erfurt.
The savings banks in Thuringia and Hesse are robust in the crisis. Your balance sheet total increases sharply.

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The savings banks in Hesse and Thuringia are also well positioned in the Corona crisis. “2020 was a tough year for all of us. However, our savings banks have bitten through and once again have proven to be systemically relevant in the best sense of the word, “said the managing president of the savings bank and giro association Hesse-Thuringia, Gerhard Grandke, satisfied on Monday when presenting the annual balance sheet in Erfurt.

The savings banks have always been there for their customers and have reliably provided them with cash, loans and other financial services even in times of crisis, assured Grandke. The earnings trend was better than expected. “At almost 900 million euros, the operating result before valuation almost reached the level of the previous year,” said Grandke.

Corporate customers took out more loans in 2020

The 49 savings banks in the two federal states recorded a significant increase in total assets in the past year. Compared to 2019, this rose by 13.5 billion or more than ten percent to currently 13.5 billion euros.

According to the head of the association, this reflects the noticeably expanded customer business. In the lending business with customers, the savings banks were able to build on the above-average growth rate of 2019. The credit portfolio of the institutes increased by 4.6 billion euros to 83.7 billion euros. An increase of 5.8 percent over the previous year. Corporate customers in particular have increasingly asked for and taken out loans. Above all, companies in the service sector would have had high financing and liquidity requirements as a result of the shutdown. At the same time, however, many businesses in the craft or commercial production were very well utilized. They would have invested in their business.

“Our credit growth is not a corona bloom, but a grounded, sustainable business,” assured Grandke. A look at the new loan agreements shows that 95 percent of the loans are in the medium to long-term with the terms, which indicates investment loans.

However, lending to the public sector, i.e. federal states and municipalities, and loans to private customers also increased significantly in the past year. As in previous years, they would have primarily asked for housing loans.

There are more and more interested parties in the securities business

Since many people had fewer opportunities to spend their money in the past year due to the corona, customer deposits at the savings banks also grew noticeably. Customers invested 8.6 billion at the savings banks, an increase of more than eight percent. Above all, short-term investment opportunities were in demand. Customers mainly kept their money in overnight money accounts, according to Grandke: “Because they have it ready immediately when the stationary consumer world reopens and longer trips are possible”.

However, in view of mini or even negative interest rates, more and more customers of the savings banks in Hesse and Thuringia are discovering the securities business for themselves. Securities purchases rose by a quarter in the previous year. Despite the difficult environment, the savings banks also increased their equity ratio.

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