Letter to shareholders
“We have successfully completed a challenging year, demonstrating the stability and earnings power of our financial services group. In addition, we have further expanded our customer business.”
Wolfgang Kirsch, 2018 annual press conference
In 2017, the
At the same time, the results for the year were affected by a negative contribution to earnings from DVB BANK, which increased allowances for losses on loans and advances for its maritime portfolio. Nonetheless, the group’s profit before taxes was comfortably within our long-term target range of €1.5 billion to €2 billion, underlining the stability and earnings power of our broadly positioned financial services group.
This Annual Report describes the performance of the merged bank over a full year for the first time. The figures therefore only have limited comparability with the prior-year values.
The results in detail: The net interest income of the
“We have a clear growth strategy in our core business aimed at consolidating our successful performance.”
The positive business performance reflects the high level of commitment by the employees in the
Against this backdrop, we will propose a dividend unchanged on the previous year of 18 cents per share to the Annual General Meeting. This takes into account both the importance of capital management and the interests of our owners.
We anticipate that the tailwind from economic growth in our domestic market will continue in 2018. Our economists forecast that the German economy will expand by 2.2 percent. The
We have a clear growth strategy in our core business aimed at consolidating our successful performance. We are therefore strengthening corporate banking by continuing to invest in the direct business and in joint credit business. We are also adding digital products and services to our portfolio and tapping into new sources of income. At the same time, we are sharpening our focus on enhancing cost efficiency. In this regard, we are exploiting the opportunities presented by digitization to create leaner internal processes. Following the completion of the integration, we can now further sharpen our focus on leveraging synergies.
In addition, we are continuing to press ahead with the work on our structural changes. These changes include the merger of DG HYP and WL BANK to become DZ HYP, which is progressing well. We are also carrying out the necessary preliminary work for the further development of our organizational structure which aims to make the management of our financial services group even more effective.
Over the past year, our organization has once again demonstrated both its significant resilience and its commitment to constant advancement. Building on these foundations, our aim in 2018 – the 200th anniversary of the birth of Friedrich Wilhelm Raiffeisen – is to strive for the continued commercial success of the cooperative financial network.
Chief Executive Officer