- Strong operating business drives growth
- Equity up by 6.9%, tier 1 capital ratio at 18.3%
- Proposal to raise dividend from EUR 1.0 to EUR 1.45
Linz, 3 March 2023
|Income statement in €m (IFRS)
||+ / - in %
|Net interest income
|Net commission income
|Profit from entities accounted for by the equity method
|Charges for losses on loans and advances
Profit before tax
|Tier 1 capital ratio
Oberbank closed the financial year 2022 with the best results in its history. Net interest income was up (+17.3% to EUR 406.1 million) and net commission income also increased again (+7.8% to EUR 206.9 million). The Corporate and Business Banking segment accounted for around 80% of growth.
Profit from investments accounted for by the equity method moved into the normal range in the course of the year (from -9.5% to EUR 90.7 million) and risk provisions increased slightly from the exceptionally low levels of the preceding years (+16.2% to EUR 41.5 million). Net profit for the year before tax was EUR 295.3 million (+4.7% year on year) and net profit after tax was EUR 243.3 million (+3.7%).
"Our robust operating business made it possible for us to achieve the best result in the history of Oberbank despite the adverse environment", stated a pleased CEO Franz Gasselsberger about the excellent earnings and continued with good news for shareholders: “The Supervisory Board and Management Board will propose to the Annual General Meeting to raise the dividend from EUR 1.0 to EUR 1.45”.
Highlights of the operating business
The lending volume rose by 4.2% to EUR 19.2 billion in 2022 of which EUR 15.1 billion were commercial loans. The leasing business expanded by 21.4% to over EUR 2.6 billion.
Oberbank ranked first in investment finance with a market share of 23% and second in export finance with a volume of EUR 1.7 billion.
The strong growth in primary funds of 3.0% to EUR 17.9 billion is an expression of the trust customers place in Oberbank's creditworthiness. Oberbank is one of the best-rated banks in Austria with a high, steadily rising equity ratio.
"Deposits are the basis of our business, and branches are enormously important for attracting depositors", explained Franz Gasselsberger speaking about the growth strategy.
Private Banking & Asset Management is the area that contributed the most to the renewed rise in net fee and commission income. The difficult environment in 2022 increased demand for investment advisory services. Demand for investment funds was unbroken and 22.7% of net inflows went into sustainable investment funds. Oberbank's performance in corporate and business banking also contributed significantly to the increase in net fee and commission income.
Performance indicators improve again
Key performance ratios improved again, especially, the equity ratio: shareholders' equity increased by 6.9% to EUR 3.55 billion. The tier 1 capital ratio is 18.3%. This makes Oberbank one of the best-capitalised banks and ranks it among top European credit institutions.
Therefore, Standard & Poor's “A” rating was confirmed and the outlook raised.
The cost/income ratio of 48.75% is outstanding and well on the way to attaining the strategic targets.
Sustainability – Oberbank's prime rating for sustainability management has been confirmed.
Outlook for the current year 2023
Oberbank made a strong start into the year 2023:
- The operating business, especially lending, is doing very well. The services business developed somewhat weaker.
- Credit growth was robust across the board in commercial lending
- Credit risk remains low
Due to the high degree of uncertainty, it is not possible to provide a reliable outlook for the full year 2023.
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Press photos are available for downloading at: www.oberbank.at/pressefotos