Balance sheet up 5.9%

As of 31 December 2022, Banque Raiffeisen, Luxembourg’s only cooperative bank, had a balance sheet total of EUR 10,754 million, up 5.9% on the previous year-end.

On the liabilities side of the balance sheet, funds entrusted by non-banking customers increased by 6.0%, or EUR 531 million, mainly due to contributions from large depositors (for a total amount of EUR 345 million) and household savings (an increase of EUR 131 million).

Continued strengthening of equity

The regulatory equity increased by 8.6% mainly as a result of the retention of net profits and of the placement of a new subordinated debt issuance of EUR 40 million in May 2022. The continued strengthening of equity enables the Bank to continue developing its various financing activities and to expand its business model by favouring a sustainable and close relationship with its members and customers.

Financing activities are on the rise

Customer loan activity is up EUR 315.4 million, or 4.2%.

Financing of home ownership remains the Bank’s main activity, with growth of 4.7%.

As an economic player with a strong local footprint, Banque Raiffeisen traditionally supports Luxembourg companies, particularly SMEs, in their investment projects. This segment is up by 3.8% compared to 2021. In addition, the Bank financed several large-scale municipal and semi-public projects, a segment which grew by 20% in one year.

Net banking income is up 11.2%

In 2022, Banque Raiffeisen achieved a 14% increase in net interest income. This increase is mainly due to the growth of balance sheet assets and higher interest rates. Net commissions rose by 8.7% compared to the previous year due to strong payment activity and the favourable development of the Bank’s business in general.

While the rise in benchmark interest rates had a positive impact on the interest margin, it had a negative effect on the result from financial operations, with value adjustments of EUR -5.6 million on the Bank’s investment bond portfolio.

After taking these items into account, net banking income rose by EUR 16.5 million, or 11.2%.

8% increase in operating costs

The Bank’s operating costs increased by 8.3% in 2022. This increase was mainly due to the fact that, aware of future challenges in terms of technological and regulatory developments, Banque Raiffeisen is continuing to invest in modernising its IT system and strengthening its workforce.

Prudent management and fully hedged risks

Banque Raiffeisen continues to apply a strict policy of prudence in risk management of the loan portfolio. This resulted in a net allocation to value adjustments on loans of EUR 15.5 million. These amounts make it possible to fully hedge the credit risks identified during the year, especially in the sectors most exposed to the current deterioration of the economic situation.

In view of these different elements, and after deduction of tax charges, Banque Raiffeisen posted a result of EUR 23.7 million for the financial year 2022, an increase of almost 20% compared to the previous year.

NB: The figures as reported in this Press Release are still subject to approval by the Ordinary General Meeting.