Domestic core market

Volksbank Vorarlberg doubles profit

Volksbank Vorarlberg with its 13 branches in the province can look forward to a successful financial year 2023.

(Bild: P. Huber)

Concentration on the core market of Vorarlberg proves to be a success, the growth course is to be continued in the current year - including expansion of the workforce.

Gerhard Hamel, Chairman of the Managing Board of Volksbank Vorarlberg, can be highly satisfied with the 2023 financial year: Although total assets fell slightly compared to the previous year from EUR 1.97 billion to EUR 1.96 billion, profit on ordinary activities (EBT) doubled from EUR 8.52 million to EUR 17.30 million and profit after taxes even climbed from EUR 5.57 million to EUR 13.38 million. The company benefited from the high interest rate environment and stable customer receivables, said Hamel. Net interest income increased by 31 percent to 34.06 million euros compared to 2022.

Good development in the corporate customer segment
Although the Vorarlberg Volksbanks also felt the effects of the slump in residential property financing, this was largely compensated for by the good credit development in the corporate customer segment. All in all, the credit volume only fell marginally compared to 2022 - from EUR 1.71 billion to EUR 1.70 billion. The fact that the bank is on a stable footing can also be seen in two other parameters: Both the core capital ratio (17.76 percent) and the own funds ratio with (19.21 percent) increased slightly compared to 2022.

13.38 million euros

was the profit (after taxes) of Volksbank Vorarlberg in 2023. In comparison: in 2022, the increase amounted to "only" EUR 5.57 million.

Signs point to growth
In view of the many global crises, the focus on the Vorarlberg market has once again proven its worth, emphasized Hamel: "As a regional house bank, we focus on small and medium-sized enterprises as well as private customers." For the coming years, the signs are clearly pointing to growth, and additional staff are to be hired for this purpose. Volksbank Vorarlberg (including subsidiaries) currently employs 246 people at 13 branches. The workforce has also participated in the success - in February, all employees received a uniform bonus.