Stadtsparkasse München generated a preliminary annual result of 48 million euros in 2023, seven million euros more than in the previous year. According to Sparkasse boss Ralf Fleischer, the “good annual result” is primarily due to the end of the low interest rate phase. The European Central Bank increased the key interest rate in six steps to 4.5 percent in 2023; it still stands there today. Despite this noticeable change in interest rates, Stadtsparkasse München currently only pays its customers one percent interest on overnight money; Depending on the term, there are up to 2.8 percent for fixed-term deposits. So it is not surprising that the institute was able to increase its net interest income from 287 million euros to 512 million euros – an increase of 78.6 percent.
Since consumers could not compensate for the inflation of an average of 5.9 percent in Bavaria with the income from these short-term investments, there was great interest in securities. Overall, savings bank customers have securities worth 7.8 billion euros in their portfolios, an increase of 14 percent compared to the previous year. “It is right and important that our customers become more interested in securities,” said Fleischer, according to the press release. “In order to compensate for inflation or to build up long-term retirement savings, investments in securities are necessary.”
The number of securities depots also increased, by around 1,100 to a total of 91,400 depots. The asset management of the Stadtsparkasse also recorded inflows. The assets under management grew by 47 percent and the number of customers by a third. The number of private checking accounts rose only slightly by around 2,400 to 497,000 accounts. Last summer there was dissatisfaction with customers being asked to switch to new account models without the bank explicitly pointing out possible higher costs. Stadtsparkasse München currently serves around 810,000 customers.
The people of Munich remain cautious when it comes to real estate financing. The institute blames the increased interest rates and the public discussion about the heating law. The result: New business with construction financing for private customers fell by around a third to 611 million euros. Building savings contracts also recorded a decline following above-average demand in 2022. The number of consultations has increased significantly: Anyone who is interested in buying a property starts planning it a few years in advance. According to observations by SIS-Sparkassen-Immobilien-Service GmbH, prices on the Munich real estate market fell by 15 percent in 2023. However, demand is subdued because interest rates remain high.
The average balance sheet total fell slightly by four percent to 22.9 billion euros. This is due to a reduction in money market transactions with the Deutsche Bundesbank. The tax payment of Stadtsparkasse München for 2023 will be around 124 million euros, compared to just 54 million euros in the previous year. The city treasurer should be pleased with this result.