Targobank: record profits and expansion - growth course 2024 secured!

Targobank: record profits and expansion - growth course 2024 secured!

Deutschland - The Targobank consistently continues its growth course in 2024 and, according to its own statements, achieved an annual result of 607 million euros (IFRS before tax). This means that the win in the fourth year in a row is above the 500 million euro brand, even if it remains below the record result of 671 million euros of the previous year. The balance sheet total rose by 7 percent to 44.9 billion euros, compared to 41.9 billion euros in 2023, such as ots reported .

In the area of installment loans in private customer business, Targobank achieved a record of 19.7 billion euros, which corresponds to an increase of 7 percent compared to the previous year. In addition, the volume of daily money grew by 40 percent, while the total deposit volume increases by 10.1 percent. Efficiency increases and cost reductions led to a decline in the expenses income ratio to 46.3 percent after it was 49.6 percent in the previous year.

growth in various business areas

The volume of all securities depots increased by 15 percent, and directly depot accounts increased remarkable growth of 50.2 percent. The number of customers also increased by 13.4 percent. The starter deposits for young people in particular have become more important with an increase of 38 percent, while investment savings plans grew by 20.6 percent.

The business customer area makes a decisive contribution to growth, with an increase in financing volume by 20 percent to just under 1.5 billion euros. Sales financing grew by 4.7 percent to 715 million euros. Corporate customers now make up 31 percent in the entire loan volume. Another plus for Targobank is the acquisition of the Oldenburg Landesbank (OLB), which is planned in March 2025 and could enable the bank to enter the top 10 private banks in Germany.

sustainability and social responsibility

Targobank is also committed to social and ecological projects by expanding its CSR team by four employees and supporting seven environmental projects with the Targobank Foundation. CO2 emissions were reduced by 38 percent from 2019 to 2023, while the number of electric cars in the company car fleet was increased to 70 vehicles. In addition, 216 new trainees and dual students were hired, which led to an increase in the number of employees to 7,400. The bank was also awarded the top employer for the 18th time in a row.

In the context of current developments in the financial services industry, technological progress is of central importance. Questions about the future of the industry became urgent in the beginning of 2024, especially with regard to high interest rates and inflation. Important trends are automation and the use of generative AI, which is considered one of the most influential trends for 2024. This technology will fundamentally change the customer experience and asset management, so ibm

Financial institutes also have to adapt to increasing concentration on sustainability and ESG initiatives, since customers are increasingly attaching importance to sustainable financial products. The pressure on data protection and regulatory requirements will also increase through new technologies, which further reinforces the challenges for companies in the financial industry.