First Group Bank shines with record profits and increasing credit demand!

First Group Bank shines with record profits and increasing credit demand!

The first Group Bank can look back on a successful financial year 2024, which was balanced on February 28, 2025. According to the Krone , the bank has increased its net profit by 4.3 percent to 3.1 billion euros. This positive development was favored by increased demand for loans, which rose by almost 5 percent to 218.1 billion euros and was mainly spent in Central and Eastern Europe. Bank boss Peter Bosek emphasized that two thirds of the profit come from these regions, which indicates an unbroken striving for prosperity.

Another positive aspect is the share price of the first group, which rose significantly last year. The bank plans to release a dividend of 41.2 percent of the adjusted profit. Despite these successes, however, the bank is faced with a significant challenge: the new black and red and pink government plans to significantly increase the bank tax in Austria, which was 40 million euros a year ago. For 2025 and 2026, a levy of 500 million euros is being targeted, which will then decrease to 200 million euros.

Credit demand and interest reductions

The increasing joy of investment by customers is due to the interest rate reductions that encourage companies and private households to invest in the economy. According to the first Group CFO Stefan Dörfler, this has led to an increase in borrowing, which also contributed to the positive business figures. In view of these profit expectations, the banking tax proves to be a double -edged sword, since the increase in the tax burden could reduce future income.

Overall, the first group is optimistic about future developments in Central and Eastern Europe, where further growth potential is seen.