Bavarian Cooperative Banks Navigate Economic Challenges with Resilience

Despite a slight profit decline, Bavarian Volks- and Raiffeisenbanken report growth in loans and deposits while managing increased credit risk provisions.

• Bavarian cooperative banks saw a 6% drop in combined annual profit for 2024, falling from €486 million to €454 million due to higher credit risk provisions.
• The banks increased their credit risk provisions by €90 million to €370 million, partly due to financial issues at Baywa, a company in which they hold significant stakes.
• Despite the challenging economic climate, the total value of loans issued by these banks grew by 2.7% to €142 billion, reflecting the stability of Germany's small and medium-sized enterprises.
• Customer deposits also increased, suggesting a cautious approach to spending and investment among the public.
• The banks anticipate slightly lower profits in 2025, driven by rising employee wages rather than external economic pressures.

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