Banque Raiffeisen Posts 5.5% Revenue Growth for 2021

On Thursday 7 April 2022, Banque Raiffeisen announced its financial results for 2021, a year in which the bank achieved a strong increase in results through prudent management despite the uncertainty of the last year.

As of 31 December 2021, Banque Raiffeisen’s balance sheet total showed an increase of 5.4% over the previous year, to €10,156 million. On the liabilities side of the balance sheet, funds entrusted by non-banking clients rose by 6.0% to €505 million, of which €284 million were related to household savings. Large institutional depositors strengthened the bank’s liquidity position with a contribution of €266 million and an extension of the duration of deposits. Finally, the 4.5% increase in equity was mainly the result of net profits being set aside. This enabled the bank to maintain its solvency level and to further develop its financing activities.

On the assets side of the balance sheet, client lending increased by 4.3% or €308 million in one year. The financing of home ownership, the bank’s main activity, grew by 6.2%. However, this strong growth was offset by a slowdown in business investments as a result of the health crisis and the shortage of raw materials.

Cash investments showed an annual growth of 8.5% or €209 million. The level of the liquidity reserve with the Central Bank of Luxembourg (Banque centrale du Luxembourg - BCL) remained more or less stable compared to 31 December 2020.

In 2021, the bank’s net interest income grew by 3.3% due to increased volumes. Net commissions were up 13.8% compared to 2020, following a record year in securities investment. Net banking income rose by 5.1% over the year, while operating costs increased by 6.8%.

This significant increase is explained by the temporary nature of the savings made in 2020 on the one hand and by the increased investment in digital tools and IT security on the other. In view of the rather difficult economic situation and for reasons of prudence, Banque Raiffeisen has made the necessary value adjustments and sectoral provisions.

Based on the above and after deduction of tax charges, Banque Raiffeisen’s result for the financial year 2021 is €19.8 million, an increase of 5.5% compared to the previous year.

Note that these figures are still subject to approval by the ordinary General Assembly.

Client satisfaction

By the end of 2021, Banque Raiffeisen provided its clients with a network of 34 branches, 51 automated teller machines (ATMs) and 50 additional ATMs in partnership with POST Luxembourg. Focusing on proximity and easy access, the branches (86% of which are accessible to people with reduced mobility) provide advice in line with the expectations and needs of professional or private customers.

Banque Raiffeisen also continued to optimise its network throughout the country, in response to changes in client behaviour and the most attractive business areas spread across various regions. In this context, the bank has closed a few branches, but is renovating others (Niederanven, Redange, Weiswampach) and building new sales outlets that will open in 2022 and 2023 (Bascharage, Differdange and Esch-Belval). By 2023, this reorganisation will result in a network of some 30 branches covering the whole of Luxembourg.

Cooperative bank

At the end of 2021, Banque Raiffeisen counted 43,298 members, an increase of 7.0% in one year. They received OPERA benefits to the value of €1,247,077, an increase of 5.4% compared to the previous year.

Environmental, social and governance (ESG)

In June 2021, Banque Raiffeisen published its first extra-financial report that meets the highest and most recognised standards in terms of extra-financial reporting, namely the Global Reporting Initiative (GRI). This is a key document which reinforces, highlights and illustrates the bank’s sustainability strategy.

Banque Raiffeisen aligns its initiatives with the Sustainable Development Goals (SDG), which address the needs of society to have a positive social impact, enhance transparency and governance, protect natural and economic resources, ensure the preservation of the environment and work towards a better ecological transition, among other things.

Diversity

As a signatory of the Diversity Charter of Inspiring More Sustainability asbl (IMS) for several years, the bank has implemented an equal opportunities policy to promote diversity within its teams. Moreover, remuneration levels are based exclusively on experience and skills, with an elimination of gender gaps and a better objective assessment of performance at all levels.

Training and career opportunities

As of 31 December 2021, Banque Raiffeisen had 648 employees, a net increase of nine people in one year. The staff consists of 290 women and 358 men of twelve different nationalities, with an average age of 41 years.

Regarding the R-Academy, 4,722 hours of training were provided in face-to-face, video conference and e-learning formats. A new evaluation policy was also introduced, with different levels of assessment. Overall, based on an anonymous employee satisfaction survey conducted using the "cawi" (computer aided web interviews) method, staff satisfaction remains very high, despite the health restrictions of the last two years.

Support for local communities

Banque Raiffeisen also implements a sponsorship strategy to support organisations that share the same values. In 2021, sponsorships amounted to €411,119, benefiting over 200 local organisations.