Credit: Banque Raiffeisen
On Tuesday 1 April 2025, Banque Raiffeisen presented its annual results for 2024, reporting that it closed the previous financial year with a 10% higher net profit compared to 2023.
In its 2024 financial results, Banque Raiffeisen reported an ordinary result (net profit) of €28.1 million, marking a 10% increase compared to the previous year. The bank attributed this outcome to a combination of rigorous management, continued business development, a balanced approach to innovation and risk management, and its cooperative structure.
As noted in the press release, financial investment activity continued to grow in 2024, supported by steady momentum in both discretionary management and investment advisory services. Customer confidence was also reflected in increased household savings and deposits. This commercial momentum contributed to a 3.6% rise in net banking income, which surpassed €245 million, driven primarily by interest and commission income. At the same time, the bank reported a 6.3% increase in operating costs, mainly due to the recruitment of approximately 20 new employees to support its development and meet regulatory requirements.
As stated in the press release, the continued trust in Banque Raiffeisen was reflected in the rising number of customers and members, which exceeded 50,000. This confidence was accompanied by growth in savings and deposits. On the liabilities side of the bank’s balance sheet, customer funds totalled €10,346.2 million, marking an increase of nearly €750 million (+7.8%), including a €420 million (+6.8%) rise in household savings. Despite a more challenging economic context, professional customers’ savings also grew by €328 million (+9.6%). Regulatory capital rose by €62.5 million (+8.1%) due to the allocation of net profits to reserves and a €40 million allocation to the Fund for General Banking Risks. This capital strengthening reportedly supports the bank’s business development and enhances its resilience amid economic uncertainties.
On the assets side, Banque Raiffeisen reported that customer lending activity totalled €7,860.4 million at the end of 2024, reflecting a year-on-year increase of €166 million (+2.2%). The bank attributed this growth to ongoing support for the projects of companies, local authorities and para-public entities, which rose by 7.7%. In addition, lending for home ownership stabilised in the second half of the year after a sharp decline in 2023, due to renewed interest from households.
At the end of the 2024 financial year, Banque Raiffeisen reported a 1.7% increase in net interest income and a 4.5% rise in commission income compared to the previous year. It also contributed €3 million to the Luxembourg Deposit Guarantee Fund, reflecting the scale of customer deposits.
The cost of risk amounted to €17.4 million in 2024, significantly lower than the €53.3 million recorded in 2023. Banque Raiffeisen attributed this decrease to a modest recovery in economic sentiment and overall forecast stability, allowing the bank to cover identified credit risks and maintain provisions for potential future risks.
IK
