Frankfurt Volksbank Poised for Growth as Germany’s Largest Volksbank
Frankfurt Volksbank/Rhein-Main, now established as Germany’s largest Volksbank, remains on a growth trajectory despite the integration costs associated with its merger with Raiffeisen-Volksbank Aschaffenburg.
While the bank experienced a decline in its 2024 net profit to €92.1 million, a reduction of 12%, due to the inclusion of Aschaffenburg’s figures in the previous year’s balance and increased tax payments, its underlying business performance saw positive growth. The bank’s operating profit before valuation increased by 5.3% to €156.1 million year-over-year.
"Our primary goals for 2024 were to become one and grow together. We have achieved that as a team of Frankfurt Volksbank Rhein/Main and Raiffeisen-Volksbank Aschaffenburg," said Eva Wunsch-Weber, CEO of Frankfurt Volksbank Rhein/Main. "There is still a lot of potential within the new bank."
The two cooperative banks merged effective January 1, 2024, marking the 22nd merger for Frankfurt Volksbank since 1990.
Positive Growth in Deposits and Loans
The combined institution achieved growth in both deposits and loans in the past year. Its total customer volume increased by 2.5% year-over-year to €40.8 billion, surpassing the €40 billion mark for the first time.
Key Drivers of Growth
The bank’s growth is attributed to several factors:
- Merger synergies: The merger with Raiffeisen-Volksbank Aschaffenburg has led to operational efficiencies and a wider customer base.
- Focus on core banking activities: The bank prioritizes traditional banking services, such as lending and deposit-taking, which have remained resilient despite economic challenges.
- Expansion into new markets: The merger has expanded the bank’s geographic reach, allowing it to tap into new customer segments.
- Investment in technology: Frankfurt Volksbank continues to invest heavily in digital banking, offering convenient and innovative services to its customers.
Outlook for the Future
Frankfurt Volksbank Rhein/Main is optimistic about the future. The bank believes that the integration of Raiffeisen-Volksbank Aschaffenburg will continue to yield benefits, and it is committed to further growth by:
- Expanding its lending business: The bank aims to increase its market share in lending to both individuals and businesses.
- Enhancing digital channels: The bank plans to invest further in mobile banking and digital account management to meet the evolving needs of customers.
- Investing in its employees: Frankfurt Volksbank recognizes the importance of its workforce and will continue to invest in training and development programs.
With its strong financial foundation, dedicated team, and commitment to growth, Frankfurt Volksbank Rhein/Main is well-positioned to continue its success as Germany’s largest Volksbank.
