Middle Brandenburg Savings Bank Reports Substantial Growth in Wealth Accumulation
Potsdam, Germany – The Middle Brandenburg Savings Bank (MBS) has announced a significant increase in wealth accumulation for 2024. The total amount of funds deposited into MBS accounts and securities reached €887 million last year, a substantial surge from €24 million in 2023.
Increased Investment Activity
Customers actively invested in securities, acquiring €346 million in net value during the year. MBS Chairman Andreas Schulz expressed satisfaction that "more and more Brandenburgers are participating in the developments of the capital markets."
Positive market conditions boosted the value of MBS portfolio holdings by €204 million. However, Schulz acknowledges the relatively low level of stock market participation in Germany compared to other countries. "The stock culture in our country is still a very tender plant," he observes.
Savings Account Reimbursement Following Court Ruling
A ruling by the German Federal Court of Justice (BGH) has paved the way for savings account holders to receive reimbursements, including those with MBS. Some banks and savings banks had previously charged interest on deposited funds.
The BGH ruled that such charges are unlawful, as they alter the nature of savings accounts, which serve not only for safekeeping but also for investment purposes. MBS customers are entitled to reclaim approximately €28,000 in total.
Financial Performance and Expansion
MBS’s balance sheet total rose by 4.3% as of December 31, reaching an estimated €16.8 billion. Deposits increased by 4.0% to €14.0 billion.
Despite a slight decline in staff count to 1,450, Schulz emphasizes the goal of maintaining a stable workforce. "I am aware of the challenges of recruiting personnel in light of demographic changes," he says.
MBS also maintains a network of 131 branches, following several closures in the past. However, Schulz underscores that customer demand drives decisions on branch presence.
Investment in Cash Withdrawal Infrastructure
Bucking the trend towards cashless payments, MBS has increased its number of ATMs by two to 199. While more people opt for card payments or cash withdrawals at supermarkets, Schulz believes that ATM access remains essential.
Conclusion
MBS’s strong performance in 2024 reflects its commitment to supporting wealth accumulation and financial well-being in Brandenburg. The bank’s focus on customer investments, compensation for savings account charges, and continued expansion indicate its ongoing commitment to meeting the changing needs of its clients.
