A Savings Bank’s profits are used exclusively to strengthen its financial base and to provide benefits for society.
Unlike most private banks, Savings Banks provide a comprehensive range of services even in remote and less favoured regions. In addition to this, the Savings Banks Finance Group is also a major contributor to the German economy as a taxpayer to local budgets and as an employer. With staff over 282.500*, the Savings Banks Finance Group is among the most significant employers in Germany, providing quality jobs and apprenticeships in all parts of the country.
Savings Banks, Savings Banks Foundations, Landesbanken and S-Group partners shape local social interaction in a variety of ways. In 2023, the Savings Banks Finance Group invested around EUR 508 million in public welfare projects.
The promotion of art and culture is an integral core element, firmly anchored in the social commitment of the Savings Banks Finance Group. In 2023, the Savings Banks Finance Group supported art and culture with a total of EUR 130.6 million.
Projects were supported nationwide and long-standing cooperations were continued, such as the commitment as the main sponsor of the Dresden State Art Collections.
The Savings Banks are involved in a large number of projects for children, young people and senior citizens. Their support services are provided to society at large and include social advice centres, neighbourhood homes and integration projects for immigrants. Social commitment is one of the largest areas of support provided by the Savings Banks Finance Group, with contributions totalling EUR 100.5 million in 2023.
The Savings Banks Finance Group reports on its social commitment regularly at.
* As at 31 December 2023
With over EUR 508 million spent on social commitment per annum and 771 charitable foundations, the Savings Banks Finance Group is:
The Savings Banks Finance Group promotes all areas of sport. The majority of the support benefits clubs in all regions of Germany. One example of this is the commitment to the German Sports Badge, which includes participation in the Sports Badge Tour as well as the annual Sports Badge Competition. In addition, top-level, junior and disabled sports are also supported, for example through the partnership with Olympic Team Germany and Team Germany Paralympics as well as through their sponsorship of elite sporting schools.
In 2023, sports and members of sports clubs received EUR 108.9 million in support. 30 foundations of the Savings Banks Finance Group exclusively or primarily promote sport.
Savings Banks also take responsibility in the area of the environment. They are committed to environmental and climate protection in their business areas in a variety of ways. A large number of local environmental organisations can count on the support of the Savings Banks. The programme of support also includes selected ecological projects at schools. The funds spent on these projects amounted to around EUR 28.4 million in 2023.
Promoting education and integration is a central element of the Savings Banks Finance Group’s commitment to sustainable social development. In 2023, EUR 48.5 million was invested in education. Throughout Germany, Savings Banks are committed to ensuring that all sections of the population participate in social life and develop personally in their environment. They invest in financial education from an early age and offer, for example, teaching materials on economic and financial topics through the “SparkassenSchulService” (Savings Banks School Service). In the non-school sector, the Savings Banks Finance Group’s “Geld und Haushalt” (Money and Budgeting) advisory service supports all consumers with free products to strengthen financial literacy and prevent debt.
Retail banking is the core business of the Savings Banks, and has been for more than 200 years. Today, around 50 million customers throughout Germany benefit from the fact that their Savings Bank is nearby. However, due to current uncertainties and geopolitical tensions (e.g. inflation, rising energy costs, Ukraine/Middle East war), changes in the banking industry (e.g. increasing regulation, digital and crypto currencies), macroeconomic drivers (e.g. interest rate policy), digitalisation and the resulting change in customer behaviour, the Savings Banks are facing immense challenges. Savings Banks are meeting these challenges by repositioning themselves. New options for the future include multi-channel strategies. With the "Digital Agenda", the Savings Banks Finance Group has further developed its digital services, offering customers a wide range of innovative products.
A large proportion of savers entrust their money to Savings Banks in the form of deposits. Furthermore, Savings Banks are the most important and reliable financiers of small and medium-sized companies.
This means: Savings Banks complement local and regional development with products that are relevant for the real economy. And as a result, there is little scope for artificial growth.
Access to financing for small and medium-sized enterprises in Germany would be inconceivable without Savings Banks and Landesbanken. Savings Banks have been the most important source of finance for SMEs for many years. This vital role in the German economy is particularly striking in the segment of loans extended to tradesmen. Decisions on business loans and risk assessments are taken locally, rather than at distant corporate headquarters. As their business area is limited to a clearly defined local territory, Savings Banks are encouraged to promote prosperity in that same region.
Traditional retail banking is the primary source of earnings for the Savings Banks. Their capital base is generated from retained earnings. Thanks to their broad positioning in the private and business customer segments, the Savings Banks have a superbly diversified portfolio, a moderate risk profile and generate stable earnings.
A comfortable tier-1 ratio overall and a very high net borrowing position which is stable over the long term are characteristic of Savings Banks. With their sound capital base and liquidity surplus, Savings Banks potentially have considerable scope to extend additional loans to corporate customers without violating minimum regulatory requirements and thus to consolidate their market position. Furthermore, Savings Banks are in a good position to issue covered bonds (mortgages) and to obtain long-term refinancing funds on attractive terms.
The German banking market plays an important role in the German economy, in particular in the financing of German small and medium-sized enterprises. Savings Banks and Landesbanken have traditionally been major players in this segment and are reliable business partners for German enterprises.
They show a long-term commitment to the real economy; thereby preventing credit crunches. The volume of corporate loans issued by the Savings Banks Finance Group totalled EUR 740.5 billion at year-end 2023. This represents a market share of 40 percent.
Due to their local and digital proximity and their focus on deposits and loans, the institutions of the Savings Banks Finance Group play a continuous role in shaping the economic and social development of their business area.
A MAJOR PLAYER IN GERMAN BANKING
Savings Banks focus on the real economy.
Savings Banks have the widest customer coverage in retail banking in Germany.
They have been the most important provider of corporate finance for small and medium-sized enterprises in Germany for many years.
All banks including Savings Banks are subject to the German Banking Act and to general banking supervision, which is carried out by the German Federal Financial Supervisory Authority (BaFin) and the German Central Bank (Bundesbank).
The German banking market comprises credit and private banks, co-operative banks and credit institutions organised under public law, e.g. Savings Banks and Landesbanken. All three types of banking service providers have their own guarantee system and their own business model and are in direct competition with each other.
Both Savings Banks and co-operative banks form decentralised networks, contributing to a diversified banking market.
This diversified structure strengthens the German banking market and has proven its worth in several crises.
The decentralised structure of the Savings Banks Finance Group is in keeping with Germany's federal and decentralised economic structure.
REGIONAL DEVELOPMENT AND SOCIAL COMMITMENT
The Savings Banks Finance Group’s concept combines banking business with a sense of civic responsibility. For example, Savings Banks are there for everyone. They do not exclude any specific customer group from their services or limit the range of financial products available to low-income households or small businesses.