DZ Bank
In the three years since the merger that created DZ Bank, the group has met all its objectives, specifically to deliver tangible benefits for local cooperative banks, reduce costs and minimise risk.
The positive earnings growth initiated at the time of the merger was carried forward into last year. The post-merger operational integration was completed on schedule in the summer of 2004. The cost-to-income ratio has been reduced to 60% from 80% three years ago. DZ Bank’s subsidiaries and industrial holdings in transactional banking handle the largest volume, offer the broadest product range and have the most efficient cost structures in Germany.
“Today, DZ Bank and the cooperative banking group in Germany can tell a good story,” says the bank’s chairman Ulrich Brixner. “The benefits generated by the parent bank and the DZ Bank Group for the local cooperative banks have increased substantially. Total commission and bonus payments received by affiliated cooperative banks in relation to joint activities rose 25% year-on-year in 2004. The objective of a sustained reduction in risk provisioning has been achieved, along with a significant improvement in the quality of the loan book. The deployment of benchmark-centred risk management systems has put DZ Bank in a very good position.”
