Sparda-bank coburg experiences boom in construction financing

Sparda-bank coburg experiences boom in construction financing

Sparda-bank in coburg achieved a good result in 2018. Markus lehnemann, member of the board of sparda-bank nurnberg, was able to state this at the balance sheet press conference for the past business year now.

Construction financing continues to dominate demand for private loans – and the cooperative bank once again achieved a strong result in this area: the volume of new loans granted totaled 9.9 million euros by the end of 2018, 11 percent more than in 2017 (8.9 million euros). Markus lehnemann is satisfied: "thanks to the low interest rate phase, it is still attractive to fulfill the dream of owning your own property. Many customers made use of this option last year." Private loans remained at the same level as 2017 at 1.4 million euros. At 90.2 million euros, the total loan portfolio was slightly below the previous year’s figure. In the words of the sparda bank board member, "a generation is growing up that doesn’t even know what interest is anymore. For a decade, interest on credit balances has been zero. According to markus lehnemann, this will hardly change in the coming years. Young people are also saving less and less or making their own provisions for old age.

318 coburg residents opened a checking account at sparda-bank in mohrenstrabe in 2018 – the branch pays out a total of 8015 checking accounts. In the highly competitive deposit sector, sparda-bank in coburg increased customer deposits by 5.7 percent to 115.1 million euro. In 2017, this figure was 109.0 million euros.

More and more customers go online

Digitization is also making strong progress in the banking business. More and more customers are going online. "Since last year, we have recorded more customers using an app instead of the phone. Nevertheless, the bank will be present with branches to advise customers and also help with technical issues relating to online banking.

Markus lehnemann admitted that the fee of 1.50 euros per transfer as of june had caused displeasure among some customers. "But 60 percent of customers no longer make bank transfers, instead using the telephone or internet to do so." Many speeches on construction financing were held by video.

In 2018, sparda-bank remained closely connected to the coburg region and its social projects. The financial institution once again supported needy families through the "gewinn-spar-verein" (profit savings association) with its own initiatives, such as the school bag and advent calendar campaigns. The cooperative bank sponsored construction discovery sets for the falkenegg kindergarten.

What is sparda-bank?

Founded in 1930, sparda-bank nurnberg is the largest cooperative bank in northern bavaria with 15 branches and nine self-service centers. Today, the "sparda" sees itself as a direct bank with branches. With 222,926 members, a new historic high was reached last year. This corresponds to an increase of 1.4 percent or 2971 members. The bank’s total assets amounted to around 4.2 billion euros in 2018.

The "sparda" banks in germany are eleven cooperative banks that are members of the "verband der sparda-banken e" association. V. Together they are. Following this example, similar cooperatives were set up elsewhere, and in the spring of 1906 they joined together to form the auditing association of railroad savings and loan associations in kassel. Since 1969, the railroad savings banks have been open to other public sector employees and, since 1974, to all employees. Since 1978, they have uniformly called themselves sparda-banken. Standardized retail banking is at the center of the bank’s business activities. Customers acquire at least one cooperative share and are thus members and co-owners of the bank together with other customers.

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