Annual Financial Report 2022
apoBank increases its operating result in 2022
30.03.2023
Deutsche Apotheker- und Ärztebank (apoBank) closed financial 2022 with a stable net profit of €65.8 million, compared to €65.4 billion in 2021. After allocations to reserves, the operating result before taxes amounted to €151.5 million. This was one fifth higher than the previous year’s figure (2021: €124.3 million).
The Bank expanded its new lending business from €4.6 billion to €5.2 billion. Financing of practice and pharmacy start-ups, which is apoBank’s core expertise, was particularly satisfactory in the year under review. Here, the loan portfolio reached €8.2 billion (2021: €7.6 billion). Loans and advances to customers remained almost unchanged at €37.0 billion (2021: €37.8 billion).
The challenging capital market environment left its mark on the asset advisory business with retail clients. In spite of newly sourced funds, the deposit volume decreased to €10.3 billion (2021: €11.9 billion). By contrast, the mandated volume in private asset management remained stable at €4.8 billion (2021: €4.9 billion) in spite of the difficult conditions.
Matthias Schellenberg, Chair of the Board of Directors: "All in all, apoBank proved once again in 2022 how fit for the future and how successful its business model is. With rising revenues and moderate risk provisioning, we saw a gratifying increase in our operating result. We fulfilled our purpose of supporting and promoting the economic development of health care professionals so that, at the Annual General Meeting at the end of April, together with the Supervisory Board we can propose to have our members share in our business success by paying out a dividend of 4%."
- Operating result rises by one fifth
- Business start-up financing breaks through €8 billion mark
- Private asset management defies difficult market environment
- Dividend of 4% proposed
Deutsche Apotheker- und Ärztebank (apoBank) closed financial 2022 with a stable net profit of €65.8 million, compared to €65.4 billion in 2021. After allocations to reserves, the operating result before taxes amounted to €151.5 million. This was one fifth higher than the previous year’s figure (2021: €124.3 million).
The Bank expanded its new lending business from €4.6 billion to €5.2 billion. Financing of practice and pharmacy start-ups, which is apoBank’s core expertise, was particularly satisfactory in the year under review. Here, the loan portfolio reached €8.2 billion (2021: €7.6 billion). Loans and advances to customers remained almost unchanged at €37.0 billion (2021: €37.8 billion).
The challenging capital market environment left its mark on the asset advisory business with retail clients. In spite of newly sourced funds, the deposit volume decreased to €10.3 billion (2021: €11.9 billion). By contrast, the mandated volume in private asset management remained stable at €4.8 billion (2021: €4.9 billion) in spite of the difficult conditions.
Matthias Schellenberg, Chair of the Board of Directors: "All in all, apoBank proved once again in 2022 how fit for the future and how successful its business model is. With rising revenues and moderate risk provisioning, we saw a gratifying increase in our operating result. We fulfilled our purpose of supporting and promoting the economic development of health care professionals so that, at the Annual General Meeting at the end of April, together with the Supervisory Board we can propose to have our members share in our business success by paying out a dividend of 4%."
Outllok 2023
The current year will see apoBank further refining its business model and implementing step by step its Agenda 2025, which it decided on at the end of 2022.
apoBank plans to continue to focus on its core business and further expand its leading market position in all areas of business start-ups financing. In the securities business with customers, the Bank intends to expand the managed deposit volume with a focus on private assets. This is primarily based on a new customer service model, many components of which apoBank has already introduced. Going forward, one advisor will be the main contact for all life phases, and will bring in specialists for private asset management and fiancings when needed. More continuity in advisory services should ensure a higher level of individualised support for our customers in the health care professions.
Matthias Schellenberg: "apoBank aims to enable practices and pharmacies to get started and to support health care professionals and their organisations in all financial and asset matters. We intend to continuously expand this core area of our business and be a reliable partner in accordance with our purpose as a cooperative. At the same time, we are adapting our services, processes and digital applications to enhance our performance and fulfil the expectations placed on a modern professional bank. Our top priority here is to generate direct benefit for our customers and further increase their satisfaction with us. We have already set numerous aspects of this in motion, but we still have a long road ahead of us."
apoBank expects the business environment in 2023 to remain very challenging. The uncertainties of the global economic and political situation allow only limited forecasting accuracy at the present time-With a stable earnings situation and a net profit after tax at the 2022 level, it should be possible to pay out a fair dividend to its members.
apoBank plans to continue to focus on its core business and further expand its leading market position in all areas of business start-ups financing. In the securities business with customers, the Bank intends to expand the managed deposit volume with a focus on private assets. This is primarily based on a new customer service model, many components of which apoBank has already introduced. Going forward, one advisor will be the main contact for all life phases, and will bring in specialists for private asset management and fiancings when needed. More continuity in advisory services should ensure a higher level of individualised support for our customers in the health care professions.
Matthias Schellenberg: "apoBank aims to enable practices and pharmacies to get started and to support health care professionals and their organisations in all financial and asset matters. We intend to continuously expand this core area of our business and be a reliable partner in accordance with our purpose as a cooperative. At the same time, we are adapting our services, processes and digital applications to enhance our performance and fulfil the expectations placed on a modern professional bank. Our top priority here is to generate direct benefit for our customers and further increase their satisfaction with us. We have already set numerous aspects of this in motion, but we still have a long road ahead of us."
apoBank expects the business environment in 2023 to remain very challenging. The uncertainties of the global economic and political situation allow only limited forecasting accuracy at the present time-With a stable earnings situation and a net profit after tax at the 2022 level, it should be possible to pay out a fair dividend to its members.
Results of financial 2022 in detail
Net interest income significantly exceeded the previous year’s level. Here, apoBank benefited from the fact that interest rates increased during the course of the year, while refinancing costs in the customer business were moderate. Net interest income rose to €766.4 million (2021: €685.0 million). Our participation in the ECB’s TLTROs had an unburdening effect.
Net commission income decreased by 4.6% to €184.1 million (2021: €193.0 million). Growth in revenues from payment transactions and brokerage commissions was not able to compensate for the burdens caused by the challenging capital market environment. Due to the difficult conditions, the securities business was below its prior-year level.
General administrative expenses increased slightly, reaching €737.3 million (2021: €715.0 million). Personnel expenses in particular rose as a result of higher allocations to pension provisions that had become necessary due to the rise in interest rates. In the end, operating expenditure including depreciation was stable. A higher bank levy was compensated for by lower project costs and lower expenditure on services.
As a consequence, the operating result, i.e. the profit before risk provisioning, at €241.4 million, was markedly higher than the previous year’s level (2021: €188.1 million), closing the year better than expected.
Risk provisioning for the operating business was at a moderate -€43.1 million (2021: -€14.3 million). Thus, risk provisioning continued to be lower than expected.
apoBank carried out risk provisioning with reserve character of -€46.5 million (2021: -€49.5 million).
Tax expenditure amounted to €85.7 million (2021: €58.9 million).
Net profit after tax reached €65.8 million (2021: €65.4 million).
The balance sheet total was brought back down by 20% to €54.2 billion (2021: €67.4 billion). The primary reason for this decrease was that apoBank fully repaid the funds it had drawn down from the ECB’s TLTROs. The common equity tier 1 capital ratio was at 15.8% (2021: 15.9%), the total capital ratio was at 17.6% (2021: 17.3%) – both were thus at a solid level.
Net commission income decreased by 4.6% to €184.1 million (2021: €193.0 million). Growth in revenues from payment transactions and brokerage commissions was not able to compensate for the burdens caused by the challenging capital market environment. Due to the difficult conditions, the securities business was below its prior-year level.
General administrative expenses increased slightly, reaching €737.3 million (2021: €715.0 million). Personnel expenses in particular rose as a result of higher allocations to pension provisions that had become necessary due to the rise in interest rates. In the end, operating expenditure including depreciation was stable. A higher bank levy was compensated for by lower project costs and lower expenditure on services.
As a consequence, the operating result, i.e. the profit before risk provisioning, at €241.4 million, was markedly higher than the previous year’s level (2021: €188.1 million), closing the year better than expected.
Risk provisioning for the operating business was at a moderate -€43.1 million (2021: -€14.3 million). Thus, risk provisioning continued to be lower than expected.
apoBank carried out risk provisioning with reserve character of -€46.5 million (2021: -€49.5 million).
Tax expenditure amounted to €85.7 million (2021: €58.9 million).
Net profit after tax reached €65.8 million (2021: €65.4 million).
The balance sheet total was brought back down by 20% to €54.2 billion (2021: €67.4 billion). The primary reason for this decrease was that apoBank fully repaid the funds it had drawn down from the ECB’s TLTROs. The common equity tier 1 capital ratio was at 15.8% (2021: 15.9%), the total capital ratio was at 17.6% (2021: 17.3%) – both were thus at a solid level.
apoBank’s key data
| € millions | 2022 | 2021 | change in %1 |
|---|---|---|---|
| Net interest income | 766.4 | 685.0 | 11.9 |
| Net commission income | 184.1 | 193.0 | -4.6 |
| General administrative expenses | -737.3 | -715.0 | 3.1 |
| Balance of other operating income/expenses | 27.8 | 25.1 | 10.6 |
| Operating profit before risk provisioning | 241.1 | 188.1 | 28.2 |
| Risk provisioning from the operating business | -43.1 | -14.3 | >100 |
| Risk provisioning with reserve character | -46.5 | -49.5 | -6.1 |
| Operating result | 151.5 | 124.3 | 21.9 |
| Taxes | -85.7 | -58.9 | 45.6 |
| Net profit after tax | 65.8 | 65.4 | 0.5 |
| in % | 2022 | 2021 | pts |
|---|---|---|---|
| Equity ratio | 17.6 | 17.3 | 0.3 |
| Common equity tier 1 ratio | 15.8 | 15.9 | -0.1 |
| €millions | 2022 | 2021 | change in %1 |
|---|---|---|---|
| Balance sheet total | 54,184 | 67,372 | -19.6 |
| Customer loans | 37,008 | 37,787 | -2.1 |
| Customer deposits | 33,934 | 37,140 | -8.6 |