Annual Financial Report 2024
apoBank very satisfied with business performance
02.04.2025
Deutsche Apotheker- und Ärztebank (apoBank) ended fiscal 2024 with a stable net profit (after tax) of €96.0 million (2023: €94.2 million). On this basis, the Supervisory Board and Board of Directors will once again recommend a dividend of 6% to the Annual General Meeting. The operating result increased by a third to €311.7 million (2023: €237.9 million).
Matthias Schellenberg, Chair of the Board of Directors: "We are very satisfied with our business performance, and the results show that our strategy programme Agenda 2025 is bearing fruit. We have become faster and stronger for our customers. Our customer business is growing and we have achieved a turnaround in the development of our member base. The customer satisfaction rate of 62% – an increase of 14 percentage points – confirms that our measures are effective. apoBank has regained a lot of its radiant force, and we are building on this to press ahead along our current path."
The Bank recorded a positive turnaround in its new lending business, with an increase from €3.3 billion to €5.0 billion. Construction financing became particularly dynamic, as did our corporate clients segment. The Bank once again demonstrated the strength of its market position in practice and pharmacy start-up financing, with the loan portfolio growing to €8.5 billion (2023: €8.3 billion). The deposit business also provided positive impetus.
In its asset advisory business for retail clients, the Bank made major progress. Thanks to good market performance as well as newly acquired funds, the deposit volume increased to €13.5 billion (2023: €11.7 billion). This increase is primarily attributable to the mandated volume in asset management, which grew by just under €2 billion, reaching €7.7 billion (2023: €5.9 billion). The Bank’s strategy of focusing on asset management for clients is thus paying off.
- Growth in new lending business
- Almost €2 billion rise in asset management volume
- 6% dividend proposed
Deutsche Apotheker- und Ärztebank (apoBank) ended fiscal 2024 with a stable net profit (after tax) of €96.0 million (2023: €94.2 million). On this basis, the Supervisory Board and Board of Directors will once again recommend a dividend of 6% to the Annual General Meeting. The operating result increased by a third to €311.7 million (2023: €237.9 million).
Matthias Schellenberg, Chair of the Board of Directors: "We are very satisfied with our business performance, and the results show that our strategy programme Agenda 2025 is bearing fruit. We have become faster and stronger for our customers. Our customer business is growing and we have achieved a turnaround in the development of our member base. The customer satisfaction rate of 62% – an increase of 14 percentage points – confirms that our measures are effective. apoBank has regained a lot of its radiant force, and we are building on this to press ahead along our current path."
The Bank recorded a positive turnaround in its new lending business, with an increase from €3.3 billion to €5.0 billion. Construction financing became particularly dynamic, as did our corporate clients segment. The Bank once again demonstrated the strength of its market position in practice and pharmacy start-up financing, with the loan portfolio growing to €8.5 billion (2023: €8.3 billion). The deposit business also provided positive impetus.
In its asset advisory business for retail clients, the Bank made major progress. Thanks to good market performance as well as newly acquired funds, the deposit volume increased to €13.5 billion (2023: €11.7 billion). This increase is primarily attributable to the mandated volume in asset management, which grew by just under €2 billion, reaching €7.7 billion (2023: €5.9 billion). The Bank’s strategy of focusing on asset management for clients is thus paying off.
2025 financial outlook
Global economic risks continue, and many challenges facing society remain unresolved. The current fiscal year is therefore still characterised by major change dynamics, along with the associated uncertainties for banks and the financial markets. This limits forecasting precision.
Dr. Christian Wiermann, Director of Finance and Controlling: "Compared with 2023, which was an exceptional year in which we saw record earnings, we also had a strong year in 2024. Revenues, that remained on the same strong level as in the previous year, enabled us to invest heavily in our future while optimising our cost base further more. We have a strong base and are expecting our high earnings to continue during 2025. We will draw on these to invest further in our customer business and technology. This year, the operating result will be below the strong level achieved in 2024. All in all, we are planning to have a stable net profit and yet another attractive dividend for our members."
Dr. Christian Wiermann, Director of Finance and Controlling: "Compared with 2023, which was an exceptional year in which we saw record earnings, we also had a strong year in 2024. Revenues, that remained on the same strong level as in the previous year, enabled us to invest heavily in our future while optimising our cost base further more. We have a strong base and are expecting our high earnings to continue during 2025. We will draw on these to invest further in our customer business and technology. This year, the operating result will be below the strong level achieved in 2024. All in all, we are planning to have a stable net profit and yet another attractive dividend for our members."
On the home straight with the "Agenda 2025" strategy programme
This year will see apoBank bring its strategy programme Agenda 2025 to a close. Its goals were to boost sales as well as optimise products and processes.
Schellenberg: "Our focus in 2025 is on completing our strategy programme. We are on the home straight and are confident that we will achieve our goals."
Once Agenda 2025 has ended, the Bank will maintain its clear focus on growth, and will develop a new strategy programme by the end of the year. "We plan to further expand our market position and become more attractive, especially to salaried health care professionals,” says Schellenberg. “One aspect we will focus on will therefore be to reorganise our systems of support for salaried health care professionals and expand our range of digital offerings. Our aim is to combine our unique expertise as advisors with digital excellence for the benefit of our customers."
Schellenberg: "Our focus in 2025 is on completing our strategy programme. We are on the home straight and are confident that we will achieve our goals."
Once Agenda 2025 has ended, the Bank will maintain its clear focus on growth, and will develop a new strategy programme by the end of the year. "We plan to further expand our market position and become more attractive, especially to salaried health care professionals,” says Schellenberg. “One aspect we will focus on will therefore be to reorganise our systems of support for salaried health care professionals and expand our range of digital offerings. Our aim is to combine our unique expertise as advisors with digital excellence for the benefit of our customers."
Results for fiscal 2024 in detail
Net interest income was stable at €972.0 million (2023: €970.2 million). The Bank benefited here, though to a lesser extent than in 2023, from the general net interest rate trend in the money market.
At €177.2 million, net commission income remained on the previous year’s level (2023: €178.3 million). During the year under review, the Bank was therefore able to use the growth in asset management to offset both the lost revenues from its terminated custodian service and higher commission payments for brokered loans in the context of the upturn in the lending business.
General administrative expenses reached €731.1 million in the reporting period (2023: €739.8 million). There was a decline in personnel expenses, which in the previous year had included higher provisions for personnel-related measures as part of Agenda 2025. In addition, lower allocations to provisions for company pensions were necessary. Operating expenditure including depreciation was characterised by project investments. The bank levy provided some relief as it was not charged in 2024. The cost-income ratio was 66.5% (2023: 63.7%), which was thus below the target of 70%.
On balance, the operating result, i.e. the profit before risk provisioning, amounted to €408.2 million (2023: €433.9 million), and was thus 5.9% below the previous year’s figure, but still markedly higher than planned.
Risk provisioning for the operating business was at -€61.4 million (2023: -€64.1 million) and thus below the previous year’s figure. Write-ups on shareholdings and securities classed as fixed assets faced increasing net allocations to loan loss provisions as well as lower recoveries from previously written down receivables.
Risk provisioning with reserve character amounted to -€35.0 million (2023: -€131.9 million). The Bank has once again built up reserves, albeit at a lower level than in the previous year.
The financial statement 2024 also included an unexpected demand for back taxes and interest on arrears for securities transactions in the years 2004 until 2008. The financial authority changed its legal opinion about these transactions after good 20 years. This is reflected in other operating expenses as well as in tax expenditure. The Bank will appeal against this demand for back taxes.
This left a net profit after tax of €96.0 million (2023: €94.2 million).
The balance sheet total rose by 2.1% to €51.8 billion (2023: €50.7 billion). Loans to customers remained stable at €34.7 billion. Customer deposits increased slightly, to €30.3 billion. The common equity tier 1 capital ratio was 17.1% (2023: 16.7%), and the total capital ratio 18.3% (2023: 18.0%). Both ratios were thus at a good level.
At €177.2 million, net commission income remained on the previous year’s level (2023: €178.3 million). During the year under review, the Bank was therefore able to use the growth in asset management to offset both the lost revenues from its terminated custodian service and higher commission payments for brokered loans in the context of the upturn in the lending business.
General administrative expenses reached €731.1 million in the reporting period (2023: €739.8 million). There was a decline in personnel expenses, which in the previous year had included higher provisions for personnel-related measures as part of Agenda 2025. In addition, lower allocations to provisions for company pensions were necessary. Operating expenditure including depreciation was characterised by project investments. The bank levy provided some relief as it was not charged in 2024. The cost-income ratio was 66.5% (2023: 63.7%), which was thus below the target of 70%.
On balance, the operating result, i.e. the profit before risk provisioning, amounted to €408.2 million (2023: €433.9 million), and was thus 5.9% below the previous year’s figure, but still markedly higher than planned.
Risk provisioning for the operating business was at -€61.4 million (2023: -€64.1 million) and thus below the previous year’s figure. Write-ups on shareholdings and securities classed as fixed assets faced increasing net allocations to loan loss provisions as well as lower recoveries from previously written down receivables.
Risk provisioning with reserve character amounted to -€35.0 million (2023: -€131.9 million). The Bank has once again built up reserves, albeit at a lower level than in the previous year.
The financial statement 2024 also included an unexpected demand for back taxes and interest on arrears for securities transactions in the years 2004 until 2008. The financial authority changed its legal opinion about these transactions after good 20 years. This is reflected in other operating expenses as well as in tax expenditure. The Bank will appeal against this demand for back taxes.
This left a net profit after tax of €96.0 million (2023: €94.2 million).
The balance sheet total rose by 2.1% to €51.8 billion (2023: €50.7 billion). Loans to customers remained stable at €34.7 billion. Customer deposits increased slightly, to €30.3 billion. The common equity tier 1 capital ratio was 17.1% (2023: 16.7%), and the total capital ratio 18.3% (2023: 18.0%). Both ratios were thus at a good level.
