March 7, 2018 / 10:41 AM / in a year

German savings banks' net profit eclipses that of large peers

FRANKFURT, March 7 (Reuters) - Germany’s 386 savings banks posted a 7.4 pct rise in 2017 net profit to 2.2 billion euros ($2.7 billion), umbrella association DSGV said on Wednesday, eclipsing earnings of large peers like Deutsche Bank or Commerzbank.

In Germany’s fragmented retail banking sector, were savings banks and cooperatively owned lenders have a combined market share of about 70 percent, the savings banks benefited from stronger sales of investment products to their customers, offsetting lower profits from loans.

At the same time, the savings banks lowered costs per euro of income slightly to 64.6 percent.

That compares to a cost-income-ratio of 93.1 percent at Deutsche Bank, which last year posted a net loss of 497 million euros,

The ratio was 77.3 percent at Commerzbank, which posted a 2017 slide in annual net profit to 156 million euros. ($1 = 0.8046 euros) (Reporting by Arno Schuetze Editing by Ludwig Burger)

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