Finance
German cooperative banks expect 2025 profit drop as economy struggles
Published by Global Banking & Finance Review®
Posted on July 16, 2025
1 min readLast updated: January 22, 2026
Global Banking & Finance Review®
Company
Published by Global Banking & Finance Review®
Posted on July 16, 2025
1 min readLast updated: January 22, 2026
German cooperative banks predict a profit drop in 2025, following a 25% decline in 2024, due to economic and geopolitical challenges.
FRANKFURT (Reuters) -Germany's coopearative banks said on Wednesday they expect a decline in profit in 2025 after a 25% drop in 2024, as tariff uncertainty and a weak economy take their toll.
The drop would mark a second consecutive year of decline after record profit in 2023.
"The 2025 financial year will continue to be characterized by geopolitical tensions and a weak domestic economy," said Tanja Mueller-Ziegler, a board member of the National Association of German Cooperative Banks.
A sharp rise in risk provisions resulted in a decline in 2024 pre-tax profit to 10.8 billion euros ($12.55 billion), down from 14.4 billion euros in 2023.
Mueller-Ziegler said that earnings in 2025 would be "slightly lower" as she forecast Germany's economy would stagnate this year and grow only by 1% in 2026.
Cooperative banks are a pillar of the financial sector in Germany. The national association encompasses more than 650 lenders with 1.2 trillion euros in assets.
($1 = 0.8607 euros)
(Reporting by Tom Sims and Klaus Lauer, Editing by Rachel More)
German cooperative banks expect a decline in profit in 2025 after a 25% drop in 2024.
The profit decline is attributed to tariff uncertainty and a weak domestic economy.
Pre-tax profit declined from 14.4 billion euros in 2023 to 10.8 billion euros in 2024.
The forecast for Germany's economic growth in 2026 is only 1%.
The National Association encompasses more than 650 lenders with 1.2 trillion euros in assets.
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