Brussels, October 23 – Cooperative banks across Europe demonstrated resilience and growth, even faced with challenges from higher interest rates, economy uncertainty, stringent regulations and rapid digital changes. The latest annual analytical assessment by the European Association of Co-operative Banks (EACB) and Tilburg University highlights their remarkable market share, strong economic performance, record-breaking membership growth, and steadfast commitment to local communities.
The research letter “The performance of European cooperative banks in 2023 – a snapshot” evaluates 18 leading European cooperative banking groups against their banking competitors. Compiled by Professor Hans Groeneveld from Tilburg University, the assessment has tracked cooperative banks’ performance for the last 20 years.
Key findings from the 2023 Report:
1. Pinnacle Membership: Cooperative banks reached an all-time high of over 90 million, gaining 1.4 million new members in 2023 alone.
2. Employment Growth: Full-time employment at cooperative banks rose by 1.5 % in 2023 – the strongest increase since 2011.
3. Record Market Share: Cooperative banks achieved record market shares in key retail banking markets for the third year in a row, driven by robust loan and deposit growth.
4. Financial Strength: Cooperative banks saw strong financial gains, with return on equity rising to 10.1%, the cost-income ratio dropping to 52.9%, and the Tier 1 capital ratio reaching a record 18.1%.
5. Commitment to Local Presence: Cooperative banks maintained a strong presence in rural areas, with branch closures significantly lower than those of other banks.
Professor Hans Groeneveld notes, “Cooperative banks posted strong results in 2023. Market shares in key domestic retail banking markets and their tier 1 ratio reached new record levels. At the same time, the 2023 figures confirm structural differences between cooperative banks and all other banks. This can be seen, among other things, in lending. Cooperative banks expanded their loan portfolio, while outstanding loans at other banks decreased slightly.”
EACB CEO Nina Schindler highlighted, “The sector’s continued growth and community impact are furthermore an important reminder of the value of a diverse market. These milestones are vivid proof of the long-term sustainable business model and unmatched community first- approach inherent in cooperative banking. Cooperative banks are about more than profits - they are about serving people as long-term partners and building a better future for the society as a whole.”
To download the research paper, please click HERE.
