Würth Finance Group
Annual Report 2023
Short overview of the
Würth Finance Group
Profit before taxes
98.2
million EUR
Total operating income
139.2
million EUR
Balance sheet total
4.15
billion EUR
Number of employees
120
employees (FTEs)
Key Events 2023
4.2 million customers and record sales for the Würth Group: Despite a significant slowdown in the economy, the Würth Group increased its consolidated sales by 2.4% to EUR 20,400 million. It acquired 100,000 new customers and achieved the second-best result in the company’s history at EUR 1,400 million (according to preliminary figures).
Extraordinarily sharp increase in profit for the Würth Finance Group: driven by higher interest income on cash investments, total income increased by 26.0% to EUR 134.7 million, while pre-tax profit was even up 33.3% at EUR 93.7 million (adjusted figures).
A large inflow of liquidity from the core business and strong increases in interest rates were a key spur to action for Würth Finance International B.V.: In an environment of significant rises in interest rates, active management of more than 50 bank accounts in 26 currencies along with the optimal investment of liquidity totalling well over EUR 1,000 million created significant added value. Higher interest rates also dominated deliberations and decision-making processes when it came to financing the Group companies.
Remarkable performance in a challenging market environment: With a 6% increase in brokered premium volume and a 7% rise in revenue, Würth Financial Services AG achieved new records. Thanks to its successful sales strategy, Würth Financial Services AG is thus growing significantly faster than the market.
Digital insurance sales as a key strategic initiative: The InsurHub on Twint is performing well. With payment protection insurance for private individuals with mortgage debts offered online on the brokermarket.ch platform, Würth Financial Services AG has successfully entered the digital bancassurance market.
Report of the Board of Directors
The Supervisory Board supported the Management in an advisory capacity, closely monitoring in particular the company’s development and the effectiveness of risk management. The Board of Directors approves the Financial Statements and would like to thank the Management, the employees and the clients of the Würth Finance Group for their commitment and trust in the financial year 2023.
Report of the Management
The 2023 year under review was very successful for the Würth Finance Group in financial terms. At EUR 134.7 million, the Würth Finance Group’s adjusted income rose by a further EUR 27.8 million compared with the previous year’s already high figure. With an adjusted pre-tax profit of EUR 93.7 million, the Würth Finance Group achieved a record-high result.
Report Inhouse Banking
Financial year 2023 was another record year. With a pretax profit of EUR 92.6 million, the previous year’s result was once again exceeded, this time by EUR 23.0 million. The division Inhouse Banking provided close support to the parent company and Group companies, in particular for financial and liquidity management.
Trading/securities investments: income development
Report External Financial Services
Overall, 2023 was a good year for Würth Financial Services AG. Sales targets were exceeded and new client acquisition was promising. Developments in the innovative area of digital insurance sales were particularly positive. The brokered premium volume increased by almost 6% to CHF 384 million. As a result, revenue increased by 7%.
Development of premium volume
Risk Management and Control
Basic principles of our risk management system:
The Management bears the responsibility for all risks incurred as a result of the company’s business activities and seeks to achieve a healthy balance between risk and returns.
An independent control process forms an integral part of the corporate structure.
Employees are familiar with and alert to the principal risks specific to their area of activity. A central element of risk control is the comprehensive, transparent and objective disclosure of risks to the Group and company management, owners, supervisory authorities and other stakeholders.
Income is protected on the basis of risk tolerance – i.e. the maximum risk that the Würth Finance Group can bear given its financial and earning power.
Ultimately, the Würth Finance Group’s reputation depends on effective risk management and control.
Key Figures
The primary objective of the Management of the Würth Finance Group is to create continuous value added for the Würth Group. The Management is responsible for generating adequate risk-adjusted returns. In order to be successful in the long term, the Würth Finance Group needs to generate an overall return that is higher than the risk-adjusted cost of capital.
Key figures from the consolidated income statement
| in TEUR | 2019 | 2020 | 2021 | 2022 | 2023 |
|---|---|---|---|---|---|
| Net interest income | 14,284 | 13,789 | 14,170 | 29,576 | 50,844 |
| Income from factoring activities | 16,419 | 16,275 | 16,234 | 17,733 | 13,573 |
| Income from commission and service fee activities | 35,897 | 37,668 | 43,725 | 48,348 | 49,564 |
| Income from trading activities and financial instruments | 14,713 | 12,376 | 14,789 | 11,289 | 20,376 |
| Other ordinary income | 2,870 | 1,709 | 797 | 653 | 592 |
| Expected credit loss (expenses) / recovery | 1,005 | –7,886 | 6,846 | –4,615 | 4,273 |
| Total operating income | 85,189 | 73,931 | 96,561 | 102,984 | 139,222 |
| Total operating expenses | -32,397 | -31,519 | -34,031 | –36,656 | –41,021 |
| Profit before taxes | 52,792 | 42,412 | 62,530 | 66,328 | 98,201 |
Operating income adjustments Inhouse Banking
| 2019 | 2020 | 2021 | 2022 | 2023 | |
|---|---|---|---|---|---|
| Hedge accounting effect management accounting | 2,993 | 1,492 | -548 | –619 | –203 |
| Impairment for credit loss | -739 | 8,558 | -6,450 | 4,615 | –4,273 |
| Total operating income (adjusted) | 87,443 | 83,981 | 89,563 | 106,980 | 134,747 |
| Profit before taxes (adjusted) | 55,046 | 52,462 | 55,532 | 70,324 | 93,726 |
Balance sheet total / equity ratio
Number of employees (FTEs)
Cost-income ratio
Return on equity before tax
Growing together and growing closer together
The year 2023
There are different ways of growing. Those that grow together become bigger through their joint efforts. Those that grow closer together achieve a combined greatness and a unity. Behind the word “together” lies the deep-seated human need for community and for working with one another. Both the Würth Finance Group and the whole of the Würth Group attach great importance to working together. Growing together, creating things together – that’s what counts.
Shared goals and a shared attitude
The year saw the different players in the Würth Group – in the Netherlands, Switzerland, Europe and around the world – grow closer together in their work on a number of fronts. Another outstanding feature has been and continues to be the ability to develop together as a company with different facets and to enable sustainable growth.
The following stories look back over 2023. Our aim is to highlight very clearly what is being worked on and in this way to grow closer together – by knowing what our colleagues in the various departments are busy with.
