Raiffeisen Bank posts net profit of RON 718 million in the first 9 months, up 91 percent

Aurel Dragan 14/11/2018 | 12:08

Raiffeisen Bank ended the first three months of 2018 with a net profit of RON 718 million lei, 91 percent higher than the one recorded in the first three quarters of 2017. Raiffeisen Bank’s total assets reached RON 39.15 billion (15 percent increase year on year).

In the first nine months of 2018, the bank’s revenues were over RON 1.85 billion, 24 percent higher than in the same period of 2017. The bank’s operating expenses increased to RON 930 million, compared to RON 887 million, after a 5 percent increase. Operating expenses are increasing due to infrastructure and IT investments, labor cost increases, and inflation.

The bank’s main growth engine continued to be its lending activity: RON 24.51 billion is the value of the net credit extended to customers, up 19 percent compared to the similar period of 2017. New credits provided to companies increased by 32 percent in the first three quarters of 2018, compared to the same period in 2017, those granted to SMEs by 20 percent and loans to the population by 6 percent.

“I am glad we have good results again, coming primarily from the bank’s balanced and strong organic growth on all products and customer segments, focusing on financing for companies and SMEs. We support our clients’ activity and investments, which allowed us to achieve a market share of 10 percent in terms of loans to companies and the population in Romania. Given that the environment in which we work actively challenges us, with legislative changes and unpredictable developments, by keeping our performances at this level and developing we show that we are a strong and responsible organization,” said Steven van Groningen, president & CEO of Raiffeisen Bank.

The rate of non-performing loans fell to 4.3 percent at the end of September 2018 compared to 7.7 percent in Q3 2017. The cost of provisions decreased compared to the same period last year to RON 62 million.

Deposits attracted by Raiffeisen Bank from clients increased by 16 percent at the end of September 2018, compared to the same period last year, and exceeded the value of RON 32.31 billion.

Raiffeisen Bank will continue its substantial investments in the digitization and simplification process to provide affordable, fast and easy-to-understand banking products and services. The number of bank customers using online banking and mobile banking, Raiffeisen Online and Smart Mobile, is approaching 560,000, approximately 40 percent more than last year. The number of sign-up in both apps increased by almost 70 percent and the number of transactions by 40 percent.

The bank continues to be the most important player on the credit card market, with over 490,000 active cards on September 30, 2018, a 10 percent increase in newly issued cards per year. Over 95 percent of the amounts traded via credit cards are used in POS or online shopping. Traded volumes rose to nearly 20 percent in the first three quarters of this year, compared to the same period last year.

Premium customer portfolio experienced strong consolidation, rising by 12 percent in the first nine months of the year, while increasing the satisfaction of current service users. The bank has one of the most prized private banking services (under the Friedrich Wilhelm Raiffeisen brand) on the Romanian market and manages assets of over RON 5 billion for approximately 1,400 high-wealth clients who use advisory services, financial instruments and connected services.

At the end of the third quarter of 2018, the bank had 5,037 employees, 425 agencies across the country, and a network of over 930 ATMs, approximately 19,300 POS and 210 multifunctional cars. Raiffeisen Bank serves 2 million individuals, approximately 100,000 SMEs and 5,700 corporations.

BR Magazine | Latest Issue

Download PDF: Business Review Magazine December (II) 2023 Issue

The December (II) 2023 issue of Business Review Magazine is now available in digital format, featuring the main cover story titled “A Visionary Leader Entrusted With Consolidating CPI's Portfolio
Aurel Dragan | 21/12/2023 | 14:13
Advertisement Advertisement
Close ×

We use cookies for keeping our website reliable and secure, personalising content and ads, providing social media features and to analyse how our website is used.

Accept & continue