Raiffeisen Bank Romania 9-month net profit up 20.4 percent to EUR 72 mln on lower expenses

The net profit of Raiffeisen Bank Romania, part of the Austrian Raiffeisen Bank International,  has moved up by 20.4 percent to EUR 72 million in the first nine months, sustained by a higher operating income and slashed expenses. The lender added 1.5 percent in deposits and reduced lending by 4.3 percent.

Raiffeisen’s net profit rose by 25.3 percent to EUR 23 million in the third quarter (Q3) against Q2, while the operating income added 5 percent to EUR 116 million. It was helped by a surge in the net fee and commission income, which added 27.2 percent to EUR 42 million.

In the first nine months, the operating income rose by 1.3 percent to EUR 346 million, gaining 17.2 percent in the net interest income to EUR 229 million. Meanwhile, the net fee and commission income lost 18.6 percent to EUR 109 million, while the trading income fell by 38.5 percent to EUR 7 million.

Raiffeisen cut the general administrative expenses by 9.5 percent to EUR 194 million and slashing the number of employees by 6.7 percent to 5,660. It reduced the business outlets by 2.6 percent to 530. The cost income ratio lost 6.7 percentage points to 55.9 percent

The loan books shrank by 4.3 percent to EUR 4.2 billion, while the deposits from customers added 1.5 percent to EUR 3.8 billion. The loan to deposit ratio fell by 6.6 percentage points to 110.6 percent. Over 35 percent of the loans were taken out by the corporate sector, while the retail segment had 62 percent.

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Raiffeisen has increased provisioning for impairment losses by 43.2 percent to EUR 74 million. The non-performing loans ratio slightly expanded to 10.3 percent. The lender’s total assets lost 3.2 percent to EUR 6 billion.

The net profit of Raiffeisen Bank International rose by 13 percent year-on-year to EUR 842 million on nine months.

Ovidiu Posirca