Raiffeisen Bank Romania sees net profit go down by approximately 5 percent in H1 2010

Newsroom 18/08/2010 | 17:23

Raiffeisen Bank S.A. posted a net profit of EUR 49.98 million for the first half of 2010, down by about 5 percent against the same period last year. The bank has also announced an operational profit of EUR 83.8 million. Reiffeisen’s gross income for the same period of 2010 dropped by 12 percent on H1 2009, reaching EUR 210.4 million, mainly due to a decrease in income from treasury activity, according to bank representatives.

Loans to customers during the first six months of 2010 amounted to EUR 2.7 billion, up by 6.7 percent against the same period in 2009 while customer deposits exceeded EUR 3.4 billion, up by 5.2 percent compared to June 2009. The bank’s total assets dropped by around 2 percent, from EUR 4.67 billion in June 2009 to EUR 4.57 billion in June 2010.

“I am satisfied we have again managed to achieve good results that are very close to the ones we posted last year, despite the fact that the economic situation in Romania has continued to worsen. The decrease in revenues was only due to trading activities, whereas the revenues from purely banking activities have slightly increased, which means that we performed very well in our core businesses. Furthermore, we have managed to control our costs: provisions dropped sharply, we have more effectively managed our expenses, thus preserving our profitability. We owe this good result to the solid position the bank has on the market, to our prudent risk management policy in the past years, and to our balanced exposure in terms of segments and industries”, said Steven van Groningen, CEO of Raiffeisen Bank S.A..