Raiffeisen Bank’s profit down by EUR 12 mln in H1 over debt discharge law provisions

Newsroom 19/08/2016 | 10:20

Raiffeisen Bank’s profit decreased by EUR 12 million in the first semester of the year to EUR 36 million compared with the same period of the last year, according to the bank’s data from a release.

Raiffeisen representatives tell that this results are due to two events: provisions of EUR 42.5 million for possible losses due to the enforecement of debt discharge law and a gain of EUR 21 milion as a result of the Visa Europe Limited acquisition to Visa Inc.

Moreover the total assets grew by 6 percent compared with the first half of 2015 from EUR 6.48 billion to EUR 6.89 billion in 2016 and the main engine of the growth was the development of the bank’s activity with clients, say the representatives of Raiffeisen.

The loan portfolio quality improved, the under performative loans rate dropped from 7.2 percent in June 2015 to 6.9 percent in 2016/. The balance sheet liquidity is described as being „very god, the main part being financed by the clients’ deposits and over a quarter of the assets are placed in liquid instruments.

„I’m very satisfied with the bank’s evolution in the first six months of this year. The operational revenues grew by 15 percent up to EUR 247 million and by 5 percent if we exclude the effects of VISA transaction. We have a sustained growth both by loans and deposits portfolios, but also by diversified sources generated by the bank’s revenues. All these allowed us to succeed in an environment dominated by low interest rates and changing legislative framework that affected our activity. The net incomes from interests, our main source of income, showed the resistance to the low interests impact on the market and slightly increased, supported by the growth of loan portfolio,” said Steven van Groningen, president and CEO of Raiffeisen Bank.

Georgiana Bendre

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