Raiffeisen profits drop by 22 percent to EUR 39 mln on H1

Newsroom 25/08/2011 | 14:27

Raiffeisen Bank reported a net profit decrease of 22 percent to EUR 39 million in the first half of 2011, down from the EUR 50 million reported in the similar period of 2010. The bank’s total asset value increased by 13 percent, from EUR 4.57 billion in the first half of 2010 to EUR 5.17 billion.

The total volume of loans increased by 23 percent to EUR 3.3 billion, while deposits increased by 4 percent to EUR 3.56 billion. Thus, the loan/deposit ratio reached 93 percent, from 79 percent in June 2010.

The corporate loans segment increased by 24 percent in the first half of 2011, compared to the similar period of 2010, while deposits did not register significant changes.
In the retail banking segment, the loans portfolio expanded by 23 percent and deposits by 5 percent.

Raiffeisen’s net interest income increased by 6 percent to EUR 115 million, while net commission income decreased by 4 percent to EUR 87 million. Net provisions increased by 13 percent to EUR 26 million in the first half of 2011. The non-performing loans rate improved from 7.6 percent in the first half of 2010 to 6.9 percent.

The cost/income ratio increased to 65 percent, from the 61 percent value reported in the first half of 2010. This increased was attributable to the increases in VAT and contributions to the bank deposit guarantee fund by 50 percent.

“We have ended the first half of the year with a good result, given the sluggish economic recovery and difficult market conditions. Increasing efficiency and improving our banking services will remain our top priorities in the months to come”, said Steven van Groningen, CEO Raiffeisen Bank Romania.

Raiffeisen has 2 million clients, out of which 100.000 are SME’s and 8000 are corporate clients. At the end of June 2011, the bank had 545 units and 5.906 employees.