The strict control of costs and risks, efficiency and a continuous improvement of products and services will remain the bank’s priorities for the current year, said Steven van Groningen, President and CEO of Raiffeisen Bank.
Raiffeisen Bank ended the first six months of 2012 with a net profit of EUR 50 M, thus marking a 28 per cent increase against the result of June 2011 of EUR 39M, according to a press release. Also, total assets reached EUR 5.64 bln, a 9 per cent increase compared to EUR 5.17 bln recorded in the same period of the previous year. The communiqué also reveals that compared to the first six months of 2011, total loans remained relatively constant, rising by 2 per cent to EUR 3.14 bln, while deposits grew by 5 per cent to EUR 3.73 bln. The loan to deposits ratio currently stands at 91 per cent (93 per cent in June 2011). “We ended the first half of 2012 with a very good result, considering the economic and political context at the national and international levels. The bank’s solidity, together with increasing our efficiency and improvements of our activities, helped us grow our revenues by 4 per cent, compared with the first half of 2011. A strict control of costs and risks, efficiency and a continuous improvement of products and services will remain the bank’s priorities for the current year”, said Steven van Groningen, President & CEO of Raiffeisen Bank.Raiffeisen Bank’s solvability rate (including profit) was 12.87 per cent at the end of the first half of 2012. Net provisioning for impairment losses increased to EUR 38 M from EUR 26 M in June 2011, in a very difficult economic environment. On the other hand, the non-performing loans ratio remained relatively constant, standing at 7.4 per cent against 6.9 per cent in June 2011. As a result of the bank’s measures to increase efficiency and diversify income sources, the cost/income ratio improved from 66 per cent in June 2011 to 57 per cent.Also, the bank’s customer base remained unchanged – approximately 2 million individuals, 100,000 SMEs and 7,500 companies. At half-year 2012, Raiffeisen Bank had 539 outlets (542 in June 2011), more than 1,100 ATMs and approximately 10,500 EPOS. It had 5,707 employees, compared to 5,938 at June 30th, 2011.
The GDP of the see region is expected to increase minimally by around 0.2 per cent in 2012
The SEE region (Albania, Bosnia and Herzegovina, Bulgaria, Croatia, Kosovo, Romania and Serbia) cannot detach itself from the overall economic environment in Europe due to its very strong ties to the countries in the Eurozone, according to the Semi-Annual Financial Report Raiffesien Bank International, as of 30 June 2012. While there was year-on-year slight growth in both Romania and Bulgaria in the first quarter of 2012 – 0.3 per cent and 0.9 per cent respectively – Croatia and Serbia each suffered a decline of 1.3 per cent. In Romania the positive development continued, with GDP growth of 1.2 per cent p.a. in the second quarter, while Serbia saw a further decline in economic performance (minus 0.6 per cent p.a.) in this period. The economy is also comparatively weak in Bosnia and Herzegovina, and Albania. It is likely that Bosnia and Herzegovina, Croatia and Serbia will not generate any growth at all in 2012, because these countries of the SEE region will suffer the most from the recession in the Eurozone countries of Southern Europe. Overall, the GDP of the SEE region is expected to increase minimally by around 0.2 per cent in 2012, but an economic increase of 1.8 per cent could be possible again for 2013.