BUSINESS

Raiffeisen Bank Romania posts 20 pc higher profit in Q3

Raiffeisen Bank Romania net profit was up by 20.4 per cent in the first nine months, from EUR 60 M last year to EUR 72 M, due to cost cuts and increase of operating revenue, Austrian group Raiffeisen Bank International (RBI) informed yesterday. The provisions of Raiffeisen Bank Romania increased by 43.2 per cent, from EUR 52 M in the first nine months last year to EUR 74 M this year. The Austrian group notes that ‘the various individual cases have led to new allocation of provisions for corporate clients in Slovakia, Romania, Poland, China and at the group headquarters.’ The balance of credit decreased by 4.3 per cent compared to September 2011, from EUR 4.4 bn to EUR 4.22 bn. At the end of last year, the Romanian division of the group was reporting a credit balance of EUR 4.43 bn. Loans given to companies represented in September 35.3 per cent of the total credit balance, down from 37.3 per cent in September 2011. The share of consumer loans in the general balance went up from 60.2 per cent to 62 per cent in the interval, reads a RBI report. The deposits attracted from customers went up by 1.5 per cent from EUR 3.76 bn in September last year to EUR 3.81 bn. In December, the deposits stood at EUR 3.9 bn. The operating revenue went up by 1.3 per cent in the first nine months, from EUR 342 M in the first ten months in 2011 to EUR 346 M. The net revenue from interest grew by 17.2 per cent, from EUR 196 M to EUR 229 M and the revenue from fees and commissions decreased by 18.6 per cent from EUR 134 M to EUR 109 M. he rise in the net revenue was mainly due to a process of reclassification and happened to the detriment of fees and commissions. The general administrative expenditure registered a decline by 9.5 per cent in the analysed period, from EUR 214 M last year to EUR 194 M, from the reduction of costs with the personnel and advertising, PR and promotion. The number of employees of Raiffeisen Bank Romania decreased by 6.7 per cent since September 2011, from 6,065 to 5,660. At the end of last year, Raiffeisen Bank Romania had a total of 6,030 employees. At a group level, RBI reported a nine-month net profit of EUR 889 M compared to EUR 760 M in the first nine months last year. Provisions decreased by 20 per cent, to EUR 623 M.

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