Debt discharge law draws down Raiffeisen Bank’s profit by 25 pc in H1

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The local subsidiary of Raiffeisen Bank International posted a net profit of EUR 36 million after the first months of 2016, down by 25 percent compared to the same period in 2015 when recorded EUR 48 million.

According to a press release, “the results were mainly affected by two non-recurring events: EUR 42.5 million provisions for possible losses following the entry into force of the debt discharge law and revenue of EUR 21 million after the strategic acquisition deal of Visa Europe Limited by Visa Inc.”

Bank’s total assets increased by 6 percent compared to the first half of 2015 from EUR 6.48 billion to EUR 6.89 billion in 2016. Also, the NPL ratio decreased from 7.2 percent in June 2015 to 6.9 percent in 2016.

This year, bank granted loans of over EUR1.4 billion, up by 32 percent y-o-y, of which loans to individuals for personal needs amounted to EUR 350 million, up by 50 percent compared to the same period in 2015.

As regards the loans to SMEs, these were up by 9 percent, backed by a 50 percent increase in loans from EIF (European Investment Fund) financing sources, while the newly approved loans for corporations grew by 40 percent compared to the same period of the previous year.

Net loans increased by 8 percent, from EUR 3.92 billion in June 2015, to EUR 4.21 billion in 2016.

Raiffeisen Bank serves about 2 million retail customers, 96,000 SMEs and 8,000 companies. Raiffeisen Bank network reaches over 500 units and 1,100 ATMs, and at mid-2016, the financial institution had 5.311 employees, compared to 5.348 in June 2015.

 

 

 

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