Raiffeisen Bank’s net profit in H1, slightly higher by 2 pc to EUR 55 M

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Raiffeisen Bank ended the first six months of this year with a net profit in a slight increase of 2 percent over the same period last year. According to a press release, in comparable terms, excluding non-recurring events, Raiffeisen Bank’s net profit increased up to EUR 55 million.

“Our half-year results come as a confirmation of our strong positioning on the Romanian market. This year marks our 20-year anniversary in Romania and I am very proud of our accomplishments so far. We will maintain our focus regarding the development of our current customer relationships, while attracting new customers to maintain a balanced and constant growth in all segments,” Steven van Groningen, President & CEO Raiffeisen Bank stated.

He added: “The fact is that the face of banking is changing, and we want be more than part of the change, we want to be groundbreakers, as we succeeded so many times before.”

The bank’s net loans increased in the past 12 months by 3 percent, to 4.32 billion; new loans amounted to EUR 1.4 billion, of which more than a third was granted to private individuals.

As for large corporate, the financial institution recorded increased financing in areas such as: health services, infrastructure, retail, auto, procurement, but also in real estate, by successfully financing and refinancing relevant projects in Bucharest, Cluj Napoca or Timisoara.

Current accounts of individuals and small and medium enterprises increased significantly (+30 percent) and remained the main driver behind the advance in customer deposits (+14 percent year on year, up to EUR 5.90 billion).

The increase in loans consequently determined a small advance of 1 percent in net interest income, our main income source. The bank’s total income, however, of EUR 217 million, slightly decreased by 4 percent (not including the 2016 Visa transaction).

“Main reasons behind the decrease are the digitalization of our services, together with the launch of new current account bundles, lending and saving products, at advantageous prices for customers,” the release reads.

At the same time, the bank’s operational expenses increased by 3 percent, up to EUR 131 million, due to, among others, cash transportation and processing costs, in line with market trends. Raiffeisen Bank services approximately 2 million individuals, 100,000 SMEs and 5,700 corporates. The bank’s network comprises 466 outlets, almost 1,100 ATMs, 164 MFMs (multifunctional machines) and approximately 18,000 EPOS. At mid-year 2017, the Bank had 5,190 employees, compared to 5,311 in June 2016.

 

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