Raiffeisen Bank posts 11pc increase in the loan portfolio in H1/2019 (yoy)

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  • Net profit for the first six months of this year reached RON 384 million, compared to RON 423 million, for the same period of the previous year;
  • The Bank’s total assets amounted to RON 40 billion, a 5 per cent increase compared to the end of June 2018;
  • The Bank’s net loans portfolio reached RON 26,22 billion, an 11 per cent increase (yoy);
  • Customer deposits grew by 7 per cent (yoy);
  • The operational income of the bank reached RON 1,27 billion a 7 per cent increase compared to the same period of 2018;
  • Non-performing loans ratio decreased to 4.1 per cent from 4.9 per cent

Raiffeisen Bank ended the first half of this year with a net profit of RON 384 million, 5 per cent down compared to the first half of 2018. Total assets of the Bank increased in the first half of 2019 to RON 40 billion (5 per cent growth yoy). Lending continued to grow and customer net loans reached RON 26,22 billion, a 11 per cent increase compared to the same period of 2018.

“Once again we registered very good results in the first half of the year compared to the same period of the previous year. We continued balanced and sustainable growth. Loans to large and medium companies grew by 12 per cent, loans to SMEs grew by 7 per cent, and loans to individuals by 8.5 per cent, respectively. The operational income of the bank increased by 7 per cent. We report a slightly lower profit than in the first six months of 2019 due to methodological changes in the calculation of credit provisions. The net profit, unaffected by these non-recurring changes, would have been 13% higher than last year”, said Steven van Groningen, President & CEO of Raiffeisen Bank.

The non-performing loans ratio decreased to 4.1 per cent at the end of June 2018 (4.9 per cent H1/2018). The credit risk profile has improved for all customer segments, which is visible in their payment behavior. In addition to these positive developments, the cost of risk was influenced in the first half of 2019 by a series of methodological changes that resulted in a provisioning expenses of RON 116 million, compared with RON 72 million in H1/2018.

Deposits from customers increased by 7 per cent in the first half of 2019 compared to the same period of 2018 and exceeded RON 33.4 billion.

In the first half of 2019 the Bank’s revenues were around RON 1.27 billion, 7 per cent higher compared to the first half of 2018, the main driver of this positive development was lending.

Raiffeisen Bank’s operating expenses reached RON 682 million in the first half of this year, up 10 per cent compared to the level recorded in the first half of last year. This increase comes from the staff expenses (10 per cent) and substantial investments in the digitization and process simplification of the Bank’s products and services.

The Bank launched Flexicredit Online in February 2019, and the clients can get a personal loan entirely online, in about 10 minutes, with a 0.7 per cent sale interest rates.

The number of digital clients (clients that use internet app Raiffeisen Online and mobile banking app Smart Mobile) reached 650,000 in the first half of 2019, a 23 per cent increase compared to the same period of the previous year.

Raiffeisen Bank launched the new mobile app Raiffeisen Smart Mobile and the new internet banking Raiffeisen Online in May 2019. With an easy-to-understand and friendly design the apps display all the user information on a single screen, there’s the possibility to make online payments simply and better control over credit cards. The login and the payments are now completely online with use of the Raiffeisen Smart Token. Over 100,000 clients are already using the new apps and the Bank will continue to launch innovative digital solutions. Raiffeisen Bank is working at developing mobile payment solutions both for Android and iOs, which will be launched soon. The bank offers free Smart Mobile and Raiffeisen Online, in current account bundles “ZERO Simplu” and “ZERO Tot”.

Raiffeisen Bank has one of the most prized private banking services on the Romanian market and manages assets in excess of RON 5 billion for 1,400 high-value clients, who use consulting services, financial instruments and related services.

The Bank is the leader of the credit card market with 500,000 active cards as of June 30th, 2019.

At the end of the half semester of 2019, Raiffeisen Bank had 4,867 employees, 375 agencies across the country, more than 840 ATMs, approximately 21,200 POS and 266 multifunctional machines. Of those 375 agencies, 32 are working cashless.

Raiffeisen Bank has over 2 million individual clients, approximately 92,000 SMEs and 5,800 corporations.

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