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Raiffeisen Bank International to strengthen its presence in Romania, CEO says

Raiffeisen Bank ends first semester with a 20 per cent net loan growth and a net profit of RON 423 million (yoy)

Raiffeisen Bank ended the first semester of this year with a net profit in Romania of RON 423 million, up 74 per cent compared to June 2017. Total assets of the Bank increased during this first semester up to RON 38.1 billion (14 per cent growth yoy). The main driver of this positive development was, again, lending: RON 23.6 billion is the total value of the stock of customer net loans growing by 20% yoy.

New loan volumes recorded substantial increases compared to the same period of the previous year, particularly in the case of companies. New loans to large and medium companies grew during the first semester of this year by 43 per cent compared to the same period of 2017, while loans to SMEs grew by 35 per cent, and loans to individuals by 15 per cent, respectively.

Our main achievements are related to responsible lending, that is, to doing what we said: «proper banking». I am convinced that this trend of increasing the financing of the Romanian economy will continue, because we offer Romanian companies and entrepreneurs not only attractive credit products but also valuable expertise. In terms of lending to individuals, in an environment of increased interests, more than 90 per cent of new consumer loan volumes in the past year are with fixed interest rates, while for real estate loans 60 per cent have fixed interest rates for the first 7 years”, said Steven van Groningen, President & CEO of Raiffeisen Bank.

Deposits from customers attracted by Raiffeisen Bank increased by 16 per cent in the first half of 2018 compared to June 2017 and exceeded RON 31 billion. By mid-2018, the Bank’s revenues were about RON 1.2 billion, 21 per cent higher compared to the first half of 2017.

The non-performing loan ration is 4.9 per cent at the end of June 2018 (8 per cent H1/2017). Provisioning expenses are RON 72 million, against RON 206 million as they were at mid-year 2017.

Raiffeisen Bank’s operating expenses reached RON 622 million in the first half of this year, up 5 per cent compared to the level recorded in the first semester of last year.

The bank will continue its substantial investments in the digitization process for affordable, fast and easy-to-understand banking products and services. The number of Bank customers using the online banking applications, Raiffeisen Online and Smart Mobile, reached 530,000, 30 per cent more than in the same period last year. Raiffeisen Bank customers take online loans and perform operations through digital banking apps, call center or multifunctional machines (MFMs). The number of clients who prefer the self-banking tools is steadily growing.

At mid-year 2018, half of the Bank’s individual clients (966,000 H1/2018) chose to have a relationship with the bank based on several trading, lending, saving products included in current account bundles, 5 per cent more compared to June 30th, 2017, thus confirming that the direction of simplifying products and using them in a responsible way is the right one.

Raiffeisen Bank has 2 million individual clients, approximately 100,000 SMEs and 5,600 corporations.

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