Raiffeisen Bank Romania sees net profit down 29% in H1

Raiffeisen Bank, the local arm of Austrian group Raiffeisen International, booked a net profit of 52.6 million euros in the first semester, 29 percent less than in the first six months last year, due to increased provisions following a tougher economic context, the lender announced.
Raiffeisen Bank Romania saw a net profit of 74 million euros in the first half of 2008.

The operating profit obtained by Raiffeisen remained however stable despite the economic conditions. Thus, the bank ended the semester this year with an operating profit of 106 million euros, similar to that reported at the end of June 2008 (the data is according to the IFRS standards, does not include other Romanian subsidiaries of the Raiffeisen International group and is not consolidated).

Head of Raiffeisen Bank Romania Steven van Groningen said that, although one compares results from June this year with the same period last year, we also need to consider the significant changes in the market conditions of the analyzed periods, NewsIn states.

Net revenues in lei remained stable, while the equivalent in euros diminished 14 percent, similar to the average depreciation of the national currency in the period.

Expenses with personnel dropped 8 percent while administrative expenses only inched 1 percent. The costs/revenues ratio improved from 55.3 percent to 56 percent.

The lender's total assets increased 2 percent to 4.67 billion euros compared to 4.56 billion euros on June 30 2008.

Credits given to clients remained constant in lei (with a 14 percent drop in the euro equivalent) while deposits in lei hiked 7 percent (which translates into a 7 percent decrease in the euro equivalent).

Raiffeisen Bank counted 558 units on June 30 this year, up from 496 in the previous. The bank has about 1.97 million clients among the population, some 100,000 small and medium enterprises (SMEs) and over 6,800 medium and large corporations.

The headcount was raised from 6,486 to 6,512.

Raiffeisen Bank is an universal bank part of the Raiffeisen International group, which owns 99.49 percent of the bank's assets.

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