Raiffeisen Bank, net profit of 45 mln euro in H1 2014

Raiffeisen Bank Romania announces declining net profit of 45 million euro for the first six months of 2014, in the similar period of the past year the bank registering 60 million euro profit after tax.

According to the bank, total loans increased by 6 percent up to 3.83 billion euro, deposits recording the same growth pace, amounting to 4.3 billion euro. Thus, the loan/deposit ratio maintains the same level as compared to June 2013, 89 percent.

“The bank’s income remains at the same level as last year, respectively 221 million euro, which is in itself a notable performance given the current market conditions. We have a strong risk and cost control system which allowed us to be more efficient in our daily activity. Developing a long term partnership with our clients remains one of our main objectives for this year and I am pleased that our SME and Premium client base registered the highest increase this year”, said Steven van Groningen, President & CEO of Raiffeisen Bank.

There was also an increase in net provisioning charges which came to 40 million euro, while in the first half of 2013 they totaled 38 million euro. Also, the non-performing loans ratio has seen a marginal increase to 8.21 percent compared to 7.95 percent in June 2013.

On the other hand, the bank managed to increase efficiency and diversify its income sources and as a result, the cost/income ratio improved to 58.7 percent from 59.9 percent at six months in 2013.