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Raiffeisen Bank profit doubles on lower risk, operating costs

Raiffeisen Bankʼs after-tax profit doubled to HUF 15.7 billion last year on lower risk and operating costs, CEO Heinz Wiedner said at a press conference on Wednesday, Hungarian news agency MTI reported.

Wiedner noted that the stock of non-performing loans had dropped more than 40% to HUF 133 bln.

The bottom line was also lifted by HUF 1.9 bln from the bankʼs stake in Visa Europe, he added.

Net interest revenue declined 10% to HUF 34.4 bln.

Corporate division head Ferenc Kementzey said the corporate lending stock, excluding NPLs, was up 20% and the lenderʼs new SME outlays increased by 13%.

Retail division chief Ralf Cymanek said the bank is still among Hungaryʼs top three with more than 32,000 clients. Mortgage outlays jumped 68% last year and outlays of personal loans were up 19%, he added.

Raiffeisen Bank manages some HUF 435 bln of assets for private banking clients, he said.

Total assets edged up 1% to HUF 1.987 trillion in the twelve months to the end of December. Net client loans increased 11% to HUF 813 bln.