Net income from commissions and fees fell 4% to €31m. General administrative expenses were flat at €42 mln. Net provisioning for impairment losses was down 24% at €14 mln. The decline was largely driven by the retail segment, RBI said. The businessʼs loss on the “other results” line, where it books the bank levy, narrowed by 12% to €31 mln.
The businessʼs cost-to-income ratio fell 1.2 percentage points to 63.5%. RBI noted that €9 mln in provisions related to the settlement of compensation it was required to pay clients under borrowers relief legislation was released. The business had total assets of €6.7 bln at the end of March, up 7.5% from twelve months earlier.
Stock of client loans fell 6% to €4.6 bln. The share of corporate loans in the portfolio rose 4.2 percentage points to 55.7%. The share of retail loans fell 3.6 percentage points to 31.8%. Client deposits edged down 1% to €4.1 bln. The Hungarian businessʼs number of branches fell to 114 from 122 during the period. Staff numbers dropped 10% to 2,234.
Client numbers slipped 6% to 565,198. Raiffeisen Bank recently announced plans to scale back its business, focusing on corporate and premiumln clients, while interacting with retail clients through electronic channels.
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