Raiffeisen books EUR 48 mln profit in Hungary in Q1-Q3


Austriaʼs Raiffeisen Bank International (RBI) booked a EUR 48 million profit at its Hungarian business in the first three quarters of 2016, compared to a EUR 13 million profit in the corresponding period a year earlier, an earnings report published today shows, according to Hungarian news agency MTI. Operating profit rose to EUR 47 mln, from EUR 35 mln a year earlier.

Net interest income fell from EUR 93 mln to EUR 77 mln, declining as a result of the low market interest rate level and EUR 10 mln increase in interest-like expenses in connection with the termination of an intra-group mezzanine financing transaction. 

Net income from commissions and fees was down from EUR 93 mln to EUR 89 mln. General administrative expenses, however, fell to EUR 108 mln, compared to EUR 134 mln earlier.

The businessʼs cost-to-income ratio was 69.6%, compared to 79.5% before, in part influenced by lower net provisioning for impairment losses. Improvements in the ratings of corporate customers and sales of non-performing loans collateralized with real estate eased provisioning costs.

The business had total assets of EUR 6.55 billion at the end of September, up from EUR 6.26 bln twelve months earlier. The Hungarian unitʼs number of branches was stable at 72. Staff numbers dropped from 2,037 to 1,988. Client numbers rose from 536,817 to 542,292.

The stock of client loans slipped from EUR 3.54 bln to EUR 3.41 bln. The share of corporate loans in the portfolio was 70.5%, while the share of retail loans was 27.9%.

Client deposits increased to EUR 4.41 bln, up from EUR 3.95 bln.


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