ADVERTISEMENT

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

MNB

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.

ADVERTISEMENT

Fiscal, monetary policy partnership needed to rein in CPI - ... Analysis

Fiscal, monetary policy partnership needed to rein in CPI - ...

Parl't votes to phase out savings coops integration framewor... Parliament

Parl't votes to phase out savings coops integration framewor...

Roche Szolgáltató appoints P&C business partner lead Appointments

Roche Szolgáltató appoints P&C business partner lead

FAO–Food Bank convoy delivers food to those in need City

FAO–Food Bank convoy delivers food to those in need

SUPPORT THE BUDAPEST BUSINESS JOURNAL

Producing journalism that is worthy of the name is a costly business. For 27 years, the publishers, editors and reporters of the Budapest Business Journal have striven to bring you business news that works, information that you can trust, that is factual, accurate and presented without fear or favor.
Newspaper organizations across the globe have struggled to find a business model that allows them to continue to excel, without compromising their ability to perform. Most recently, some have experimented with the idea of involving their most important stakeholders, their readers.
We would like to offer that same opportunity to our readers. We would like to invite you to help us deliver the quality business journalism you require. Hit our Support the BBJ button and you can choose the how much and how often you send us your contributions.