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Raiffeisen profit falls in 2018 on lower provisions release

Austrian-owned Raiffeisen Bank Zrt. booked after-tax profit of HUF 23 billion last year, down from HUF 28.5 bln in 2017, when the lender released a large amount of provisions, CEO György Zolnai was cited as saying Friday by state news wire MTI.   

Operating revenue rose 6% to HUF 88.6 bln, despite low interest rates, Zolnai said. Raiffeisenʼs ratio of non-performing loans (NPLs) was under 6%, he added.

Provisions released in 2018 came to HUF 7.8 bln, well under the HUF 15 bln released in 2017. Return on equity was 14%.

Raiffeisen had total assets of HUF 2,410 bln at the end of December, up 11% from twelve months earlier. 

The bankʼs stock of client loans rose 19% to HUF 1,149 bln, which included HUF 293 bln of retail loans. Mortgage outlays were up 150%, while personal loan outlays grew 70%.

The stock of client deposits increased 16% to HUF 1,771 bln, to give Raiffeisen a loan-to-deposit ratio of 62-63%.

Assets managed for premium and private banking clients were both up 10%. Private banking clients hold some HUF 529 bln at the bank.