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Smaller provisions release weighs on Raiffeisenʼs Hungarian earnings

Austriaʼs Raiffeisen Bank International (RBI) booked first-half after-tax profit of EUR 26 million at its business in Hungary, down 61% from the first half of 2017 as the release of provisions was lower, an earnings report released Thursday shows.   

Net interest income fell 4% to EUR 66 mln, but net revenue from commissions and fees rose almost 2% to EUR 65 mln, state news agency MTI reported.

RBIʼs business released EUR 11 mln in provisions in H1, well under the EUR 41 mln in the base period.  

The business had total assets of EUR 7.162 billion at the end of June, up 3% from twelve months earlier. The stock of client loans increased by 10% to EUR 3.091 bln, while the stock of client deposits rose 12% to EUR 5.238 bln.

The bankʼs ratio of non-performing loans (NPLs) narrowed to 6.8% from 10.9% during the period. 

The business has about half a million clients in Hungary. RBI noted that it booked EUR 13 mln for the bank levy in Q1, the amount for the full year.