Raiffeisen profits eaten away by expansion costs
Wednesday, May 25, 2005, 07:04
Raiffeisen Bank Rt posted Ft 4.1 billion after-tax profit in Q1, down from Ft 4.9 billion a year earlier. At the same time, revenues grew 21% to almost Ft 15 billion. Deputy CEO Krisztina Horváth mentioned the additional tax levied on the financial sector and the costs of Raiffeisen?s fast expansion network of branches as the reason for lower profit. The total assets of the bank rose 17% year-on-year, while deposits and loans both increased by 28%. Growth in the lending business was driven by loans denominated in foreign currencies, while deposits were typically made in forints.