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Bank levy gives Raiffeisen Bank loss in 2010

Raiffeisen Bank had a loss of HUF 6.9 billion in 2010, but excluding Hungary's extraordinary tax on financial companies the bank would have had consolidated after-tax profit of HUF 4.2 billion, CEO Heinz Wiedner said.

This year, the bank wants to be profitable even including the effect of the bank levy, Wiedner said.

Wiedner said that Raiffeisen Bank -- a subsidiary of Raiffeisen Bank International of Austria -- aims to post profit in 2011 in spite of the extraordinary tax, noting however, that the extension of the tax until 2012 has made it difficult for banks to operate profitably in the country.

Raiffeisen Bank deputy CEO Krisztina Horváth said the bank had total assets of HUF 2,368 billion at the end of 2010, down 0.2% from the end of 2009. Horváth remarked that Raiffeisen Bank's stock of loans and deposits as well as interest income were essentially unchanged in 2010, while the bank's commission and operational revenues both dropped 8% last year.

Raiffeisen Bank's risk reserves dropped 23% yr/yr to HUF 51 billion in 2010, though the growth of non-performing loans slowed to 17.5% last year, Horváth added.