Raiffeisen results tomorrow; Hungary cited for expected losses
Results for the first half of 2013 are expected from Raiffeisen Bank International (RBI) tomorrow, but several analysts are already expecting extreme losses – including a nearly €415 million downturn in net profit. The difference-maker? According to RBI CEO Karl Sevelda, it’s “catastrophic results in Hungary” – said to account for €700 million in losses in the past year.
In an interview with Austria-based Kronen Zeitung, Sevelda stated that “really ugly losses in Hungary” are expected by RBI. Though serious downsizing measures will be undertaken in Hungary (as well as in Slovenia), the CEO has stated that the bank “will not withdraw completely” from the country and in general RBI’s strategy in the CESEE region, i.e. with a focus on strengthening position in Poland, Russia, the Czech Republic, Romania, Austria and Slovakia, will remain the same.
An average of estimates from analysts from Erste Group, Kepler Cheuvreux, and Keefe, Bruyette & Woods reckon that RBI’s net profits will be reported at €284.6 million, a drop of nearly 60% year-on-year from the €701 million reported then.
Sevelda had stated earlier this month that RBI would be seeking financial investors for assistance, particularly with regard to a €2.5 billion bailout.
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