Raiffeisen Bank achieved a net profit of EUR 48 million, up 6 percent in the first six months of 2015 against last year’s first half, according to the company’s financial report. Income dropped some 2 percent, a trend explained by market conditions (interest rates evolution), says the company, while cost to income ratio fell slightly to 58.5 percent from 58.7 percent, where it stood mid 2014.
The bank’s NPL ratio reached 7.2 percent (8.2 percent in June 2014), while its solvency rate stood at 18.3 percent. The company registered during the first half a 14 percent return on capital.
Raiffeisen Bank total assets reached EUR 6.48 billion, up 9 percent compared to EUR 5.94 billion as they were at the end of June 2014.
Against the same period last year, total loans increased by 8 percent to EUR 4.14 billion, mainly due to a transaction in which the group took over a portfolio of individual loans reaching some EUR 240 million. Organic growth (2 percent from the middle of last year) came mainly from lending to individuals (approximately 225 million consumer loans and more than 1,100 First Home owner loans) and new loans granted to the SME segment, which benefited from EIF-JEREMIE guarantee lines (over 410 such new loans in the first half). A similar situation was recorded on deposits (up 8 percent), reaching EUR 4.67 billion. Loan / deposit ratio is currently at 89 percent (steady against June 2014).
Net provisions expenses decreased to EUR 32 million over the first half of 2014 when they stood at EUR 40 million. The bank’s bad loans rate saw a decline from 8.2 percent in June last year to 7.2 percent for the fist semester of 2015.
Over 100,000 clients used Raiffeisen Smart Mobile Online to make operations with effects both in business efficiency and customer satisfaction, the statement shows.
Raiffeisen Bank serves about 2 million retail customers, 100,000 SMEs and 7,800 companies. At the middle of 2015, Raiffeisen Bank network counts 513 units (528 in June 2014), over 1,100 ATMs and approximately 13,400 EPOS.
The bank employed 5,349 at the end of the first half of 2015, fewer against the 5,478 it employed in June 2014.
The Austrian company Raiffeisen International AG Group (RBI) that holds a 99.49 percent stake in Raiffeisen Bank SA, owns one of the leading banking networks in CEE, being present in 15 markets across the region through subsidiary banks, leasing companies and other suppliers financial services.