Raiffeisen Romania profit dropped by 18.5% in H1, to 52.6 million euro

The net profit of Raiffeisen Bank Romania dropped by 18.5% in the first half, to 221.64 million lei (52.6 million euros), on the backdrop of increased provisions, while the value of bank's assets rose 18%, to 19.65 billion (4.67 billion euros). In the first six months of 2008, the bank achieved a net profit of 271.97 million lei (74 million euros) in the context of assets totalling 16.6 billion lei (4.56 billion euros).

Expressed in euros, Raiffeisen Bank's net profit of Bank fell by almost 29% in the period under review, while assets advanced by about 2%.

Raiffeisen Bank Romania ended the first half with an operating profit of 446.7 million lei (106 million euros), up about 14% compared to the gain registered in the same period in 2008, reads a release of the credit institution.

The figures are in compliance with the international accounting standards, IFRS, do not include other subsidiaries in Romania Raiffeisen International Group and are unconsolidated.

"The results of the first half are very good in the current economic context. We have managed to largely offset the increase in expenditure for provisions, the slight decrease in revenue and the unfavourable depreciation of the lei/euro exchange rate through a careful management of costs. (... ) It should be stressed that, although we are comparing, as is usual, the results of June this year with the same period last year, we must take into account the significant changes of market conditions in the analysed period," the chairman of the credit institution, Steven van Groningen, said in the release.

The balance of loans granted to Raiffeisen clients remained almost at the same level, expressed in lei, namely 10.7 billion, but declined by about 14% in euros equivalent in euros, to 2.5 billion euros.

The bank's portfolio of deposits increased in the first six months by 7%, to 2.88 billion, which means a 7% decrease in euro equivalent, to 684 million euros.

Curierul National