Raiffeisen’s Romanian subsidiary sees 12% lower profit in 2019

Raiffeisen Bank, the Romanian subsidiary of the Austrian group Raiffeisen Bank International (RBI), reported a net profit of RON 779 mln (EUR 164 mln) in 2019, down 12% compared to the record profit in 2018.

The lower profit was determined by the tax on financial assets (enacted in 2019), the slight slowdown in economic activity in the first part of last year, and non-recurrent events such as the methodological changes in the provision of credit risk, provisions made by the bank for disputes and regulations, and the charge taken by the housing bank Aedificium following a court decision, according to the information transmitted by the bank.

“As we already know, 2019 was a rather complicated economic and legislative year, which started with the entry into force of the emergency ordinance (OUG) 114 (the greed tax ordinance), while we ended in political instability. Given that the environment is constantly changing and unpredictable, the fact that we are constantly developing while remaining balanced confirms, once again, that we are a strong and responsible organization,” commented Steven van Groningen, President & CEO of Raiffeisen Bank Romania.

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