Raiffeisen Romania posts lower profit in H1 due to non-recurring elements

The Romanian subsidiary of the Austrian group Raiffeisen Bank announced on Thursday, August 8, that it closed the first half of this year with a net profit of RON 384 million (EUR 81.1 mln), down 9.2% from the same period last year, against the backdrop of increasing asset value.

The total assets of Raiffeisen Bank increased in the first half of this year to RON 40 billion (EUR 8.5 billion), a 5% year-on-year increase.

“Our operating revenues increased by 7% [year-on-year]. This year we report a slightly lower profit than in the first six months of last year, due to methodological changes in the calculation of credit provisions. The net profit, without these non-recurring changes, would have been 13% higher than last year,” said Steven van Groningen, President & CEO Raiffeisen Bank Romania.

The share of non-performing loans fell to 4.1% at the end of June 2019 from 4.9% one year earlier. The credit risk profile has improved for all customer segments, which is visible in their payment behavior, according to the bank.

(Photo source: Shutterstock)