Raiffeisen Bank, Unicredit report higher profits in Romania amid lower cost of risk
Raiffeisen Bank (Romania) and Unicredit Romania, both of them managing portfolio loans of around EUR 6 bln, announced net profits of RON 397 mln (EUR 80 mln) and EUR 92 mln respectively, according to data presented by Ziarul Financiar…
Andrei Chirileasa · Journalist
· Updated · 1 min read
Raiffeisen Bank (Romania) and Unicredit Romania, both of them managing portfolio loans of around EUR 6 bln, announced net profits of RON 397 mln (EUR 80 mln) and EUR 92 mln respectively, according to data presented by Ziarul Financiar hereand here.
Each of the two banks reported that their profits increased by over 40% year-on-year (by 42% and 45%, respectively).
The two banks’ revenues have increased “marginally” while the bulk of the rise in profitability was driven by the reversal of loan loss provisions - a pattern followed by all major Romanian banks.
As the banks will be allowed by the EBA to distribute dividends after September this year,concerns related to the possibly premature reversal of provisions and particularly dividend distributions are legitimate.
(Photo: Nuthaut Somsuk/ Dreamstime)
