Raiffeisen Bank ends H1 with lower profit on tax changes, provisions increase in Romania

Raiffeisen Bank posted a profit of EUR 39 million in the first half of 2011 in Romania, 22 percent lower than the one of EUR 50 million reported in the first six months of 2010, due to the tax changes and a moderate increase in provision costs, according to the bank. The total value of Raiffeisen Bank's assets amounted to EUR 5.17 billion, an increase of 13 percent compared to EUR 4.57 billion at the end of June 2010. Compared with same period last year, the value of the total loans increased by 23 percent to EUR 3.33 billion, while deposits grew by 4 percent to EUR 3.56 billion. The loan/deposit ratio was 93 percent. The interest income also grew by 6 percent to EUR 115 million, while net commission income fell by 4 percent to EUR 87 million in the first six months of this year. Compared with the first half of 2010, net provisions expenses increased by 13 percent to EUR 26 million. The bank's loan portfolio increased by 24 percent over the first half of 2010, while deposits remained at the same level. In the retail banking, Raiffeisen Bank increased its loan portfolio by 23 percent, while deposits increased by 5 percent in this segment. Raiffeisen Bank International (RBI) holds 99.49 percent stake in Raiffeisen Bank SA. In Romania, Raiffeisen bank had 542 units at the end of July, 2011, around 100,000 SMEs and 8,000 corporate clients. Irina Popescu, irina.popescu@romania-insider.com (photo source: Raiffeisen)