Loading ...The assets of Austrian lender Raiffeisen’s international division in Romania and Moldova rose to 6.4% billion euros by the end of the third quarter, 15.1% higher year-on-year, according to the group’s financial report.
“Raiffeisen Bank Romania is the main development engine at the group’s level in South-Eastern Europe”, Stevan van Groningen, President Raiffeisen Bank Romania is quoted as saying by Business Standard daily. South Eastern Europe has the second highest contribution to the group’s gross profit (430 million euros in the first 9 months).
Raiffeisen Bank Romania posted in H1 of the year a non-consolidated net profit of 74 million euros, 57% higher from the similar period in 2007, on the background of higher net revenues from interest rates and commissions, both on retail and corporate sectors.
Weight of Raiffeisen Bank Romania corporate activity in the total net revenues from rates and commissions exceeds 40%. Group’s assets in Romania stood in H1 at 5.8 billion euros, whereas the bank held assets 4.57 billion euros worth.
Weight of Raiffeisen Bank Romania corporate activity in the total net revenues from rates and commissions exceeds 40%. Group’s assets in Romania stood in H1 at 5.8 billion euros, whereas the bank held assets 4.57 billion euros worth.
In the context of the new loan norms imposed by Romania’s National Bank (BNR) and of the world financial crisis which make the parent banks to show more reticence in granting financing, Raiffeisen Bank President pointed out that a slow down in the loan growth pace is a positive factor.
“It is logical that the parent banks are more reticent as for financing, at present attempting to balance loans/deposits rapport to 120%. We plan to lean less on financing from the parent bank and draw local deposits instead”, said Steven van Groningen.
Raiffeisen International reduced estimations on the consolidated profit this year by 5%, to 950 million euros because of the negative evolutions on the market. In the first three quarters, the group has made new loan loss provisions of 366 million euros, up 51%.
“Loan loss provisions in South-East Europe totalled 90 million euros. The 56 million euros hike compared to the relatively low level last year was mainly made by groups’ units in Romania, Croatia, Bulgaria and Albania”, says the group’s report. At the end of September, Raiffeisen International had 533 branches in Romania and the Republic of Moldova, with 6,831 employees.
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