Raiffeisen Bank Posts Halved 1Q Profit In Romania, At EUR16M

05.26.2011 By Andrei Cîrchelan

Raiffeisen Bank International posted a profit after tax of EUR16 million in Romania in the first quarter, down 56% from EUR37 million in the same period a year ago, mainly because of lowered gains from financial investment and derivatives, according to quarterly results published Thursday.

Net results from financial investment and derivatives switched to a loss of EUR2 million in the first quarter, from EUR19 million profit in January-March 2010.

Operating income in Romania dropped slightly to EUR107 million, from EUR108 million, while net income from interest dropped to EUR59 million, from EUR60 million.

Net fee and commission income narrowed to EUR45 million, from EUR47 million, while net trading income stagnated at EUR4 million, according to the bank's financial report.

Net provisioning for impairment losses stagnated as well, at EUR16 million, while administrative expenses inched up to EUR71 million, from EUR68 million.

The bank had assets worth a total EUR6.12 billion in Romania at the end of the first quarter, compared to EUR5.864 billion in the same interval of 2010. Loans issued amounted to EUR4.205 billion, while deposits amounted to EUR3.42 billion.

The results are compiled according to the international financial reporting standards IFRS.

Raiffeisen's network included 545 units nationwide, with 6,154 employees, at the end of March.

For this year, Raiffeisen Bank Romania expects a net profit of 271.8 million lei (EUR65.8 million), under Romanian accounting standards. Investment is planned at RON182.8 million, while income is seen at RON1.83 billion.

Raiffeisen Romania is 99.49% owned by its Austrian parent company. (EUR1=RON4.129)