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26th August 2011

Raiffeisen profits up significantly

Raiffeisen Bank International reported a Q2 net profit of €345m (£303m $498m ¥38.1m Y3,181m) and half year of €615m (£539m $888m ¥68.0bn Y5,671m) up 150% and 30% respectively. The profit growth was despite increased tax expense due to past deferment with half year pre-tax up 52%. All year on year increases are based upon a pro-forma 2010 year as if the RBI structure had been in place from January 1st 2010.


The bank benefited from both higher income and lower impairments. The biggest jump in income came from trading income up one third and payment transfer business up almsot 4%. Net fee & commission was up a little and NII only marginally different. The results were aided by a one-off benefit in Belarus of €32m from a capital hedge. Expenses rose 6% and cost to income was 55.1%, a rise of 210bp. The significant improvement in the CEE region led to a ROE of 17.1% before tax. Full accounts had not been made available at the time of writing.