Local lender Raiffeisen Bank recorded a net profit of EUR 36 million in the first half of the year, down 25% compared to the same period in 2015. In the first six months of last year, its net profit reached EUR 48 million.

This year’s drop was due to the creation of additional provisions, related to the giving-in-payment law. The bank made provisions of EUR 42.5 million for possible losses stemming from this law.

All the local banks have opposed this law which allows people to give in their mortgaged houses to the banks if they can’t afford repaying their mortgage loans.

However, the bank earned EUR 21 million from the sale of its stake in Visa Europe Limited to Visa Inc.

Raiffeisen Bank’s assets increased by 6% compared to the first half of 2015, from EUR 6.48 billion to EUR 6.89 billion. Its non-performing loans ratio dropped from 7.2% in June 2015 to 6.9% in 2016.

editor@romania-insider.com