Raiffeisen Bank reported a net profit of RON 536 million (EUR 113 mln) in the first nine months of 2019, down 25% compared to the same period last year, the bank informed.

The decline was caused by a provision related to the bank’s savings-mortgage subsidiary Aedificium Banca pentru Locuinte, as well as by the methodological changes in the provisioning of credit risk, according to the bank’s press release.

The costs with risk provisions thus increased significantly, compared to the same period last year, up to RON 147 mln (EUR 31 mln). However, the rate of non-performing loans fell to 3.9% at the end of September, compared to 4.3% one year earlier.

Raiffeisen Bank's total assets reached RON 42.38 bln (EUR 8.9 bln) at the end of September, up 8% year on year, as the stock of loans increased by 13% year on year at the end of September and all customer segments showed positive developments.

The bank's revenues advanced by 5%, year on year, to RON 1.95 bln (EUR 410 mln), in the first nine months of the year. Operating expenses also increased by 8%, to RON 1 bln (EUR 210 mln), driven by higher investments for the development of the technological and digital capabilities, higher costs with salaries, but also from regulatory requirements.

"We announce again good results that come from the bank’s organic growth on all the products and customer segments, with emphasis on the financing granted to companies. Given that the environment in which we operate permanently challenges us, with legislative changes and little predictability, the fact that we show continuous and balanced development confirms us, once again, that we are a strong and responsible organization," said Steven van Groningen, President & CEO Raiffeisen Bank.

editor@romania-insider.com

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