Czech Raiffeisenbank unit raises net profit by 26% y/y in Q1.

By bne IntelliNews June 4, 2010
The country's fifth-largest Raiffeisenbank increased its net profit by 26% y/y to CZK 430.8mn (EUR 16.7mn) in Q1. The net interest income expanded by 14% to CZK 1.7bn and was linked to expansion of the provided loans - by 4% y/y to CZK 145.5bn. Losses and costs linked with default of loans and higher provisioning for doubtful loans and claims grew by 17% y/y to CZK 542mn. The total assets of the bank grew by 6% y/y to CZK 185bn. The capital adequacy of the bank stayed high at 10.7%. The bank attracted CZK 122.5bn worth of deposits, up by 11% y/y, proving that the lender had managed to maintain a high level of client trust. CEO Lubor Zalman said he did not expect a strong economic revival this year, while the still to grow unemployment is to result in a higher rate of loan defaults - thus the bank's main objective this year will be to continue exacting claims. The bank plans to speed up its expansion in 2011 - it intends to open new branches and hire new employees in the next two years. The aggregate net profit of the local commercial banks increased by 15.8% y/y to CZK 13.8bn (EUR 532.1mn) in Q1 - the three largest domestic banks - CSOB, Ceska Sporitelna and Komercni Banka, netted a total of CZK 10.2bn and accounted for 74.2% of the profit in the whole banking sector. The banks' total assets declined moderately by 0.4% y/y to CZK 4.1tn at end-March with the three major banks accounting for 58.8% of the total.

Related Articles

Czech CSSD proposes 2014 general and European elections to be held together.

Social Democrats (CDDS), the major Czech opposition party, proposed next year's general and European elections to be held on the same day, CTK news agency reported. CSSD leader Bohuslav Sobotka ... more

Tesco Czech faces fine for selling products containing undeclared horsemeat

The Czech unit of UK retailer Tesco faces a fine of up to CZK 3mn (EUR 116,000) for selling beef lasagne containing undeclared horsemeat, Radio Prague reported. The state-run Agricultural and Food ... more

Czech Senate votes to limit immunity of lawmakers, judges.

The upper house of the Czech parliament, the Senate, voted on March 20 a constitutional amendment to limit the immunity of lawmakers and constitutional judges, Radio Prague reported. Out of the ... more

Notice: Undefined index: subject_id in /var/www/html/application/controllers/IndexController.php on line 335