Raiffeisen Bank says 9mo profit of Bosnian unit down 26.5% on higher provisions.

By bne IntelliNews November 29, 2012
Austria's Raiffeisen Bank International (RBI) said its after-tax profit in Bosnia fell 26.5% y/y to EUR 18mn in the first nine months of 2012, hurt by higher provisions for impairment losses and lower operating income. In the third quarter alone, the bank's net profit was 37.7% higher compared to the previous quarter at EUR 7mn due to lower provisions and higher operating income, RBI said in its interim report. RBIs Bosnian unit posted a 9% annual drop in its operating income to EUR 79mn in Jan-Sep 2012, as the net interest income fell 7.8% y/y to EUR 54mn and the net fees and commission income edged down 0.2% y/y to EUR 23mn. General administrative expenses stood at EUR 45mn, down 4.2% on the year. Net provisions for impairment losses surged 23.6% y/y to EUR 15mn in Jan-Sep 2012. RBIs Bosnian unit assets shrank 7.2% y/y to EUR 1.99bn as of end-Sep 2012, while the value of assets of Bosnias banking sector recorded an annual growth of 1.9% over the period. The banks loan portfolio contracted by 4.8% y/y to EUR 1.3bn in Jan-Sep and deposits fell by 5.6% y/y to EUR 1.5bn. RBI operates a network of 98 branches in Bosnia employing 1,558 people.

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