Raiffeisen Romania reports 20% y/y rise in H1 net profit.

By bne IntelliNews August 23, 2013

The net profit of Raiffeisen Romania increased 20% y/y to EUR 60mn in H1, Mediafax reported quoting a bank’s release. The bank's assets edged down by 1% y/y to EUR 5.59bn. Bank’s capital adequacy was 14.2% at end-Jun, versus 14.7% for the whole banking system. ROE was 19% for H1, versus 6% for the whole banking system. Raiffeisen Romania is the country’s sixth largest bank, with a market share of nearly 7% in terms of assets.

Loan-to-deposit ratio further decreased to 89% at end June from 91% one year earlier. The ratio is very low compared to the 98% ratio for the whole banking system [government’s deposits and loans included*]. This indicates a robust domestic financing base for the bank. The stock of deposits increased by 8% y/y to over EUR 4bn at the end of June. Separately, the stock of loans also increased, by 6% y/y, to EUR 3.6bn.

The provisioning costs decreased by 5% y/y to EUR 36mn in H1 although the non-performing loans ratio continued to increase to 8%. The ratio is however unusually low for the country’s banking system where NPL hit 20.3% at the end of June.

* the banking system’s loan to deposit ratio for the non-government sector alone was 111% at end-June.


Related Articles

Romanian media tycoon Voiculescu to be released on parole

A Romanian court ruled on July 18 that media tycoon and former politician Dan Voiculescu, who was sentenced to 10 years in prison in August 2014, should be released on parole after serving ... more

Evolution Equity Partners closes $125mn cybersecurity-focused fund

Evolution Equity Partners announced on 17 July the final closing of a new fund with total capital commitments of $125mn to make investments in cybersecurity and next generation enterprise software ... more

Romanian PM's adviser sacked after proposing tax on churches

Romanian prime ministerial adviser Eugen Teodorovici was reportedly dismissed from the post on July 14, the day after he spoke about the possibility of taxing the local Orthodox Church. Teodorovici ... more