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.
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