Czech Raiffeisenbank profit in 1-3Q 2023 dropped by 27.5% y/y

By bne IntelliNews November 5, 2023

The Czech branch of Raiffeisenbank (RB) registered a 27.5% year-on-year drop in profits in the first three quarters of 2023 to CZK3.96bn (€162mn).

RB’s assets grew by 13.3% to CZK679bn, Czech Press Agency (CTK) reported, pointing out that profits of large banks across the country are dropping y/y after their strong 2022 performance.

The operational income of RB fell by 5.25% to CZK12.87bn. Net income from interest dropped by 10.8% to CZK9.84mn as a result of the payment of higher interest rates to clients with savings accounts.

Operational costs of CZK6.6b dropped by 3.5% y/y.

The volume of loans provided rose by 2.9% to CZK361bn, with growth registered in household – mortgages and consumer loans – as well as corporate loans. The volume of client deposits climbed by 10.2% to CZK543bn.

RB is subject to windfall tax measures this year, consisting of a 60% levy on extraordinary profit.

CTK noted y/y drops in profits were also registered by Erste’s Czech branch Ceska sporitelna (2.9% drop to CZK14.6bn), Societe Generale’s Komercni banka (4.9% drop to 12.4bn) and by Moneta Money Bank (3.7% to CZK4bn). UniCredit Bank registered a net profit of CZK8.5bn, an increase of over 25%.  

In a separate development, Austria’s Raiffeisen Bank International (RBI) in a quarterly financial report cited volatile conditions in the Russian market as preventing the RBI from giving a timeline for its exit from Russia.

The Russian market accounted for 45% of RBI’s profit in the 1-3 quarters this year, despite a 30% drop in the volume of provided loans in Russia in 3Q y/y. RBI’s earnings stay in Russia following Kremlin-imposed measures to control assets on the local market.

In August, Czech media reported that an anti-terrorism unit of the Czech police had launched an investigation into RBI over its activities in Russia following a criminal complaint filed by the Czech Association for the Rights of Citizens and Entrepreneurs.

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