Czech unit of Raiffeisenbank says net profit falls by 8.2% in 2010.

By bne IntelliNews April 11, 2011
Raiffeisenbank, the Czech unit of Austrias Raiffeisen Group, said its net profit fell by 8.2% y/y to CZK 1.8mn (EUR 72mn) in 2010. The decrease was mainly due to higher provisioning for loans extended to households, the banks CEO Lubor Zalman said adding that the risk in the corporate sector was stabilised during the year. Impairments on loans and other receivables increased by 28% y/y to CZK 2.4bn in 2010, the bank said in a press release on its website. At the same time, the net profit was supported by the growing by 11.5% y/y net interest income to CZK 7.1bn, while the net fees and commissions income grew by 17.6% y/y to CZK 1.9bn. The net interest income growth was also linked to the 6.9% y/y increase in the value of the provided loans to CZK 152.7bn, which represented nearly 82% of the banks total assets - CZK 186.3bn, down by 3.7% y/y. The bank attracted CZK 125.9bn worth of deposits, down by 3.2% y/y. The banks capital adequacy stayed high at 10.5%. The aggregate net profit of the local commercial banks fell by 6.8% y/y to CZK 55.7bn in 2010 and the four largest domestic banks - CSOB, Ceska Sporitelna, Komercni Banka and UniCredit, reported a combined net profit of CZK 41.9bn, accounting for 75.2% of the overall. The aggregate assets of banks increased by 2.4% y/y to CZK 4.2tn at end-December, with the four major banks accounting for a share of 65.2%. Raiffeisenbank is the countrys fifth largest bank by assets.
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