The after-tax profit of Austrian-based lender Raiffeisen Bank jumped 43% to HUF103.3bn (€260mn) last year on the back of the increase in net interest income due to high interest.
Net revenue from interest and dividends climbed 44% to HUF201.1bn, and net revenue from commissions and fees increased 11% to HUF81.5bn. Operating costs grew 24% year on year, while risk costs decreased by HUF7.6bn in 2023.
As revenue growth outpaced that of costs, the cost/income ratio continued to improve in 2023 and the return on equity (ROE) increased to 22.3%.
Total assets rose 3%, or HUF111bn, giving the Austrian lender 6.03% of the market.
The stock of client loans fell 4% to HUF1.7 trillion, and outstanding deposits increased by 3% to HUF3 trillion.
The bank paid an advance dividend of HUF32.3bn to its parent in December and the remaining HUF47.5bn will be paid out by December 15 at the latest.
Raiffeisen’s strong performance fits with results posted earlier by its sector peers. The local banking sector raked up HUF1.45 trillion in non-consolidated after-tax profit in 2023, a three-fold increase from the previous year.
The average ROE of 21% of banks despite the slew of government levies was reminiscent of the "golden age" before the 2008 financial crisis, financial website Portfolio observed.
Related Articles
MBH Bank Tier 2 bond sale oversubscribed 3.5 times
Hungary’s MBH Bank has completed a successful €200mn Tier 2 bond issuance amid strong investor appetite. The ten-year notes, callable after five years, are priced with a 6.875% coupon following ... more
Most Read
-
Armenia courts African countries to supply diamond industry
27 days ago
-
Russia’s Alrosa finds its largest diamond ever, as Mirny mining operations restart
10 days ago
-
COMMENT: Embracing “Greater Central Asia” has become a strategic imperative for US
21 days ago
-
From blood diamonds to critical minerals: Sierra Leone’s mining transformation
27 days ago