William Malcolm

Raiffeisenbank Sees Profits Rise 26% In First Half Of 2021

Raiffeisenbank saw its net profit rise by 26 percent year on year to 1.69 billion crowns in the first half of 2021. The bank’s assets increased by 24 percent to CZK 513 billion. Operating revenues fell by 6.8 percent to CZK 5.04 billion. The bank informed ČTK about this today in a press release.

“In the second quarter, we focused on serving clients who came to us from ING. At the moment, we have transferred more clients in our portfolio than our planned target, more than 60 percent deposits and 90 percent investments,” said the general. Director of Raiffeisenbank Igor Vida. He also included significant progress in digitization among the positive news.

The bank’s net interest income fell by 19.5 percent to CZK 3.25 billion. The decrease was mainly due to movements in market interest rates in connection with the coronavirus epidemic. Net fee and commission income decreased by 9.9 percent to CZK 1.65 billion. The Bank’s other income and expenses, which include, among others, profit or loss from operations on the financial markets, amounted to CZK 50.7 million. This was an improvement of CZK 261.3 million.

The volume of loans provided to clients decreased by 0.6 percent to CZK 251 billion. The decrease occurred mainly on the part of companies in the form of project loans. The volume of deposits received from clients increased by 28.3 percent year on year to CZK 411 billion. Growth was mainly driven by increasing current account balances for both households and companies.

Operating costs of CZK 3.22 billion decreased by 2.2 percent year-on-year. This decrease is due, for example, to lower personnel and administrative costs.

The bank’s capital adequacy as of June 30, 2021 reached 26.28 percent. Following the Czech National Bank’s measures to adopt stabilization measures in connection with the coronavirus epidemic and due to new acquisitions, the Bank’s General Meeting decided at the end of April 2021 not to pay dividends to shareholders from the 2020 profit of CZK 2.14 billion. An amount of CZK 1.88 billion was transferred to retained earnings and CZK 255 million was used to pay the coupon to holders of investment certificates.

In connection with the purchase of Equa bank and the preparation for the conclusion of this transaction, on 12 May 2021 the bank increased its share capital by CZK 4.4 billion.

Raiffeisenbank has been providing banking services in the Czech Republic since 1993. The majority shareholder is the Austrian financial institution Raiffeisen Bank International.