William Malcolm

Raiffeisenbank Sees Revenue, Profit Rebound

Raiffeisenbank’s net profit for the three quarters of this year rose by 70 percent year on year to 2.89 billion crowns. The bank’s assets increased by 24 percent to CZK 525 billion. The bank informed ČTK about this today in a press release. Other large banks also recorded a significant increase in profits.

“We were very busy with the high demand for mortgages, which still continues to subside despite gradually rising rates. issuance of guarantees to Vítkovice Cylinders, “said Raiffeisenbank CEO Igor Vida.

The bank’s total operating revenues increased by 5.8 percent to CZK 8.17 billion. Operating costs of CZK 4.93 billion increased by 3.7 percent year-on-year. This increase was mainly due to integration costs in IT and consulting.

The bank’s net interest income fell by 8.3 percent to CZK 5.15 billion. The decline was mainly due to the persistently low level of market interest rates in the first half of this year due to the coronavirus epidemic.

Net fee and commission income increased by 15.2 percent to CZK 2.53 billion. Other income and expenses of the bank, which include, among others, profit or loss from operations on financial markets, amounted to CZK 316.3 million. This is an improvement of CZK 529 million compared to the three quarters of 2020.

The volume of loans provided to clients increased by 1.5 percent to CZK 259 billion. Growth was on the part of households in the form of mortgage and consumer loans, and on the part of companies in the form of investment loans. The volume of deposits received from clients increased by 29.2 percent year on year to CZK 419 billion. The growth was driven by increasing current and savings account balances, especially for households, which was largely due to the takeover of clients from ING Bank.

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