News

In three quarters of 2015 Raiffeisenbank reported a profit in the amount of nearly 2 billion crowns

Raiffeisenbank is experiencing a very successful year. We are a healthy and stable bank with strong capital, which has ambitions and competence to grow further.

• The year-on-year growth of customer loans was 12.2%, amounting to CZK 186 billion
• Customer deposits grew by 8.6% to CZK 169 billion, year-on-year
• The net profit grew by 22% to CZK 1.96billion, year-on-year
• Strong capital position: capital adequacy in the amount of 15.63%

“This year’s third quarter was rich in significant events. We won the title of the client friendliest bank of the year, we undersigned the agreement for the takeover of the retail part of the Czech Citibank and we expanded our network of branches further. We succeeded in trading as well, when for instance we recorded a 25% growth of newly provided consumer loans when compared to the same period of last year. In consolidations and refinancing, our August sales grew year-on-year on the last year’s volume nine times”, says the CEO and Chairman of the Raiffeisenbank’s Board, Igor Vida.

„Raiffeisenbank is experiencing a very successful year. We are a healthy and stable bank with strong capital, which has ambitions and competence to grow further. We are not succeeding only in consumer loans, but also for instance in mortgage loans. From January to the end of September, we provided to customers nearly 6,000 mortgages in the total volume of 11.8 billion crowns, which represents more than 30% growth of both the indicators when compared to the same period of last year. We recorded the same success with financing of corporate clients, where we grow in all segments at a two-digit pace, and hence considerably faster than the market,” Igor Vida adds.

„All our achievements have been reflected in the growth of customer deposits and loans. The bank’s net profit, which amounted nearly to two billion crowns in the first three quarters of this year, was positively affected by the consistently followed cost discipline, lower provisioning and, in terms of income, particularly by higher interest income and higher income from trading on financial markets,“ Igor Vida concludes.

DETAILED INFORMATION ON ECONOMIC RESULTS FOR THREE QUEARTERS OF 2015

NET PROFIT AND INCOME

The bank’s net profit for three quarters of 2015 amounted to CZK 1.96 billion, which represents a 22.3% growth year-on-year. Total operating income grew by 3.1% particularly due to higher net interest income and income from operations on financial markets.

The bank’s net interest income grew by 4.8%, to CZK 4.6 billion year-on-year. The net fee and commission income declined by 7.4%, to CZK 1.38 billion year-on-year. Other bank’s income, which includes particularly income from operations on financial markets, grew by 13.2%, to CZK 939 million year-on-year.

DEPOSITS AND LOANS

The total assets amounted to CZK 245 billion, and hence increased by 17.7% year-on-year. The volume of loans granted to customers grew by 12.2%, to CZK 186 billion year-on-year. And the growth was reported in financing of households (consumer loans and mortgages) and companies as well. The volume of received deposits from customers increased by 8.6%, to CZK 169 billion year-on-year.

COSTS

The operating costs slightly declined by 2.9%, to CZK 3.8 billion year-on-year, particularly due to cost-saving measures adopted in the previous years.

RISK MANAGEMENT

Due to the good quality of the loan portfolio, losses of impaired loans and other receivables, fell by 19.6%, to CZK 686.2 million year-on-year.

CAPITAL

The bank’s capital adequacy as of the end of the third quarter of 2015 amounted to 15.63 % compared to 13.6% as of last September. At the end of April 2015, the General Meeting decided to divide the 2014 profit, providing that CZK 1.126 billion was used for the payment of dividends to shareholders and CZK 923 million was transferred to the retained earnings. The increase in the retained earnings had a positive impact on the bank’s capital adequacy.

EVENTS OF THE THIRD QUARTER OF 2015

In accordance with the agreement concluded on 14 September 2015 between Raiffeisenbank a.s. and Citibank Europe plc, Raiffeisenbank shall take over part of Citibank providing services to private individuals in the Czech Republic, including four hundred staff. Both the contracting parties agreed that the sales price and other details of the contract shall not be disclosed. The completion of the transaction is subject to the approval of the regulatory bodies and it is estimated during the first quarter of 2016.

Raiffeisenbank succeeded in the seventh year of the prize of Hospodářské noviny, The Best Bank, and became the Customer Friendliest Bank of the Year 2015. The scope of provided products and services, the fee and commission structure, amount of rates, bank availability and, of course, quality of its communication with customers are evaluated in this category. Raiffeisenbank showed up well also in the main category of the Best Bank contest, where it received the third place.

Within the strategy of the continuous improvement of the quality of its services to customers, Reiffeisenbank started cooperation with EVO Payments International, the world’s leading provider of payment services for businessmen, trading companies, financial institutions, the public sector and multinational companies residing in the USA, Canada and Europe. Within this cooperation, from 1 February 2016, EVO shall take over all activities related to acceptance of payment cards (acquiring), through its newly established Czech subsidiary, which shall act under its business name “REVO”. The whole transaction has already been approved by the Czech National Bank and the European Commission.

This year, Raiffeisenbank announced a grant programme named Good Crown to support charity activities of its employees. This programme financially supported 24 registered projects, among which 400,000 crowns was distributed.