• 21/02/2024 19:28

Parent Raiffeisen Bank's revenues fell by 67%

Austrian Raiffeisen Bank (RBI) received 67% less income in the fourth quarter of last year compared to the same period. Against the backdrop of this information, the bank's shares fell by 6.5%. Reuters writes about this.

The income of the parent Raiffeisen Banks fell by 67%

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What influenced this result

Net profit in fourth quarter amounted to 272 million euros ($294 million), which is 826 million euros less than the amount received a year earlier. According to the consensus published by RBI, analysts expected a profit of 318 million euros.

The negative financial result was affected by the situation in Poland. The bank received losses from loans that Poles took out 10 years ago in Swiss francs for mortgages. Back then it was profitable because it offered low interest rates on loans. But the Polish zloty has fallen and banks are making losses. In addition, Raiffeisen Bank was forced to pay 273 million euros due to lawsuits.

The bank’s profit was also affected by an increase in taxes in Ukraine.

Business in Russia

Raiffeisen remains the largest Western bank in Russia. Its exit from this country is surprisingly difficult, which emphasizes Austria's close ties with Russia.

Russia was one of Raiffeisen's largest markets. Even during the war years, the share of Russian profits was 38% in 2023 and 49% in 2022.

minfin.com.ua

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