Raiffeisen Bank Swings to 2014 Net Loss, Embarks on Restructuring

VIENNA--Austria's Raiffeisen Bank International AG (RBI.VI) may post another net loss in 2015 as it embarks on restructuring after swinging to a net loss in 2014, the bank said Wednesday.

In 2014, the bank posted its first ever net loss of 493 million euros ($539.3 million) in the bank's four-year history, the bank said, confirming its preliminary earnings report in February. In 2013, it posted a net profit of EUR557 million.

In response, the bank said it would sell off several of its operations, including those in Poland and Slovenia. Operations will also be reduced in Ukraine and Russia. As the majority of the EUR550 million in restructuring costs are expected to be booked in 2015, the bank said it may post a loss in the coming year.

It confirmed its plans to reduce risk-weighted assets in selected markets by EUR16 billion by the end of 2017. It will also reduce costs to 20% below 2014 levels, which totaled EUR3.02 billion. In 2013, costs totaled EUR3.34 billion.

Risk provisioning for impairment losses in the coming year is also expected to remain high, the bank said. For 2014, Raiffeisen set aside EUR1.72 billion. Risk provisioning in 2013 totaled EUR1.15 billion.

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