Raiffeisen Bank Posts 2Q Earnings Decline After Scaling Back Russian Operations

By Pierre Bertrand

Raiffeisen Bank International on Tuesday reported a decrease in second-quarter earnings, and said it had reduced its Russian operations in the three-month period.

The Austrian bank said it made 578 million euros ($635.7 million) in quarterly net profit compared with EUR1.27 billion in the same period a year earlier.

Its operating result in the quarter came to EUR1.15 billion as quarterly net interest income increased 12% on year to EUR1.36 billion.

Raiffeisen's quarterly net fee and commission income fell 17% on year to EUR732 million, the bank added.

The company has reduced its operations in Russia, it said. The country contributed 35% to the bank's operating result in the quarter compared with 45% in the first quarter of the year, Raiffeisen said.

Earnings for the half year were hurt by high portfolio-based provisions for litigation in Poland of EUR424 million while the decline also reflected last year's gain of the sale of the Bulgarian subsidiary bank, Raiffeisen said.

Looking ahead, Raiffeisen said it expects 2023 net interest income of between EUR3.8 billion and EUR4.0 billion, net fee and commission income of around EUR1.8 billion and customer loan growth of around 2%, excluding Russia and Belarus.

Write to Pierre Bertrand at [e-mail]

(END) Dow Jones Newswires

August 01, 2023 02:34 ET (06:34 GMT)

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