Raiffeisen posts second-largest profit on the market according to Romanian standards

Raiffeisen Bank ended last year with a 74 million-euro net profit according to international financial reporting standards, with the doubling of loan-loss provisions generating a 55% decline on the record earnings posted in 2008. Calculated in line with the Romanian accounting standards (RAS), the net profit amounted to 68 million euros (287 million RON). This places Raiffeisen second on the market in terms of profit calculated according to Romanian standards, after BRD, with 792 million RON, and ahead of BCR, the market leader in terms of assets, with 237.97 million RON. UniCredit, the sixth-largest bank in terms of assets, posted a 236 million-RON profit. In terms of assets in its local balance sheet, Raiffeisen fell to no. 7 on the market, with 4.69 billion euros, after having outsourced 1.5 billion euros in loans.

“Only in such difficult times does a differentiation between banks occur. You can have a big market share in terms of assets, but much smaller in terms of profit, or you can even step into the red. We have a rather big market share in terms of assets and a rather good solvency ratio, of 14.2%, so we don’t need a capital increase,” said Steven van Groningen, chairman of the bank.