Raiffeisen Bank International reports a net profit of 1.1 billion Euros, in 2010, up 141.5% compared to the previous year, according to a press release by the bank.
The results stem from the fact that the net provisions fell 46.5%, to 1.19 billion Euros which had a significant effect on the profit tax.
"The profit tax was lower, in spite of a 58% increase of the net profit, especially on the back of deferred tax, due to the recognition of the fiscal loss reported in Austria of 120 million Euros and due to the changes in the fiscal legislation in Ukraine (26 million Euros)", the press release shows.
The profit of Raiffeisen Bank International, before taxes, increased 62.9% last year, up to 1.2 billion Euros.
"2010 was a decisive year, both for our organization as well as for our primary market: Central and Eastern Europe. In spite of the significant additional costs required by the merger, Raiffeisen Bank International succeeded in posting a more than satisfactory profit for its first financial year of over 1 billion Euros", said Herbert Stepic, CEO of Raiffeisen Bank International, the press release states.
The operating revenue fell to 2.4 billion Euros, on the back of higher administrative expenses and of the Hungarian bank levy, which comes under other net operating income.
In 2010, net interest income reached 3.5 billion Euros in 2010, up 9% over the previous year, and the net taxes and commissions income rose to 1.4 billion Euros.
After a 14% drop recorded in 2009, due to the measures to cut costs and the effects of currency fluctuations, last year, overall administrative expenses increased 10%, to 2.9 billion Euros, according to the press release. Unlike last year, the appreciation of the exchange rate led to an increase in the general administrative expenses.
The pre-tax ROE improved 4.2 percentage point
