The net income of Raiffeisenbank for the first nine months of 2010 increased by 420% relative to the net income for the first nine months of last year and amounted to 6,811,070 thousand roubles.
This year there was a reduction in expenditure on loan loss provisions to 5,802,667 thousand roubles, compared to the 13,600,258 thousand roubles spent on the creation of loan loss provisions in the first nine months of last year. This had a significant impact on the growth of the financial results for the first nine months of this year versus the same period last year.
«We are pleased with the Bank’s financial results, especially given the fact that the bulk of the expenditure on provisions in 2010 occurred in the third quarter. This amounted to 3,216,428 thousand roubles, compared to 2,586,239 thousand roubles spent on the creation of provisions in the first two quarters of this year» said Pavel Gurin, Chairman of the Board of Raiffeisenbank.
This increase in the expenditure on provisions in the third quarter of 2010 was due to the growth of the corporate credit portfolio in July-September 2010 (+ 6.1% compared to the portfolio at the end of the first half of 2010), as well as the loss of strength of the CBR instruction No
ZAO Raiffeisenbank is a subsidiary of Raiffeisen Bank International AG. Raiffeisenbank is ranking 9th in terms of assets among the Russian banks based on H1 2010 results (Interfax-CEA). According to Interfax-CEA, ZAO Raiffeisenbank ranked 6th in Russia in terms of private deposits and 9th in consumer lending in Russia based on H1 2010 results.
Raiffeisen Bank International AG regards both Austria, where it is a leading corporate and investment bank, and Central and Eastern Europe (CEE) as its home market. In CEE, RBI operates an extensive network of subsidiary banks, leasing companies and a range of other specialised financial service providers in 17 markets. 56,000 employees service about 15 million customers through around 3,000 business outlets in the region. Raiffeisen Bank International is a fully-consolidated subsidiary of Raiffeisen Zentralbank Oesterreich AG (RZB). RZB which indirectly owns around 78.5 per cent of the common stock, which is listed on the Vienna Stock Exchange; the remainder is in free float. RZB is the central institution of the Austrian Raiffeisen Banking Group, the country’s largest banking group, and serves as the group head office of the entire RZB Group.