Raiffeisenbank in the Czech Republic doubled its net profit to CZK 1.19 billion in the first quarter of this year. The bank’s assets increased by 25 percent to CZK 558 billion. Profits are also growing significantly this year for other large banks.
“We entered Raiffeisenbank’s legal relationship with Equa bank in 2022. It was another significant step in the accession of Equa bank to the Raiffeisen family and moved us on to prepare for the best of this merger for our clients,” commented Igor Vida, CEO. .
Raffeisenbank’s total operating revenues increased by 83.2 percent to CZK 4.41 billion in the first quarter. The bank’s net interest income rose by 112.3 percent to CZK 3.41 billion. This increase was mainly due to movements in market rates, which are rising in response to the central bank’s actions. Net fee and commission income increased by 40.4 percent to CZK 1.11 billion.
The volume of loans provided to clients increased by 34.1 percent year on year to CZK 333 billion. The growth was both on the part of households in the form of mortgage and consumer loans and on the part of companies in the form of investment loans.
The volume of deposits received from clients increased by 25.5 percent year on year to CZK 449 billion. The growth was driven by increasing balances on current accounts, savings accounts and term deposits, especially for households. In addition to the merger with Equa bank, the takeover of clients from ING Bank, which took place in mid-2021, also contributed to this increase.
Operating costs of CZK 2.62 billion increased by 47.5 percent year-on-year. This increase was mainly due to the merger with Equa bank.
Raiffeisenbank stated that it continues to maintain the very good quality of its loan portfolio. Impairment losses on loans and other receivables are CZK 369 million higher year-on-year in absolute terms, reaching CZK 250 million.
Other large banks in the Czech Republic also report year-on-year growth in results. Česká spořitelna’s net profit rose by 84.3 percent year on year to five billion crowns in the first quarter. Moneta Money Bank’s net profit rose by 116 percent year on year to CZK 1.3 billion.
Raiffeisenbank has been providing banking services in the Czech Republic since 1993. The majority shareholder is the Austrian financial institution Raiffeisen Bank International.
Source: Raiffeisenbank and CTK
