Raiffeisen Bank International AG Reports Earnings Results for the Third Quarter and Nine Months of 2015; Provides Earnings Guidance for the Year 2015
Raiffeisen Bank International AG reported earnings results for the third quarter and nine months of 2015. For the nine months, the company reported profit before tax of 624 million, which represents a year-on-year increase of 24% or 122 million. Operating result remained 15% below the previous year's level due to lower net interest income, 28% lower net provisioning for impairment losses and lower one-off effects than in the previous year resulted in an improvement in profit before tax. Profit after tax rose 67% year-on-year to 432 million. Consolidated profit in the reporting period was 378 million, which corresponds to an increase of 68% or 152 million. Operating income declined 12% year-on-year, or 477 million, to 3,660 million. This was primarily attributable to strong currency devaluations (mainly the Russian rouble and Ukrainian hryvnia). Net interest income fell 14% year-on-year, or 399 million, to 2,495 million. Net interest income, largely due to currency-related effects, fell 133 million in Russia and 81 million in Ukraine.
For the third quarter, the company's net interest income fell 6%, or 49 million, to 813 million in the third quarter of 2015. Profit was at 90 million, which is a decrease by 114 million or 55.9% compared to the second quarter 2015.
The company expects a small consolidated profit for 2015 as the majority of the restructuring costs will be incurred after 2015 (the bank assumes restructuring costs of around 100 million for 2015). The company aims for a return on equity before tax of approximately 14% and a consolidated return on equity of approximately 11% in the medium term.