said consolidated profit after tax rose 32.1 per cent in the first
quarter to €254.4m as the group strengthened its market position
Central and Eastern Europe.
Referring to the quarter’s performance another record result,
Raiffeisen said net interest income and net commission income,
which grew by 41 per cent and 20 per cent respectively, were the
biggest profit contributors.
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By region, the CIS was the largest contribution to profit before
tax, accounting for 36 per cent against 27 per cent the year
before. Group units in this region also reported a 49 per cent
growth in net interest income, mainly due to higher margins in
Russia, the bank said.
In spite of higher profits, the group reported a lower return on
equity (ROE) before tax in the first quarter of 22.5 per cent
compared with the full year ROE of 25.7 per cent for 2007 due to an
increase in capital and higher shareholders’ funds. Equity as at
the end of the period totalled €6.6bn. Raiffeisen has set a target
ROE of more than 25 per cent for 2010.
“This quarterly result corroborates our claim that the current
environment on the global financial markets has only limited
influence on our business model and growth perspective. By covering
17 markets in Central and Eastern Europe and by having an excellent
strategic alignment we are again able to achieve significant
organic growth and increase profitability at the same time in
2008,”CEO Herbert Stepic said.
Meanwhile the Pari Daily reported that Raiffeisen Leasing and
Raiffeisen Auto Leasing doubled its assets to BGN425m (€217m) in
Bulgaria at the end of 2007
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