“It was foreseeable that 2014 would be a key year for the European banking sector and that banks with a presence in Central and Eastern Europe (CEE)* would be tested.
“In the first quarter, our operative business developed in line with our expectations. The first months of this year, however, were driven by an extraordinary high FX volatility. In particular, the development of Swiss franc, rouble, hryvnia, and US dollar had a strong impact on our results. The significant devaluation of the hryvnia, for instance, had a strong negative effect on our net trading income. The appreciation of rouble, US dollar, and Swiss franc led to a rise in our RWA. At the same time, our tier 1 capital increased significantly due to the strong rouble resulting in an almost stable CET1 ratio. The implementation of our strategy adjustment is on track,” Karl Sevelda, CEO of Raiffeisen Bank International AG (RBI) commented on the first quarter.
Raiffeisenbank (Bulgaria) EAD (RBBG) publishes its regular monthly economic review with comments on the macroeconomic data available in April.