In the first half of 2015, Raiffeisen Bank International AG (RBI) generated a profit before tax of € 467 million, which was 10 per cent or € 51 million below the comparable level of the previous year’s period. While the operating result was 14 per cent below the previous year's level due to falling net interest income; higher valuation results from derivatives and lower one-off effects than in the previous year (provision for the Settlement Act in Hungary) resulted in an improvement in profit before tax. Profit after tax fell 12 per cent year-on-year to € 326 million. Consolidated profit for the first half-year was € 288 million, which corresponds to a decline of 16 per cent, or € 57 million.
“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.