Raiffeisen sees higher profit amid halved provisions

Raiffeisen Bank, the third largest domestic bank in terms of assets, last year gained 83m euros in line with IFRS, while in line with Romanian accounting standards the profit reached 64m euros.

Provision expenses last year slid to 48m euros, 46% below the 2009 level, when risk costs hit the highest level in the bank's history, of 88m euros.

"We believed we provisioned earlier than other banks. Moreover, we have a portfolio with a better quality than the market average and this has helped us," said Steven van Groningen, Raiffeisen Bank chairman, during a press conference. He did not specify the rate of outstanding loans, though.

Boosting operating efficiency is still the top priority for Raiffeisen, considering revenues last year declined faster than current expenses, which sent the cost/revenue ratio to 64.5%.

"Even with a loan boost, I do not know whether I can increase revenues. It is very important for us to boost operating efficiency," Steven van Groningen said.