Raiffeisen Bank, a top five player on the market, has budgeted investments worth around 39.5m euros for 2009, with the increase in RON standing at 17.6% from the sum earmarked in 2008.
Investments in IT systems will have the biggest weight, due to take up over 47% of the total. At the same time, the bank is set to spend over 1.24m euros for electronic security and protection systems, according to the investment plan approved by shareholders.
Almost 35% are going to investments in buildings, 9.7% to furniture and other accessories and 3.6% to vehicles.
In 2008, Raiffeisen operated investments accounting for less than 80% in the budget approved by shareholders.
For this year, the bank's shareholders have budgeted net income equivalent with some 95m euros (398.57m RON), less than 60% of income reported for 2008 in line with Romanian accounting standards.
Steven van Groningen, Raiffeisen chairman, considers this is a reasonable target in the context where lending has barely warmed up in March-April, and the bank is focusing on strict cost management.
At the same time, he does not believe a share capital increase will be needed, as Raiffeisen is one of the best-capitalised banks on the market.
Revenues for the current year are put at 1.94bn RON (461m euros), up 33% from the level approved in last year's revenues and expenses budget. Total expenditures were set at 1.46bn RON (349m euros), 41% above the sum shareholders approved for 2008.
In the first quarter of this year, Raiffeisen reported net income worth 17m euros, half the profit generated in the same period of 2008, as a result of the substantial provisions set up to cover credit risks augmented by RON depreciation.
Beside the revenue/expense budget and the investment plan for 2009, Raiffeisen shareholders have also recently approved the appointment of Anca Ioan as an independent member of the bank's supervisory board led by Herbert Stepic, a CEO with Raiffeisen International, the majority shareholder. Until last year, Anca Ioan was part of the supervisory board of UniCredit Tiriac Bank as she held the position of CEO with Tiriac Holdings, and the businessman controls over 45% in the bank.
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