Raiffeisen Bank International, which operates a banking network in Central and Eastern Europe, generated pre-tax profits of $945 million in the first three quarters of this year, $569 million less than the comparable period in 2012.
The bank said the decline was primarily attributable to one-off effects last year, including the sale of bonds and a hybrid tier 1 capital buyback totaling $365 million.
Profit after tax declined by 48 percent to $626 million due to the increased tax quota, while the consolidated profit dropped by 51.2 percent to $558 million. Earnings per share fell by $3 to $1.82.
"Thanks to our substantially improved net interest margin, we were able to increase the operating income by almost 7 percent within the first nine months," RBI CEO Karl Sevelda said. "It is a great partial success that our income increased stronger than our expenses. But we want to become significantly better and we are therefore aiming at holding the 2016 cost base flat compared to 2012. With 'Fit for Future 2016' we have developed and started a comprehensive cost savings program for the entire Group in order to reach this goal."
RBI is a listed subsidiary of Raiffaisen Zentralbank, the central institution of the Raiffeisen Banking Group Austria. It covers 17 markets with subsidiary banks, leasing companies and representative offices. It began operation on Oct. 11, 2010.
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