By KYIV. Nov 1 (Interfax-Ukraine) – Raiffeisen Bank (Kyiv) earned UAH 6.136 billion in net profit in January-September this year, while for the same period in 2022 this figure amounted to UAH 2.395 billion, according to the bank’s quarterly report.
According to it, in particular, Raiffeisen Bank’s net profit in the third quarter was UAH 3.017 billion, which is 2.8 times more than in the second quarter and 1.7 times higher than the net profit for the comparable period last year.
According to the report, the bank’s net interest income increased in January-September 2023 by 41.1% compared to the previous year, to UAH 12.4 billion. In particular, for the third quarter this figure amounted to UAH 4.4 billion, compared to UAH 3.9 billion in the second quarter and UAH 3.6 billion for the third quarter of 2022.
The bank’s income from core activities for January-September reached UAH 22.3 billion, which is 37% higher than last year’s result.
According to the information provided, Raiffeisen Bank received UAH 4.8 billion (or 21% of total income) from interest income on certificates of deposit and interest rate swap agreements with the National Bank. At the same time, interest income on domestic government loan bonds refinanced by the NBU brought the bank UAH 2.5 billion, which is 11% of total income.
The bank recalled that in January-September 2022, interest income on certificates of deposit and interest rate swap transactions totaled UAH 2.3 billion (or 14% of total income).
“The bulk of income from external clients is generated by transactions with residents of Ukraine. Most long-term assets are concentrated in Ukraine,” the financial institution said.
Net commission income increased in the first nine months of this year compared to the results of 2022 by 30.3%, to UAH 1.8 billion. However, in the third quarter this figure was 30% less than in April-June this year, and 33% less than in the third quarter of 2022 – UAH 495 million.
According to the report, since the end of 2022, the bank’s assets have increased by UAH 15.8 billion and reached UAH 182 billion as of September 30. This growth was primarily ensured by a significant increase in the volume of securities – from UAH 25.4 billion to UAH 41.8 billion.
The volume of cash decreased from UAH 8.2 billion to UAH 7.4 billion, while money in current accounts with the NBU and other banks increased by 9.2% and 66.5%, respectively, to UAH 12.7 billion and UAH 11.8 billion.
Loans and advances to customers increased slightly compared to the previous quarter – by 6.3%, to UAH 53.5 billion, but still remain below last year’s level – UAH 61.7 billion. Meanwhile, the debt of other banks increased by 3.5%, to UAH 43.7 billion and remains above the 2022 figure – UAH 39 billion.
During July-September, the financial institution managed to increase client funds from UAH 146.4 billion to UAH 152.6 billion, while at the end of last year they were at the level of UAH 143.6 billion. Bank funds, on the contrary, for the nine months of 2023 decreased by UAH 220.5 million, to UAH 2.2 billion.
The total amount of the bank’s capital has increased by 36% since December 2022 and reached UAH 23.2 billion, including retained earnings – four times, to UAH 6.2 billion. At the same time, Raiffeisen’s liabilities grew from UAH 149.2 billion to UAH 158.9 billion.
The bank spent UAH 2.8 billion on paying salaries to employees, bonuses, other incentive payments and on contributions to the wage fund, while last year it was UAH 2.6 billion.
JSC Raiffeisen Bank was registered in Ukraine in 1992 and is the largest bank with foreign capital in Ukraine. Since October 2005, the bank has become part of the Austrian banking group Raiffeisen Bank International AG. Currently, the Raiffeisen group owns 68.21% of the bank’s shares, the European Bank for Reconstruction and Development – 30%.
According to the National Bank of Ukraine, as of September 1, 2023, Raiffeisenbank ranked fourth in terms of assets (UAH 132.9 billion) among 64 banks operating in the country.
