In the first half of the year Raiffeisenbank’s net profit drafted to the International Financial Reporting Standards (IFRS) amounted to Rub 10.23 bln, the lending institution said in a press release. The bank’s profit declined 7.6% against the same period of last year.
“Primary reasons behind a contraction in the bank’s profit are lower profit from trading (mainly due to the one-time positive effect from the sale of securities in 1Q 2013) and also the formation of loan loss provisions," the bank pointed out in the press release.
In the first half of 2014 the bank formed loan loss provisions for a total of Rub 3.12 bln (provisions equal to Rub 168.1 mln were released in the same period of 2013). The bank compiled Rub 19.70 bln in loan loss provisions.
Compared to the data as of year-end 2013 the bank’s assets have increased 5.2% to Rub 748.71 bln.
As of June 30, 2014 credits and advances to the bank’s clients before devaluation provisions reached Rub 472.80 bln (up 5.2% in January — June). Clients’ funds jumped 2.2% to Rub 462.57 bln.
As of June 30, 2014 the bank’s equity fell 1.6% to Rub 113.89 bln after Rub 12.12 bln was paid out in 2013 dividend in June.
