Net unconsolidated profit of Raiffeisen Bank (Kiev) for January-June this year amounted to UAH 3 billion 118.67 million, which is five times higher than in the same period of 2022, according to the unaudited report of the bank on its website.
According to it, in the second quarter of this year, the bank increased the financial result to the second quarter of last year by 39.6% – up to UAH 1 billion 57.54 million.
It is indicated that Raiffeisen Bank’s net interest income for January-June 2023 increased by 53.0% to UAH 7 billion 907.76 million, including in the second quarter – by 43.8% to UAH 3 billion 955.68 million.
As follows from the report, net commission income for the first six months of this year increased by 82.6% to UAH 1 billion 267.64 million, including in the second quarter – twice, to UAH 639.79 million.
At the same time, net profit from foreign currency transactions decreased by 12.8% to UAH 903.49 million in the first half of the year, while the loss from decreased utility increased by 7.9% to UAH 3 billion 127.34 million.
According to the report, in January-June this year, the bank’s assets grew by UAH 5.84 billion, or 3.5% – to UAH 172.10 billion.
Such growth is explained by a significant increase in investments in securities – from UAH 25.41 billion to UAH 34.17 billion, cash and funds with the NBU – from UAH 32.04 billion to UAH 38.15 billion and loans and advances to banks – from UAH 39.08 billion to UAH 42.26 billion.
At the same time, loans and advances to customers decreased from UAH 61.69 billion to UAH 50.25 billion.
Raiffeisen Bank’s customer funds for the first half of 2023 increased from UAH 143.61 billion to UAH 146.50 billion, while the bank’s capital increased from UAH 17.06 billion to UAH 20.17 billion, including retained earnings – from UAH 1.58 billion to UAH 3.14 billion.
In a press release on Tuesday, the bank added that its gross revenues for the first six months of 2023 grew by 48% to UAH 10.4 billion, the amount of taxes paid amounted to UAH 1.1 billion, and its portfolio of government bonds grew by almost UAH 10 billion.
“Raif’s lending dynamics reflect the existing demand for loans and the creditworthiness of customers. Since the beginning of 2023, the bank issued UAH 48.2 billion of new loans, of which UAH 32.6 billion – to industries that are critical for the country (agribusiness, retail, pharmaceuticals, fuel supplies)”, – indicated the financial institution, specifying that UAH 13.5 billion of loans were directed to agrarians.
It is noted that as of June 30, 2023, the bank formed UAH 14.6 billion of reserves, and the share of non-performing loans (NPL) amounted to 16.3% at the end of June.
It is also specified that the funds of corporate customers at the end of June 2023 amounted to 63.1 billion UAH and increased year-on-year by 14 billion UAH, or 29%, while the funds of retail customers increased by 11.2 billion UAH, or 16% – to 81.6 billion UAH.
As of the end of June 2023, the capital adequacy level of Raiffeisen Bank amounted to 25.38% with the minimum value of 10%, and the tier 1 capital adequacy level amounted to 19.03% with the minimum value of 7%.
Raiffeisen Bank JSC was registered in Ukraine in 1992 and is the largest bank with foreign capital in Ukraine, ranking 4th among 65 Ukrainian banks in terms of total assets at the beginning of June. Since October 2005, the bank became part of the Austrian banking group Raiffeisen Bank International AG. As of March 31, 2023, Raiffeisen Group owned 68.21% of the bank’s shares, while the European Bank for Reconstruction and Development owned 30%.
