Raiffeisen’s profit in Russia for January-September 2023 decreased by 28%

Profit after tax of Raiffeisen Bank in Russia for the first nine months of 2023 decreased by 28% compared to the same period last year, to €1.024 billion. This follows from the financial reporting jar.

The profitability of the Russian Raiffeisen from January to September amounted to €1.024 billion (-5.7%), operating profit – €2.105 billion (-19.2%). The company’s loan portfolio decreased by one and a half times over nine months, to €6.303 billion.

For the third quarter, the bank’s profit in Russia after tax amounted to €339 million, which is 2.3 times less than the same period last year. Revenue was €331 million, operating profit was €574 million.

The profitability of the entire Raiffeisen group for the third quarter decreased by 3.4% compared to last year – €1,441. Profit after tax amounted to €947 million (-22%).

In March, the European Central Bank demanded from Raiffeisen Bank International (RBI) to close its business in Russia, after which the bank announced plans to sell the local division or withdraw it from the group structure. In August, RBI Governor Johann Strobl reportedthat the company has postponed this process to the end of the year. In September the bank filed an application for registration of a new logo in Russia, which was explained by the need to expand the capabilities of the trademark.

Read more in the Kommersant FM article. “Leaving added hassle”.

Petr Buzlaev