Raiffeisenbank’s net profit fell in three quarters

This year, Raiffeisenbank’s operating revenues decreased by 5.25 percent to CZK 12.87 billion. Net interest income fell by 10.8 percent to CZK 9.84 billion. The decrease was primarily caused by higher interest payments to clients, especially on savings accounts.

Net income from fees and commissions fell by 5.5 percent to CZK 3.07 billion. The bank’s operating costs of CZK 6.6 billion decreased by 3.5 percent year-on-year.

The volume of loans provided to Raiffeisenbank clients increased by 2.9 percent to CZK 361 billion. There was growth both on the side of households in the form of mortgage and consumer loans, and on the side of companies, especially in project loans.

The volume of deposits received from clients increased year-on-year by 10.2 percent to CZK 543 billion. Growth was driven by increasing balances on savings accounts and time deposits, both on the part of households and companies.

Raiffeisenbank is one of the largest banking houses in the Czech Republic. It is therefore subject to tax on extraordinary profits. The so-called windfall tax was approved by the government as a 60 percent tax surcharge on excess profits.

This corresponds to the difference between the tax base and the average cost of the tax base for the last four years increased by 20 percent. The income from the tax is to be used by the government to cover the extraordinary costs that the state will have in connection with the capping of energy prices.

The net profit for three quarters also fell year-on-year for other banks. At Česká spořitelna it was by 2.9 percent to 14.6 billion crowns, at Komerční banka by 4.9 percent to 12.4 billion crowns and in the case of Moneta Money Bank by 3.7 percent to four billion crowns.

Conversely, the Czech and Slovak UniCredit Bank reported a net profit of 8.5 billion crowns, which was an increase of more than a quarter.

Raiffeisenbank has been providing banking services in the Czech Republic since 1993. The majority shareholder is the Austrian financial institution Raiffeisen Bank International.