International Property News

Raiffeisenbank, eBanka improve bottom lines in 2007

1st April 2008

Raiffeisenbank generated a net profit of Kc780m in 2007, a yr/yr growth of 39 percent, and eBanka, with which it is merging, saw a net profit of Kc231m, against a loss of Kc93m in 2006, both banks told CTK at a press conference Tuesday.

Raiffeisenbank's total assets amounted to Kc117bn at the end of last year, up 30 percent year-on-year.

The total assets of eBanka grew 24 percent yr/yr to more than Kc26.7bn at the end of 2007.

The merger is to take place in summer. The merged bank will keep the name Raiffeisenbank.

The banks will start using a joint bank code as of January 2009.

"In summer, all products and services will merge, along with the legal merger," eBanka general director Martin Kolouch said.

The name of eBanka will cease to exist at the beginning of July.

The traditional growth of loans was last year joined by a considerable increase in the volume of saving and investment products, Raiffeisenbank general director Lubor Zalman said.

Loans provided by Raiffeisenbank last year rose by 43 percent to Kc97bn and deposits grew by 29 percent to Kc72bn.

The volume of new mortgages provided by Raiffeisenbank doubled to Kc21bn, interest in consumer loans went up by 45 percent and loans to small and medium-size companies grew by 54 percent.

Raiffeisenbank and eBanka have 103 branches altogether.

"We will continue expanding the network. Within the next two to three years we would like to have 130 branches," Zalman said.

The majority shareholder of both banks is the Austrian financial institution Raiffeisen International Bank Holding AG, whose shares are traded on the Vienna bourse.