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Raiffeisen records lower profits after Ukraine crisis

Repayment of state held stake within a month, Ceo says

22 May, 10:12
(ANSA) - VIENNA - Raiffeisen Bank International generated a profit before tax of € 240 million in the first three months of 2014, a decrease of € 11 million or 4.6 per cent versus the comparable period of the previous year.

The decline was due, on the one hand, to higher net provisioning for impairment losses in Ukraine and Russia because of currency devaluations, and to a notable decrease in net trading income (also resulting to a large extent from exchange rate related valuation losses from foreign exchange positions in Ukraine), on the other.

As the operating income remained practically stable year-on-year, the operating result rose by 5.8 per cent to € 590 million.

In the past few days, RBI registered a pleasing development regarding the participation capital. "Following the successful capital increase in the first quarter of 2014, RBI expects to receive approval from the Financial Market Authority for full repayment of the participation capital in the near future", the bank Ceo Karl Sevelda said. "As a first step, we intend to repay the total amount or at least a substantial part of the state-held tranche. The FMA has notified us that the approval will be granted promptly, enabling repayment to take place in the next three to four weeks". (ANSA).

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