Raiffeisen Bank Ukraine increased profits and customers’ funds in January 2023
In the first month of 2023, Raiffeisen Bank Ukraine demonstrated the financial results that are better compared to the pre-war January of 2022 in terms of a number of indicators.
Raiffeisen Bank’s profit in January 2023 was UAH 742 mn*, which is 62% higher year-on-year (UAH 457 mn in January last year).
The bank’s income in January 2023 reached UAH 1 806 mn (UAH 1 101 mn in January 2022). The largest share of that amount, in particular UAH 1 413 mn, or +78%, is attributed to interest income, as expected. Raiffeisen Bank remains one of the largest lenders among all of the country’s financial institutions.
The commission result also increased by 28% up to UAH 270 mn, which testifies to the growth of customer operations, including in remote service channels.
The trading result was UAH 124 mn, +30% year-on-year.
The Bank continued allocations to provisions to cover possible credit and operational risks caused by the war. In January the allocations amounted to UAH 380 mn compared to UAH 81 mn one year earlier.
At the same time, the bank keeps its loan portfolio quality well under control. The share of non-performing assets in the bank’s loan portfolio was 14.8% as of the end of January.
Raiffeisen Bank’s loans to customers somewhat decreased at the start of 2023 as a consequence of lower demand on the part of companies, as well as private customers and entrepreneurs. As of the end of 2023 Raiffeisen Bank’s loan portfolio reached UAH 72 bn.
The customers’ funds in Raiffeisen Bank continued growing, just like throughout 2022. In January, legal entities’ funds in the Bank increased (by UAH 6 bn or 11%), and individuals (UAH 0.6 bn or 1% growth).
Almost 300 branches of Raiffeisen Bank serve customers across Ukraine, 50% of them are equipped with generators and backup communication channels and can operate in a full-fledged mode in the event of electricity outages.
Such positive dynamics proves the efficiency of the Bank’s chosen business model, successful management of income, risks and costs, as well as the customers’ growing trust and Raiffeisen Bank’s leadership positions in the market.
* Preliminary results under the International Financial Reporting Standards (IFRS)