"Despite the unfavourable market conditions last year, Raiffeisen Bank closed a successful business year, and even managed to strengthen its positions in 2007. The Bank's balance sheet total rose by 30% to above HUF 2,000 billion. Portfolio of loans grew by 24% to HUF 1,537 billion, while deposits showed a growth of 15% and grew to above HUF 1,228 billion.Krisztina Horváth, Deputy CEO of Raiffeisen Bank Hungary, told a press conference on Wednesday that the largest achievement of the bank was that it managed to strengthen its position even in the face of unfavourable economic circumstances.
Balance-sheet total of Raiffeisen Bank grew by 30% to HUF 2,062 in 2007. The Bank increased its net revenue by 22% yr/yr to above HUF 120 billion, with after-tax profit of HUF 28.5 billion, a yr/yr growth of 13%.
Corporate deposits were up by 15% to HUF 526 billion, and with this Raiffeisen kept its leading position in the market. The Bank's portfolio of corporate loans grew by 17% to HUF 1,035 billion, which means the 2nd position on the market.
Regarding the retail segment, the amount of retail deposits rose 15% yr/yr to HUF 528 billion, while retail lending portfolio exceeded that of 2006 by 54% (making a total of HUF 415 billion).
The results of corporate and retail banking department brought about a 24% growth in the total volume of loans (to HUF 1,537 billion), and a growth of 15% in the total volume of deposits (to HUF 1,228 billion).
Thanks to these, Raiffeisen Bank had the 3rd biggest loan portfolio in the market by the end of 2007, and kept its position as 2nd biggest deposit portfolio owner.
Loans to municipalities rose by 57%, while municipal deposits increased by 90% year on year, which allowed the department to keep its second position in both category on the market.
The volume of assets managed by the Private Banking division grew by 24%, to more than HUF 257 billion. At the end of December 2007, the value of managed assets per customer was HUF 50 million.
The Bank also saw a dynamic increase in the size of its customer base. By the end of December the number of retail customers had nearly reached 500,000, and the number of corporate clients was above 38,000 (out of which 34,000 from Small Businesses).
The expansion of the branch network continues according to schedule. By the end of 2007 Raiffeisen Bank had a total of 137 outlets throughout the country, out of which 34 are operating in the capital, and 103 in the 85 other cities of the country."
Source: Portfolio Online Financial Journal
11.04.2008