Raiffeisen Bank International has reported consolidated profit of EUR157 million for the first quarter of 2013, a decline of 71% compared with EUR541 million reported a year ago, when earnings were boosted by one-time gains from hybrid bond buybacks.
The Austrian bank, whose chief executive officer offered to resign over an offshore-investment probe, posted profit before tax of EUR251 million, down 63.4% from a year before.
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The bank’s net provisioning for impairment losses increased to EUR220 million in the quarter, an increase of 43.7% year-on-year.
During the first quarter, net income from financial investments fell to EUR87 million, primarily due to gain on sale of security portfolio of EUR159 million in prior year, the bank said in a statement.
Commenting on the results, Raiffeisen CEO Herbert Stepic said: "We expect the economic cycle to pick up in the second half of the year and therefore we are optimistic to achieve a pleasing result in 2013."
Also, Raiffeisen Bank International has announced that its supervisory board will meet on June 7 to decide on CEO after Stepic resigned from his position. It gave no other details.
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By GlobalDataStepic has denied wrongdoing and said he quit to avoid a potentially damaging debate over his actions.
