Bloomberg News

Raiffeisen Quarterly Net Probably Rose on One-Time Gain

May 22, 2012

Raiffeisen Bank International AG (RBI), eastern Europe’s third-biggest lender, may say first-quarter profit rose 78 percent as it booked gains from bond buybacks and asset sales in the period.

Raiffeisen’s net income probably rose to 479 million euros ($611 million) in the three months ended March 31, up from 270 million euros a year earlier, according to the average estimate of 11 analysts surveyed by Bloomberg. The bank is due to report results May 24 at 7:30 a.m.

Raiffeisen bought back hybrid bonds phased out by regulators in the first quarter, pocketing a gain of 113 million euros, it said in a list of “extraordinary effects” to be expected in first-quarter results, published on its website. Sales of financial investments led to a 150 million-euro gain, it said in the same list.

Raiffeisen and its parent Raiffeisen Zentralbank Oesterreich AG have narrowed a 2.1 billion-euro capital shortfall determined by the European Banking Authority by 1.9 billion euros and has pledged to exceed EBA’s requirements by the June 30 deadline.

The following is a table of analysts’ estimates and results from the previous and year-earlier quarters. The figures are in millions of euros.


                        Q1/12  Q4/11  Q1/11   Q/Q   Y/Y  No. of
                        Mean   Prev.  Prev.   Chg   Chg  Ests.
                        Est.   Qtr    Year
---------------------------------------------------------------
Net interest income      912    943    884    -3%   +3%  11
Loan-loss provisions     232    282    208   -18%  +12%  10
Commission income        364    365    357     0%   +2%  11
Trading result            97     70    123   +38%  -21%  10
Income from derivatives  123    264      3   -54%   n/m   4
Income fin.investments   168      5     25    n/m   n/m   6
Pretax Profit            617    342    405   +80%  +52%  11
Net Income               479    222    270  +116%  +78%  11
---------------------------------------------------------------

The following banks participated in the survey: Barclays Capital, Berenberg Bank, Citigroup, Erste Group Bank, HSBC, ING, Kepler Capital Markets, Mediobanca, Nomura, UBS, Wood & Company.

To contact the reporter on this story: Boris Groendahl in Vienna at bgroendahl@bloomberg.net

To contact the editor responsible for this story: Frank Connelly at fconnelly@bloomberg.net


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