Amid stiff competition and an active mergers and acquisitions (M&A) market, Raiffeisen maintained its leading position in 2006, boosting net profits by 14.5% and strengthening Tier 1 capital by 19.5% and total assets by 24.1%. In market share terms, Raiffeisen accounts for 12.6% of capital, 21.4% of assets, 19.2% of deposits and 21.2% of loans.
In terms of profitability, Raiffeisen performed credibly with a 16.2% RoE; it also improved its cost-income ratio to 65.7% and halved its NPL ratio to 1.42%. The bank’s loan portfolio for corporate customers increased to €326m at year-end 2006 and corporate deposits increased by 31% to €183m. Likewise, business with private individuals and with small and medium-sized enterprises (SMEs) grew significantly.
The bank also became the first to be licensed by the Securities Commission to do custody operations in Bosnia & Herzegovina.
“We are very pleased to have received this prestigious award, especially when taking into account that we were honoured in a situation where the banking market of Bosnia & Herzegovina is facing consolidations and increased competition,” says Michael G Mueller, CEO at Raiffeisen Bank. “The last year remains noteworthy because we launched new products and services to respond to customer needs and expanded our network to get even closer to our customers.”
