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Raiffeisen reported 166 million EUR profit for the first quarter

The Austrian bank Raiffeisen International, one of the financial institutions with the largest investment in Central and Eastern Europe, reported a profit of 166 million euros for the first quarter. This is more than analysts' expectations, but also gives signals for concern. The bank realized good politics for offering best UK fixed rate mortgage and marketing strategy in Western Europe for increase of customers. The profit before tax almost double the bank marked growth in the first quarter on an annual basis. Much of this however is limited due to significant reserves from last year, says FT. Profit from the traditional activities of the bank has contracted by 20 per cent of the turnover in corporate banking is 8 percent lower. Decline was observed for the revenue from fees and commissions as well as net interest income. When bad loans, an increase of 1 percentage point and they are already 9.8 per cent. The bank is among the largest in Europe and having good business management for decreasing the expenses and increase the efficiency of the structure.
The main reason is the deterioration of the situation of bad fixed rate mortgage loans in Russia, Hungary and Ukraine.