Austrian lender Raiffeisen Bank International (RBI) has reported net profit of €210m for the first half of 2016, a slump of 23.8% compared to €276m in the prior year.
The bank's pre-tax profit stood at €450m, a fall of 1.1% from €455m in the first half of 2015.
Net interest income dipped 13.4% year-on-year to €1.45bn from €1.68bn, while net fee and commission income dropped 3.4% to €719m from €745m a year earlier.
The bank's CET 1 ratio (fully loaded) was 12.2% during the period, up from 10.7% a year ago. Its non-performing loan (NPL) ratio was 10.4%, down from 12% in the prior year.
RBI CEO Karl Sevelda said: “We have been successfully working on the realization of our transformation program also in the first half of 2016. This can be seen in our equity ratios, which we have increased significantly since the beginning of the year. The improvement of our capital base remains the top priority.”
“Due to the ongoing low interest rate environment and the reduction of our loan volume, our income remains under pressure. What is pleasing though, is that results from business with retail customers were above our expectations despite the difficult market environment,” Sevelda added.