November 18, 2011 / 7:21 AM / 6 years ago

UPDATE 2-Raiffeisen Bank Int'l had Q3 profit despite Hungary

* RBI profitable despite Hungary impairments

* Raiffeisen group needs extra 600 mln euros capital

* Capital plan to emerge next week, won’t need state aid

* RBI shares rise 2.8 pct, while bank sector flat (Adds background and share price)

By Michael Shields

VIENNA, Nov 18 (Reuters) - Raiffeisen Bank International AG (RBI) has managed to make a profit in the third quarter despite high writedowns in Hungary, its unlisted parent RZB said on Friday.

Raiffeisen Zentralbank (RZB) also estimated the Raiffeisen group would need an extra 600 million euros ($810.8 million) in capital by mid-2012 to meet regulatory targets.

Vienna-based RBI, emerging Europe’s third-biggest lender, will report quarterly results on Nov. 24.

“These results were positive and will therefore increase the profit before tax of 879 million euros and consolidated profit of 615 million euros the bank posted for the first half of the year. This third-quarter profit was achieved despite high net provisioning for impairment losses in Hungary,” RZB said in a statement.

RBI shares were up 2.8 percent at 16.855 euros by 1011 GMT, outperforming a flat STOXX 600 European banking sector index .

The government in Hungary, which announced on Thursday it would reverse course and seek a standby financing agreement with the International Monetary Fund, has caused problems for banks in Austria and elsewhere.

Budapest’s decision to let consumers repay foreign-currency loans at exchange rates well below market levels has saddled banks with big losses.

RBI has already said it will have to inject more capital into its Hungarian unit as a result of the scheme, which could cost it around 120 million euros.

Austrian peer Erste Group Bank faces a 500 million euro 2011 loss at its Hungarian unit, which will get up to about 600 million euros of new equity.

RZB detailed its estimates for additional capital the group needed to reach regulators’ 9 percent core capital target by the middle of next year under guidelines established by the European Banking Authority (EBA).

“This EBA shortfall is likely to rise by 600 million euros to around 2.5 billion euros as per 30 September, 2011. These figures are based on the group’s own calculations following the guidelines put forward by the EBA,” it said.

“The ultimate amount of the EBA shortfall depends on the final version of the authority’s calculation methods, which will only be published over the course of the next few days.”

Raiffeisen executives had already said the group would need more than the 1.9 billion required based on first-half 2011 results.

RZB said the measures it envisages to cover the shortfall will also be presented on Nov. 24. ($1 = 0.740 Euros) (Editing by Will Waterman)

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