Raiffeisen Bank International, one of Austria’s leading banks, has announced a decrease in earnings for the third quarter despite experiencing growth in net interest income. The bank reported a net profit of 879 million euros ($933.6 million) for the period, compared to 1.09 billion euros last year. Operating income or revenue also fell by 17% year-on-year, amounting to 2.25 billion euros.
Net Interest Income Witnesses Growth
Net interest income, which measures the difference between interest earned from loans and interest paid on deposits, saw a 3.5% increase from the previous year, totaling 1.44 billion euros. This growth can be attributed to higher interest rates across many of the bank’s regions, including Russia, where reduced interest expenses contributed to a rise in net interest income.
Decline in Net Fee and Commission Income
On the other hand, net fee and commission income experienced a decline, totaling 667 million euros compared to 1.12 billion euros in the previous year.
Altered Earnings Outlook
Despite the decline in earnings for the third quarter, Raiffeisen Bank International has raised its net interest income outlook for the year. The bank now expects net interest income to range between 4.2 billion euros and 4.3 billion euros, up from the previous estimation of between 3.8 billion euros and 4 billion euros.