The Raiffeisen banking cooperative experienced growth in all of its business lines last year, particularly in its core business, which is credit.
Rather controlled charges as well as favorable changes in provisions and value adjustments boosted results.
Net profit increased by 24.2% to 1.07 billion francs, said Thursday the number three Swiss bank. Quoted in the press release, the general manager speaks of an “excellent result”. “The increase in all product items indicates that the group has made strong progress in terms of operational performance,” he said.
The increase was particularly evident in terms of volumes, mortgage loans having increased by 3.2% to 196.36 billion francs. In its press release, the Saint-Gallois establishment claims a “high” quality of the real estate portfolio and an unchanged market share of 17.6% in its basic activity.
Revenue increased by 10.6% to 3.38 billion francs. This growth is attributable in particular to interest-bearing operations, whose gross profit rose by 2.2% to 2.40 billion.
Raiffeisen, which is among the five Swiss banks considered to be systemic, dissolved provisions for credit default of 12.1 million francs, compared to a constitution of reserves of 52.5 million in 2020. This difference has boosted net income from interest operations by 5.1% to 2.41 billion.
“Demanding” context
Commissions soared by 18.8% to 536.1 million francs. Volatility on the stock markets boosted management activity, the volume of which amounted to 247.1 billion at the end of December. Raiffeisen recorded net cash inflows of 19.3 billion last year.
Trading operations jumped 13.9% to 244.6 million, while other ordinary results were almost doubled (+94%) to 188.7 million.
Expenses were overweight (+4.3% to 1.89 billion francs) but the increase was proportionally less significant than that of income. The cost-to-revenue ratio was thus improved by 3.4 percentage points to 56.0%. For each franc earned, Raiffeisen must pay 56 cents to cover its expenses.
After taking into account value adjustments of 217.4 million (274 million in 2020), operating profit amounted to 1.27 billion francs, an increase of more than 31%.
The amount on the balance sheet increased by 9.6% to 284.49 billion francs, including 201.73 billion in customer deposits (+5.9%).
At the end of 2021, the group employed 11,465 people for 9,492 full-time equivalents, up slightly, and operated 824 branches, compared to 820 twelve months earlier.
For the current financial year, Raiffeisen evokes a context that is still “demanding”, due in particular to the invasion of Ukraine by Russia. The banking cooperative nevertheless expects a “solid business market”, without providing quantified forecasts.
This article has been published automatically. Source: ats/awp