Austria's Raiffeisen Posts 44% Slump In Second Quarter Profit, Confirms Forecast

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Raiffeisen Bank International (RBI) on Tuesday posted a 44% slump in second-quarter profit, largely due to the economic impact of the pandemic in the countries in which it operates, but confirmed its 2020 targets, Reuters reported. The Austrian lender, which does business across central and eastern Europe, said consolidated net profit came in at 192 million euros ($226 million) in the three months per end-June, beating analyst expectations of 143 million euros. The drop in earnings was due to rate cuts and lockdown measures, 49 million euros in write-offs on investments in subsidiaries and associates, and portfolio-based provisions of up to 11 million euros for litigation mainly in Romania, RBI said. Net interest income fell 2% to 825 million euros, missing the 842 million euros analysts had forecast. Read more