“We are happy with our performance in 2020, a year that tested our resilience and brought about unprecedented challenges. In these unusual circumstances we managed to grow our loan portfolio by 5%, we reached a loan to deposit ratio of 66% and generated a return on equity of 14%,” said Steven van Groningen, president and CEO Raiffeisen Bank.
The lender’s non-performing loan rate stood at 3.8% in 2020, lower compared with 2019.
The bank’s CEO added it remains to be seen how the quality of loan portfolios evolves once repayment moratoriums expire.
“If the economy recovers at the rate analysts estimate, that would considerably lower the risk of deterioration in loan portfolios,” he said.
The bank’s lending activity fluctuated in 2020, from a first quarter in line with the same period in 2019 to a diminished volume in the second quarter, followed by record volumes in the third quarter. Overall, Raiffeisen Bank’s loan portfolio grew by 5% on the year in 2019, while deposits grew 21%.
The bank’s total revenues dropped 2%, to RON2.6 billion, as net interest income grew slightly due to increased lending, but net income from commissions and fees dropped 10%.
The lender’s operating expenses grew 4% in 2020, to approximately RON1.4 billion, driven by staff spending and IT costs.
The bank’s total assets grew 20% on the year in 2020, to RON51.3 billion.