August 8, 2019 / 6:35 AM / 4 months ago

UPDATE 1-Raiffeisen Bank International's Q2 net profit beats estimates

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VIENNA, Aug 8 (Reuters) - Austrian lender Raiffeisen Bank International’s second-quarter net profit fell slightly but still beat expectations as risk costs in its eastern European markets remained low.

Consolidated net profit in the three months through June fell more than 3% to 345 million euros ($386.6 million) from 357 million a year earlier, RBI said. That was better than the average estimate of 306 million euros in its own poll of analysts here

“Despite the low interest rate environment, net interest income and net fee and commission income developed very positively, and risk costs remained at a very low level,” Chief Executive Johann Strobl said in a statement.

Net interest income, the difference between interest earned and paid out, edged up less than 1% in the second quarter, helped by an appreciation of the ruble - Russia is the bank’s most profitable market. Net fee and commission income fell 5% while salary increases drove up administrative expenses.

RBI’s “levies and special governmental measures” shrank to 17 million euros from 114 million in the previous three months as RBI said it had front-loaded those charges in the first quarter. ($1 = 0.8923 euros) (Reporting by Francois Murphy; Editing by Michael Shields)

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