The balance sheet has improved, and the solvency level has been maintained

As of 31 December 2021, Banque Raiffeisen’s balance sheet total showed an increase of 5.4% over the previous year, to EUR 10,156 million.

On the liabilities side of the balance sheet, funds entrusted by non-banking clients rose by 6.0% to EUR 505 million, of which EUR 284 million were related to household savings. Large institutional depositors strengthened the Bank’s liquidity position with a contribution of EUR 266 million and an extension of the duration of deposits. Finally, the 4.5% increase in equity was mainly the result of net profits being set aside. This enabled the Bank to maintain its solvency level and to further develop its financing activities.

Loan activity also growing strongly

On the assets side of the balance sheet, client lending increased by 4.3% or EUR 308 million in one year. The financing of home ownership, the Bank’s main activity, grew by 6.2%. However, this strong growth was offset by a slowdown in business investments as a result of the crisis and the shortage of raw materials.

8.5% growth in cash investments

Cash investments showed an annual growth of 8.5% or EUR 209 million. The level of the liquidity reserve
with the Luxembourg Central Bank remained more or less stable compared to 31 December 2020.

A 5.5% increase in results

In 2021, the Bank’s net interest income grew by +3.3% thanks to increased volumes. Net commissions are up 13.8% compared to 2020, following a record year in securities investment: strong growth in management and advisory packages, strengthening and expansion of the ESG investment offer and transaction volumes at record levels. Net banking income rose by 5.1% over the year, while operating costs increased by 6.8%.

This significant increase is explained by the temporary nature of the savings made in 2020 on the one hand, and by the increased investment in digital tools and IT security on the other. In view of the rather difficult economic situation and for reasons of prudence, Banque Raiffeisen has made the necessary value adjustments and sectoral provisions. Based on the above and after deduction of tax charges, Banque Raiffeisen’s result for the financial year 2021 is EUR 19.8 million, an increase of 5.5% compared to the previous year.

NB: The figures as reported in this press release are still subject to approval by the ordinary General
Assembly.