OREANDA-NEWS. October 19, 2010. The net income of Raiffeisenbank for the first nine months of 2010 increased by 420% relative to the net income for the first nine months of last year and amounted to 6,811,070 thousand roubles, reported the press-centre of Raiffeisenbank.

This year there was a reduction in expenditure on loan loss provisions to 5,802,667 thousand roubles, compared to the 13,600,258 thousand roubles spent on the creation of loan loss provisions in the first nine months of last year. This had a significant impact on the growth of the financial results for the first nine months of this year versus the same period last year.

"We are pleased with the Bank’s financial results, especially given the fact that the bulk of the expenditure on provisions in 2010 occurred in the third quarter. This amounted to 3,216,428 thousand roubles, compared to 2,586,239 thousand roubles spent on the creation of provisions in the first two quarters of this year" said Pavel Gurin, Chairman of the Board of Raiffeisenbank.

This increase in the expenditure on provisions in the third quarter of 2010 was due to the growth of the corporate credit portfolio in July-September 2010 (+ 6.1% compared to the portfolio at the end of the first half of 2010), as well as the loss of strength of the CBR instruction No 2156-U "On the specifics of credit risk assessment on loans, and equivalent debts" from July 1, 2010.