Raiffeisen with another record profit

"The Raiffeisen Group looks to the future with rather cautious expectations." Raiffeisen CEO Dr. Patrik Gisel

Switzerland's third-largest banking group was able to increase its operating profit by CHF 52 million or 5.9 percent to CHF 943 million "despite the challenging market environment". In line with the Raiffeisen Group's long-term diversification strategy, commission and service fee business contributed 34 million francs, trading profit 52 million francs and other income 60 million francs. The Group's most important pillar, the interest business, increased by 41 million.

Assets under management (AuM) increased by 10.4 billion, or 5.3 percent, to 207 billion at the end of 2015. Net new money amounted to 14.4 billion, of which 6 billion came from the acquisition of La Roche Private Bank. With mortgage business up 7.9 billion, or 5.2 percent, to 159 billion, Raiffeisen now holds the largest market share of the Swiss mortgage market at 16.9 percent. At the end of the year, the Raiffeisen Group had a total capital ratio of 16.4 percent, while the ratio for so-called hard core capital (CET1 capital) was 14.3 percent.

According to its CEO Dr. Patrik Gisel, the Raiffeisen Group is looking to the future "with rather cautious expectations". Switzerland is again facing the threat of sluggish economic development in 2016, as the franc shock continues to have an impact. The high hopes lie in a moderate acceleration of growth in the euro zone, Gisel said. In the real estate market, prices would stabilize at a high level or fall slightly. The "soft landing" often predicted by Raiffeisen in the past has occurred. In this environment, the group's focus is on long-term stability and sustainable lending practices, he said. (mr)