Non-performing loans of the Raiffeisen Bank International have risen in the first three quarters due to severe economic situations in Eastern Europe, the Vienna-based bank said here on Wednesday.
According the third quarter report released by Raiffeisen, a major lender in central and eastern Europe, non-performing loans to non-banks grew by about 1.6 billion U.S dollars to 10.7 billion U.S dollars in the first 9 months of 2012.
A slight increase in the volume of non-performing loans is also expected in the coming months as the market situation remains tense.
The bank's net interest income, the largest earnings component, contracted by 5 percent or 128 million euros (about 165 million U.S. dollars) to 2.5 million euros year-on-year in the first three quarters. The decrease is said to be "primarily attributable to lower interest income as a result of sales of securities, lower interest margins."
Although the economic situation continue to be severe in Europe, the bank said it expected a stable business volume in the whole year of 2012.