Profits up 52% on the previous year, to 640 million. Net operating profit up 15%, thanks to provisions one fifth lower than in 2010. These are the data for the first half of 2011 for Bank Austria, the Austrian subsidiary of Unicredit and market leader in Eastern Europe.
The positive trend in loans and the decrease in provisions more than compensated for the write-down of 100 million euros on Greek sovereign bonds, carried out as part of the Group's participation in the Athens rescue package.
"The increase in profit comes after a period of low growth and earnings have not yet reached pre-crisis levels," said Willibald Cernko, the bank's chief executive. “We must increase our ability to make profits in view of the higher capital requirements that banks will have to meet”, concluded the CEO.
