Nov. 18 (Bloomberg) -- Raiffeisen Zentralbank Oesterreich AG’s capital shortfall according to criteria by the European Banking Authority increased to 2.5 billion euros ($3.4 billion) at the end of the third quarter, Der Standard reported, citing unidentified “well informed” people.
RZB announced that the gap was 1.9 billion euros at the end of the second quarter, the Vienna-based newspaper said.
The increase is because of writedowns at Raiffeisen Bank International AG and because of a rise in risk provisions by “several hundred million euros” at its Hungarian unit, according to the report. Raiffeisen already announced that the forced conversion of Swiss franc loans in Hungary will “cost a pretty penny,” the paper said.
Raiffeisen will make a profit in the third quarter, an unidentified spokesman for the lender told Standard. He declined to comment on capital needs, the paper said.
RZB owns 79 percent of Raiffeisen.
To contact the editor responsible for this story: Zoe Schneeweiss at email@example.com