reported a first-quarter consolidated profit of €114 million, compared to €83 millionin the year-ago period.
EPS roseto 39 cents from 29 cents year over year.
First-quarternet interest income decreased on a yearly basis to €718 million from €820 million.Net fee and commission income fell to €347 million from €360 million. Net provisionfor impairment losses declined year over year to €106 million from €260 million.The nonperforming loans ratio stood at 11.4% at the end of March, compared to 11.9%at the end of 2015.
The bank'sfirst-quarter net trading income came in at €28 million, compared to a loss of €62million in the year-ago period. The cost-to-income ratio rose to 65.0% from 61.8%a year earlier. ROE before tax was 10.8%, compared to 9.1% a year ago.
The bank'sfully loaded common equity Tier 1 ratio as of March 31 was 11.5%, unchanged fromDec. 31, 2015. The fully loaded total capital ratio was 16.7% as of March 31, comparedto 16.8% as of Dec. 31, 2015. The bank targetsa fully loaded CET1 ratio of at least 12%, excluding retained earnings, and a fullyloaded total capital ratio of at least 16% by the end of 2017.
In the medium term, the bank aims for an ROE before tax of about14% and a consolidated ROE of about 11%. The bank also expects its net provisionfor impairment losses to be below the 2015 level of €1.26 billion.
The bank aims for a cost-to-income ratio of between 50% and 55%in the medium term.
Meanwhile,Raiffeisen Zentralbank ÖsterreichAG and unit Raiffeisen Bank International will examine a of the twocompanies for structural simplification. Also, adapting the group more closely toincreased regulatory requirements is another objective of a potential merger.
The evaluationis expected to complete within six months.