REUTERS
Bank Austria's net profit in the first half of the year dropped around 37% to EUR 489 million ($534 million) as losses in its Ukrainian subsidiary, risk provisions and bank levies weighed on the results, Reuters reported.
The central and Eastern Europe (CEE) arm of UniCredit said its Ukraine subsidiary, which it is seeking to sell, had reported a EUR 202 million loss, according to the report.
Overall, increase in write downs and risk provisions for bad loans amounted to EUR 391 million, around 11%, in the first half, as a drop in Austria did not offset a rise in CEE.
Bank levies hiked by a third, hitting an all-time high at EUR 175 million, with a EUR 92 million hit to profit in Austria. The country in June proposed higher capital requirements for big banks such as Bank Austria, according to Reuters.
Russia, Bank Austria's single most profitable market, "exceeded" its expectations in the first six months of 2015 despite being hit by sanctions and weak growth.
The results came a day after UniCredit allayed fears for now it might tap shareholders to bolster its balance sheet after reporting stronger than expected capital and a 29.5% profit rise.