RZB: Leasing Segment Proves Difficult

Professional ServicesBanks ♦ Published: September 28, 2013; 19:53 ♦ (Vindobona)

Last year, the leasing subsidiary of Raiffeisen Zentralbank (RZB) has recorded massive losses. In the next years, the leasing business will not return to profitability.

RZB: Leasing Segment Proves Difficult / Picture: © Vindobona.org

RZB, the top institute of the Austrian Raiffeisen sector, suffers from a loss making leasing segment. The leasing business is a wholly-owned unit of RZB. In 2011, losses totaled about € 40m. Last year, losses almost doubled and reached € 78m. The main reason underlying the losses is the Italian subsidiary.

This year, the losses are expected to reach about € 10m. According…