By Joshua Kirby

Raiffeisen Bank International AG said Thursday that consolidated profit fell by almost a third in the first nine months of the year, largely as a result of impairment losses stemming from the pandemic-induced recession.

The Austrian banking group posted a consolidated profit of 599 million euros ($705.5 million), down from EUR874 million in the same period of 2019. Impairment losses on financial assets amounted to EUR497 million, a more than fivefold increase, reflecting the effects of the recession caused by the coronavirus pandemic.

Net interest income fell slightly to EUR2.48 billion from EUR2.53 billion in the first nine months of 2019, while net fee and commission income was also slightly down at EUR1.27 billion, from EUR1.31 billion previously.

Chief Executive Johann Strobl confirmed the company's full-year outlook despite renewed lockdown measures. Raiffeisen Bank sees modest loan growth in 2020, as well as a provisioning ratio of around 75 basis points.

Write to Joshua Kirby at joshua.kirby@dowjones.com; @joshualeokirby

(END) Dow Jones Newswires

11-12-20 0227ET