Vienna - Raiffeisen International, the Austrian banking group operating in Central and Eastern Europe, raised its second-quarter profit by 49 per cent, as income from interest grew by 37 per cent, the company reported Thursday.

Setting a new quarterly record, net income climbed to 311.3 million euros (481.3 million dollars), from 208.8 million euros in the same period last year.

Net interest income rose to 786.5 million euros, up from 573.8 million euros a year earlier.

In the first half of 2008, Raiffeisen posted a net profit of 565.7 million euros, an increase of 41 per cent compared to 2007.

"Our half-year results prove that we have the indirect effects of the global financial market crisis under control," Raiffeisen CEO Herbert Stepic said.

Raiffeisen's banks in Russia, Belarus, Kazakhstan and the Ukraine boosted group results in the first half of this year, with profits before taxes up 75 per cent to 306 million euros.

In south-eastern Europe, where profits were dampened by increased allocations for bad loans, pre-tax income amounted to 284 million euros, an increase of 29 per cent.

The group's Central European banks posted a 19-per-cent increase in profit before tax, to 253 million euros in the first six months.

The group aims to post about 1 billion euros in net income in 2008, with corporate customers making the largest contribution.

The group's majority owner is RZB Group, Austria's third-largest bank. (dpa)