* Net profit 148 million eur vs 234 million eur in Reuters poll
* Sees rise in lending in 2010
* Lower income, higher expenses dent profit
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VIENNA, Nov 29 (Reuters) - Austria's newly-merged Raiffeisen Bank International confirmed its full-year outlook on Monday despite reporting earnings that missed expectations in the third quarter due to lower net income and higher expenses.
Raiffeisen, emerging Europe's No.3 lender by assets, said a "mild recovery" in its core region had allowed it to reduce the amount of money it had put aside to potentially cover bad loans.
But the group, which merged with unlisted parent RZB on Oct. 11, said revaluation of currencies in Russia, Poland and the Czech Republic and higher staff expenses had eaten into profits.
Quarterly net profit was 148 million euros ($196 million), below the average estimate of 234 million in a Reuters poll of analysts.
Like Hungarian peer OTP the group was able to report falling loan loss provisions in the quarter, to 277 million euros.
The group kept its outlook, saying that it was aiming for an increase in retail customer lending in the full year.
"Overall demand for credit will probably remain subdued in 2010, but from today's perspective, we expect a slight rise of lending to customers for Raiffeisen International in the course of the year," it said.
The group's merger added RZB's domestic corporate business and its wholesale banking unit to Raiffeisen's franchise in 17 countries of the former Communist bloc. ($1=.7551 Euro) (Reporting by Sylvia Westall; Editing by Jon Loades-Carter)