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31.08.10

Both Raiffeisen International and RZB Group more than double their respective H1-consolidated profits. Merger plans for Raiffeisen Bank International fully on track. RBI’s pro forma consolidated profit at € 472 million.


Raiffeisen International:

  • Consolidated profit in the first six months of 2010 more than doubles to И 171 million (H1 2009: И 78 million)
  • Provisioning for impairment losses declines 42 per cent year-on-year to И 560 million (H1 2009: И 969 million)
  • Return on equity before tax improves by 3.7 percentage points year-on-year to 8.6 per cent (H1 2009: 4.9 per cent)

RZB Group:

  • Consolidated profit rises 139 per cent compared to H1 2009 to И 402 million (H1 2009: И 168 million)
  • Provisioning for impairment losses declines by 52 per cent against the same period a year earlier to И 608 million (H1 2009: И 1,267 million)
  • Return on equity before tax improves by 0.3 percentage points to 10.4 per cent (H1 2009: 10.1 per cent)

Raiffeisen Bank International:

  • Merger plans fully on track; registration in commercial register expected in the fourth quarter
  • Consolidated profit in H1 2010 (on pro forma basis): И 472 million
  • Provisioning for impairment losses (on pro forma basis): И 608 million
  • Return on equity before tax (on pro forma basis): 12.2 per cent

All figures are based on International Financial Reporting Standards (IFRS).

«The RZB Group is on a good path. This is evident in its positive earnings development and in the fact the implementation of its optimized group structure is occurring according to plan,» said Walter Rothensteiner, CEO of Raiffeisen Zentralbank Osterreich AG (RZB) and Chairman of the Supervisory Board of Raiffeisen International Bank-Holding AG. «In the new structure, RZB will focus on its role as the central institution of Austria’s Raiffeisen Banking Group and will operate as the group head office of the entire RZB Group. The future Raiffeisen Bank International will bundle together the corporate business RZB had conducted so far with that in Central and Eastern Europe. RBI will be powerful force in banking in its home market, which consists of Austria and Central and Eastern Europe. In addition, RBI will be the only Austrian bank that it not only represented in the world’s financial centres, but also has a strong presence in Asia at nine locations. »

Raiffeisen International Bank-Holding AG, a member of the RZB Group headed by Raiffeisen Zentralbank Osterreich AG (RZB), posted a consolidated profit (after tax and minorities) of € 171 million during the first six months of 2010, which represents an increase of 118.6 per cent compared to the same period a year earlier (H1 2009: € 78 million). The developments in provisioning for impairment losses, which declined by 42.2 per cent year-on-year to € 560 million (H1 2009: € 969 million) in particular had a positive impact on earnings. Profit before tax rose by 97.8 per cent to € 304 million (H1 2009: € 154 million), while profit after tax posted an increase of 78.2 per cent to € 212 million (H1 2009: € 119 million).

«In addition to the positive earnings development for the first half of this year, we have made decisive steps in pushing ahead the merger that will result in Raiffeisen Bank International. On a pro forma basis, Raiffeisen Bank International would have had a half-year consolidated profit more than 2.5 times larger than that posted by Raiffeisen International. We believe that this will allow us to remain one of the most attractive investment opportunities on the Vienna stock exchange», said Herbert Stepic, CEO of Raiffeisen International and designated CEO of RBI.


Attractive financials for Raiffeisen Bank International

The following pro forma figures1 for Raiffeisen Bank International (RBI) result from merging principal business areas of RZB with Raiffeisen International:

For the first six months of 2010, Raiffeisen Bank International’s profit before tax would have been € 579 million, while its consolidated profit (after taxes and minorities) would have amounted to € 472 million. RBI’s provisioning for impairment losses would have stood at € 608 million.

RBI’s net interest income would have been € 1,780 million. Its general administrative expenses would have amounted to € 1,425 million, while its profit from operating activities would have stood at € 1,261 million. The new bank would have had a cost/income ratio of 53.0 per cent.

RBI’s balance sheet total as per 30. June 2010 would have stood at € 147.9 billion, which would have represented an increase of 1.3 per cent since the end of 2009 (31 December 2009: € 146 billion).

RBI’s return on equity before tax would have stood at 12.2 per cent.

Raiffeisen Bank International’s core capital ratio (tier 1), credit risk would have stood at 12.0 per cent (up 0.2 percentage points compared to year-end 2009), while its core capital ratio (tier 1), total would have stood at 9.5 per cent (up 0.1 percentage points). RBI’s core tier 1 ratio (core capital less hybrid capital based on total risk) would have been 8.7 per cent (up 0.2 percentage points compared to year-end 2009).

The merger is fully on track. The approval provided for the merger at the annual general meetings of RZB and Raiffeisen International at the beginning of July represents the last internal milestone in the merger process. In the third quarter, the merger will be put forward for entry into the corporate register, while the actual entry of the merger and Raiffeisen Bank International into the corporate register is expected to take place in the fourth quarter, with retroactive effect as of 1 January 2010.

«The second quarter’s development is especially gratifying, with both the 7 per cent rise in net interest income and the 13 per cent decline in provisioning for impairment losses against the preceding quarter representing moves in the right direction,» said Martin Grull, CFO of Raiffeisen International and designated CFO of RBI.



1 No comparable figures can be provided due to the absence of results for the first half of 2009.

Raiffeisen International's financial report for the first half of 2010 is available at - qr022010.ri.co.at

The RZB Group's financial report for the first half of 2010 is available at - www.rzb.at/q2report2010

Raiffeisen Zentralbank Osterreich AG (RZB) is the central institution of the Austrian Raiffeisen Banking Group, the country's largest banking group. It is a leading corporate and investment bank in Austria and also considers Central and Eastern Europe (CEE) as its home market. RZB is the only Austrian bank with a global network of business units reaching all important finance centres around the globe. It is also present in Asia with branches and representative offices in nine locations.

Via listed subsidiary Raiffeisen International Bank-Holding AG, RZB operates one of the largest banking networks in CEE, covering 17 markets across the region through subsidiary banks, leasing companies and a range of other financial service providers. The group's 56,000 employees service more than 14.7 million customers through around 3,000 business outlets.

For further information please contact Andreas Ecker-Nakamura (+43-1-71 707-2222, andreas.ecker@rzb.at) or Michael Palzer (+43-1-71 707-2828, michael.palzer@ri.co.at).

www.rzb.at, www.ri.co.at


Raiffeisen International Group

Monetary values in И million 2010 Change 2009
Income statement 1/1-30/6   1/1-30/6
Net interest income 1,430 (4.4)% 1,496
Provisioning for impairment losses (560) (42.2)% (969)
Net fee and commission income 599 2.3% 585
Net trading income 94 (21.0)% 119
General administrative expenses (1,207) 5.6% (1,143)
Profit before tax 304 97.8% 154
Profit after tax 212 78.2% 119
Consolidated profit (after minorities) 171 118.6% 78
Statement of financial position 30/6   31/12
Loans and advances to banks 9,217 (10.6)% 10,310
Loans and advances to customers 52,370 3.7% 50,515
Deposits from banks 19,946 (0.8)% 20,110
Deposits from customers 43,255 1.6% 42,578
Equity (including minorities and profit) 7,469 6.7% 7,000
Total assets 78,115 2.4% 76,275
Key ratios 1/1-30/6   1/1-30/6
Return on equity before tax 8.6% 3.7 PP 4.9%
Return on equity after tax 6.0% 2.2 PP 3.8%
Consolidated return on equity (after minorities) 5.6% 2.7 PP 2.9%
Cost/income ratio 57.6% 6.0 PP 51.6%
Return on assets before tax 0.79% 0.41 PP 0.38%
Net provisioning ratio (average risk-weighted assets, credit risk) 2.15% (1.21) PP 3.36%
Bank-specific information1 30/6   31/12
Risk-weighted assets (credit risk) 51,585 3.0% 50,090
Total own funds 8,522 2.3% 8,328
Total own funds requirement 5,235 2.3% 5,117
Excess cover ratio 62.8% 0.0 PP 62.8%
Core tier 1 ratio (without hybrid capital), total 9.2% 0.0 PP 9.2%
Core capital ratio (tier 1), credit risk 13.9% (0.2) PP 14.1%
Core capital ratio (tier 1), total 11.0% 0.0 PP 11.0%
Own funds ratio 13.0% 0.0 PP 13.0%
Stock data 30/6   30/6
Earnings per share in И 2 0.91 0.60 0.31
Price in И 31.49 27.2% 24.75
High (closing prices) in И 42.75 43.4% 29.82
Low (closing prices) in И 30.19 132.2% 13.00
Number of shares in million 154.67 Ц 154.67
Market capitalization in И million 4,870 27.2% 3,828
Resources 30/6   31/12
Number of employees as of reporting date 55,994 (0.9)% 56,530
Business outlets 2,959 (2.0)% 3,018


1 Calculated according to the Austrian Banking Act (Bankwesengesetz, BWG). Raiffeisen International as part of the RZB-Group is not subject to the Austrian Banking Act.
2 Adjusted for the computational compensation for the participation rights, earnings per share would amount to И 1.11 (1/1 Ц 30/6/2009: И0.51)

RZB Group

Monetary values in И million 2010 Change 2009
Income Statement 1/1-30/6   1/1-30/6
Net interest income 1,790 (0.1%) 1,792
Provisioning for impairment losses (608) (52.0%) (1,267)
Net fee and commission income 715 3.8% 689
Net trading income 181 (32.0%) 266
General administrative expenses (1,468) 5.5% (1,391)
Profit before tax 547 18.0% 463
Profit after tax 487 102.0% 241
Consolidated profit (after minorities) 402 138.6% 168
Earnings per share in И 51.61 40.54 И 11.07
Statement of financial position 30/6   31/12
Loans and advances to banks 31,627 (6.7%) 33,887
Loans and advances to customers 78,920 5.4% 74,855
Deposits from banks 51,492 3.2% 49,917
Deposits from customers 55,492 0.1% 55,423
Equity (including minorities and profit) 11,007 6.8% 10,308
Total assets 152,212 2.9% 147,938
Key ratios 1/1-30/6   1/1-30/6
Return on equity before tax 10.4% 0.3 PP 10.1%
Return on equity after tax 9.3% 4.0 PP 5.2%
Consolidated return on equity (after minority interests) 10.2% 5.2 PP 5.0%
Cost/income ratio 54.4% 5.0 PP 49.4%
Return on assets before tax 0.73% 0.14 PP 0.59%
Net provisioning ratio (average risk-weighted assets, credit risk) 1.60% (1.37 PP) 2.97%
Bank-specific information 30/6   31/12
Risk-weighted assets (credit risk) 77,646 3.5% 74,990
Total own funds 12,454 1.2% 12,308
Total own funds requirement 7,764 3.3% 7,516
Excess cover ratio 60.4% (3.4 PP) 63.8%
Core Tier 1 ratio (without hybrid capital), total 8.5% 0.0 PP 8.5%
Core capital ratio (Tier 1), credit risk 11.7% (0.1 PP) 11.8%
Core capital ratio (Tier 1), total 9.3% (0.1 PP) 9.4%
Own funds ratio 12.8% (0.3 PP) 13.1%
Resources 30/6   31/12
Number of employees as of reporting date 59,257 (0.9%) 59,800
Business outlets 2,980 (1.9%) 3,038


Ratings Long-term Short-term Financial strength Outlook
Fitch Ratings A F1 Ц Stable
Moody's Investors Service A1 P-1 D+ Stable
Standard & Poor's A A-1 Ц Negative
 

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