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29.11.10

Raiffeisen Bank International posts nine-month consolidated profit of € 783 million



Raiffeisen Bank International:

  • Consolidated profit in the first nine months of 2010:  783 million (pro forma)
  • Provisioning for impairment losses:  913 million (pro forma)
  • Return on equity before tax: 14.1 per cent (pro forma)

Raiffeisen International:

  • Consolidated profit in the first nine months more than doubled to  318 million (1-9/2009:  156 million)
  • Provisioning for impairment losses decline by 38.7 per cent year-on-year to  837 million (1-9/2009:  1,365 million)
  • Return on equity before tax improves by 3.7 percentage points year-on-year to 9.8 per cent (1-9/2009: 6.1 per cent)

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


Results for Raiffeisen Bank International

Raiffeisen Bank International AG (RBI) officially launched its business activities on 11 October  and thus after the end of the third quarter. For this reason, the financial results provided for RBI remain on a pro forma basis, despite the fact that the founding of the new bank is retroactively effective as of 1 January 2010. RBI would have posted the following results (on a pro forma basis) for the first three quarters of 2010:

RBIs nine-month profit before tax would have stood at  997 million, while its consolidated profit (after tax and minorities) would have amounted to  783 million. The banks provisioning for impairment losses would have been  913 million during the period.

Our results for the first three quarters reflect the friendlier overall macro-economic environment, but also underline the vigour that our new organisational set-up provides us. This strengthens my conviction, that the merger we undertook allows us to make optimal use of the economic upswing that is starting to take place  this will benefit our customers and is also in our investors interest, said Herbert Stepic, CEO of Raiffeisen Bank International.

RBI would have posted a net interest income of  2,707 million. The banks general administrative expenses would have amounted to  2,153 million, while its operating result would have been  1,897 million. RBIs cost/income ratio would have come to 53.2 per cent.

The banks total assets would have stood at  143.1 billion as per 30 September 2010, which would have represented a decline of 1.8 per cent since the end of 2009 (31 December 2009:  145.6 billion).

RBIs return on equity before tax would have come to 14.1 per cent.

The banks core capital ratio (tier 1), credit risk would have stood at 12.2 per cent (up 0.4 percentage points against the end of 2009), its core capital ratio (tier 1), total would have come in at 9.7 per cent (up 0.3 percentage points against the end of 2009). RBIs core tier 1 ratio (core Tier 1 capital less hybrid capital based on total risk) would have been 8.8 per cent (up 0.3 percentage points against the end of 2009).

We are comfortably capitalised. If the profit we generated over the first nine months were to be included, then our core tier 1 ratio would have stood at 9.7 per cent, CFO Martin Grull said, commenting on current developments.

As per 30 September 2010, RBI would have had 59,339 employees servicing around 15 million customers through 2,964 business outlets.


Third-quarters consolidated profit (on pro forma basis) more than doubled compared to preceding quarter

Raiffeisen Bank International would have posted a consolidated profit of  311 million for the third quarter of 2010, which would have represents an increase of 125 per cent against the second quarter of 2010. The main driver for this increase came from valuation results for financial investments and derivatives.

The banks third-quarter operating result would have come in at  636 million, a slight decrease of 1 per cent compared to the preceding quarter.

RBIs net interest income after provisioning in the third quarter of 2010 would have been  621 million, which would have represented an increase of 1 per cent against the second quarter.

The third quarters provisioning for impairment losses would have amounted to  306 million; which would have represented a rise of 8 per cent against the preceding quarter.

Our non-performing loan (NPL) ratio stood at 8.8 per cent at the end of September. This quarter-on-quarter increase of 0.3 percentage points was largely attributable to developments in Central Europe  above all in Hungary and the Czech Republic. We assume that NPL volumes have already reached a peak in some countries, but that we will only reach that peak at the Group level during the course of next year. At the moment, its not possible to tell whether that development will take place at the middle of the year or only in the second half of 2011, said Johann Strobl, Chief Risk Officer for RBI as well as for the RZB Group.


Results for Raiffeisen International

For the first three quarters of 2010, Raiffeisen International Bank-Holding AG posted a consolidated profit (after tax and minorities) of  318 million, which represents an increase of 104.5 per cent compared to the same period a year earlier (1-9/2009:  156 million). This development was supported by a quarterly profit of  148 million, the highest since the outbreak of the financial and economic crisis. The periods earnings were also positively impacted by the 38.7 per cent year-on-year decline in provisioning for impairment losses, which amounted to  837 million during the first three quarters of 2010 (1-9/2009:  1,365 million). Raiffeisen Internationals profit before tax rose by 82.6 per cent to  524 million (1-9/2009:  287 million), while its profit after tax increased by 78.5 per cent to  385 million (1-9/2009:  216 million).

The Raiffeisen International Third Quarter Report is available at: qr032010.ri.co.at

Raiffeisen Bank International AG (RBI) regards both Austria, where it is a leading corporate and investment bank, and Central and Eastern Europe (CEE) as its home market. In CEE, RBI operates an extensive network of subsidiary banks, leasing companies and a range of other specialised financial service providers in 17 markets.

RBI is the only Austrian bank with a presence in both the worlds financial centres and in Asia, the groups further geographical area of focus.

In total, more than 59,000 RBI employees service about 15 million customers through around 3,000 business outlets, the great majority of which are located in CEE.

RBI is a fully-consolidated subsidiary of Raiffeisen Zentralbank Osterreich AG (RZB). RZB indirectly owns around 78.5 per cent of the common stock, the remainder is in free float. RBIs shares are listed on the Vienna Stock Exchange. RZB is the central institution of the Austrian Raiffeisen Banking Group, the countrys largest banking group, and serves as the group head office of the entire RZB Group, including RBI.

For further information please contact Michael Palzer (+43-1-71 707-2828, michael.palzer@rbinternational.com) or Peter Klopf (+43-1-71 707-1930, peter.klopf@rbinternational.com)

www.rbinternational.com, www.rzb.at


 

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E-mail: pr@raiffeisen.ru

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