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25.08.11

Raiffeisen Bank International’s consolidated profit in the first half of 2011 rises by nearly one-third to € 615 million



  • Consolidated profit up 30.3 per cent year-on-year
  • Profit before tax rises 51.6 per cent to  879 million (H1 2010:  579 million)
  • Net trading income increases to  256 million (up 33.2 per cent year-on-year), positively affected by an extraordinary income ( 32 million) from a capital hedge in Belarus
  • Net provisioning for impairment losses declines by 33.3 per cent to  405 million (H1 2010:  608 million)
  • Non-performing loan ratio improves by 0.5 percentage points against year-end 2010 to 8.5 per cent
  • Coverage ratio improves by 2.2 percentage points against year-end 2010 to 68.5 per cent
  • Return on equity before tax rises 4.9 percentage points year-on-year to 17.1 per cent
  • Cost/income ratio 2.1 percentage points higher year-on-year to 55.1 per cent
  • Core Tier 1 ratio (total) declines by 0.4 percentage points against year-end 2010 to 8.5 per cent
  • Tier 1 ratio (total) falls by 0.3 percentage points against year-end 2010 to 9.4 per cent
  • Outlook slightly modified

The figures in this press release for the first half of 2010 are the comparable figures for the RBI structure after applying the merger retrospectively to 1 January 2010.

Raiffeisen Bank International AG (RBI) posted a consolidated profit (after tax and non-controlling interests) of  615 million for the first six months of 2011, which represents an increase of 30.3 per cent in comparison to the result RBI posted during the first half of the preceding year (H1 2010:  472 million). RBIs profit before tax rose by 51.6 per cent to  879 million (H1 2010:  579 million). Besides higher profit, a number of one-time effects were responsible for the significant increase in income taxes, which rose by  137 million to  201 million. This was primarily due to deferred tax expenses on valuation gains, which contrasted with deferred tax income in 2010. As a result, RBIs profit after tax amounted to  677 million, an increase of 31.4 per cent compared to the same period a year earlier (H1 2010:  516 million). Earnings per share rose from  1.91 in the first half of 2010 to  2.65, an increase of 38.4 per cent.

Our results reflect the improved economic environment in Central and Eastern Europe during the first half of this year. They also provide the first indications of the positive impact of our new organizational structure, said Herbert Stepic, CEO of RBI.

Operating result below 2010 level due to bank levies

Despite stable net interest income, a strong net trading income and a slight plus on net fee and commission income, the operating result declined in the first half of 2011 by 2 per cent or  28 million to  1,233 million. Reasons for the decrease were the 6 per cent rise in general administrative expenses (particularly as a result of salary adjustments in several markets) and the bank levies in Austria and Hungary totalling  68 million (previous years comparable period:  18 million).

Net provisioning for impairment losses declines by one-third

The net provisioning for impairment losses for the first half of 2011 amounted to  405 million. This represents a decline of precisely one third or  203 million from the level in the first half of 2010 ( 608 million). As in the preceding quarters, the reasons for the decrease in net provisioning for impairment losses are chiefly to be found in the ongoing economic recovery in most markets, leading to an improvement in credit standing and so to lower non-performing loans. Moreover, active measures, such as loan restructuring where necessary, had already been taken during the financial and economic crisis to stabilize and improve the quality of RBIs loan portfolio.

Return on equity before tax increases to 17.1 per cent

The significant rise in profit before tax also led to growth in the return on equity figures, with return on equity before tax of 17.1 per cent at the end of the first half of 2011, up 4.9 percentage points from 12.2 per cent in the comparable period in 2010.

General administrative expenses rise by 6 per cent

General administrative expenses rose by 6 per cent or  89 million compared with the first half of 2010 to  1,514 million. The cost/income ratio rose as a result by 2.1 percentage points to 55.1 per cent.

Staff expenses, which were the largest item in general administrative expenses, accounting for 50 per cent, rose by 8 per cent or  57 million on the previous years comparable period.

The average number of staff was 59,980, a rise of 1,003 persons compared to the first half of 2010.

Total assets grow by 5 per cent

As of 30 June 2011, total assets at RBI amounted to  137.6 billion. This was 5 per cent or  6.4 billion above the comparable figure for the end of 2010. On the assets side, the increase was caused by growth in loans to banks and customers. On the liabilities side the increase came from deposits from banks and customers.

Number of business outlets declines slightly

The number of business outlets as of 30 June 2011 was 2,935, a decrease of 35 on the prior-year period. The largest reductions were in Serbia (minus 14), Russia (minus 12), Ukraine (minus 11), and Poland (minus 8). By contrast, there were increases in the Czech Republic (plus 11), Belarus (plus 3), and Romania (plus 2). The customer base stood at around 13.5 million as per the end of the first half of 2011.

Consolidated profit in second quarter more than doubles year-on-year

In the second quarter of 2011, RBI posted net interest income after provisioning of  700 million, an increase of 9.5 per cent compared to the same quarter a year earlier (Q2 2010:  639 million) and of 3.6 per cent compared to the preceding quarter of 2011 (Q1 2011:  676 million). The principal reason for this development was the quarters net provisioning for impairment losses, which amounted to  197 million and was thus  86 million or 30.4 per cent lower than the comparable quarter in 2010. Also compared with the first quarter of 2011, when net provisioning for impairment losses amounted to  208 million, a decrease of 5.5 per cent in net provisioning was recorded.

You can access the web-version of the interim report at qr022011.rbinternational.com. The German version is available under zb022011.rbinternational.com. A printed English-language version can also be ordered via that webpage.


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, around 60,000 employees service about 13.5 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 sterreich 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 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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Tel.: +7 495 721-36-17

E-mail: pr@raiffeisen.ru

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