All figures are based on International Financial Reporting Standards (IFRS).
Despite the ongoing difficult market environment and subdued economic forecasts, Raiffeisen Bank International AG (RBI) generated in the first three quarters of 2013 a profit before tax of ˆ 696 million. The fall of ˆ 419 million versus the comparable period was primarily attributable to one-off effects in 2012 such as the sale of bonds and the hybrid tier 1 capital buyback totaling ˆ 269 million. Profit after tax declined by 48.0 per cent to ˆ 461 million (Q3 2012: ˆ 889 million) due to the increased tax quota. The consolidated profit declined by 51.2 per cent to ˆ 411 million (Q3 2012: ˆ 842 million). Earnings per share declined by ˆ 2.21 to ˆ 1.34. In the same period last year it was ˆ 3.55.
«Thanks to our substantially improved net interest margin, we were able to increase the operating income by almost 7 per cent within the first nine months. It is a great partial success that our income increased stronger than our expenses. But we want to become significantly better and we are therefore aiming at holding the 2016 cost base flat compared to 2012. In view of the herewith achieved inflation absorption this would correspond to savings of around ˆ 450 million in the next three years. With „Fit for Future 2016“ we have developed and started a comprehensive cost savings programme for the entire Group in order to reach this goal», said RBI CEO Karl Sevelda.
Operating income increased by 6.7 per cent
Operating income increased by 6.7 per cent or ˆ 267 million to ˆ 4,267 million year-on-year (Q3 2012: ˆ 4,000 million). Thereby, net interest income also developed favourably:
The net interest margin (calculated on interest-bearing assets) improved by 48 basis points to 3.08 per cent due to an optimisation of liquidity and repricing measures. This resulted in a 7 per cent increase in net interest income to ˆ 2,776 million.
In total, RBI’s operating result amounted to ˆ 1,837 million for the first three quarters of 2013, which represents a rise of 10.4 per cent compared to the same period of 2012 (Q3 2012: ˆ 1,664 million).
Net provisioning for impairment losses increased
Net provisioning for impairment losses rose 28 per cent, or ˆ 176 million, to ˆ 800 million compared to the same period last year. This was due to the development in portfolio-based loan loss provisions, which in the previous year included a net release of ˆ 90 million (mainly at Group head office and in Russia). However, in the reporting period, net allocations of ˆ 28 million were made for portfolio-based loan loss provisions. Individual loan loss provisions rose ˆ 62 million to ˆ 781 million. The Group Corporates segment reported a significant increase in individual loan loss provisions, whereas the Central Europe segment recorded a decrease of 11 per cent.
The NPL ratio rose to 10.3 per cent whereas the NPL coverage ratio fell to 66.1 per cent.
Higher general administrative expenses
General administrative expenses rose ˆ 94 million to ˆ 2,430 million compared to the same period last year; most of which was attributable to the consolidation and integration of Polbank in May 2012. Due to the higher operating income, the cost/income ratio fell 1.5 percentage points to 56.9 per cent.
Staff expenses, at 50 per cent, provided the largest component in general administrative expenses: a 4 per cent increase, or ˆ 48 million, to ˆ 1,227 million. This increase mainly resulted from the Polbank consolidation, salary adjustments in Russia, and collective contractual wage increases at Group head office.
The number of employees (full-time equivalents) fell by 1,312 or 2.2 per cent to 58,772 since year-end 2012. The largest reductions occurred in Ukraine, Romania, Poland, Hungary and Bulgaria.
Total assets declined 4 per cent compared to the end of 2012
Compared to the end of 2012, RBI’s total assets declined 4 per cent, or ˆ 5.1 billion, to ˆ 131 billion. The year-on-year decline was even more pronounced, down 11 per cent, or ˆ 16.1 billion. This trend is primarily attributable to the ongoing optimization of liquidity.
Compared to the end of 2012, loans and advances to customers after deduction of loan loss provisions fell ˆ 1 billion, to ˆ 76.8 billion. The decline was due to a decrease of ˆ 1.4 billion in receivables from repurchase and securities lending transactions. Credit business with corporate customers contracted by ˆ 1.8 billion, notably in Austria, Malta and Russia. In contrast, business with retail customers increased ˆ 0.5 billion and business with the public sector was up ˆ 0.3 billion. Business with retail customers increased significantly in Russia whereas it fell in Poland due also to currency effects.
In contrast, deposits from customers rose ˆ 1.2 billion to ˆ 67.5 billion. Whereas deposits from corporate customers (notably at Group head office) grew ˆ 2.0 billion and those from the public sector (predominantly in Russia) were up ˆ 1 billion, deposits from retail customers fell ˆ 1.8 billion. The largest declines occurred in Poland (down ˆ 0.9 billion), Hungary (down ˆ 0.4 billion) and the Czech Republic (down ˆ 0.2 billion).
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. 15 markets of the region are covered by subsidiary banks, additionally the Group comprises numerous other financial service providers, for instance in the fields of leasing, asset management and mergers and acquisitions.
RBI is the only Austrian bank with a presence in both the world’s financial centres and in Asia, the group’s further geographical area of focus.
In total, around 59,000 employees service about 14.4 million customers through more than 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. RBI’s shares are listed on the Vienna Stock Exchange. RZB is the central institution of the Austrian Raiffeisen Banking Group, the country’s largest banking group, and serves as the head office of the entire RZB Group, including RBI.