*) Adaptation of previous year’s values due to retrospective application of IAS 19R.
All figures are based on International Financial Reporting Standards (IFRS).
RBI realized profit before tax of € 835 million in 2013. The year-on-year decrease of € 203 million was primarily attributable to one-off effects in 2012, such as the sale of bonds and the hybrid tier 1 capital buyback totaling € 276 million. Operating result improved significantly by 17 per cent, or € 351 million. This pleasing result contrasted with higher net provisioning for impairment losses (up € 140 million), increased bank levies, and a negative result from derivatives and liabilities. «Our good operating result proves once again that our business model is sound, also in challenging times and despite allowing for high provisions. We have posted the best result of an Austrian bank for the fourth time in a row,» said Karl Sevelda, CEO of RBI. Profit after tax for the reporting period was 20 per cent, or € 149 million, below the value for the previous year. As a result of the decline in profit after tax, return on equity after tax decreased 1.3 percentage points to 5.7 per cent. After deducting profit attributable to non-controlling interests, which increased € 23 million to minus € 46 million, consolidated profit amounted to € 557 million. This resulted in earnings per share of € 1.83 (2012: € 2.72) based on an average of 194.9 million shares outstanding.
The Management Board will propose to the Annual General Meeting that a dividend of € 1.02 per share be paid for the 2013 financial year.
Operating income increased 8 per cent
Operating income increased 8 per cent, or € 432 million, to € 5,729 million year-on-year.
General administrative expenses rose 2.5 per cent
RBI’s general administrative expenses rose 2.5 per cent, or € 81 million, to € 3,340 million in the reporting period, due mainly to increases in Russia, the Czech Republic and Poland (resulting from the consolidation and integration of Polbank in May 2012). However, the cost/income ratio improved 3.2 percentage points to 58.3 per cent due to increased operating income.
Staff expenses, the largest component in general administrative expenses at 49 per cent, rose 2 per cent, or € 31 million, to € 1,632 million in 2013.
As of 31 December 2013, RBI had 57,901 employees (full-time equivalents), 2,183 people, or 4 per cent, fewer than at the end of 2012.
Net provisioning for impairment losses rose 14 per cent
Net provisioning for impairment losses rose 14 per cent, or € 140 million, to € 1,149 million year-on-year. Individual loan loss provisions increased € 33 million to € 1,215 million, while net releases of portfolio-based loan loss provisions fell € 112 million. In 2013, net releases of portfolio-based loan loss provisions amounted to € 52 million, after € 164 million in the previous year. Net provisioning for impairment losses includes income from the sale of impaired loans amounting to € 14 million (2012: € 9 million).
Impairment needs in the Group Corporates segment, where various loans to major customers became non-performing, were € 145 million higher year-on-year. In Russia, net provisioning for impairment losses of € 48 million was made for both large corporate customers and retail customers, whereas net releases of € 16 million were booked the previous year. Similarly, in
Slovenia, net provisioning for impairment losses increased € 31 million year-on-year, particularly due to non-performing loans and the revaluation of collateral. A positive trend was revealed in Hungary and Poland, where net provisioning for impairment losses was significantly lower year-on-year. Net provisioning for impairment losses declined € 89 million in Hungary, and decreased by € 41 million in Poland.
The NPL ratio — i.e., the ratio of non-performing loans to total customer loans — was 10.7 per cent in the reporting year after 9.8 per cent in the previous year.
Total assets declined 4 per cent
RBI’s total assets declined 4 per cent, or € 5.5 billion, to € 130.6 billion year-on-year. A large part of this decrease (around € 3.4 billion) was attributable to currency effects, which largely consisted of the weakening of the US dollar, Russian rouble, Czech koruna, and the Ukrainian hryvnia against the euro.
Loans and advances to customers (before deduction of loan loss provisions) fell 3 per cent, or € 2.7 billion, to € 80.6 billion. Besides the mentioned currency effects, the principal reason for the decrease was weak credit demand from corporate customers.
The loan/deposit ratio (loans and advances to customers in relation to deposits from customers) decreased by 1 percentage point compared with year-end 2012 to 120.7 per cent.
Number of business outlets decreased primarily due to Polbank merger
The number of business outlets fell by 81 to 3,025 year-on-year, predominantly due to the optimization of the branch network following the merger with Polbank.
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 58,000 employees service about 14.6 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 Österreich AG (RZB). RZB indirectly owns around 60.7 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.
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