ROE exceeds 25 per cent. Balance-sheet total plus 17 per cent. Strongequity base. One-off effects provide additional boost for the result.
The year 2006 was dominated by the figure 100 for Raiffeisen ZentralbankOsterreich AG (RZB). The RZB Group passed the benchmark figure in noless than three categories: Its balance-sheet total exceeded 100 billioneuros, it moved up the ladder into the circle of the world''s Top-100banks and Raiffeisen International Bank-Holding AG''s share pricesurpassed 100 euros. Adding some income flavour to this hattrick,another record result, reinforced by one-off effects, is expected.
Balance-sheet total to exceed 110 billion euros
Having surpassed the mark of 100 billion euros in total assets, RZB isnow among the world''s 100 largest banks, as per the reliable statisticsof the Financial Times publication The Banker. According to projections,the group''s balance-sheet total as of year-end will grow by 17 per centyear-on-year to more than 110 billion euros."This growth is above allorganic," commented Walter Rothensteiner, CEO of the RZB Group."Noticeable as they were, both acquisitions of 2006, Russian Impexbankand Czech eBanka, together account for only one seventh of the increasein our assets."
Success in corporate business
Business with corporate customers serviced out of Vienna– on of the Group''s core business segments – has again developed very favourably. This segment''s projected profit contribution increased by 65 per cent. Export business, another strong pillar of RZB''s income statement, filed significant gains in market share again. RZB once again arranged the largest number of syndicated-loan transactions for corporate customers in CEE and also takes a leading position worldwide with 88 deals for financial institutions. In total RZB arranged 129 syndicated-loan transactions.
Expected consolidated profit 700 million euros without one-off effects
RZB''s result will get additional boost by high one-off effects of around600 million euros resulting from the sale of former RaiffeisenbankUkraine (now OTP Bank), the sale of the minority stake in Kazakh BankTuranAlem and the sale of a real-estate property in Warsaw. Consolidatedprofit after tax and minorities is expected to reach more than 1.5billion euros, corresponding to an increase of more than 150 per cent.Disregarding these one-off effects, consolidated profit will stillincrease by approximately 55 per cent to more than 700 million euros.
Profit before tax is estimated to reach more than 1.2 billion euros (1.8billion euros including one-off effects). Profit after tax isanticipated at more than 960 million euros (and at more than 1.6 billioneuros with the mentioned one-off effects). The profit contribution ofRaiffeisen International– the company managing the Network Banks, leasing units and specialist companies in Central and Eastern Europe (CEE) – continues to be disproportionately high in 2006.
Own funds increase to 7.4 billion euros
The RZB Group''s attributable own funds are forecast to increase byapproximately 40 per cent to more than 7.4 billion euros. Theexcess-cover ratio would therefore exceed 28 per cent."RZB disposes ofa comfortable capital basis to fund the further growth in CEE," saidRothensteiner.
Growing ROE and strongly growing own funds
In spite of strongly growing own funds– the own funds ratio will exceed 10 per cent – return on Equity (ROE) before tax is anticipated at 25 per cent (disregarding one-off effects, 2005: 23.9 per cent. Including the mentioned one-off effects, ROE would be 38 per cent.
Despite the continual strong expansion, the Group''s Cost/income ratiowill again improve. While 58.9 cent had to be paid in cost for everyeuro earned in 2005, it is expected to be less the 57 cent this year.
More than 55,000 employees
The RZB Group''s growth rate is not least reflected in its development instaff figures."We create jobs at home and abroad. This year alone, wewill add more than 2,800 to our qualified workforce," saidRothensteiner. As per year-end, the number of staff will beapproximately 55,400 (31 December 2005: 46,243). Included in that numberare about 5,400 staff members of Impexbank and about 900 of eBanka.
RZBGroup result outlook 2006*
| RZB-Konzern nach IFRS|
Monetary values in million euros
|Balance-sheet total||approx. 110,000||--||93,863||approx. 17%|
|Profit before tax||approx. 1,800||approx. 1,200||930||approx. 90%|
|Profit after tax||approx. 1,600||approx. 960||705||approx. 130%|
|Consolidated profit||approx. 1,150||approx. 700||450.9||approx. 55%|
|RoE before tax||approx. 38%||approx. 25%||23.9%||> 1 PP|
| Staff at the|
|approx. 55,400||approx. 55,400||46,243||approx. 20%|
|Business outlets||approx. 2,850||approx. 2,850||2,461||approx. 390|
* Previews rounded downwards,
**IFRS-figures for 2005,
* * * * *
Raiffeisen Zentralbank Osterreich AG (RZB) is thecentral institution of the Austrian Raiffeisen Banking Group, thecountry''s largest banking group. It is a leading corporate andinvestment bank in Austria and also considers Central and Eastern Europe(CEE) as its home market. Via listed subsidiary Raiffeisen InternationalBank-Holding AG, it operates one of the leading banking networks in CEEwith subsidiary banks and finance leasing companies in 16 markets. Morethan 11.7 million customers are attended to through more than 2,775business outlets. Representative offices in Lithuania and Moldovacomplement the group''s presence in the region.
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